Some officials in Gateway and Charleroi school districts are having second thoughts about whether they did the right thing in agreeing to participate in a new property-tax reduction program funded by slot machine revenue.

They are two of only four school districts statewide that have signed on so far.

If districts want to receive some of the gambling money to help offset property tax decreases, they must opt in by May 30.

Many are holding information sessions, and some have hired professionals -- at costs ranging from less than $1,000 to more than $12,000 -- to help them sort through the issues.

"The debate is continuing to evolve,'' said Tim Allwein, assistant executive director for governmental and member relations of the Pennsylvania School Boards Association.

The PSBA last week released a survey answered by about half of the state's school districts. About a third are considering opting in, about a third likely will not and about a third are undecided.

Gateway board member Cindy Lucas said that she and a couple of other board members have concerns.

"We felt that we made, I hate to say, a bad decision, but we weren't appropriately informed when we opted in,'' she said.

But fellow board member Murray Goppman, who chairs the budget and finance committee, is convinced the board did the right thing by voting early.

"When the gambling money finally does show up, if it does, the taxpayers are going to get a piece of it,'' said Goppman.

Charleroi board President Kenneth Wiltz said, "We are having second thoughts. What we thought would be good, may not be as good as we thought.

"At this point, as more information starts to come out, we're not sure if we were premature or not."

Gateway has about 4,200 students. Charleroi has about 1,800.

The law, known as Act 72, is complicated and has uncertainties.

"What the state is asking school districts to do here is to enter into a lifetime commitment when a lot of things are very, very unclear right now,'' said attorney Ira Weiss, noting a combination of "what ifs," "very byzantine formulas" and uncertainty as to how much money can be raised through gambling.

The law establishing gambling is being legally challenged. Even if it is upheld, the earliest any money will arrive may be 2007, and it's uncertain how much.

State estimates are based on $500 million or $1 billion in gambling money being available to school districts.

How much property taxes could reduced varies by school district, based on a formula.

In Gateway, it would amount to $189 per homeowner if $500 million is available and $320 if $1 billion is available, according to state estimates. In Charleroi, the figures are $164 and $291. Only those who filed for a homestead/farmstead exemption would be eligible.

State estimates may be found on the Web at www.pde.state.pa.us/proptax/lib/proptax/act72_estimates.pdf.

The state figures do not take into account the fact that districts that opt in also must raise their local income taxes by 0.1 percent. On balance, some homeowners may find they pay less tax, and some may find they pay more.

"People have to think about their net, how it affects their net tax liability, not just look at the property tax,'' said Allwein.

He said districts also need to consider public opinion and how the restrictions placed under Act 72 will affect the district.

If a school district opts in, it won't be able to raise property taxes without a referendum unless it falls under certain exceptions, such as special education cost increases above 10 percent.

A participating district also will have to prepare its budgets earlier. It also requires districts to remain in the system for four years.

Last week, Moody's Investors Service added another wrinkle when it said it would lower a school district's credit rating if it participates. That would make it more costly to borrow money.

Standard & Poor's said it would evaluate school districts on a case-by-case basis.

Scott Bossung, senior managing consultant of the Pittsburgh office of Public Financial Management, a Harrisburg-based firm that has been hired by some school districts to review Act 72, said, the choice is individual for each district because demographics matter.

"If you've got a community that has a high retired population that does not have any earned income, an increase in the earned income tax isn't going to impact them. Then, obviously, the deduction they're going to get in property taxes is going to make it attractive to them,'' he said,

But it might be different in a community with few retirees and a lot of two-income families who "are going to be greatly impacted by the earned income tax,'' Bossung said.

Individual circumstances are reflected in the choice to opt in made by Central Dauphin in Dauphin County and Austin Area in Potter County.

In Austin, the state estimates a property tax reduction of $317 per household if $500 million is available and $602 per household if $1 billion is available.

Austin Area Superintendent Matthew Hutcheson said the district, which covers 230 square miles but has only 250 students and about 600 households that pay property tax. He said the median housing price is $26,000.

"You can see with the low median range and the dollar figure, it is of benefit to us,'' said Hutcheson.

In addition, the gambling bill triples the payment districts receive for having state gamelands within their borders. Austin Area has 110,000 acres of gamelands and expects to see an increase of $88,000 from the state.

Central Dauphin, which has more than 11,700 students, is one of only four school districts in the state to adopt Act 50, a property tax law passed in 1998. This law permitted districts to lower property tax if they raised income tax but did not provide any extra money, such as the gambling revenue behind Act 72. It also has a referendum provision.

Central Dauphin Superintendent Barbara Hasson said that Act 72 will provide more flexibility than Act 50 does. She said the district has been able to balance the budget without going to a referendum, but Act 72 provides more exceptions, if needed.

Allwein said the decision whether to participate is difficult.

"It's not surprising at this point only four districts have opted into it,'' he said.