Should state sales taxes replace local property taxes to help pay for K-12 public education in Pennsylvania?
IssuesPA poses 5 questions on the implications for financing public education. (October 2005) A proposal to eliminate most local taxes for education, especially property taxes, and replace those revenues with new revenues from an expanded state sales and use tax is before the legislature. On the surface, the plan simply substitutes one tax source for another. But there’s plenty more to consider. Who decides how much a school district gets to spend – and under what circumstances money is allocated – would be significantly different than under the current system. These proposed changes could have major implications for taxpayers, students, school boards and administrators. IssuesPA asks these 5 questions for policymakers and stakeholders. Question #1: Would there be sufficient revenues to fund local education at least at present levels? The state Department of Revenue estimates by fiscal year 2007-08, when the proposed transition to total elimination of property taxes is complete, estima