HEADLINES : Pennsylvania
Corbett discusses pension crisis, lays groundwork for budget address
The North Penn and Souderton Area school districts are both trying to balance their budgets for the next school year, but a big expense is their payments - in the multimillions - into the Public School Employees' Retirement System.
To continue funding PSERS and avoid cutting programs, the districts are both considering applying for exceptions that would allow them to raise property taxes beyond the 1.7 percent increase normally allowable by law.
It's a problem across the state and it's been brewing for years.
In a sit-down meeting with members of the media in the governor's mansion Jan. 10, Gov. Tom Corbett called the pension crisis "a tapeworm in the budget" and laid the groundwork for the pension reform plan that he will announce in his budget address Feb. 5.