The allowable 2012-2013 Act 1 increase for each Pennsylvania school district is available as an Acrobat (PDF) chart
Click on this link to see the allowable 2012-2013 Act 1 Increase Chart for Monroe County School Districts: http://www.ptcc.us/pdf/pa_act_1_2012-2013_adjusted_index_10-11.pdf
Divided Pa. High Court Throws Out State Legislative Redistricting Plan
By MARK SCOLFORO Associated Press January 25, 2012 4:58 PM
HARRISBURG (AP) — A narrowly divided Pennsylvania Supreme Court on Wednesday invalidated a plan to redraw state House and Senate district lines, calling the redistricting approach “contrary to law” and throwing into disarray plans by candidates and parties for this year’s General Assembly races.
The two-page order sending the plan back to the Legislative Reapportionment Commission said current district lines will remain until the commission comes up with a new plan that passes legal muster, which could mean changes may not take effect for two years.
”The fact that the court has … allowed the 2001 plan to stay in effect leads me to believe they think it could take a little bit of time” to work up a new one, said Senate Minority Leader Jay Costa, DAllegheny, the only member of the five-man commission to vote against it.
Costa said a restarted process could take weeks or months, depending on the details of the majority’s written opinion, which has not yet been released.
”At least for the time being, I think that the 2001 districts may be on pretty solid ground as we go forward,” Costa told reporters in a conference call late Wednesday.
The commission consists of the Republican and Democratic floor leaders from the House and Senate, along with a fifth member, an appointed judge.
The plan the court threw out by a 4-3 vote was opposed by Senate Democrats and others, who argued in a court session Monday that there was not sufficient reason to split some counties and towns, and that decisions were overly driven by political considerations.
”I’m frankly surprised that any judge would have voted to remand this plan,” said Senate Majority Leader Dominic Pileggi, R-Delaware. He and others said they expected the written opinion will shed more light on where the process goes from here.
”There’s more that we don’t know than we know,” Pileggi told reporters in the Capitol.
A spokesman for House Majority Leader Mike Turzai, R-Allegheny, said the invalidated plan met constitutional and court precedential standards.
”Until we get an opinion, we won’t know what needs fixed, but we’ll respond accordingly,” said Turzai spokesman Steve Miskin.
The House Democratic floor leader, Allegheny County Rep. Frank Dermody, said he respected the decision and would address the court’s concerns once they are known.
The fifth member, Republican Stephen J. McEwen Jr., president judge emeritus of the state Superior Court, did not immediately return a phone message. He was named to the commission by the high court after the other four members could not agree on a chairman.
The one-paragraph dissenting statement, written by Justice Thomas Saylor and joined by justices J. Michael Eakin and Joan Orie Melvin, said they were not persuaded the plan was contrary to law “as reflected in the existing precedent.”
”Although I am receptive to the concern that past decisions of the court may suggest an unnecessarily stringent approach to equalization of population as between voting districts, I believe this could be addressed via prospective guidance from the court,” Saylor wrote.
The plan the commission approved moved some House and Senate districts across the state, and Senate Democrats argued they were able to produce a map that divided far fewer municipalities and counties.
The Pennsylvania Constitution says the 50 Senate and 203 House districts need to be “of compact and contiguous territory as nearly equal in population as practicable,” and that only “absolutely necessary” divisions should be made to counties, cities, towns, boroughs, townships or wards.
”We think you need to explain why you do some of these splits, including House districts that are split, when you’ve got a community that’s like 5,000 folks, and they have three different legislators,” Costa said.
Pileggi said he has asked commission lawyer Joseph Del Sole to seek more clarity about how legislative candidates should proceed. The primary is April 24.
”The order is not as clear as I’d like it to be for candidates,” he said.
He said the commission staff can construct new maps in short order if the court’s opinion focuses narrowly on a small number of districts. If the opinion is broader, Pileggi said, that could take time.
”We’re in uncharted territory here,” he said.
During three hours of oral argument on Monday over nine challenges to the plan, Del Sole said producing districts with nearly equal population was the priority, based on previous Supreme Court decisions.
”This court is being asked to reject 40 years of jurisprudence in order to sustain the appeal,” Del Sole told the court.
But Justice Max Baer questioned whether the court was being asked to uphold the plan simply because it had never invalidated one in the past.
”That’s a self-fulfilling prophesy, isn’t it?” Baer said Monday.
Part of the court order changed certain deadlines for the primary petition process for candidates, and the majority said any signatures on nominating petitions that were collected on Tuesday and Wednesday, the first two days of the three-week petition circulation period, would be considered valid.
Chief Justice Ronald Castille, a Republican, joined Democrats Baer, Seamus P. McCaffery and Debra McCloskey Todd in ruling against the plan.
