By G. Terry Madonna and Michael L. Young
These days, the word “crisis” has become a tedious cliché, much overused and abused by those for whom every problem becomes a looming catastrophe. But the unparalleled challenges now confronting the financing of Pennsylvania’s public education system do comprise a genuine crisis, one that if left unsolved threatens to transform Pennsylvania—educationally, economically, culturally, and even socially—into a permanent backwater.
Across the Commonwealth dedicated teachers are being furloughed, vital programs are being curtailed, entire schools are being shut down, and an entire generation of students may be losing their access to a quality education. That’s just the good news.
Worse is that the furloughs, the cutting, and the closings are all going to accelerate in the coming months and years, bringing further assaults upon Pennsylvania’s public education system. The consequent damage to the quality of education, the future of our children, and their ability to compete in the emergent global economy cannot be exaggerated.
And who, or what monster, shall we blame for this monstrous calamity? Are evil teachers unions behind this looming disaster, or perhaps corrupt politicians, or even grasping school boards? No. Neither these nor any of the “usual suspects” can take the fall for this one. Our financial crisis is not due to greedy teachers, incompetent administrators, angry taxpayers, manipulating political parties, or even super-PACs.
In fact, the villain behind our educational woes isn’t even a person or institution; it’s a tax that most of us are all too familiar with: the real estate property tax, better known as simply the “property tax.”
What about the simple property tax is so atrocious, so flawed, and so defective that we ascribe to it most of the contemporary problems of financing public education? That’s a good question, one to which entire libraries are devoted.
The (very) short answer produced by legions of public finance experts is that the property tax is grotesquely unsuited to modern times. It is unfair (i.e., regressive), expensive to administer, difficult to assess accurately, disconnected from the modern economy, and politically repugnant to most taxpayers. These defects and many more are the bitter fruits of the much-hated property tax. Of all America’s major taxes, including the income and sales taxes, the property tax is the worst by any measure you care to use.
But bad as the property tax is, its egregious faults are only part of the problem. Even worse is that we are using this most flawed of taxes to finance perhaps the most important function of government: education. We are trying to educate our children on the back of a creaky 19th-century antique that barely did the job then, faltered badly in the 20th century, and is now failing spectacularly as we move through the second decade of the 21st.
Must we watch helplessly as our proud tradition of public education withers away, the victim of inert political leadership and ossified public policies? Absolutely not!
Two things seem eminently sensible.
First, we should adopt expeditiously a tax system that finances 21st-century education with a 21st-century tax. One of the most promising concepts being discussed now is Representative Jim Cox’s (R-Berks) bill known as the “Property Tax Independence Act,” which would replace the school property tax by increasing the state’s personal income tax from 3.07% to 4%, and expanding and increasing the state’s sales and use tax from 6% to 7%.
Second, we should avoid throwing out the baby with the bath water and recognize that the property tax—for all its limitations—is best fitted to financing Pennsylvania local government. Originally, property tax revenues were used almost exclusively to finance local government functions like public safety and public health. Only over time was the property tax base hijacked to support more and more local education, so that now as much as 80% goes to the schools. We should stop using the property tax to finance schools and instead using it only to support non-school local government expenditures. This is where the property tax works best.
Neither of these steps requires overall increased taxes. Cox’s bill and others proposed over the years would not raise taxes but rather would shift tax burdens from the property tax to a tax more suited to modern times and the needs of public education. Nevertheless, any legislation that envisions tax changes, even tax shifting, will be controversial. Indeed, earlier efforts dating back three decades to bring tax reform to Pennsylvania were rife with dissension.
But let’s not kid ourselves. The choice is not between change and no change. Change, almost all of it bad, is happening across the state almost every day as Pennsylvania’s school districts adapt to the new realities imposed by relying on the property tax to finance education. The real choice is between having a choice about the future of state public education and having that choice imposed upon us by doing nothing.
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Politically Uncorrected™ is published twice monthly, and previous columns can be viewed at http://politics.fandm.edu. The opinions expressed in this article are solely those of the authors and do not necessarily reflect the opinions of any institution or organization with which they are affiliated.
John Kahler
6:40 pm on Wednesday, June 6, 2012
The property tax may be unfair and not appropriate for funding schools, but the dependence on the property tax is due to a significant extent to the state's continuing to reduce funds to the schools. In 1975 the state supplied 55% of school funding, in 2011 it's down to 37% according to the Education Law Center. Education in Pennsylvania is constitutionally a responsibility of the state, and it has cut back over the years on its responsibility to fund the schools (and if it did, the property tax would not be needed or would play less a part in technology funding). To blame the property tax, I believe, lets the state - the governor and legislature - off the hook for the political choices they have clearly made over the years to reduce the percentage of state funding. I won't get into state requirements like mandatory testing that have both added cost and, I believe, reduced the value of K-12 education - a while different discussion.
