Jul. 09, 2015
HARRISBURG – Rep. David Parker (R-Monroe) today called on state leaders to distribute the Commonwealth's $412 million revenue surplus to the 180 Pennsylvania school districts that are annually underfunded by more than $1 billion every year due to the outdated and inequitable “hold harmless” funding formula.
“The June 2015 release of the Basic Education Funding Commission’s report has validated what many citizens and legislators have complained about for years – the existing formula for distributing state funding for K-12 education is dead-wrong by more than $1 billion,” Parker said. “The report’s findings show that 320 out of Pennsylvania’s 500 school districts are annually receiving $1 billion more than warranted and 180 schools districts are receiving $1 billion less each year.”
As a direct result of this, 180 underfunded school districts have been shortchanged by Billions since the 1991 political changes to the education funding formula. The commission’s report also highlights how the state’s “hold-harmless” policy has consistently provided extra money to overfunded districts, while denying fair funding to underfunded districts. Monroe County districts, among the hardest hit, were underfunded by more than $717 million, with resulting widespread impacts including skyrocketing property tax rates, the state’s highest foreclosure rates, 50 percent drops in property values, and townships with 50 percent of the mortgages underwater.
Recognizing these inequities and dire circumstances, Parker is asking state leaders to distribute the Commonwealth’s $412 million revenue surplus to the 180 school districts that are annually underfunded by more than $1 billion. With the commission’s report validating grievously severe imbalances in the education funding formula, Parker and others are advocating three steps immediately be taken:
• The immediate termination of the hold-harmless policy.
• The immediate termination of the existing education funding formula, and adoption of the new funding formula.
• The immediate implementation of $412 million corrective funding to make underfunded districts whole.
Unconscionably, special interest groups and lobbyists are still attempting to force more funding through the old formula which would make a bad situation worse. The special interest groups are also trying to delay immediate adoption of a fair funding formula, politically, as well as mathematically, through obtuse formula mechanisms that directly maintain “hold-harmless” provisions for decades.
“It is politics gone bad to see this report validate 180 schools were underfunded by $1 billion every year, and then to witness special interest groups influence lawmakers and recommend against using the new formula immediately for ALL education funding,” Parker said.
Parker also questioned the notion of $5.5 billion being distributed through the old formula after the commission publicly acknowledged the vast inequities in the old formula.
“After two decades of underfunding 180 school districts, we have a state budget surplus that has been accumulated – in part – on the backs of desperate taxpayers, struggling to pay their school property taxes in 180 school districts,” Parker said. “The findings of the commission’s report are clear as day - it would be a gross injustice to give new money to school districts that the commission report clearly states were already over-funded. Now is the time to fix this travesty. Now is the time!”
Two decades of “hold-harmless” has created a system of have and have-nots without rhyme, reason or responsibility. In Pennsylvania, many school districts get 60 percent to 70 percent of their budgets funded by the state, whereas other districts get only 18 percent to 22 percent of their budgets funded by the state, without any semblance to ability to pay, property value, poverty levels or taxpayer distress. Monroe County taxpayers have been decimated:
• Pocono Mountain SD - 8.2 percent of personal income consumed by property taxes.
• East Stroudsburg SD - 7.8 percent of personal income consumed by property taxes.
• Stroudsburg Area SD - 6.1 percent of personal income consumed by property taxes.
For comparison, taxpayers from 129 school districts have less than 1.49 percent of their personal income consumed by school property taxes.
In addition to adopting a fair funding formula and corrective funding toward the $1 billion shortfall to 180 school districts, Parker said the General Assembly and the governor should institute the following taxpayer protections:
• A four percent CAP on all reserve funds.
• A requirement that every school board establish a school district cost-savings commission of three board members – two faculty members, two administrators, two citizens – and hold at least three public meetings before Dec. 31, 2015.
• A referendum vote on school property tax increases above percent.
“Today, we have a $412 million revenue surplus that should be immediately used to fix the unfair imbalances caused by the existing education funding system,” Parker said. “It’s time to fix this 23-year injustice. It’s unconscionable to see a report validate true unfairness, and then see its proponents and special interest groups politically recommend decades of delays to keep the current inequitable system in place.”
Representative David Parker
115th Legislative District
Pennsylvania House of Representatives
Media Contact: Charles Lardner
717.260.6443
clardner@pahousegop.com
RepParker.com /
Facebook.com/RepParker