PAESSP Political Notes

July 22, 2003

   The Pennsylvania House of Representatives was finally able to pass three pieces of legislation that have blocked the education budget from being passed. The House passed the three bills early Saturday morning and then adjourned.  The measures must now go to the Senate, which isn’t expected to return to Harrisburg until the end of July or the beginning of August. It is expected that discussions will then continue as the General Assembly reconciles the two different versions of legislation into one law.

   The House version consists of three different bills:  House Bill 623, which expands gambling by allowing slot machines at 11 different sites across the Commonwealth; House Bill 1883, the second component, is a funding bill for education. (However, this bill does not contain most of Rendell’s education plan); and Senate Bill 100, the third piece of legislation passed by the House, is property tax reform.  This legislation, which originally came from the Senate, has been modified and therefore returns to the Senate. 

   While not all of the details are available at this time, this legislation allows a shift from property tax to income tax along with additional revenues available from the state.  The legislation does require a local voter’s referendum measure, which would require most school districts to place how they want to be taxed on the ballot.  This would be either the traditional property tax or switching to a method that would combine reduced property tax with additional income tax.  As an incentive for those districts that switch, they will be eligible to receive additional monies from the state.

   It is expected that discussions will start very shortly in the Senate.  It is also anticipated that additional discussion will continue with both the House and Senate in an attempt to provide Governor Rendell with more of his proposed education plan.