50 Pennsylvania school districts receiving additional funding due to high tax burdens

In a move to address the longstanding issue of inequitable education funding in Pennsylvania, fifty school districts burdened by high property taxes will receive an additional $32 million in funding. This initiative is part of a broader effort to overhaul the state’s education funding system, following a Commonwealth Court decision that deemed it unconstitutional due to its inequity.

The supplements, ranging from $50,000 to $5 million, are specifically targeted at districts with high local taxes relative to the wealth of their residents. Many of the districts set to receive this funding boost are located in Allegheny County or the Philadelphia collar counties. State law mandates that these funds be used by local school boards to prevent property tax increases, enhance existing tax reduction programs, or reduce debt.

The root of the inequity in Pennsylvania’s education funding system lies in its heavy reliance on property taxes to finance schools. This reliance leads to significant disparities between districts, with wealthier areas having access to better resources and opportunities compared to their less affluent counterparts. In response to the court ruling, lawmakers have prioritized assisting the poorest districts in the state.

The bipartisan agreement reached by Democrats controlling the state House, Republicans controlling the Senate, and Democratic Governor Josh Shapiro in this year’s budget allocated over $1 billion towards K-12 education, with approximately half of that amount earmarked for aiding disadvantaged districts. Of this funding, $493.8 million was allocated for new adequacy supplements, with an additional $32 million set aside for tax equity supplements for the current fiscal year.

Dan Urevick-Ackelsberg, an attorney for the Public Interest Law Center involved in the school funding case, views the tax equity supplements as a crucial step towards creating a fairer education funding system. He emphasizes that some districts achieve positive outcomes for students by asking residents to contribute more in taxes, reflecting an “extraordinary effort” on the part of the district. Therefore, it is essential to alleviate the burden on these districts and recognize their contributions to student success.

The distribution of the supplements to districts will be based on their “local effort rate,” a metric calculated by comparing the revenue raised through local taxes to the market value of property and personal income within the district. Districts qualify for the supplement if their local effort rates rank in the 90th percentile or higher compared to the rest of the state. The supplement amount increases with a higher local effort rate, with levels determined by comparing a district’s actual tax revenue to what it would have generated at the 90th percentile rate.

Overall, the allocation of tax equity supplements to Pennsylvania school districts represents a significant step towards addressing the longstanding issue of inequitable education funding in the state. By providing additional support to districts burdened by high property taxes, policymakers are taking a crucial step towards creating a fairer and more equitable education system for all students.