DCIU Legislative Update -2- September 5, 2012
DELAWARE COUNTY INTERMEDIATE UNIT
LEGISLATIVE UPDATE
September 5, 2012
STATE UPDATE
Session Information
The Senate stands in recess until Monday, September 24, 2012, at 1:00 p.m. unless sooner recalled by the President Pro Tempore. The House is adjourned until Monday, September 24, 2012, at 1:00 p.m. unless sooner recalled by the Speaker.
Senate Session Days
September 24, 25 October 1, 2, 3, 15, 16, 17, November 14 (Leadership Elections)
House Session Days
September 24, 25 October 1, 2, 3, 4, 15, 16, 17, 18, November 13, 14, 19, 20 (for leadership elections and farewell speeches)
News and Updates
Tax Credit Aid for Schools Off to Slow Start
According to an article in the Philadelphia Inquirer, Gov. Corbett's education agenda and Pennsylvania's school-choice movement got a big boost in late June when the legislature targeted up to $50 million in business-tax credits to help students living near low-achieving public schools attend private schools or public schools in other districts. But the new Opportunity Scholarship Tax Credit Program has gotten off to a slow start. As most schools prepare to open this week, only $10 million in tax credits have been snapped up by businesses thus far.
Committee Meetings
The House Select Committee on Property Tax Reform held a public hearing on August 14 to form the committee and receive testimony on several pieces of property tax reform legislation in the works:
HB 2230 Grove, Seth
This amends the Local Tax Enabling Act expanding the scope of the act to allow counties to enact through referendum a one percent sales tax at the county level for the purpose of reducing the property tax levels in the county’s school districts. Also allows counties, municipalities and school districts to enact a personal income tax or an earned income tax as a replacement for property taxes. Establishes the School Property Tax Millage Rate Reduction Fund.
HB 2300 Maloney, David
This is a Joint Resolution to the Pennsylvania Constitution allowing a local taxing authority to exclude 100 percent of the assessed value of a homestead in determining property tax.
SB 1400 Argall, David
The Property Tax Independence Act provides for tax levies and information related to taxes; authorizing the imposition of a personal income tax or an earned income tax by a school district at a rate determined by the district, subject to voter approval; provides an exception for low income persons; imposing a statewide education tax of 0.94 percent to be deposited in the Education Stabilization Fund; implementing the Sales and Use Tax for the Stabilization of Education Funding, at a rate of seven percent, which shall be a replacement for the existing sales and use tax and shall be deposited in the Education Stabilization Fund; every person maintaining a place of business in Pennsylvania, selling or leasing services or tangible personal property, the sale or use of which is subject to tax shall be licensed; imposing a seven percent hotel occupancy tax, to be deposited into the Education Stabilization Fund; the amount of additional revenues that are generated by taxes received under this chapter that are necessary to replace the revenue earmarked for transportation under 74 Pa.C.S. 1506 (relating to fund), not to exceed 4.4 percent of such additional revenues, shall be deposited in the Public Transportation Reserve Fund, which is established; provides for increase to the personal income tax, for certain licenses, for hotel occupancy tax, for procedure and administration of the tax, for expiration of authority to issue certain debt and for reporting by local government units of debt outstanding; establishes the Education Stabilization Fund; provides for disbursements from this fund and for certain rebates and assistance to senior citizens; and repeals certain provisions of The Local Tax Enabling Act, sales and use tax provisions of the Tax Reform Code and provisions relating to senior citizens property tax and rent rebate assistance in the Taxpayer Relief Act. The authority of any school district to levy, assess and collect any real property tax shall expire at midnight December 31, 2012; the authority of a city of the first class (Philadelphia) to impose or continue to provide for the imposition or continuation of any tax, including, but not limited to, the real property tax, for the use of a school district of the first class shall also expire. For fiscal year 2012-2013, the department shall make disbursements from the Education Stabilization Fund to each school district based on the base revenue of the district and the cost of living. SB 1400 and HB 1776 are currently being studied by the Independent Fiscal Office.
The House Finance and State Government Committees met on August 14 to discuss the following:
HB 551 Petri, Scott
This amends Title 24 (Education) establishing the Public School Employees’ Optional Retirement Program. The bill requires the board to establish and administer an optional defined contribution retirement program, under which retirement benefits will be provided for qualified employees who elect to participate in lieu of membership in the system. The program will work on the basis of participant-directed investments with participant and employer contribution. The bill lays out rules governing the program, responsibilities of the board and other criteria.
HB 1677 Boyd, Scott
This amends Title 24 (Education) providing for Class T-G membership. The bill provides, in retirement for school employees, for definitions, for construction of part, for mandatory and optional membership, for eligibility points for retention and reinstatement of service credits, for creditable nonschool service, for classes of service, for eligibility for annuities, for eligibility for vesting, for eligibility for death benefits, for regular member contributions for current service, for member contributions for creditable school service, for return of accumulated deductions, for maximum single life annuity, for disability annuities, for member’s options, for termination of annuities, for death benefits, for payment of benefits and for administrative duties of board; providing for long-term disability group insurance program; and further providing for duties of employers, for rights and duties of school employees and members, for members’ savings account, for State accumulation account and for payments to school entities by Commonwealth.
HB 2454 Kampf, Warren
This amends Titles 24 (Education) and 51 (Military Affairs), in preliminary provisions, further providing for definitions and retirement membership. The legislation provides incentives for early retirement and revises the law regarding pensions for school district employees under Public School Employees Retirement System (PSERS), substantially revising the pension system and providing for a defined contribution program.
HB 2469 Keller, Fred - Amends the Public Employee Pension Forfeiture Act to further provide for definitions and to require forfeiture of state pensions when a public official or employee is convicted of or pleads guilty or pleads no defense to a felony. The bill also requires a public official or employee to pay restitution for a felony or crime related to public employment or office.
New Legislation
HB 2571 Caltagirone, Thomas (D)
This amends the State Public School Building Authority Act to require contracts between the Authority and school districts to be conditioned upon the preparation of general plans for the centralized design of physical plants. It was introduced and referred to committee on House Education on August 20, 2012.
HB 2573 Caltagirone, Thomas (D)
The Public School Reform Act provides for declarations of legislative policy and pertinent definitions as well as requirements for collective bargaining agreements. The bill requires the Department of Education to be the public employer for purposes of the collective bargaining and provides the school district with the power over selection, termination, promotion, demotion and discipline of school district personnel. The bill also requires the department to prepare for the consolidation of school districts for specific enumerated purposes. It was introduced and referred to committee on House Education on August 20, 2012.
HB 2587 Gibbons (D)
This act would amend the Public School Code, further providing for campus police powers and duties.
It was introduced and referred to House Education on August 23, 2012.
Submitted by Adriene Irving,
Director, Legislative and Community Services