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SCHOOL DISTRICTS CAN FINALLY DELIVER SCHOOL TAX CUTS
Equity First Issues Call to Action for School Districts to reopen their budgets for Dollar-for-Dollar Reductions in School Tax Millage with new State Funding!
(Harrisburg, Pennsylvania) - Equity First congratulates the Pennsylvania General Assembly and Governor Shapiro for taking the historic first steps to a constitutional school funding system, and delivering tax-relief to long-suffering taxpayers in impacted school districts. In the 2024-2025 State Budget, the General Assembly funded $60 million for Hold Harmless Relief and $32.2 Million for Tax Equity. With these funds, taxpayers in hundreds of impacted school districts can finally get long-awaited tax relief, if their school districts reopen their 2024-2025 budgets and reduce School property tax millage dollar-for-dollar with new State funds designated for Hold Harmless relief and Tax Equity.
“Congratulations to the Senate and House leaders and Governor Shapiro for this historic budget with record education funding. With this new funding for Hold Harmless relief and Tax Equity, School Districts receiving these funds must immediately reopen their budgets and reduce School Property tax millage dollar-for-dollar with the new State Funds. We urge County Commissioners to delay printing the tax bills until these school districts reduce their tax millage.”
Equity First specifically called out the Monroe County state delegation.
“We want to especially highlight the relentless advocacy of the Monroe County delegation for their work on school funding and school property tax relief. In the State Senate Rosemary Brown, and in the House of Representatives, Tarah Probst, Jack Rader, and Maureen Madden. Thank you!”
With these historic increases in education funding,
School Districts Can Finally Deliver School Tax Cuts
The Department of Education estimates Pennsylvania school districts have over $6.7 Billion in Fund Balances and $2.5 Billion in Federal relief funds as additional reserves.
This list shows the impacted school districts getting Hold Harmless Relief and Tax Equity funding to reduce their tax millage: https://houseappropriations.com/files/Documents/2024_25%20Education%20Spreadsheet.pdf
Implemented in 1992, Pennsylvania's “hold harmless” policy dictated that no school district could receive less basic education funding than it did the year prior. Hold Harmless has crushed taxpayers in fast-growing school districts. Against record national inflation, the General Assembly and Governor Shapiro are providing school tax relief just when it is needed most!
"More than ever, severely impacted taxpayers need tax relief. In addition to national inflation impacting their household income, taxpayers in these impacted school taxes have been forced to pay record levels of school taxes for decades! We call on every impacted school district to re-open their budgets and cut their tax millage dollar-for-dollar with these new funds. We urge County Commissioners to hold the printing and release of school tax bills until school districts pass the tax cuts."
Unless these funds are immediately used for taxpayer relief, these funds will idly sit in bank accounts for 12 months, along with the historic levels of Fund Balances already sitting in school district bank accounts.
Equity First,
Established in 2016 to fight for full funding of the state's Basic and Special Education Funding Formula Laws, Equity First has issued annual budget statements demanding the end of Hold Harmless, showcasing the devastating impacts of hold harmless on fast-growing, and urban school districts.
The example of Monroe County:
Situated 70 miles from New York City, Monroe County Pennsylvania experienced record population growth since 1992. Because hold harmless prevented fast-growing school districts from getting new funding for extra students for 33 years, Monroe County taxpayers pay the highest tax burden in Pennsylvania. Monroe County taxpayers have been punished with the highest property tax burden in the state at 4.73%. Pike County taxpayers pay the 2nd highest at 3.81%, against a state average of 2.57%. Snyder County taxpayers only have 1.51% of their income consumed by property taxes.
The extremely high school taxes in Monroe County have hampered economic development, and new home construction, resulting in soaring housing costs. East Stroudsburg is one of the most expensive places to live in Pennsylvania. Monroe and Pike workers have the longest commutes in America to afford to live in the Poconos. Senior Citizens can’t afford to stay in their family homes.
Equity First Calls on Monroe County School Districts to immediately reopen their budgets and CUT School Tax Millage by $12.88 MILLION for long-suffering taxpayers!
Monroe County School District School Tax Relief:
$6,546,464 School Tax Cut for East Stroudsburg Taxpayers
$ 869,599 School Tax Cut for Pleasant Valley Taxpayers
$2,666,603 School Tax Cut for Pocono Mountain Taxpayers
$2,797,396 School Tax Cut for Stroudsburg Taxpayers
Equity First calls for a total of $12.88 Million in school tax cuts for Monroe County taxpayers!
Such action for reopening school budgets is not without precedent. In 2004, Monroe County School Districts re-opened their budgets and reduced school tax millage. Then, Pocono Mountain SD re-opened its budget and reduced school taxes by $2.3 Million. ($4,154,055.84 adjusted for inflation) https://www.poconorecord.com/story/news/2004/07/08/school-board-votes-to-reduce/51066036007/
Equity First calls on other school districts to deliver tax relief for taxpayers as well, for example:
$1,221,261 - Penn Hills SD Allegheny County
$ 857,454 - West Mifflin SD Allegheny County
$2,812,954 - Reading SD Berks County
$1,012,033 - Coatesville SD Chester County
$2,511,535 - Harrisburg SD, Dauphin County
$1,763,383 - Upper Darby SD, Delaware County
$1,187,853 - Erie SD, Erie County
$2,173,536 - Scranton SD, Lackawanna County
$4,678,214 - Allentown SD, Lehigh County
$1,985,976 - Hazleton SD, Luzerne County
$1,942,468 - Wilkes-Barre SD, Luzerne County
$2,079,244 - Norristown SD, Montgomery County
$1,490,007 - Pottstown SD, Montgomery County
$5,680,897 - Bethlehem SD, Northampton County
$ 680,097 - Dallastown SD, York County
$2,872,960 - York City SD, York County
In praising the General Assembly and Governor Shapiro for this historic first step toward taxpayer relief and fair school funding First Equity also warned this is year one of a seven-year plan. Equity First expressed concern that only $200 million was added to the Basic Education Funding Formula Law, which still leaves more than 80% of Basic Education funding, not running through the Basic Education Funding Law adopted in 2016 with bipartisan support. Equity First said this year’s level of education funding, plus inflationary increases, is needed for another six years to fix Pennsylvania's unconstitutional school funding crisis and provide school tax relief for taxpayers in impacted school districts.
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