n a rare show of agreement, just about everyone in Philly is fuming over the refusal of state lawmakers to authorize a $2-a-pack cigarette tax hike. The public schools have been counting on the money to fill a short-term $81 million annual budget gap.

Busloads of outraged school advocates are heading to Harrisburg today, in fact, to raise their voices in protest.

Why do legislators from York, Erie, and even Punxsutawney have the power to torpedo a solution city leaders have decided is part of the answer to the schools’ funding problems?

In today’s HOW PHILLY WORKS, we’re taking a look at the current status of this maddening situation that threatens the start of school on September 8.

I don’t get it. I thought Council already dealt with the cigarette tax.

City Council unanimously passed a $2-a-pack cigarette tax in June 2013. But, in Pennsylvania, cities and towns don’t have the power to tax themselves. Only the state can give that authority, which means that municipalities that want to raise money through new taxes need approval from the state legislature.
Sounds pretty complicated.

It is, especially since Pennsylvania has more local governments (about 2,630) than any other state – except Illinois. The state has granted local governments the authority to raise certain taxes so they don’t have to go back to Harrisburg each and every time (the property tax is a good example). The cigarette tax isn’t one of them though. That’s why Philly needs state approval to hike the tax on cigarettes bought here over and above the tax already imposed on cigarettes by state government.

How will hiking the cigarette tax help the public schools?

The cigarette tax won’t solve the long-term budget crisis by any means. But it is expected to bring in between $40 to $45 million for year one and about twice that when it’s in effect for a full fiscal year.

What’s the big deal to Harrisburg to give Philly the cigarette tax?

It’s the age-old quid-pro-quo: Lawmakers whose votes are needed on the cigarette tax want something for their own districts. For instance, a state Representative from York County says he can’t vote for the cigarette tax unless his county gets authority to raise its hotel tax by two percent. Many non-Philly lawmakers also point out that their school districts have money problems too.

But don’t lots of counties spend more to educate their kids than Philadelphia does?

Yes – which is why school districts like Philadelphia say the state is failing its constitutional obligation to provide a “thorough and efficient” public school system. By the way, that’s something the state legislature agrees with: A Basic Education Funding Commission has been appointed to overhaul the way state government funds public schools to ensure fairness for all districts. (The Commission meets next on August 20 at 11:30 a.m. in the North Office Building, Senate Hearing Room One if you want to attend.)
But Philadelphia needs funds NOW.

The PA House was scheduled to come back to Harrisburg from vacation on August 4 to vote on the cigarette tax bill. (The authorization bill passed in the House, then amended in the Senate, and is back in the House for what is called a “concurrence vote.”) The vote was cancelled. Many House members were unhappy with some of the Senate amendments (which included the hotel tax provision we mentioned earlier) and want them removed from the final bill.

When will the vote happen?

House leaders say they will deal with it when their chamber reconvenes on September 15. In the meantime, they say Governor Tom Corbett can advance education funds already approved for Philadelphia.

Will Corbett do this?

He may. But not before giving the cigarette tax another chance. Corbett, who has been widely criticized by local school advocates for cuts in state education funding, scheduled a meeting today with legislative leaders to discuss the cigarette tax and also pension reform, an issue he cares about that also hasn’t been tackled by the General Assembly.

Could Philadelphia advance money to the schools?

It could. Here’s what Mayor Michael Nutter and City Council President Darrell Clarke had to say about this in a joint statement on July 31 (after they found out the House wasn’t coming back on August 4): “[T]his only advances money already included in the District’s budget and does nothing to address the substantial budget gap that the funds generated by the Philadelphia Cigarette Tax would help close.” Even if Corbett advances state funds, the same would be true: this would be money already earmarked for the schools, rather than additional funds.

What’s the drop dead date for getting money for the schools?

School District Superintendent Dr. William Hite says layoff notices will start going out by August 15. District officials predict 1,300 employees could be laid off and other service cuts are likely.

Could schools just not open?

Hite says this is certainly an option, as is opening later than September 8.

I don’t want to sit on the sidelines. What can I do to help?

The city’s delegation in Harrisburg is already on board, but it never hurts to remind them of your support. You can also contact other state lawmakers and also the governor. You can find contact information here. In addition, you can also join in actions by local school advocates for more funding. Public Citizens for Children and Youth or Parents United for Public Education are two places to start.

Committee of 70 – August 4, 2014 – Read article online