John Kahler
6:42 pm on Wednesday, June 6, 2012
Less a part in local funding - stupid auto-correct, not proof reading closely and no edit function are conspiring against clarity in comments...
linda spreeman
6:43 pm on Wednesday, June 6, 2012
This is very well written, and should be forwarded to every single lawmaker in Pennsylvania as the property tax system is antiquated. While we're at it, how about eliminating the right of teacher's to strike. Are they professional or not? If the normal person doesn't like their raise, they don't have the option of picking up a picket sign? Hello? Let's integrate these changes and our system should become more of a Best Practice to follow than a system in peril. ~Linda Spreeman~
Phil
8:20 pm on Wednesday, June 6, 2012
Alternate funding needs to be found. But I am concerned regarding the income/sales tax suggestions. Presumably these taxes would fund each district at the same level, and possibly eliminate the school boards ability to tax. it costs more to educate students in south east pa that it does in central pa. If it costs us 20k to educate a radnor student to radnor standards and if new tax system provides say 14k per student state wide, then 6k of a "radnor education" would need to be cut. which lends itself to the question, what part of what we love about radnor gets cut? certain things we must do because of laws, etc. so our 'extras' would have to go...extras could include teacher student ratios, no more integrated classes, counselors, sports. and on and on. tax change needs to occur, but there needs to be some voice locally. if we want to provide better than an average education we would need to be able to raise funds. what they are proposing is more of a socialist perspective...tax everyone and split the money up equally.
Millicent McGreary
8:50 pm on Thursday, June 7, 2012
What's considered a "Radnor education"? I went to private school which my parent's paid for along with propert taxes for public school and I had MUCH less than the Radnor students today. I think it's time we take a look at what is really needd in schools rather than what our neighboring township has and what we can do better to keep up! There are other things in the townships tat should be considered besides education...how about providing seniors and residents without children a little something for a change?
Coach Clark
8:34 pm on Wednesday, June 6, 2012
The authors are proposing a 30.293% increase in PA income tax along with a 16.6667% rise in state level sales tax.
All would go towards feeding PSERS which will soak up more than 28% on top of total payroll within a few years. All to ensure that teachers and administrators can live better in retirement than they did before they quit working.
Wisconsin will hopefully start a nartional movement to end taxpayer abuse at the hands of public service unions.
Mike
10:18 pm on Saturday, June 9, 2012
So true...
Steve Maher
11:00 pm on Wednesday, June 6, 2012
Maureen Snook <maureensnook@verizon.net>
Hello all!
The Knights have been a terrific supporter of Catholic education over the years, including here at St. Agnes. We need your help again, and the good news is that it takes little time and NO money!!!
The PA General Assembly is about to introduce legislation to expand the successful EITC program (Educational Improvement Tax Credit, for businesses) and to create a modest school voucher program to help children in failing schools. Archbishop Chaput and the PA Catholic Conferences are asking all of us to call, e-mail, and/or write our state legislators, asking them to support this legislation. It will be voted on by the end of June if not before. So, time is short, but this will take literally only a few minutes of your time.
Remember, school vouchers and the EITC are advantageous whether one has kids or where they might attend school. A few facts might help -- non-traditional public schools like St. Agnes save us PA taxpayers over $4B annually. Our students have higher academic achievement, higher graduation rates, and lower truancy rates. In the 17 states where vouchers are allowed, not one public school has closed as a result.
Thank you!
Maureen Craig Snook
West Chester, PA
Brendan Kelly
10:59 am on Thursday, June 7, 2012
I find this disturbing. I went to catholic school for 12 years. When I got into Penn State they told me that my catholic high school's English program was not up to par and I had to take a remedial English class during the summer before I started as a freshman. Others in my school had to as well. Also, catholic school parents are helping foot the bill for these priests defense funds, I certainly don't want my tax dollars helping support pedophiles to pay off accusers in settlements. Vouchers is just a better term for government subsidy. Its socialism at its core.
Those that blame teachers pensions I remind you that there was no problems with the pensions before 2008.They were doing great, even being over funded. Now Wall street has successfully shifted the blame from them to unions and pensions. Do things need to change? yes. But to vilify the teachers for politicians bad choices is plain wrong.
