Court's Decision To Revoke Lower Merion School District Tax Hike Stirs Fears

LOWER MERION TWP, PA (CBS) -- Reaction continues to come in, after a Common Pleas court decision, earlier this week that ordered Lower Merion School District to rescind a tax hike.

Attorney Arthur Wolk says he was concerned about the frequency - and the size - of tax hikes by Lower Merion School District, so he started digging.

"So when I got into it further, I realized they were simply cooking the books."

Overstating costs and understating revenues to get the okay from the department of education for a larger tax increase without having to put it in front of voters, while stock-piling a $57 million reserve.

Based on Wolk's suit, a Montgomery County judge has ordered Lower Merion School District to rescind its 4.4 percent hike, and to limit any increase to the state mandated maximum of 2.4 percent.

The district says they plan to appeal and worry the decision could cause a reduction in services or a personal income tax to make up future shortfalls.

Wolk calls that response, fear-mongering.