PA Municipal State Aid
Posted on Wed, Oct 19, 2011
By reviewing the history of state aid unit values on the attached chart, you will notice a sharp increase in the 2011 unit value. This was a welcome increase, but not something you should plan on for 2012. The PA Auditor General’s office sent out a letter cautioning municipal managers on this issue, this letter is attached below.
History of Pennsylvania State Aid Unit Values
YEAR Unit Value % Change
2005 $2,926.77 0.53%
2006 $3,088.52 5.53%
2007 $3,206.39 3.82%
2008 $3,186.33 -0.63%
2009 $3,218.00 0.99%
2010 $3,234.84 0.52%
2011 $5,596.43 73.00%
Funding your pension plans becomes more difficult during prolonged market downturns. Act 44 expanded your asset smoothing options. Keep in mind that there is no free lunch. A reduced MMO today due to asset smoothing must be repaid sometime in the future. This is a topic you should review carefully in your planning meetings with your actuary and investment advisor.
This information has been compiled from sources believed reliable but cannot be guaranteed. Any statement of past Unit Values is not a guarantee of future Unit Values. Advisory services offered through Geneos Wealth Management, Inc. *www.auditorgen.state.pa.us
docs/2011 PA State Aid Letter.pdf
