Lawmakers seek special session for tax reform
HARRISBURG – Local lawmakers are joining a growing chorus of state legislators calling for a special session on property tax reform. State Sen. Richard Kasunic (D-Dunbar), Rep. Larry Roberts (D-South Union Twp.) and Rep. James Shaner (D-Dunbar) are among more than 100 legislators who have signed a petition calling for a special session to tackle the perennially prickly issue.
“Property taxes have risen by leaps and bounds in the past few years, with every Pennsylvania homeowner shouldering more and more of the responsibility to fund our schools,” said Shaner. “Skyrocketing property taxes are hurting our seniors and our working families. We’ve got to get working on a plan that will provide relief now. This is too important of an issue for the legislative leaders to ignore.”
Only the governor can convene a special session. Under the state Constitution, either the governor can call one himself or a majority of legislators can require him to call one by signing a petition.
Gov. Mark Schweiker supports property tax reform, but he won’t consider calling a session until the state budget is finalized this week, spokesman Steve Aaron said. The last time a special session was held was in 1996, when former Gov. Tom Ridge called a session to address the state’s weather emergencies.
This is the first time that legislators have petitioned for a special session, officials said. Sen. Lisa Boscola started circulating the petition earlier this month and has obtained nearly all 26 signatures needed for a majority in the Senate. In the House, she has more than 90 of the 102 signatures needed.
Boscola said the time is right for a special session because both gubernatorial candidates, Democrat Ed Rendell and Republican Mike Fisher, have said they will call for one if elected in November.
Some say a special session is not necessary, including House Republican Leader John Perzel and House Democratic Whip Mike Veon.
But most, if not all, legislators agree that the current formula used to fund local school districts needs to be changed.
The state funds about 38 percent of basic education costs in school districts, while school districts cover about 57 percent of costs. The remaining 5 percent comes from federal funding and other sources.
School districts’ heavy reliance on local taxes to fund their schools can hurt people on fixed incomes, such as senior citizens, people whose income has dropped because they lost their job and farmers whose income is tied up in buildings and land.
No method of improving the funding system has gained a consensus in the Legislature. Some favor eliminating the local property tax and raising funds by increasing the state sales tax or using a personal income tax. Some favor a hybrid approach that would use property taxes and some other form of tax. Others have other ideas, such as giving tax breaks to the poorest homeowners.
Because the state’s 501 school districts are so economically diverse, a proposal that might work well for one district might be a financial disaster for another district. For years, lawmakers have unsuccessfully attempted to change the current system.
Boscola said anyone who truly supports property tax reform would sign her petition.
“Otherwise, they are being disingenuous,” she said. “We need a special session so we can get everyone together to brainstorm and think outside the box. I think this is an opportunity to make history.”