Abington School District audited, accused of raising taxes while stockpiling funding

The Abington School District has been accused of raising taxes while stockpiling funding in their reserves by exploiting a legal loophole to avoid a public referendum.

Pennsylvania Auditor General Tim DeFoor noted during a press conference that an audit of a dozen school districts revealed that they had repeatedly and collectively raised taxes 37 times between 2018 and 2021. As a result, the districts have $390 million in their general funds accounts.

For the report released by Pennsylvania Auditor General Tim DeFoor, you can click here.

From the Commonwealth Foundation’s press release:

The audit covers 12 school districts, and its findings show “common yet questionable practices” allowed the districts to raise taxes 37 of the 48 times they were eligible. The districts raised taxes despite having sufficient funding—an average of more than $360 million collectively—in their reserves.

“School districts are flush with cash even as they promulgate a narrative of underfunding,” said Senior Vice President of the Commonwealth Foundation Nathan Benefield. “Many districts have been stockpiling taxpayer funds for years—increasing their reserve funds far above what’s necessary for a rainy day.”

The Commonwealth Foundation has tracked the growth of all 500 school district reserve funds since 2012. Reserve funds collectively increased almost 33 percent to $5.29 billion, according to the latest financial data from Pennsylvania’s Department of Education. In addition, school districts still hold over $3.6 billion in leftover federal pandemic aid.

“The audit confirms that many school districts are not only adequately, but excessively funded,” said Benefield. “The state should move to protect Pennsylvania taxpayers from unnecessary tax increases and direct funding towards students—including those seeking alternatives to their neighborhood school. Families, not school buildings, need more resources.”

The audit concludes that school districts violate the intent of the law by raising taxes while simultaneously holding excess funds. The Department of the Auditor General therefore recommends that state lawmakers review and revise laws, including those relating to how reserve funds are defined, how much is an appropriate balance, and when districts can raise taxes without voter approval.

Please click here to see your school district’s total reserve funds.