Whenever the Commonwealth of Pennsylvania shall, for the purpose of conservation of water or to prevent flood conditions, acquire any lands and property within the limits of any school districts, and shall, by such acquisition, reduce the amount of property within the district taxable for school purposes, the board of school directors shall immediately after such acquisition certify to the Auditor General and to the Superintendent of Public Instruction¹ the assessed valuation of such lands and property at the time of such acquisition.

After any such acquisition the board of directors shall from year to year, at the time of its annual levy of taxes for school purposes, certify to the Auditor General and Superintendent of Public Instruction the rate of its levy for the next school year. Thereupon, the Superintendent of Public Instruction shall ascertain the amount of taxes which would have been collected upon the assessed valuation, certified as hereinbefore provided, at the rate of the levy so certified. Upon the ascertainment of such amount, the same shall be paid by the Commonwealth from time to time from the general fund.