Recent reports of a plan to introduce legislation that would change how public education is funded in Pennsylvania prompted an in-depth discussion among the Quakertown Community School District Board of Directors.
During their regular monthly meeting Jan. 26, members of the board voiced their concerns about Senate Bill 76, which proposes replacing a significant portion of revenue collected through local property taxes with an increase in sales and income taxes.
The legislation, sponsored by state Sen. David Argall (R-29), has gone before the Senate multiple times. Most recently, however, it was defeated by just one vote in 2015.
On his website, Argall describes the proposed legislation as "a new education funding model that would promote economic growth and completely eliminate the school district property tax once and for all."
The legislation proposes an increase in the state's personal income tax rate from 3.07 percent to 4.95 percent. State sales tax would increase to 7 percent and would also be broadened to include more items and services. The website provides a list of the goods and services that would be taxed, including any food that is not included on the Women, Infant and Children (WIC) list. Among other items on the list, clothing, movie theater admission, over-the-counter medications and funeral services would also be taxed.
Under the proposed legislation, districts would budget based upon allocations rather than revenue generated from local property tax rates. That allocation would be based upon current tax rates but would allow for capital projects with a referendum approved by voters.
"I would love to see property taxes go away," board member Ronald Jackson said. "My fear is we will give all that money to Harrisburg, then we have to hope and pray that any funding formula they create would be equal to what we get from property taxes."
Thursday night's discussion focused primarily on the fact that the bill does not address mandated spending, including the underfunded pension system, charter school payments and other mandates that are reflected in operational costs.
Board President Paul Stepanoff suggested supporting amendments to ensure the legislation does not have a negative impact locally. While supporting the elimination of property tax, Stepanoff also hopes the root causes of current high property tax rates can be addressed.
"Otherwise, this bill just kicks the can down the road," he said.