In January 2010, the school board applied to the Pennsylvania Department of Education for referendum exemptions to raise taxes above the Act 1 limit which for 2010 was set at 3.88 percent – or 1.6 mills for Bermudian Springs School District. In April 2010, the board was notified that the request was rejected. When the Pennsylvania Department of Education denies the request, the school district must (1) reduce the tax rate increase to no more than its index or (2) submit a referendum question for voter approval in the next primary election (for school districts with a July 1 through June 30 fiscal year).