A bill going through the State Assembly could place a financial burden on school districts in the years to come.

The State Government Committee unanimously approved a bill proposing a cost-of-living increase in pensions for retired state government and public school employees late last month.

Initial estimates provided by the Public School Employees' Retirement Sys-tem, or PSERS, suggest the system would need $348 million a year for the next 20 years if the bill passes.

School districts get 50 percent of their annual contribution back, so approximately $174 million would be the actual cost statewide.

"This would put another burden on districts that are already in dire straits because of Act I," said Shauna D'Alessandro, president of West Jefferson Hills School District and the South Hills Area School District Association, referring to the widely opposed tax shift legislation proposal.

D'Alessandro also is region director of the Pennsylvania School Board Association, which has opposed the bill.

D'Alessandro described the proposal of the bill as "irresponsible," particularly because of the June 30 deadline for school district budget submittals.

"It's too late to go to the public and ask for permission to raise taxes above the index," she said.

Each district contributed 7.13 percent of each employee's salary to the PSERS for the 2007-08 budget year.

Baldwin-Whitehall School District contributed $1,970,690 this year before the 50 percent return, Business Manager Jennifer Pesanka said.

Brentwood School District contributed $537,458, Superintendent Ronald Dufalla said.

West Jefferson Hills contributed $949,573 to the PSERS during the 2006-07 school year, Business Manager Joe Zupan said.

That figure was up from $708,152 in 2006 and $610,997 in 2005.

Under the bill, public education employees who retired before July 2, 2007 and begin receiving benefits by July 1 of this year would receive pension increases.

The most recent retirees would receive 2.7 percent increases on the amount they receive for their July 1 monthly pension payment and all payments afterward. On the opposite end of the scale, those who retired before July 2, 1990, would receive 25 percent increases beginning in July 2008.

Cost-of-living adjustments, or COLAs, are generally half the rate of inflation, said Rep. Steve Nickol, R-York, author of the bill amendments the Assembly committee passed. Nickol's amendments cut down on the initial percentages proposed under House Bill 2084.

Rep. Matt Baker, R-Tioga, said COLAs come every four to five years. The last COLA occurred in 2002.

Baker, minority chairman of the State Government committee and proponent of the amended bill, said legislators wouldn't know more accurate dollar amounts for the bill until the Appropriations committee conducts an actuarial analysis.

"To use a baseball metaphor, it's gotten to first base but it has a long way to go," said Baker.

"It's almost a guarantee amendments will be filed."