Senate Democrats Call for Special Session on Property Tax Relief or Elimination

 

Harrisburg – February 1, 2017 – State Senate Democrats said that Gov. Tom Wolf should call a special session of the General Assembly to ensure that legislation that results in significant property tax relief or total elimination is passed and signed into law this session.

At a news conference today at the state Capitol, Senate Democratic Leader Jay Costa (D-Allegheny) said taxpayers of Pennsylvania have waited too long for relief from escalating tax bills.

“We believe there should be a full, complete and transparent discussion of any and all tax relief or elimination proposals,” Costa said.  “A special session provides the kind of platform that is needed for citizens and lawmakers to understand specifics about each proposal.”

Leading the call for the special session, state Sen. Lisa Boscola (D-Northampton) said, “Relief from property tax needs to be addressed without delay.”

In the letter to the governor, the Democrats stated, “Our taxpayers have waited far too long for action on this important issue.  They want lawmakers to set aside partisan agendas and enact a significant property tax reform or elimination measure–NOW.”

Working families are struggling to pay mortgages and save for college for their children while seniors have to scrape resources together to make ends meet; property taxes add to their burden, the letter said.

Boscola, who has been a long-time advocate of property tax elimination and relief, said that “my goal is to pass legislation that will eliminate the property tax and replace it with a better system to fund public education. Our homeowners deserve it and our children need it.”

Another strong proponent of calling the special session is Senate Democratic Whip Sen. Anthony H. Williams (D-Philadelphia/Delaware).

“Addressing property tax relief or elimination needs to be a top priority, but is critical that we look at all the plans closely and find common ground,” Williams said.  “A special session will force the General Assembly to focus on the issue, act assertively and come forward with a proposal that is balanced and equitable.

“Our property taxpayers have waited long enough.”

Senate Democratic Appropriations Chair Sen. Vincent J. Hughes (D-Philadelphia/Montgomery) endorsed the call for a special session.

“The issue of property taxes has been a top priority for Pennsylvanians, many of whom have seen significant tax increases over the past few years,” Hughes said.  “This special session would serve as an opportunity to thoroughly examine how we can provide the sustainable property tax relief that Pennsylvanians want and deserve while ensuring that our school districts are still properly funded.”

Sen. John Blake (D-Lackawanna) said that a special session will allow lawmakers to fashion a plan that strikes a balance between property tax relief and reliable state support for public education.

“For many Pennsylvanians – particularly our seniors and lower income property owners – there is a very real school property tax crisis. I remain committed to a responsible solution that can significantly reduce and, if possible, eliminate the property tax burden on these lower income property owners,” Blake said. “I believe strongly that a special session on property tax reform can finally allow the legislature to strike the appropriate balance between property tax relief and the assurance of sufficient, predictable and reliable state financial support for public education.”

Sen. Jim Brewster (D-Allegheny/Westmoreland) said he hoped a special session will spur lawmakers to act.

“For too long our taxpayers have watched while the General Assembly has tried to deal with reducing property taxes,” Brewster said. “There are many plans now being drafted or considered and lawmakers need to come together on a plan that provided real relief or elimination.  Taxpayers have waited too long.

“A special session is an excellent forum for all plans to be discussed, including the plan to totally eliminate property taxes.”

Sen. Sharif Street (D-Philadelphia) said that there are several approaches to address tax reform, but lawmakers need to be thoughtful about how tax elimination impacts schools.

“If we’re going to get serious about providing property tax relief or elimination, we must do it thoughtfully. We certainly can’t hastily approve an elimination plan at the expense of our public schools,” Street said. “There are several approaches to addressing property taxes, so a special session would provide us with a clearer path toward true relief.”

Sen. Judy Schwank (D-Berks), who has long been an advocate of property tax elimination, said school property tax is a complicated issue.

“One large source of revenue for school funding must be replaced with multiple other sources, and we must do this fairly and uniformly,” Schwank said.  “Let’s use this special session to strike a balance between relieving the heavy burden property owners face, while also providing our schools with a reliable source of investment.”

Sen. Art Haywood (D-Philadelphia/Montgomery) said that property tax reform is a complex issue, but one that must be addressed.

“Property taxes remain an important issue to address. I still maintain that the appropriate solution will prove complex. We must dedicate time and effort to ensure the solution is successful,” Haywood said.

“The property tax is no longer sustainable as the sole source of funding for public education. It is high time for us to come together in the spirit of bipartisanship to develop and enact new and lasting solutions to the ongoing burden of rising property taxes on Pennsylvania homeowners,” Sen. Andy Dinniman (D-Chester) who serves as minority chair of the Senate Education Committee said. “This is a process that must involve both school districts and direct input from taxpayers and homeowners.”

The governor is empowered to call a special session of the General Assembly under the provisions of Article II, Section 4 and Article IV, Section 12 of the Pennsylvania Constitution.

