Pa. House bill would give schools tax option
HARRISBURG The House approved a sweeping but longshot bill Wednesday that would let school districts replace property taxes as a funding source - then broke for two weeks with the promise that it would vote on the thorny question of transportation funding when it returns.
HARRISBURG The House approved a sweeping but longshot bill Wednesday that would let school districts replace property taxes as a funding source - then broke for two weeks with the promise that it would vote on the thorny question of transportation funding when it returns.
The bill, passed by the GOP-controlled House in a 149-46 vote, would let districts replace property taxes with "elimination taxes," including additional earned-income taxes and business privilege taxes.
Unlike measures, the bill would let individual districts decide whether to change their taxing systems rather than placing the question to voters in a referendum. It heads to a less-promising future in the Senate.
Supporters argue that school funding should not follow a "one-size-fits-all" approach, and that the legislation gives more options to districts struggling with shrinking tax bases or contending with a high number of residents on fixed incomes.
All revenue generated would be used for the reduction or elimination of a property-tax share.
"School districts haven't had direct options before to do it themselves," said Rep. Seth Grove (R., York), the bill's sponsor. "This bill gives that direct taxing authority to the school districts. That is why this a viable option."
Critics say the measure fails to address the more pressing problem of inadequate state funding for public schools.
They contend that few, if any, districts would take advantage of the change, because property taxes are a reliable - even stable - source of revenue, unlike the state's commitment to districts.
"It's not a well-thought-out initiative," said Rep. James Roebuck of Philadelphia, the ranking Democrat on the Education Committee. "And it certainly doesn't do anything to solve the more basic problem of equitable state funding for schools."
The House and Senate are scheduled to return to the Capitol on Oct. 15.
At that time, House Majority Leader Mike Turzai (R., Allegheny) said he would bring up for a vote the $2.5 billion transportation funding plan that overwhelmingly passed the Republican-controlled Senate in June - though it's unclear whether that proposal has the votes to pass in the House, where many Republicans oppose raising taxes or fees.
The Senate plan, among other things, would increase driver's license and vehicle-registration fees, and put a hefty surcharge on speeders and others who violate traffic laws.
A transportation funding plan is one of three major policy priorities of the Corbett administration this year, and its passage is considered important to Gov. Corbett's reelection efforts.
