PAESSP Political Notes

September 15, 2003

   Rep. Victor Lescovitz (D46 Midway) and Rep. Timothy Solobay (D-48 Canonsburg) introduced a proposal this past week that would consolidate Pennsylvania’s 501 school districts into roughly 67 countywide districts. The legislation would also eliminate school property taxes as an income source for school districts and replace it with an increase in state sales tax from six cents to the dollar to seven cents (about a 17% increase). The personal income tax would be raised from 2.8% to 4.8% (about a 71% increase). The last time school districts were faced with the prospect of consolidation on a statewide scale was in the 1960s when the number of districts was reduced from 2,500 to 505. While it is too early to predict the success or failure of this legislation, initial reports indicated a concern from school districts on the loss of autonomy.

   House Majority Whip Sam Smith (R-66 Jefferson) has announced he will be introducing an education spending plan bill that will require no increase in raising income taxes, yet provide additional monies to school districts. Representative Smith has stated that his proposal will provide increases of 2.85% in basic education subsidy, 4.5% in special education subsidy and 2.5% in vocational education subsidy. His proposal also calls for providing block grants to school districts to be used to incorporate some of Governor Rendell’s proposals. School districts will be able to choose and determine where they need to spend the money. This proposal is already being called the  “Smith Compromise” by some. It is expected to receive attention and consideration within the next few weeks.

   Another piece of legislation, while not impacting school districts directly, that may figure into any final budget bill compromise is Senate Bill 894. This bill would allow Pittsburgh to raise its occupation taxes and levy a new payroll tax. It was reported in the media that gambling interests have spent over a million dollars so far this year to restore the slot machine at racetrack's issue. It is expected that some type of legislation will appear on the agenda of the Senate very shortly.

   In an interview with the Sunday Patriot-News, September 14, 2003, Senator Jeff Piccola (R-15 Dauphin), the Senate Majority Whip, responded to a question on developing accountability for schools. He answered, “There’s a whole variety of ways that I think you can do it, some of which are relatively agreeable, others which are very controversial. Performance-based contracts for superintendents and principals is something that is starting to catch on, and I think we may have that.”  While no piece of legislation has been introduced in the Senate, it is evident that administrator accountability will be part of the discussion in Harrisburg this fall.