HB 1776, The Property Tax Independence Act
A solution that makes sense for Pennsylvania
INTRODUCTION
There is no “Holy Grail” of property tax reform. Any property tax reform measure will involve shifting the tax levy from one type of tax to another – there’s no free ride. But there are ways to fund our schools and to ensure a better education for our children that are fairer and more effective than property taxes.
Many Pennsylvanians lose their homes and a lifetime’s work to sheriff’s sales each year because they can no longer afford to pay their property taxes. Senior citizens on fixed incomes are increasingly forced to sell their homes because of unrelenting increases in their tax burden. Young families cannot afford to purchase a home because the per-month property tax escrow is simply too high. Multigenerational family farms are being sold piece by piece to pay property taxes, devastating Pennsylvania agriculture. School districts in areas of the state with limited population and no commercial tax base are in distress and are unable to afford to give their children a quality education. Job losses, outmigration, and abysmal state economic performance caused by burdensome property taxes are devastating Pennsylvania’s economy.
A sensible, broad-based, statewide and state-administered property tax replacement funding source is needed eliminate an antiquated and regressive property tax system, to end these educational inequities, to return home ownership to the homeowner instead of allowing the government to effectively own our homes, and to restore Pennsylvania’s economic vitality.
THE BOTTOM LINE: Our current system of school funding is crumbling. This decay has been occurring for many years and continues to escalate. Home foreclosures and tax sales are occurring at an expanding rate and the home market is at a standstill. The opportunity to fund education from a statewide source is rapidly vanishing as relentlessly rising property taxes outpace available revenue. This will have major implications for school districts statewide. It can no longer be ignored or diminished. Replacement of the school property tax must be accomplished now.
THE PLAN AND HOW IT IS FUNDED
After many months of work and negotiation by key legislators, a plan to eliminate and replace school property and local school nuisance taxes has been finalized and will be formally introduced in both the Pennsylvania House or Representatives and Senate in the near future.
House Bill 1776, The Property Tax Independence Act, looks in part to the former School Property Tax Elimination Act (SPTEA) for its basic structure. While The Property Tax Independence Act mirrors some of the provisions of the former SPTEA, the plan has been comprehensively rewritten to account for lawmakers’ concerns and preferences in order to eliminate objections common to the previous legislation.
As with the former SPTEA, The Property Tax Independence Act will eliminate all school property and nuisance taxes across the Commonwealth and will replace those taxes with funding from a single state source.
The most important provision of The Property Tax Independence Act is that it is tax revenue neutral. To provide absolute fairness, the legislation has been carefully crafted to ensure that the tax swap provision of the plan does not raise one dollar more than is already collected by the school property tax mechanism.
The Property Tax Independence Act utilizes a modernized school funding plan based on 21st century economic realities.
- The Property Tax Independence Act will ABOLISH the school property tax on all homesteads, farmsteads, and businesses as well as eliminate the local school Earned income Tax (EIT) and other Act 511 nuisance taxes imposed by school districts.
- School property tax elimination will be accomplished via a two year phase-out of school property taxes. In the first year after enactment, school property taxes will be frozen at their current level; in the second year they will be completely eliminated except for a small portion that will be retained in each school district to retire the individual district’s outstanding long-term debt.
- The Property Tax Independence Act utilizes our current sales tax mechanism to fund schools, restoring the original intent of the tax. The “The PA Education Sales Tax” was enacted in 1953 for this specific purpose and virtually 100% of the revenue from the sales tax is still dedicated to education funding.
- The sales tax provides a predictable and stable funding source that automatically increases revenue in sync with economic growth. This is in clear contrast to the school property tax which is not based on economic growth and is subject to much variation, forcing annual increases in the tax to increase revenue.
The sales tax is also the most desirable revenue source because, unlike the property tax that has no relationship to family income, it is directly tied to a person’s ability to pay.
While the sales tax is The Property Tax Independence Act’s primary revenue source, small increases in other taxes are blended into the total to spread the cost of education over the broadest possible base.
- The Property Tax Independence Act moderately broadens the base of the state sales tax to include more services and purchases at a new 7% rate. Items to be added to the taxable base include candy and gum, newspapers and magazines, dry cleaning and laundry services, haircuts, and spectator sports admissions. Food items not included on the WIC list and individual clothing and footwear items with a value greater than $50 will also be subject to the expanded sales tax. Generally, food items exempt from the sales tax will be fresh meats, produce, and dairy, along with many packaged and canned foods that are in their natural form, without added sugar or other adulterants.
While there are those who might object on an instinctual level to a sales tax on the last two items, consider this: If you spend eight thousand dollars annually on clothing over $50 and non-WIC food purchases combined, the total sales tax would be $560. If this is less than your school property tax bill you still will realize a substantial reduction in your overall tax burden.
