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Board reviews Act 1 and Ready-to-Learn tax-equity supplement; $5.5 million earmarked for lost tax revenue
Summary
District staff explained a state tax-equity supplement the district will receive and reiterated the annual Act 1 resolution; the board discussed using $5.5 million to offset lost real-estate revenue tied to declining assessed values.
Board members reviewed two separate but related items: the district's annual Act 1 resolution and a state "ready-to-learn" tax equity supplement the district will receive under recently enacted law.
Staff explained the Act 1 resolution affirms the board will not raise property taxes above the Act 1 index (5.6% this year). Separately, the district's staff said the district will receive $5,500,000 under the state's ready-to-learn/tax-equity supplement but that the money was received this year and cannot be spent until the 2025-26 school year. Staff said the resolution required by statute lists permissible uses and the district intends to apply the funding to offset a sustained reduction in real-estate tax revenue arising from declines in assessed values.
District staff outlined the underlying fiscal picture: the district reported a cumulative decline in assessed values over multiple years and said the realized loss in real-estate tax revenue was about $3,200,000 in the stated period. Staff told trustees they have seen additional assessed-value reductions that could further depress local tax revenue in coming years.
Board members asked about whether part of the supplement should be returned to taxpayers as a targeted abatement; one member suggested the difference between the $5.5 million supplement and the district's calculated revenue loss be considered for that purpose. Staff said they will present scenarios showing the budget impact of 1%, 3% and the full 5.6% tax-rate changes alongside budget projections so trustees and the public can see trade-offs.
The board was clear that the Act 1 resolution is a routine annual action; staff said they will bring formal tax scenarios later in the budget process. The transcript does not show a formal, recorded vote on the Act 1 or ready-to-learn resolutions during the portions of the meeting provided.
The district noted the supplement is governed by state statute and that the board must pass a local resolution identifying authorized uses before spending the funds in 2025-26.
