Thursday, January 18, 2007

Scam or Slam or Both

Yes, ACT I is a disaster. The tax shift to EIT or PIT, if approved by voters, is going to cost the average homeowner even more in property tax than they already pay. This piece of legislation is an embarrassment and a total failure.

People must realize that even if they vote down an EIT or PIT, our illustrious govenment officials in Harrisburg have left an "open door" for school districts to continue to increase taxes.

Districts can raise taxes in accordance with whatever their "inflation index" is for the year (for 2007/2008 the index ranges between 3.4% and 5.5%). That is an automatic tax increase!

According to Act 1 Backend Referendum the school disrict can then go to the Department of Education for exceptions. Last year our district not only got their exceptions approved by PDE, they actually got more than they requested. So you see, the districts are not real concerned about whether or not the voters accept an increase in EIT or PIT. They already know they will get whatever they need through backend referendum.

ACT I expands the backend referendums orginially set forth in Act 72 (hailed by all as a total disaster) for special education, health care costs and pension obligations. These items alone cause some of the biggest tax hikes that we have seen. Furthermore, the backend referendum for school construction is modified to provide an exception for school construction indebtedness incurred before the effective date of ACT I. Explains why so many of our school districts scrambled to get new school construction approved last year. No surprise there!

When given the opportunity to tighten the "back-end" referendum provisions that existed under Act 72 of 2004 (the previous law that was to distribute the gambling tax revenues), the legislature instead broadened the exemptions and enabled school districts with the power to circumvent voter referendum and continue to increase spending without hindrance.
Ed Rendell, along with all legislators in Harrisburg, should be ashamed.

This is one of the biggest scams/slams that has come down the road in quite a while.

nopropertytaxes@yahoo.com

1 Comments:

Blogger Oley Concerned Citizens said...

Taxpayers of Pennsylvania,

Year after year, the school districts raise property taxes so much that seniors on fixed incomes and young families cannot keep pace with these increases.

They are struggling to keep their homes.

House Bill 1 controls on budgets need to be tightened. The exemptions to the inflation index on spending must be eliminated.

The index provides more than enough revenue to meet educational needs.

If the school boards want to spend more than necessary, then they should seek permission from the public.

Strong referendums give the community a better opportunity to participate in the management of education.

The school districts have millions sitting in off-budget funds; they do not need loopholes to continue their expensive habits of the past.

Petition:

http://www.gopetition.com/online/11622.html

"We, the citizens of Pennsylvania, request the exemptions to the referendum in House Bill 1 be eliminated. The school districts have more than enough funds and revenue to meet educational needs."

The referendum in House Bill 1 is weak, but the special interests are in Harrisburg lobbying to take what little protection we have.

11:10 AM  

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