Items that will continue to be exempt from the sales tax include food stamp purchases, all utilities, home heating fuels, health, hospital, and dental services, prescription drugs, home health care, tuition, day care, charitable organizations, and business-to-business transactions.
- The Property Tax Independence Act completely eliminates the local school district Earned Income Tax (generally 0.5%) and nuisance taxes such as the amusement tax, business gross receipts tax, business privilege tax, earned income tax, mechanical devices tax, mercantile tax, occupational privilege tax, and occupation tax and swaps these taxes for an increase of 0.92% in the state personal income tax, from 3.07% to 3.99%. Although those taxpayers with much non-earned income may see a slight increase in their total income taxes, for most taxpayers this will be a direct swap that is tax neutral.
Because low income families pay the EIT from the first dollar earned but receive forgiveness from the state personal income tax if they earn less than $35,000 annually, this tax swap will more than offset any additional sales tax that they may incur.
- In prior versions of property tax elimination legislation each school district was provided funding sufficient to service their outstanding long-term debt. This provision raised many objections to the plan from both taxpayers and legislators who felt that it was unfair to require taxpayers in frugal school districts to pay debt incurred by those districts that may have been financially irresponsible. Besides being politically unpopular, financing this debt from the state level would add $2.3 billion annually to the revenue that needs to be replaced, causing unnecessary tax increases.
To decrease the total revenue needed for property tax elimination, the proposed North Dakota property tax elimination plan was used as a model. At enactment of The Property Tax Independence Act, existing long-term debt will remain with each school district for them to service individually. Because of this a remnant of property tax will remain past the two year elimination phase-in but ONLY the amount of property tax necessary to meet current annual debt service. When that existing debt is retired the final bit of property tax will disappear and no further property taxes will be allowed.
On enactment of The Property Tax Independence Act each school district will be required to state the amount of property tax necessary for annual debt service and will not be allowed to increase that amount or add any new debt financed by property taxes.
The average debt service for all districts is 10% of their annual budget, with the highest district at 18%. This means that, at worst, one or more districts will enjoy an 82% reduction of property taxes at the end of the second year of the plan, with an average property tax reduction statewide of 90%. This will tremendously reduce the burden on property owners until the long term debt is retired.
As mentioned above, total elimination of the property tax in every school district will be achieved when their debt is retired, although that will vary by district depending on the length of the remaining debt term. Fifteen Pennsylvania school districts are carrying no long-term debt and will see their property taxes totally eliminated immediately at the end of the two year phase-in period.
Note that none of these funding sources are particularly burdensome by themselves but, taken together, provide the funds necessary to replace all Pennsylvania local school taxes. Further, The Property Tax Independence Act will more equally distribute the cost of school funding across all of Pennsylvania’s population and visitors to the state, rather than just depending on taxing homeowners.
THE DISTRIBUTION TO THE SCHOOLS
The Property Tax Independence Act works to fully fund all Pennsylvania schools.
- All schools will initially be fully funded at their current levels.
- Schools will receive their property tax replacement funding directly from the state. Initially, The Property Tax Independence Act will fully fund the districts at their current per-pupil level, with funding adjustments in later years to account for changes in student population. All students in Pennsylvania, regardless of their location or their area’s economic condition, will have the opportunity for a quality education.
- Equity in schools is guaranteed because the state assumes the responsibility of school funding. Each school will receive the resources it needs regardless of the local ability to pay. This solves the funding problems faced by rural, urban and fast-growing districts.
- The Property Tax Independence Act calls for a dedicated lockbox account for all property tax replacement revenues that is separate from the General Fund. All replacement funding for the schools will be disbursed from this account through the existing Department of Education funding mechanism, requiring no growth of the current infrastructure.
In addition, The Property Tax Independence Act completely eliminates the taxing ability of local school boards. The only exception would be a possible local EIT or personal income tax for major projects such as new school construction, and that will be subject to a no-exception taxpayer referendum.
It is important to note that The Property Tax Independence Act imposes NO mandates of any kind on Pennsylvania school districts. The plan provides replacement funding only and the funding provided by the plan may be used in any manner the school district deems necessary. The Property Tax Independence Act does not interfere in any manner with local school district decisions.
SPENDING CONTROLS
Current school spending regularly exceeds tax revenue and The Property Tax Independence Act addresses it head on.
- At enactment of The Property Tax Independence Act, all districts will receive 100% funding sufficient to meet all financial obligations. A per-student expenditure level will be determined for each district and will be re-calculated annually. Each school district will then receive annual upward or downward funding adjustments based on changes in student enrollment multiplied by the current per-pupil cost.
Additionally, every district will receive identical percentage annual base funding increases that will be limited by the increase in the Consumer Price Index (CPI), effectively tying annual school budget increases to the increase in available revenue.
- If a district desires additional revenue, they can present a no-exception ballot referendum to the voters of their district to raise additional revenue by either an earned income tax or a personal income tax. However, property taxes will not be able to be re-instituted to raise revenue.
