RESOLUTION NO.  2

A RESOLUTION OF THE BOARD OF SCHOOL DIRECTORS OF THE BELLEFONTE AREA SCHOOL DISTRICT, CENTRE COUNTY, PENNSYLVANIA, SETTING FORTH THE REASONS AND PROVIDING A RATIONALE FOR CHOOSING NOT TO OPT INTO THE HOMEOWNERS TAX  RELIEF ACT, ACT 72 OF 2004.

            BE IT RESOLVED by the BOARD OF SCHOOL DIRECTORS OF THE BELLEFONTE AREA SCHOOL DISTRICT, Centre County, Pennsylvania, and it is hereby resolved by authority of the same as follows:

            Following a full year of investigation, study, contemplation, and consideration by administrative personnel, and the Board, the Board decided that the District shall not opt into the Homeowner Tax Relief Act, Act 72 of 2004, and adopted a Resolution in accordance therewith.  The Board so acted for the following reasons:

    a. Preparing a budget months before knowing the amount of state funding the district will receive, and the actual costs of major budget items;

    b.  Long-term financial planning would be hindered;

    c.  Increases in real estate taxes each year in an amount equal to the index could result in higher taxes than would have been experienced without Act 72;

    d. Failed referenda could result in program cuts that may or may not be in the long-term interest of the District’s educational mission;

    e.  Loss of control by the Board over future tax increases to support even well justified budgets, thereby removing from Board members their elected responsibility to understand and balance the needs of the students, the District, and the taxpayers;

    f.  Local tax increase required for participation;

    g.  Exceptions have a sunset clause;

    h.  Exceptions may not apply to the District;

    i.  Opting into Act 72 could have a negative affect on the District’s credit rating for borrowing; and

    j.  Uncertainty of the amount of funds to be distributed, how the funds will be divided, and when the funds will be available.

    k.  Those residents that rent their homes will pay increased tax and receive no tax relief.

    l.  Unfunded mandates continue to impact school budgets; and

    m.  Unanswered questions about the process remain.

            ENACTED as a Resolution of the Board of School Directors of the Bellefonte Area School District at the regular meeting of the Board held the 24^th day of May, 2005.

                                                                        BOARD OF SCHOOL DIRECTORS

                                                                        BELLEFONTE AREA SCHOOL DISTRICT

                                                                        BY:_______________________________

                                                                                       Board President

ATTEST:

_____________________________

Board Secretary