The Phoenix

Property tax hikes are harsh reality in Pa.

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Get out your checkbooks, folks.

It’s that time of year. Your local school districts have recently completed their annual task of putting together a spending plan. Guess what? That’s right, taxes are going up.

There are 60 school districts in the suburbs of Delaware, Montgomery, Chester and Bucks counties.

In 53 of them, their recently completed budgets for the 2019-20 fiscal year call for a tax hike, according to a recent review performed by the Philadelph­ia Inquirer.

This is not a new scenario. It stems from an old problem. Pennsylvan­ia relies on local property taxes for the bulk of public education funding. Add into that years of the state failing woefully to meet its mandate of providing a 50 percent share of education funding, and you are on your way to a sea of red ink.

Limited in where they can turn for savings, and under heat from residents not to cut programmin­g or staff, local school boards routinely turn to their bread and butter, hiking taxes on home owners.

Add in the recent spikes in mandated costs related to public school pension plans, charter school tuition and special education outlays, and you have the makings of an accountant’s nightmare.

Exacerbati­ng the problem is an outdated method Pennsylvan­ia uses to allocate education funding. It hasn’t been updated in decades, and as a result is wildly out of kilter with reality.

The effect is a system that continues to reward many wealthy and well-to-do districts with funding based on outdated enrollment figures and other data, to the detriment of less wealthy districts.

Those schools in poorer areas, often with deteriorat­ing or depressed economies, are caught in a wicked circle in which their tax increases do not raise the revenue of similar levies in nearby more wellto-do districts.

The result is an uneven, blatantly unfair system that penalizes many students for no reason other than their zip codes.

A Fair Funding Formula, created by the Legislatur­e several years ago, was supposed to fix these inequities in the distributi­on of state funding. But it contains a tragic flaw. It relies only to new education outlays, not the existing basic subsidies.

It’s gotten so bad that several families, including one from William Penn School District in Delaware County, have taken the state to court challengin­g the formula. They are expected to have their day in court next year.

Any number of attempts to remove the property tax as the main building block of education funding have gone nowhere.

Gov. Tom Wolf suggested a combinatio­n of increases in both the state personal and income taxes. Anti-tax Republican­s in the Legislatur­e almost laughed themselves silly.

Among those most heavily burdened by property taxes are the state’s senior citizens. But they are less than thrilled with a current proposal to replace the property tax. Rep. Frank Ryan, R-Lebanon, is sponsoring legislatio­n that would tax retirement income, as well as food and clothes.

As you can imagine, a lot of seniors see this as trading one evil – the property tax – for another.

The problem with years of proposals to replace the hated property tax remains the same. It’s very hard to make the numbers add up.

Property taxes raise $15 billion for public education every year.

Yeah, that’s a nice chunk of change. Most ideas for replacing it come up short on the math.

Even with property tax increases that are growing at a rate of $500 million a year, a new study suggests more than half the state’s 501 school districts could find themselves in financial crisis within five years.

Too many of the state’s public school districts are inching perilously close to the breaking point.

This year’s round of tax hikes pushes that boulder closer to the top, and hurtling down the other side, a potential catastroph­ic collapse of public education in the state.

School districts need answers – and quickly. They can start by making the Fair Funding Formula applicable to all education funding.

And then consider every possibilit­y after that.

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