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Pa. schools need new path for pensions, property tax

In the Mars School District, the discussion this week centered on subcontracting for custodians and other school support staff.

In Butler, the focus was an early determination on a property tax ceiling, and an exemption from limits on a property tax rate increase.

In South Butler and Slippery Rock, teachers are working under terms of expired contracts.

The strain might manifest differently from district to district, but all area schools are under the same pressure — and fighting the same losing battle: Pension funds that are spiraling out of control; increasing medical insurance premiums; high costs of charter schools and an out-of-date property tax base — all combining to create a scenario that increasingly frustrates attempts to sustain our public school system.

While the struggle for fiscal restraint must continue at the district/school board level, the true remedies must begin in Harrisburg.

It’s becoming increasingly obvious that property tax reform must take the place of incessant property tax increases, and that reform must come at the state level.

An attempt to legislate away from a school property tax fizzled earlier this year as part of state budget negotiations. Its defeat was blamed on a lack of explanation of how alternative revenue, such as sales and income tax increases, would make up the $14 billion state shortfall made by eliminating the school property tax.

It’s still a problem in need of a remedy. The proposal, or one similar to it, should remain high on the General Assembly’s agenda.

Pension reform, another nagging necessity, is urgently needed to undo the still-growing damage done by the “pension grab” of 2001, when the General Assembly and Gov. Tom Ridge increased state pension benefits while reducing the number of years needed to become vested. Fifteen years later, the state public pension funds are more than $50 billion underfunded, with every school district in the state struggling to pay their obligational share into the fund.

Until the General Assembly and governor make reforms at the state level, local school boards can work their budgets to the bone and still face insurmountable challenges.

Pennsylvania needs to restructure its education financing — and needs to make it a priority.

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