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Senate Hearing Focuses on Budget Impasse’s Impact on Schools

Harrisburg – October 28, 2015 – At the request of state Sen. Vince Hughes (D-Phila.), the Senate Democratic Policy Committee today held a hearing on the devastating impact that the state’s 120-day budget impasse is having on schools across the state.

“While many of the budget dispute points remain unresolved, what is clear is that the consequences of this impasse are far-reaching,” said Sen. Lisa Boscola (D-Northampton), who chairs the committee. “This hearing gives lawmakers a sense of how schools are handling the funding shortfall, and what problems they’ll face if this stalemate continues to drag on.”

Hughes added, “A growing number of schools have been cornered into borrowing money and taking out credit lines just to keep their doors open. Hopefully, this hearing’s focus on this worsening statewide financial crisis will encourage greater urgency, cooperation and compromise in the ongoing budget negotiations.”

During the hearing, state Auditor General Eugene DePasquale testified that at least 27 school districts have taken out loans totaling more than $431 million. He projected that interest payments will total $30 million if the stalemate reaches mid-November.

Those who testified decried how the impasse has harmed students, depleted reserves and how taxpayers will be needlessly saddled with paying the interest on the growing number of loans and credit lines that schools are obtaining to keep their doors open.

Erie Public Schools Superintendent Jay Badams lamented that his district will need to borrow $30 million just to get through January.

“That’s $114,000 in wasted interest money that could have been used for so many badly needed educational expenses,” Badams said.

Dr. Joseph Roy, who serves as superintendent of the Bethlehem Area School District in Northampton County, added that “choices at the state level continue to hammer school districts.” He said the diversion of funds to charter and cyber schools and a “punitive” approach to public education has blown up school expenditures.

Dr. Rula Skezas, who serves as superintendent of the McKeesport Area School District in Allegheny County, noted that even if the district receives its proposed funding it would still fall short of what it received during the 2011 school year. She said McKeesport has taken out a $5 million line of credit to make it to December. She said the district has already eliminated 110 staff positions to try and make ends meet.

Hughes, who serves as Democratic chair of the Appropriations Committee, said public, charter and private schools are already reeling from years of being underfunded. He noted that the Philadelphia School District has already borrowed $275 million during the impasse. Fran Burns, who serves as chief operating officer for the School District of Philadelphia, testified that the district has struggled to contend with a “structural deficit.”

Lamenting the impact on local working families who fund schools through property taxes, Boscola pointed toward an educational survey conducted earlier this year showing that nearly 75 percent of districts were planning to impose property tax hikes, 30 percent were planning on making additional program cuts, and 41 percent were making more staff cuts. She said the state has withheld approximately $3 billion in school funds since the budget impasse began in July.

Joining Boscola and Hughes at the Capitol committee hearing were Senators John Blake (D-Lackawanna), Jim Brewster (D-Allegheny), Andrew Dinniman (D-Montgomery), Christine Tartaglione (D-Phila.) and Sean Wiley (D-Erie),

Those testifying included:

  • The Honorable Eugene DePasquale
    Pennsylvania Auditor General
  • Fran Burns
    Chief Operating Officer, School District of Philadelphia
  • Joseph Gorham
    Superintendent of Schools, Carbondale Area School District
  • Dr. Joseph Roy
    Superintendent of Schools, Bethlehem Area School District
  • Dr. Jay D. Badams
    Superintendent, Erie Public Schools
  • Dr. Rula S. Skezas
    Superintendent, McKeesport Area School District
  • Marjorie Neff
    Chair, School Reform Commission
  • Anthony Pirrello
    CEO, Montessori Regional Charter School of Erie, and Vice President of Pennsylvania Coalition of Public Charter Schools
  • Matt Przywara
    Member, PASBO
    Chief Financial and Operations Officer, School District of Lancaster
  • Bill LaCoff
    President, Pennsylvania School Boards Association
  • Susan Gobreski
    Education Voters of Pennsylvania
  • Dr. Pearl English
    School Nurse, School District of Philadelphia

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Senate Democrats Ask Treasurer to Withhold Payment to Charters

Harrisburg – Oct, 20, 2015 – State Senate Democrats today called on the Pennsylvania state treasurer to “stop payment” on a scheduled disbursement of property tax revenue headed to charter schools. They have sent a letter to state Treasurer Tim Reese formally asking for the withholding of the money.

“Charter schools are seeking gaming tax relief funds based on one legal interpretation, while public schools and many public officials have a different view of the law,” state Sen. Democratic Leader Jay Costa (D-Allegheny) said today. “The treasurer should not release one dime until there is legal clarity and outstanding issues have been resolved.”

