THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE RESOLUTION

INTRODUCED BY PALLONE, COX, FRANKEL, BARRAR, BOBACK, BRADFORD, BURNS, CALTAGIRONE, CREIGHTON, DeLUCA, DERMODY, FARRY, FREEMAN, GODSHALL, GOODMAN, GROVE, GRUCELA, HORNAMAN, KESSLER, KORTZ, KRIEGER, KULA, LEVDANSKY, LONGIETTI, MAHONEY, McILVAINE SMITH, MICOZZIE, MIRABITO, MOUL, MURPHY, PETRARCA, PYLE, QUIGLEY, READSHAW, ROEBUCK, ROHRER, ROSS, SANTONI, SCAVELLO, SIPTROTH, SONNEY, STERN, SWANGER, THOMAS AND VULAKOVICH, OCTOBER 7, 2010

REFERRED TO COMMITTEE ON FINANCE, OCTOBER 7, 2010  

A RESOLUTION

Establishing a select committee to investigate and review the

interrelationship between all current sources of school

district and local government tax revenue, with a focus on

property taxes, the current system of Federal and State

funding of school districts and local governments and the

disparity in levels of resources available to school

districts across this Commonwealth.

WHEREAS, School district property taxes continue to burden

Commonwealth homeowners and businesses and an overreliance on

them, or any other single source of tax revenue, undermines the

long-term sustainability of our school districts, our local

governments, our communities and our State; and

WHEREAS, The level of school district property taxes appears

to be directly related to the level of State support for public

education and other local government functions; and

WHEREAS, The act of June 27, 2006 (1st Sp.Sess., P.L.1873,

No.1), known as the Taxpayer Relief Act, placed limits on school

district property tax increases and provided reductions for

older homeowners and others, but has not significantly reduced

school district property tax levels or had an impact on this

Commonwealth's share of the total cost of education; and

WHEREAS, The system of basic education funding adopted in

2008 does not directly connect this funding system with the

reform of school district property taxes; and

WHEREAS, Many Pennsylvanians do not understand or agree on

the basic facts, data and research related to this issue,

without which policymakers cannot properly identify and

implement effective long-term solutions to this problem; and

WHEREAS, School districts and local governments across this

Commonwealth are under pressure from residents to lower property

and other taxes, while also facing significant budget, revenue

and pension challenges of their own; therefore be it

RESOLVED, That the House of Representatives establish a

select committee to investigate, review and make recommendations

regarding:

(1)  the relative level of all current sources of school

district and local government tax revenue across this

Commonwealth, with a focus on property taxes;

(2)  the relationship between the level of tax revenue

under paragraph (1) and the Federal and State funding of

school districts and local governments;

(3)  the historical changes in the levels of tax revenue

and Federal and State funding of school districts and local

governments, with a focus on the effects of these changes on

public education and other local government functions and the

impact of the Taxpayer Relief Act and the change to the basic

education formula adopted in 2008;

(4)  any possible connections between these issues and

other imminent State budget issues, including revenue

shortfalls, pension issues and tax reforms; and

(5)  any potential reforms necessary to address these

matters;

and be it further

RESOLVED, That the Majority Leader of the House of

Representatives appoint the following members of the House of

Representatives to the select committee:

(1)  three members of the Education Committee;

(2)  three members of the Finance Committee;

(3)  three members of the Urban Affairs Committee;

(4)  three members of the Local Government Committee; and

(5)  two additional members;

and be it further

RESOLVED, That the Minority Leader of the House of

Representatives appoint the following members of the House of

Representatives to the select committee:

(1)  three members of the Education Committee;

(2)  three members of the Finance Committee;

(3)  three members of the Urban Affairs Committee;

(4)  three members of the Local Government Committee; and

(5)  two additional members;

and be it further

RESOLVED, That the select committee select a chairman, hold

hearings, take testimony and make its investigation at the

places it deems necessary in this Commonwealth; and be it

further

RESOLVED, That the select committee be empowered to call

witnesses under the hand and seal of the chairman and

instructing any person to appear before it to answer questions

touching matters properly being inquired into by the committee

and to produce books, papers, records, accounts, reports and

documents as the committee deems necessary; and be it further

RESOLVED, That the Committees on Education, Finance, Urban

Affairs and Local Government assist the select committee to the

extent deemed necessary by the select committee, including

obtaining relevant data and other research; and be it further

RESOLVED, That the ordinary and reasonable expenses incurred

by the select committee be paid from accounts under the control

of the Chief Clerk; and be it further

RESOLVED, That the select committee submit a report of its

findings together with its recommendations for any appropriate

legislation or other action to the House of Representatives not

later than 180 days following the adoption of this resolution or

June 30, 2011, whichever is later, and its existence shall

continue until the submission of the report.