Senate News Update
From Senator Jane Earll
July 5, 2010
School Tax Update
Currently, the Pennsylvania Department of Education notifies school districts
annually of the inflation rate that is the maximum amount by which they may
raise school property taxes without the need for a voter referendum.
This provision is based on Act 2006-1 of the First Special Session, the
Taxpayer Relief Act. However, school
districts may raise property taxes by any level up to the rate of inflation with
a simple majority vote, and without any public approval.
On June 8, 2010, the Senate Education Committee approved legislation
sponsored by Sen. John Rafferty (R-Montgomery) that would require a "super
majority" (two-thirds) vote for school boards to raise taxes.
Senate Bill 553 would amend the Public School Code to require
all millage property tax increases to
be approved by a two-thirds majority vote by the members elected to the board of
school directors. (For a nine-member
board, a super majority would be six members, and a simple majority would be
five.)
I co-sponsored this legislation because I agree that any increase in
school property taxes must be undertaken only when it is absolutely necessary,
signified by the assent of at least two-thirds of the school board.
Any less support would indicate that there may be other options to
resolve budget issues.
Senator
Rafferty, speaking to the Senate Education Committee on June 8th,
said, "Taxpayers are rightfully concerned that property taxes continue to
increase, as does school spending.
Many tax increases are being passed by a single vote. I believe there
should be a compelling need and strong support by the board before property
taxes go up."
This
legislation would provide greater taxpayer protections and ensure that school
boards of directors first seek solutions from within.
Instead of turning to a tax increase first, the boards will be encouraged
to reduce spending and to maximize their existing resources.
For
example, the Pennsylvania School Boards Association recently published its
five-year salary survey. (School Leader
News, Volume 7, No. 12, June 18, 2010)
For 2008-2009, the latest available statistics, average annual
professional salaries increased by 3.2%.
Since
2004, administrative-supervisory average annual salaries jumped 10.5%; members
of bargaining units received an average of 9.1% increases, while
superintendents’ average salaries rose by an average of 13.6%.
Average salaries of secondary teachers went up by 9.3% and those of
elementary teachers increased by 8.7% during the same period.
It is
important for you, the taxpayer, to follow closely the decisions of bodies that
receive taxpayer dollars. Senate
Bill 553 would give you added protection against tax increases because it will
raise the bar when it comes to voting for an increase.
Senate
Bill 553 was reported to the Senate floor on June 8, 2010 and re-referred to the
Senate Appropriations Committee on June 29th.
There it will undergo a fiscal analysis, and
be returned to the Senate floor for
further debate prior to a passage vote in the future.
The House would then be given the bill for consideration.
You can
view Senate Bill 553 in the "Electronic Bill Room" at my website,
www.senatorearll.com.
CONTACT: Senator Earll's office, (814) 453-2515 or
jearll@pasen.gov
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