In Pennsylvania as in many other states, employee pension costs are a significant source of financial pressure for school districts (Zeehandelaar and Northern 2013, Pennsylvania Public Employees' Retirement Commission 2013). In order to gain greater insight into the nature of Pennsylvania school districts' financial burden related to pension commitments, this article presents the findings of two scenarios, one which compared the maximum amount of local property tax revenue Pennsylvania school districts could raise under a 2010 state property tax limitation statute, Act 120,1 to their pension obligations; and a second scenario which incorporated a 1% annual salary increase into the analysis. The article is divided into three sections. The first provides the fiscal context for this study. This is followed by a description of the methodology used in the study and the presentation of findings. The third, and final, section presents conclusions.