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Harrisburg school board declines immediate re-entry into city—tax-abatement program, directs negotiation for future terms
Summary
After a lengthy discussion about the city—run LERTA tax-abatement program and its impact on district revenue, the board declined to rejoin for calendar-year 2026 and instructed administration and legal counsel to negotiate district-preferred changes for any successor program starting in 2027.
The Harrisburg School District Board on March 10 debated whether to rejoin the city's tax-abatement program known as LERTA (Local Economic Revitalization Tax Assistance). District staff reported the program expired Dec. 31, 2025 and noted that most prior approvals in Harrisburg had been residential and in many cases carried 100% exemptions for 10 years.
Dr. Stokes and the district solicitor described the fiscal trade-offs: LERTA can stimulate development, but approvals that reduce school-property tax revenue for a decade can disproportionately affect districts that rely on state aid and have declining local assessed values. The administration estimated that at the district—s current millage rate, the revenue not collected on properties approved under the exemption could total roughly $2.7 million over a 10-year exemption period (district estimate cited in discussion).
Developers asked some board members to reconsider the decision not to extend the program for a one-year window. Board members weighed three options: rescind the decision and participate in a 2026 extension, decline participation but direct district negotiators to work with the city and county on a successor LERTA ordinance for 2027, or do nothing further. After discussion, a board straw poll showed a majority favored the second option: do not participate for calendar year 2026 but authorize administration and the solicitor to negotiate preferred changes to any successor program that would take effect in 2027.
Board members stressed the importance of negotiations that protect district revenue and limit downtown-only residential exemptions that yield little net benefit for the district. Board members asked staff to bring back specific proposed ordinance language, revenue impact estimates and parity provisions before any future vote.
The board did not take a formal vote to rejoin LERTA on March 10; instead, administrators were directed to pursue negotiations and to re-present proposals to the board for formal approval at later meetings.
