One of the items that came out of the Governor’s budget presentation on Tuesday was a possible change to Act 1 of 2006, the law that is aimed at providing school property tax relief through gaming money, tax shifts, and, if applicable, taxpayer referenda on tax increases that exceed a predetermined index. Many have opined that state level cuts to education will simply force tax increase at the school district level: one representative stated "it’s a no-state-tax budget, but it will not be a no tax budget at the end of the day for most Pennsylvanians. School taxes will have to go up".
To stave off what has been the norm for school districts in the past few years under Act 1-design a budget and, if a tax increase is included, either increase it to a level just under the index or seek one or more of the ten exceptions available under Act 1 from either the PA Department of Education or the courts-there might be a proposal to tighten the Act 1 requirements. Voters have had little, if any, opportunity to vote a school tax increase up or down on a ballot. The Pennsylvania School Boards Association does not have any hard data, but officials there counted about 12 referendums, none of which were successful. There were 2 approvals on 5 ballot questions on school construction. Contrast that with PDE data that shows just for FY2010-11 133 districts "sought and were granted approval" for referendum exceptions under Act 1.
Some officials fear that voters will choke off funding to schools if they get to vote on tax increases without exceptions. Another representative was quoted as saying "we have to make sure our school districts run as efficiently as possible, but I’ve got great concerns about placing those types of issues on the ballot". Why? Could it be because school officials would have to make a case for justifying their tax increase without getting a pass?
Just because there is referendum power does not mean that an increase will be automatically rejected. The Education Commission on the States showed that in 2008 eleven states put thirteen statewide education funding referenda questions on the ballot: seven passed, six failed. Nearby states have various forms of taxpayer say over tax increases. If education advocates believe in their cause and feel that there can never be too much invested in teachers, facilities, classrooms, and programs, why not make the case to the voters in Pennsylvania’s districts?
