Sexy But Flawed

Extra, extra! Read all about it!  What a sexy headline: Pennsylvania eliminates burdensome property taxes, seniors and homeowners rejoice!

Stop the presses!

You need only scratch a half an inch below the surface to reveal the poisonous effect of this plan.  Senate Bill 76, which would shift the tax burden from property to personal income would generate an enormous windfall for businesses, which would be spared from paying property taxes.

Most frustrating and politically reckless though, is that running these bills is all but destroying the fragile budget agreement in place that would provide area schools a desperately needed injection of funding. Under the structure of the deal, which would end a 5-month-old budget stalemate, is an agreed to $350 million new investment in public education.

If this politically expedient bill to fully eliminate property taxes passes it will put that school funding at risk.  Yet here in the southeast this ill-advised bill has attracted several co-sponsors including Senators Rafferty, Mensch and Dinniman.  Here’s a look at what some school districts they represent stand to lose:

Senator Mensch:
North Penn – $805,913
Pottstown – $1,097,851
Souderton Area – $534,541

Senator Dinniman:
Avon Grove – $986,063
Coatesville Area – $2,210,317
Downingtown Area – $923,787
Oxford Area – $780,559
West Chester Area – $745,089

Senator Rafferty
Spring-Ford School – $623,471

This attention grabbing approach to policy making in Pennsylvania is not prudent.  Good policy requires review, analysis and input. Senate Bill 76 to eliminate school property taxes has not even received a committee vote this session. Instead, Senate Leader Jake Corman will bypass that step for a floor vote to amend the legislation to an unrelated bill.

The negotiated agreement to further invest in public education deserves headlines and accolades, even after a five-month political impasse.  Senate leadership should table this half-baked scheme until it can be given a proper vetting.  At that time, one has to wonder if the most newsworthy bit in this saga will make headlines: SB 76 would represent a major policy shift by Senate Leader Corman who has said he would not support a broad base PIT increase.

“We’re not going to be for that, we’re not going to be for that any time,” Corman said after meeting with Wolf in the governor’s Capitol offices. “So I think it needs to be made very clear that this is going be a while as long as the governor holds on to the need for a broad-based tax increase… That’s the issue.” 

Scandalous, indeed.