Isn’t it Ironic?

It’s been 129 days since the budget deadline passed. Since then there have been many notable moments; many fascinating twists. Like this week, when the Philadelphia School District borrowed $250 million to pay teachers and keep its doors open and, in a most uninspired move, the PA Senate went on vacation.

In a press conference, State Auditor General DePasquale outlined that, as a result of the budget impasse, school borrowing could reach a billion dollars, but no headlines were written about Senate Bill 909. Why worry about Senate Bill 909 when we have no Basic Education Subsidy to fund schools? Here’s what: a handful of legislators are quietly working to pass language, which would force local school districts to take any local tax increase to a public referendum.

Consider this: Statewide property taxes accounted for 85.5% of local school district revenues. The legislature’s behavior – which is amping up school district debt, makes it impossible to estimate the level of state funding districts can expect. Add into the equation that a large majority of costs are out of the control of districts like state mandated pension payments and federally mandated special education costs. NOW in an ironic twist worthy of an Alanis Morissette refrain, the legislature wants to pass public referendum requirements before local property tax increases can be put into place.

Senate Bill 909 would remove from state law the specific reasons that districts can increase local property taxes without explicit voter approval. Under current law, local tax increases associated with pensions, special education, court orders and other relatively “uncontrollable” costs are exempted from local voter approval.

Last year, 173 districts across the state increased their taxes over the inflation rate. The chief reason for 87 of those local tax increases was to meet state mandated pension obligations or federal mandates for special education services and didn’t require voter approval. The other districts needed voter approval for the proposed increases.

So if school districts are being forced to borrow to keep their doors open, would they then be forced to ask their constituents to vote to bear the brunt of increasing local property taxes to cover the cost of those loans? After its own inaction forced a billion dollars in borrowing, could the legislature miss the irony in this misguided legislative move?

Of course not everyone is feeling the pain of the impasse – under a 2009 court ruling, state employees can be paid and kept on the job with or without a budget in place, meaning that legislators are still getting paid. Isn’t that ironic?

As with all notable moments in American history, we are reminded that remaining neutral is the shortest path to defeat. Join us to stand up for students in our commonwealth and make it clear: Lawmakers must return to work and pass a budget that helps our schools. Call your legislators, write a letter to the editor and Get on the Bus to Harrisburg!