CONSTITUTIONAL AMENDMENT
School property taxes need to be prohibited from ever being imposed on Pennsylvanians again.
Companion legislation to the The Property Tax Independence Act will provide for a constitutional amendment which GUARANTEES that, once eliminated, school property taxes would be gone forever and that a future legislature could never re-institute the taxing of our properties.
ADDITIONAL INFORMATION
The fiscal provisions of HB 1776, The Property Tax Independence Act, were developed using actual and projected revenue and school district expenditure figures provided by the House Appropriations Committee staff. Using those figures as a reference, the legislation is absolutely fiscally viable as written.
East Stroudsburg schools approve preliminary budget with hefty tax hike | PoconoRecord.com
School Property Tax Elimination Authority to Speak at Hughes Library
Please Join The Founders T.E.A. Party Patriots as they host Mr. David Baldinger from the Pennsylvania Tax Cyber Coalition whose topic is entitled Fact and Fiction: Pennsylvania House Bill 1776, at the Hughes Monroe County Library on January 23 at 7:00.
Mr. Baldinger is an authority on school tax relief for homeowners and is one of the proponents of the bill. The bill looks in part to the former School Property Tax Elimination Act (SPTEA) for its basic structure. While HB 1776 mirrors some of the provisions of the former SPTEA, the plan has been comprehensively rewritten to account for lawmakers’ concerns and preferences in order to eliminate objections common to the previous legislation. Instead of an incremental approach to a Herculean problem of high property taxes, HR 1776 eliminates burdensome school property taxes while keeping all schools fully funded at their current levels.
We invite you to come, learn, and discuss the debate over school tax funding.
This topic will be presented based on one of the TEA party’s three core principles, fscal responsibility, in addition to constitutionally limited government, and free markets. The event begins with a welcome tea at 6:30 and will conclude at 8:45. For additional questions please contact Founders TEA Party Patriots’ hotline at 570-445-4538 begin_of_the_skype_highlighting 570-445-4538 end_of_the_skype_highlighting, or fax to 570-476-5104. It will be a very informative evening, so invite your friends and neighbors. Additional information may be found at http://www.ptcc.us/index.htm and http://www.montgomerynews.com/articles/2011/11/16/perkasie_news_herald/n ews/doc4ec43e9154ac2001445168.txt?viewmode=fullstory
Sign the Online Property Tax Independence Act Petition!
From Representative Jim Cox:
Sign the Online Property Tax Independence Act Petition!
On February 7, Governor Tom Corbett will deliver his annual budget address to a joint session of the Pennsylvania House and Senate. In addition to spelling out his budget plan for the year, this annual tradition provides the governor with a platform to identify his legislative priorities. Help us encourage the governor to make the Property Tax Independence Act his top priority by signing the online petition on my website.
We want to show the governor that this issue deserves his attention and support as he outlines his agenda for 2012.
To help us achieve this goal, we are collecting online “signatures” from residents all across the Commonwealth of Pennsylvania to show the governor that this initiative has broad-based public support.
Please make your voice known by signing the online petition.
You can sign the petition here: http://goo.gl/g0cs5
Please share this with everyone you know who shares our vision of a Pennsylvania free from the burden of school property taxes!
Note: An email version of this announcement is available for you to forward to your contacts. If you’re not already on the PTCC email list, send your request to www.ptcc.us.
The Real Faces of the School Property Tax issue.
Over the past few years the PTCC and PCTA has been asking homeowners to send us their real-life stories telling how relentlessly increasing school property taxes are affecting their quality of life. The response to this request has been overwhelming; the letters starkly demonstrate the frustration, fear, hopelessness, and anger that is widespread throughout ALL age groups and families from all areas of Pennsylvania over the lawmakers’ inaction in addressing this issue.
It is my opinion that many lawmakers tend to view the property tax crisis and other similar issues in the abstract, seeing them simply as pawns to be played on the chessboard of Harrisburg election year politics rather than considering how these problems actually affect the lives of the people who they supposedly represent.
These politicians who refuse to support elimination and offer nothing but lame excuses MUST be shown that their inaction and endless political games are jeopardizing the welfare and the lives of many thousands of Pennsylvanians. They MUST understand that what they are doing (or not doing) is destroying the future for good, honest people who only want to live their lives without the fear of financial ruin.
If the Harrisburg lawmakers truly care about the homeowners of this state, they will consider carefully the letters below that clearly show them the REAL faces of the property tax issue and how their procrastination and cowardice towards eliminating school property taxes is affecting the lives of REAL people.
To all of you who contributed to this compilation, please accept our heartfelt gratitude for your efforts. If you have a story that you’d like to share, please send it to pataxpayers@gmail.com and we’ll add it to the compilation.
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