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FOR IMMEDIATE RELEASE |
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State
Rep. David Levdansky |
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Levdansky to introduce bill that would freeze school property tax rates
HARRISBURG, Feb. 10 – Citing a proposed increase in state funding for education and additional revenues for local school districts from the federal economic stimulus proposal, House Finance Committee Chairman David Levdansky said he will introduce legislation that would freeze school property taxes in Pennsylvania for the next two fiscal years.
Levdansky, D-Allegheny/Washington, said his bill would freeze millage rates at the levels in effect for the 2008-09 fiscal year through the 2010-11 fiscal year, in an attempt to prevent excessive increases in school district spending once federal funds return to normal levels.
"It's always nice to be the beneficiary of new sources of revenue to fund school district programs and projects, but unless the funding is permanent, it sets the stage for a new higher level of school district expenditures in the future," Levdansky said. "My proposal is intended to prevent local school districts from establishing that higher plateau during a period when the federal government is only helping them to maintain current levels of expenditures.
"I believe the anticipated federal aid is an attempt to avoid the need for local school districts to take additional tax revenue from the taxpayers during a time of fiscal stress."
Levdansky added that the significant increase in state aid to school districts contained in the 2008-09 budget and proposed in the 2009-10 budget should also remove the need for school districts to raise school taxes.
The 2008-09 state budget increased funding for basic education to more than $5.22 billion, an increase of $274 million or 5.5 percent. The governor’s proposed 2009-10 budget would increase basic education funding to nearly $5.5 billion, an additional increase of 5.7 percent or $300 million.
Levdansky also noted that a two-year moratorium on school district property taxes would serve as the next step in the legislature's continued efforts to implement meaningful and substantial reduction in school property taxes.
In the previous legislative session, Levdansky introduced legislation that would have frozen millage rates set by school districts in 2009, as well as another proposal that would have amended the constitution to eliminate school property taxes for homeowners.
On a related issue, Levdansky encouraged qualifying senior citizens to apply for the state's Property Tax/Rent Rebate Program.
To be eligible for the program, residents must be 65 or older, a widow or widower 50 or older, or 18 or older with a permanent disability. To qualify for a rebate, household income for homeowners must be $35,000 or less; for renters, income must be $15,000 or less. Only half of gross Social Security or federal railroad retirement Tier 1 benefits should be used when calculating income. All other sources of income must be claimed in full.
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