PA Supreme Court Sides With Lower Merion Schools In Tax Suit

LOWER MERION TOWNSHIP, PA – The Lower Merion School District earned a victory in the battle around its 2016-2017 budget and tax increase that is the target of a lawsuit fuiled by district residents.

The district said Tuesday that after the Pennsylvania Supreme Court heard arguments from the district, the court sided unanimously with the district in its request for a review and reargument of an appeal filed in April 2017 and lost was denied by a Commonwealth Judge in June 2017.

This means the district can fight the suit – filed by attorney Arthur Wolk who is representing himself, Philip Browndies, and Catherine Marchand – further.

"We are pleased that the Supreme Court has unanimously resolved the procedural issue that
has delayed the consideration of the merits of the School District’s appeal," said Alfred W. Putnam, Jr. Chairman Emeritus of Drinker Biddle and Reath LLP, who argued the case on behalf of the District before the Supreme Court. "We believe that the Board acted properly in adopting its 2016-2017 budget and that the taxes it levied pursuant to that budget were legal and appropriate. We think that the Courts will agree."

The ongoing battle between the district and complainants moved to the state's highest court after the district's request for a review and reargument of an appeal filed in April 2017 and lost was denied by a Commonwealth Judge in June 2017.

The appeal that was tossed in April was filed in response to the suit being dismissed, according to the district.

Montgomery County Court of Common Pleas Judge Joseph A. Smyth placed an injunction on the district in August 2016, saying it could not enact the increase and was only allowed to raise taxes by 2.4 percentper the Taxpayer Relief Act (Act 1) of 2006.

Then in September 2016, the court placed an injunction on Lower Merion School District's 2016-2017 tax plan has been stayed, allowing the district to enact its 4.4 percent tax hike until the district's appeal process is complete, but the subsequent appeal and its denial meant the district must repay a portion of the 4.4 percent increase.

The stay was issued because Lower Merion School District is a political subdivision of the state or a local government while the case is under appeal, meaning the district does did not have to shift its tax raise to 2.4 percent as ordered by Smyth.

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