Monday, February 11, 2013

PCS Tax Levy Increase at least 4.78 Percent?

At tonight's PCS BOE Finance Committee meeting, administration reviewed preliminary estimates for revenues for 2013-2014.  During the discussion of known revenues to date, administrators revealed that the tax levy increase for next year's spending plan is allowed to be 4.78%.  The maximum tax cap (that everyone thinks is 2%) can be adjusted for extraordinary increases in expenses.  One of those expenses is pension costs.  Because the increase in those costs for the Teacher's Retirement System is more than 2%, the additional amount can be passed on to the taxpayers, without getting 60% of the vote. 

Will the higher tax levy amount be recommended by administration?  Absolutely!  They have already planned for a 4% increase in their calculations, so another 0.78% won't be a big step.  The big question is, how high will they go beyond 4.78%?  Last year, more than 70% of the voters agreed to exceed the cap.  It is likely that confidence is high that the people who vote will agree to whatever is recommended.  Just my opinion.

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