According to Act I, school boards must adopt a preliminary budget for the coming fiscal year, prior to February 14, 2007. The Act does allow for an exception to this budget deadline, however. If a district adopts a resolution, prior to January 25, 2007, confirming that its 2007-2008 budget will not include a tax increase that is greater than its inflationary index and confirming that the district will be able to balance its budget without any such tax increase, the district need not adopt its budget by the deadline of February 14.
If a school district adopts this type of resolution, prior to January 25, a copy of the resolution must be delivered to the Pennsylvania Department of Education within five days of adoption. If PDE feels that the district cannot balance its budget without a tax increase over the index, it can require the district to seek a back end referendum, to get voter approval for the tax increase.
Stay tuned for further updates on Act I, as we move along the Act I timeline.