HB 1776, The Property Tax Independence Act

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 a long-term funding formula to be determined by the legislature. 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 will remain 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.

  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 this issue head on.

• When the Property Tax Independence Act is enacted, all districts will receive 100 percent of the funding necessary to meet all financial obligations.

• If a district school board desires additional revenue, it can present a no-exception ballot referendum to the voters of the 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.

ADDITIONAL INFORMATION

House Bill 1776, the Property Tax Independence Act, utilizes actual and projected revenue figures provided by the Pennsylvania House Appropriations Committee and is fiscally viable as written.