Groups+fighting+changes+to+school+tax+referendums

= = = By Bill Schackner = =// Published in the Pittsburgh Post-Gazette // = =//5/25/11//=

= =  Pennsylvania's recession-battered school districts face "financial chaos," and some might not survive, if legislation passes requiring voters to approve any tax increase above an inflation index, two schools groups warned today.  The Pennsylvania School Boards Association and Pennsylvania Association of School Business Officials spoke as one of two bills intended to eliminate Act 1 exceptions was poised for debate later today in the House.  Act 1 of 2006 mandates that districts cap tax increases at an index established by the state Department of Education or face a referendum, except for 10 specific exceptions to offset cost increases tied to special education, pension obligations, construction debt, court or agency mandates and several other cost drivers.  The Education Department index is pinned to average wages and the federal employment cost index for schools. Currently, the index ranges statewide from 1.4 percent for wealthier districts to 2.3 percent for poorer districts, with Pittsburgh's in between at 1.7 percent.  House Bill 1326 and Senate Bill 911 were introduced amid growing public displeasure with rising taxes in a bad economy.  Dave Davara, director of research for the school boards association, told reporters in a conference call that the notion that districts use the exceptions to enable irresponsible spending is a misconception. Both groups argue the exceptions are used sparingly and that without them, schools facing fast rising costs would be hemmed in at a time when state, federal and local revenues are down.  They said the result would be cuts in programs from academics to student support to athletics, and that more schools would be forced to impose pay-to-play charges for participation in such areas as sports, marching band, field trips and other activities.  The business officials association estimates in 2011-12, 263 of Pennsylvania's 500 school districts would not have enough under the current tax cap to cover pension obligations were it not for use of an Act 1 exception. They said the number of districts in that situation could grow in subsequent years.  "We have significant concerns in terms of some school districts and their finances, particularly the tax-base-poor districts," said Jay Himes, executive director of the business officers association, mentioning several districts by name including Clairton and Duquesne in Allegheny County as well as York City and Chester-Upland. "There's a real question in whether or not they will make it out of this recession in any condition."  Mr. Himes said one result might be mergers, but he added, "Who wants to merge with a bankrupt school district? It's not a very good partnership when you're in a position of financial distress."  Taxpayer groups have argued that the public needs greater control over school spending.  "School spending is increasing and increasing every year, and we're not getting a better result," Jim Broussard, chairman of Taxpayers Against Higher Taxes told the Post-Gazette earlier this month. "Part of the problem is the state has got to stop imposing mandates that are not funded." = Read more: __[] __ = = = = = = = = = = = =News= =home=