Pennsylvania Governor, School Boards in Taxing Tussle

Authority to Raise Local School Taxes at Issue in Debate

Homeowners across Pennsylvania have signed up for a new property-tax cut. But their local school boards hold the power to activate those reductions, and only a handful have agreed to do so.

The Keystone State’s 501 school districts have until May 30 to decide whether to “opt in” to Act 72, which was enacted last July in first-term Democratic Gov. Edward G. Rendell’s bid to deliver on promises to lower property taxes and increase the state’s share of school funding. Only four districts so far have chosen to participate.

Act 72 and its companion measure, Act 71, allow slot machines in Pennsylvania, and funnel a share of the proceeds to consenting school districts to use—along with a required boost in the local earned-income tax—to lower property taxes. The formula essentially substitutes state money for a chunk of the local...