| FOR IMMEDIATE RELEASE | |
| State Rep. Ted Harhai
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House gives OK for Harhai bill to aid school districts when businesses relocate
HARRISBURG, Oct. 6 – The state House today gave overwhelming bipartisan approval to legislation sponsored by Rep. Ted Harhai, D-Fayette/Westmoreland, that would provide a temporary cushion to protect school districts and taxpayers when businesses move outside of their district.
Current law allows temporary special aid to a district hard-hit due to loss of one or more businesses because of bankruptcy or property reassessment. Under the formula in Harhai's bill (H.B. 2733) the state would provide two years of aid if business relocation caused a 25 percent or more loss in tax revenue.
The aid would be for 100 percent of the loss in the first year and 50 percent in the second year.
"In some school districts, one employer is often responsible for generating a large amount of revenue which supports the local public school system. Their departure amounts to a financial disaster for school district budgets and local taxpayers," Harhai said. "My legislation would allow these school districts some financial breathing room when balancing their budgets and meeting short-term expenditures."
Harhai cited the case of the Southmoreland School District in dealing with the impact of the SONY Corp. relocation of television manufacturing out of its site in New Stanton. The two-year phase-out of production will be completed by the end of the year.
"We're working to bring new businesses into the SONY facilities," Harhai said. "We have had some success and have received state funding to make the site more attractive for new businesses to locate there. However, the process takes time, and having this bill in place would help Southmoreland in dealing with the revenue loss.
"I appreciate the bipartisan cooperation in getting this bill to the state Senate."
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