Issue: Tax Reform, Act 1 of 2006

When new legislation passes, PSBA is seen as the leader in analyzing it and helping members make sense of it.

Act 1 NEWSLETTER
 Vol. 1, No. 14, Jan. 11, 2007

IN THIS ISSUE: Why districts should explain Act 1 to the public, important news on back-end referendum exceptions, your help needed to track Act 1 implementation information

SUMMARY : Until now, school boards, business managers and administrators have undertaken the implementation process of Act 1 based on specific items contained in the act, including all of the provisions surrounding the Local Tax Study Commission, preliminary budgets and the mailing of homestead/farmstead applications. The time is drawing near, however, to begin planning for an integral part of implementing Act 1 that is not to be found on any of the act's 100 pages of text - explaining it to the public.

ANALYSIS : You might ask why the district should assume the responsibility for explaining the act beyond its requirements that school districts advertise, provide non-legal interpretive statements at elections and hold various public hearings, all of which can be considered a type of public training. Typically, these requirements apply only to certain very specific instances and do not entail looking at the much bigger picture. The answer is that if the school district doesn't do it, individuals will be left to believe whatever they hear on the street, from the media or from any other source as the truth. Because school districts have to implement the act, they have a greater familiarity with its provisions. Also, districts are likely the only entity that can, with any accuracy, describe the effect the act will have on its citizens.

During the Act 1 seminars, it became clear that many board members and other school officials were concerned that the public would view the front-end referendum question as an attempt by boards to raise income taxes to obtain additional revenues for the operation of the district, rather than its true objective, to raise revenues to use to replace property tax revenues. The nature of this tax "shift" is but one of several provisions of Act 1 that are likely to be misunderstood by the public.

On a larger scale, letting the public know that school districts are obligated to undertake certain activities, like the front- and back-end referenda, the application process for back-end referendum exceptions, adopting resolutions allowing for the installment payment of property taxes and developing preliminary budgets because of Act 1 will help you to explain that these are not school district initiatives but are required by this new state law and will help clarify in the minds of individuals the reasons for such actions.

Districts should not feel obliged to have to "defend" the act, but being overly critical also has risks. The public likely will have less faith in a presentation that is slanted toward one view or another An honest and fair presentation is more likely win residents' respect for the district's analysis and proposals. To help districts with their presentations, PSBA is offering 14 seminars around the state in January and February. The list of dates and locations follows. We hope to see you at one of them.

Preparing Your Community for Act 1
Dates and Locations
  • Jan. 16 - Northwest Tri -County IU 5, Edinboro
  • Jan. 17 - Four Points by Sheraton, Greensburg
  • Jan. 23 - Seneca Highlands IU 9, Smethport
  • Jan. 24 - The Crowne Plaza , King of Prussia
  • Jan. 24 - BLaST IU 17, Williamsport
  • Jan. 25 - Holiday Inn (Rt. 100 & I-78), Allentown
  • Jan. 30 - Pittsburgh Airport Marriott, Pittsburgh
  • Jan. 31 - Best Western Eden Resort, Lancaster
  • Feb. 7 - PSBA Conference Center , Mechanicsburg
  • Feb. 8 - Berks Co. IU 14, Reading
  • Feb. 14 - Bucks Co. IU 22, Doylestown
  • Feb. 22 - Best Western East Mountain Inn, Wilkes-Barre
  • Feb. 27 - Riverview IU 6, Clarion
  • Feb. 28 - Appalachia IU 8, Altoona

(See Programs and Events in the main site for program information and registration links.)