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School spending, Pa. tax reform debated

Dr. Jake Haulk, president of the Allegheny Institute for Public Policy, offers testimony during a state House committee hearing Thursday to address educational spending and school property taxes at the Adams Township Municipal Building. The hearing was co-hosted by Rep. Daryl Metcalfe, R-12th.dave prelosky/ butler eagle
Teacher strike ban suggested

ADAMS TWP — School boards should look carefully at how to rein in expenses and how to get the most from the programs they do fund as ways to control upward spiraling tax increases.

These points were among the suggestions that a state House committee heard at a hearing it hosted at the Adams Township Municipal Building Thursday.

The man who made the points, Jake Haulk, president of the Allegheny Institute for Public Policy, said the rate of school spending in Pennsylvania is rising faster than the rate of inflation.

"You can't control taxation until you control spending," Haulk said.

He said some of the state's 501 school districts are frugal and some are extravagant regarding spending.

"This is a major issue in going forward in property tax reform," said Haulk.

He recommended banning teacher strikes, as Pennsylvania has had more strikes every year than all the states that permit strikes combined. He said new legislation passed in New York sees teachers lose two days' pay and benefits for every day they are out on strike.

"That would be a place to start," said Haulk.

He also lamented the high cost of educating special needs students.

"It distorts what is available to the rest of the kids," said Haulk. "Good intentions can sometimes wreck a train that's running on time."

Two business managers from regional school districts defended districts from Haulk's criticisms.

Brett Lago of Penn-Trafford said there is a "misperception that school districts are free-spending institutions with no regard for fiscal conservatism, spending reductions and cost controls."

He said factors beyond school districts' financial control include personnel salaries and benefits, unfunded mandates, payments to cyber/charter schools, and decreased state contribution.

Monessen business manager Richard Fantauzzi said the constant reduction in assessed property value that resulted from the loss of steel mills in the community has caused continuous millage increases over the years.

"A tax shift from property to income won't significantly change our financial status," said Fantauzzi. "As a result, we struggle from budget to budget."

Fantauzzi said payments to cyber/charter schools, personnel costs, special education costs and mandated pension contributions cause the most strain on the Monessen budget.

Rep. Daryl Metcalfe, R-12th, who co-hosted the hearing, announced he has introduced House Bill 125, the Real Property Tax Elimination Act, that would phase out property taxes over six years with a 33 percent reduction in school property taxes in the first year alone.

He did not say how districts would fund current programs should the proposed legislation be enacted.

The bill is currently before the state House Finance Committee.

Metcalfe said looking at how school districts spend money, unfunded mandates handed down to schools from the state Department of Education, the problem of teacher strikes and voter referendums to increase local taxes are key ingredients in the hot-button issue of property tax reform in Pennsylvania.

"We want to look at eliminating property tax in a neutral manner," Metcalfe said. "Part of the problem in Harrisburg is a lack of vision by legislative leaders."

Metcalfe also said state, local and federal government and school districts need to work together to deal with unfunded mandates that place a burden on budgets every year.

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