Tax Reform Committee Calls for Closer Look at Mandates, Funding for Public
Schools
Dec. 4, 2012
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House Select Committee on Tax Reform:
Recommends closer look at school mandates, special education funding, charter school costs
The House Select Committee on Property Tax Reform recently issued its final report that contained 13
recommendations for action in the new 2013-14 legislative session. The committee was created by House
Resolution 774 of 2012 for the purpose of investigating all aspects of the property tax problem and to
recommend possible solutions.
Among the recommendations was a call for a review of the cost and value of state-mandated programs
on school districts; development of a new funding formula for special education based on actual costs
incurred; and an independent study to determine the actual costs of educating a student at a charter
or cyber charter school, and the effects on local school budgets and property taxes.
In comments accompanying the report, Committee chairman Rep. Thomas Quigley (R-Montgomery)
emphasized that the group did not attempt “to re-invent the wheel or find the proverbial silver bullet. Rather,
we have attempted to find common ground on initiatives or actual legislation that can be acted on in short
order when the General Assembly reconvenes in 2013.”
The committee was charged with investigating all property taxes: municipal, county and school. However,
Quigley acknowledged that the issue of school property tax dominates the debate, noting:
“Another aspect of the school property tax issue centered on the state’s funding formula for public
education. This has also been a contentious issue for some time. The committee heard testimony suggesting
changes to the funding formula that would reflect certain measures, such as student enrollment,
consideration of the economic situation of certain school districts, and the impact of special education. The
committee has recommended enacting a new funding formula for special education based on the actual costs
of providing special education instruction and services. The funding formula for public education will
continue to be debated in the General Assembly and I know that members of the committee will continue to
fight for a “fairer” formula and one that accounts for the aforementioned factors.”
The report also notes that Gov. Corbett’s administration has hinted at possible changes to the current funding
system. Such changes may include an approach that bases funding on the number of students, with extra
funding or weights based on per pupil needs, which include free or reduced-price lunch, special education,
English language learners, and other factors.
Here are the 13 recommendations offered by the committee:
1. At the start of the 2013-2014 legislative session, introduce a resolution to re-establish the select committee
created under House Resolution 774 of 2011.
2. Amend the Pennsylvania Constitution to provide for a homestead and farmstead exemption of up to 100%
of the property value.
3. Develop legislation to grant local taxing jurisdictions more diversified taxing options that allow revenueneutral tax shifts in the collection of local revenues.
4. Direct an independent entity or entities to study the fiscal impact of property tax relief up to and including
property tax elimination at various levels of income.
5. Direct the State Tax Equalization Board to develop a "best practices" guide for use by local governments
for the streamlining and more efficient administration of all aspects of the property tax system, including but
not limited to protocols for valuation, assessment and appeals; development of a database for the uniform
reporting of property values and data; and guidance for contracting for assessment services with outside
entities.
6. Direct the State Local Government Commission to study the actual and potential incentives for local
governmental entities to enter into consolidation or intergovernmental cooperation agreements for the
provision of services and administrative functions.
7. Review all state-imposed public education requirements that are not mandated by Federal statute or
regulation for cost-effectiveness, fairness, and/or educational value.
8. Amend the Right-to-Know Law to allow public agencies to recoup the actual costs of responding to Rightto-Know requests.
9. Consider amending the Blight Act to enable local governments to make the most effective use of the tax
and municipal debt collection tools currently provided, thereby increasing local revenues and promoting
greater tax fairness.
10. Direct the State Local Government Commission to develop a "best practices" guide for local taxing
authorities engaged in debt collection, including but not limited to collections through third party contracts.
11. Develop recommendations for achieving efficiencies and increasing cost-effectiveness in the
construction, maintenance, renovation and disposition of public buildings and school facilities, helping to
ensure that students have access to adequate facilities.
12. Develop a new funding formula for special education based on the actual costs of providing special
education instruction and services.
13. Direct an independent entity or entities to determine the actual costs of educating a student at a charter
school and at a cyber charter school, and the effects on local school budgets and property taxes.