Charter schools contend that they are due disbursement from funds generated from gaming revenues. Typically, when a state budget is adopted, charter school funding is deducted from basic education subsidies.

Due to the budget impasse the normal funding stream is not available. The charters say that the law stipulates that since those funds are not available, the funds are then deducted from other state payments. The state is expected to make a $45 million payout to charter schools on Oct. 22, with 312 school districts diverting funds to charter schools.

“All of our schools, including traditional public schools and charters, need to be appropriately funded by the commonwealth,” Senate Democratic Appropriations Chair Vincent J. Hughes (D-Philadelphia/Montgomery) said. “However, we cannot provide special assistance to charter schools while many other school districts are suffering.

“I urge the state treasurer to hold off making payments to charter schools until the budget impasse has been resolved and all schools have funding in place.”

Sen. Jim Brewster (D-Allegheny/Westmoreland) called for the suspension of the payment to charter schools late last week. Brewster said “public schools are facing incredible difficulties because of the lack of a state budget.

“Now, the funding they are getting outside of the basic subsidy is being hijacked and that is wrong.”

Brewster pointed to the situation involving two of his school districts in the Monongahela Valley as examples of inequity. He said that while McKeesport is due $1.2 million in reimbursements, they will only receive $41,000 after charter school funds are deducted. He said that Clairton will have to send its entire $230,000 reimbursement to charters and receive nothing.

“Since so many of our schools are hurting due to the budget impasse, we need to answer important legal questions regarding these funds before they are distributed later,” Sen. Andy Dinniman (D-Chester), Democratic chair of the Senate Education Committee, said. “The bottom line is that both public and charter schools are in need of these supplemental gaming funds – funds that do not go through the normal budget process.”

In the letter to the treasurer, Senate Democrats said they do not believe that gaming fund reimbursements constitute “state payments” and that the state law dealing with disbursement of funds never contemplated a budget impasse.

They say that the statute involving the generation of faming funds and property tax relief define the use of funds disbursed from the property tax relief fund. Senate Democrats say that there is no discretion to shift funds earmarked for tax relief to pay operational costs at charter schools.

“Pennsylvania Race Horse Development and Gaming Act and the Taxpayer Relief Act must be read together in order to establish the General Assembly’s intent for the use of the money in the Property Tax Relief Fund,” the letter says.

Costa said that under the Fiscal Code the state treasurer has the authority to withhold payments from the state treasury.

“No payment can be made without the state treasurer’s warrant and approval,” Costa said. “This is a clear case when the law is murky and public schools are being treated inequitably by laws that did not anticipate a long budget impasse.”

Brewster, who met with the secretary of education and budget secretary yesterday about the issue, said he is very concerned about the short-term financial health of school districts if the funds are diverted.

“Many school districts across the state will bear the burden if these funds are released and they are not compensated,” Brewster said. “Given the outstanding legal issues, the responsible course of action is to stop payment until the conflicting interpretations of the law are reconciled.”

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Brewster Joins Protest of $ 300 Million Education Common Core Mandate

Brewster speaks about his legislation to revamp current system of student testing

Harrisburg, May 14, 2013 – State Sen. James Brewster joined with his Senate Democratic colleagues at a news conference this week to decry a new unfunded education mandate that could saddle cash-strapped school districts with a $300 million expense and threaten graduation for thousands of students across Pennsylvania.

There is no specified funding or plan to provide for the remedial instruction, the redesign of curriculum, or the project-based assessments for those who repeatedly fail the new testing that is part of the Corbett Administration Common Core mandate, according to Brewster (D-McKeesport).  In addition, the senator said that an entirely new testing plan may be necessary.

“There is a serious need to look closer at student testing and develop a better approach that most accurately reflects student achievement and school performance,” Brewster said.  “Today’s testing system is inherently flawed and in dire need of restructuring.”

Recognizing the growing frustration with how student performance is assessed, Senator Brewster has proposed Senate Bill 823, which would create a bi-partisan, bi-cameral commission to evaluate, revise or replace the current system of student testing.

The Student Performance Measurement Advisory Commission would make recommendations to either revise heavily or replace the current testing structures that apply to students, teachers and school districts.

“For too long, too many have had questions about student testing methods– especially now that student test scores are being used for more than evaluation of student performance,” Brewster added.  “We need fair testing, fair standards and an equitable approach.

“Expanding the use of student testing to determine student and school performance, district distress and teacher proficiency is the wrong approach.”

Brewster said that he has spoken to many professional educators and they believe the current tests fail to account for socio-economic, environmental, economic disparities and cultural differences.

“Pennsylvania needs a fair, responsible student testing system that truly reflects performance in the classroom,” Brewster added.  “We need to reorder and refocus what we are doing in regards to student testing.  Using the commission that I’ve called for in SB 823 will give us the platform to make serious, systemic changes in our approach to student testing and its applicability.”

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