Steve Maher
11:00 pm on Wednesday, June 6, 2012
We need school board members that advocate for public education and not private schools! This school board member needs to be removed and the public should be outraged.
Francine Goldberg
10:33 am on Thursday, June 7, 2012
She's a member of the school board? That's a disgrace! I will have to make sure to vote to REMOVE HER, the first chance I get. And, yes, I *DO* vote!
Diana Roberts
8:06 am on Thursday, June 7, 2012
As a former School board member, I spoke in favor of income tax as a far more fair tax for education.
Debbie Thomas
8:17 am on Thursday, June 7, 2012
I agree. An income tax is more fair. I do not think the homeowners should always get stuck with property tax increases to fund the schools. Many do not have children in the schools and many are senior citizens on fixed incomes.
Brendan Kelly
1:33 pm on Thursday, June 7, 2012
Whats the difference between your home and an identical home in Drexel hill that sells for less? The school district. you can thank higher property value to the school district. So for those of us that work in the city you are asking us to pay more in income tax to the state along with what I already pay to the feds and city. yeah, thats real fair, all because you dont think owning a property in a valued schoold district shouldn't be funded by the ones who benefit from it.
Francine Goldberg
10:38 am on Thursday, June 7, 2012
While I am unsure about the vagaries of the property tax being used to support schools, it's something that is often a selling point when you buy or sell a home in this area. Your school district is important, whether you have children in the schools or not. And education continues to drive our economy.
However, these proposed changes to the income tax and the sales taxes, even more so, are onerous on those who can least afford it, the lower incomes. That article states "First, we should adopt expeditiously a tax system that finances 21st-century education with a 21st-century tax. One of the most promising concepts being discussed now is Representative Jim Cox’s (R-Berks) bill known as the “Property Tax Independence Act,” which would replace the school property tax by increasing the state’s personal income tax from 3.07% to 4%, and expanding and increasing the state’s sales and use tax from 6% to 7%."
This is *NOT* a 21st century solution. It is yet another ploy by a Republican legislator to raise taxes on the lower and middle classes while LOWERING taxes for the wealthiest. Don't kid yourself.
This is an extremely regressive idea and needs to be quashed. Find another solution.
RenterNow
12:16 pm on Thursday, June 7, 2012
I think it is a terriible idea - do you really want the state to decide how much money our school district will get each year? And raising the income tax and sales tax will push the burden on working class people - if you are going to raise the income tax, make it apply to pensions, social security , interest and dividend income also - then see how much opposition you get from the senior population.
Joseph Stoffa
11:02 am on Friday, June 15, 2012
It is not the tax so much as a county may have many school districts, say 11 of them and each has ther own taxes which is ofen quit different. This is just an example. Maryland has 1 school board for the entire county and 1 administrator. Look at the savings in not paying for say 11 administrators and all that go,s with it. PA is so far behind in running its schools. I would much rather pay another 1 dollar on a 100 dollar purchase that keep going with these insane school taxes. I have never had a child in school in PA but have paid over $65,000.00 in taxes over the years. It is time for some relief.
Dana Seaman
2:50 pm on Thursday, June 7, 2012
Maureen Snook serves as the PSBA (PA School Board Association) and Legislative Liaison to represent the WCASD. Not only is she not advocating for our public schools, she is using this position to push her own personal agenda. Check out the West Chester VOTE blog: http://westchester.patch.com/blog_posts/no-they-didnt-mention-that-either
qflux
11:51 am on Sunday, June 10, 2012
Lousy idea, so of course it will get through.
Basically, the net of it is "let's become NJ"
Income tax up. Sales tax up. Property tax? You think down? If so, you're insane. No... Property tax will go UP, not down. Mine *just did*. Along with the LOCAL EIT. With these proposed increases, the total PA tax burden where I am would be getting *very* close to NJ municipalities which actually have *far* better school performance, if we're being honest.
The answer isn't "21st century" if it is simply copying the NJ and NY model of squeezing the middle class tax payer until they bleed and pandering to political corruption, the welathiest elites, and bloated unions.
Brendan Kelly
11:24 am on Friday, June 15, 2012
Q, you are absolutely right. The property tax will stay the same and go up eventually, while They start taxing everything and anything else to get more money. TAX, TAX TAX. I also Agree about not letting them strike. I believe in workers rights to unionize but holding the public citizens hostage for benefits no one else in public enjoys isn't fair either. Solving Public school funding is not as simple as these Authors make it sound, as all the other commentors here proved.