Frequently Asked Questions
- Why is the York Suburban School District in this financial situation?
All districts in Pennsylvania are facing budget deficits and the reasons are many. However most of the deficits can be traced to the following: the Act 1 Index, reduced growth in the real estate tax base, reduced interim real estate taxes, reduction in real estate transfer tax, little or no interest income, no growth in earned income tax revenue, retirement costs and reduced basic education funding (BEF)-York Suburban currently ranks 489 out of 500 school districts in the amount of BEF allocated. In addition, it is expected the funding for school districts will be rolled back to 2008-2009 levels.
- What is Act 1?
Act 1, Taxpayer Relief Act of 2006 allocates a portion of revenues from casino gambling to offset reliance on local real estate taxes to pay for public school education. Act 1 was designed to be revenue-neutral. This means that any gaming revenue received by a local school district can only be used to offset existing tax revenues, not as an addition to a district's budget. Act 1 established a ceiling on board-approved real estate tax increases. Prior to passage of Act 1 school boards typically approved preliminary budgets in May and final budgets by June 30. Under Act 1, however, Pennsylvania school districts must either approve their preliminary budgets in December or early January or else adopt a resolution stating that the following year's budget will not require a tax rate increase greater than the allowable index limit determined by the State.
- What is the Public School Employees’ Retirement System (PSERS)?
PSERS is a mandatory retirement system established under state law-the Public School Employees’ Retirement Code-covering all full and regular part-time employees working for school districts, intermediate units, vocational schools and charter schools.
- Who contributes toward PSERS retirement?
The system is funded by contributions from employees, school employers and the Commonwealth. School employee members are required by law to make pretax contributions into the retirement system, at rates that differ based upon when they were hired and on their class of service. Employee contributions range from 5.25% - 7.5%. School districts and the Commonwealth contribute at rates determined by the PSERS Board of Directors based on actuarial projections.
- Can employees opt-out of the retirement system?
No, it is a mandatory system.
- Has York Suburban paid their costs each year for the retirement system and have we paid ahead?
York Suburban has always met the obligation for the retirement costs. School districts have no decision making with regard to the amount to put into the retirement system and costs have varied from year to year. The amount is determined by the PSERS board and occasionally by legislative action. Districts are not allowed to pay ahead, although it is possible for a district to set aside monies within their own reserves to help reduce the spikes in contributions.
- Has there been a recent change to the retirement system?
Yes. House Bill 2497 enacts nine long-term reforms to alter the benefits of new employees to the state two pension systems PSERS and the State Employee Retirement System (SERS). Among the reforms are provisions that would cap retirement benefits, extend the vesting period from 5 years to 10 years for new employees, raise the retirement age from 62-65 for school employees and 60-65 for state employees. Also included is a provision that introduces a shared risk, which would require additional employee contributions.
- Why can’t York County have one school system?
To consolidate/merger school districts, all school district entities must agree to the consolidation and it must be approved by the Pennsylvania Department of Education. An April 2009 comprehensive report regarding Merger/Consolidation of School Districts is available at
This study includes consolidation/merger information specific to York County.
- Why did York Suburban decide to begin building projects at this time and what impact has that had on the projected budget deficit?
Planning for the elementary building projects began with a feasibility study completed in December of 2006. At that time based upon the projected enrollments and conditions of buildings, York Suburban began the planning for the Yorkshire elementary and Valley View projects. Much of the work was already ongoing when the economy slowdown became severe. The District has taken on some additional debt to complete the projects and the total debt service is 8.6% of the budget. The slowdown in the economy however, has afforded the District the opportunity to take advantage of the competitive market with bidding coming in well below projections. The student population actual numbers are well ahead of projections and the elementary buildings are currently experiencing significant overcrowding. In addition York Suburban has been leasing portable classrooms to ease the overcrowding and this is an additional expense which will be eliminated when all four elementary buildings are open.
- How can the student population be growing in this economy when there are no new housing projects in the community.
The majority of the growth in the district is occurring with the turnover of the more affordable housing due in some part to the market. Most of this new influx of students has occurred in the East York/Yorkshire area of the district with an influx of young families. This trend is expected to continue.
- Why can’t the District freeze wages?
The District has binding contracts and/or agreements with the teachers, support personnel and administrative employees. Both the bargaining unit and employer need to be in agreement to reopen contracts.
- Can the district impose sales, amusement, or other taxes to increase revenue?
No. School districts have no taxing authority beyond real estate taxes and those are regulated by Act 1.
- Are all school board meetings open to the public?
Yes, with certain very specific exceptions. The Pennsylvania Sunshine Act applies to school entities and as such, all committee and full board meetings are presumed to be conducted in public unless a topic for discussion fits the criteria for one or more of the five purposes for an executive session. These include; personnel-to discuss specific issues involving current or prospective employees, labor relations-to hold information, strategy and negotiations sessions, real estate-to consider the purchase or lease of real estate up to the point the option or agreement to purchase or lease is reached, litigation-to consult with an attorney or other professional adviser regarding information or strategy in connection with litigation, and confidential information-to review and discuss agency business that if conducted in public would violate a lawful privilege.
- Can families be charged for transportation?
No. PA Code, Section 1361 requires that when a school district provides transportation, it must be free.
- Are school districts obligated to provide transportation to nonpublic school students?
Yes, if the nonpublic schools is within the district’s transportation boundary or not more than 10 miles outside the district’s boundary.
- To what age must school districts educate Special Education students?
Up to the age of 21 based upon student need.
17. Can the district apply for waivers or exemptions from mandated services?
No, mandate waivers available under the Education Empowerment Act expired 6/30/10.