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.