Property tax debate takes to the stage in Pennsylvania Capitol

HARRISBURG >> The debate over school property taxes in Pennsylvania is heating up as Democratic Gov. Tom Wolf and Republican lawmakers try to balance the authority of school boards to increase taxes against a budget deal that would raise the state sales tax to finance reductions in school taxes.

School boards, teachers’ unions and other organizations that want an apolitical formula to distribute state aid to schools are pressing state officials against further restricting school board autonomy.

In a Monday letter to Wolf and top state lawmakers, the Campaign for Fair Education Funding said further restrictions would worsen already large funding inequities between Pennsylvania’s richer and poorer school districts.

“Why would we lock in those inequities when we are just about to begin an unprecedented long-term effort to finally solve them?” the coalition questioned.

Wolf first proposed a property tax cut in March financed by an increase in state taxes as a way to help correct funding inequities.

Under an overdue state budget deal still in negotiations, the state sales tax would rise from 6 percent to 7.25 percent to cut residential property taxes by $1.4 billion, or about 15 percent. Public schools also would see a record increase of $350 million, or about 6 percent, in state funding.

However, Senate Republicans have attacked a state-financed property tax cut. It could create a permanent state tax increase in exchange for a reduction in school taxes that could be quickly swallowed up by rising property taxes overseen by school boards, they say.

“If we’re going to do that, our caucus is going to demand taxpayer protection” against local tax increases, said Senate Majority Leader Jake Corman, R-Centre. “Now, what that’s going to look like remains to be seen. We’re still discussing it.”