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. 6, Sept. 11, 2006
IN THIS ISSUE: Tips on getting your district's Local Tax Study Commission officially appointed and started as well as additional follow up on school district indexes.
SUMMARY: Now that most districts have gotten past the recruiting and screening of volunteers, what is the next step? How should districts officially get their Local Tax Study Commissions working? PSBA has received a number of calls asking these and similar questions and offers the following advice.
Act 1 offers no language mandating how the Local Tax Commission gets started. The only requirements are that a commission be appointed before a board adopts a resolution stating the 2007 front-end referendum question and that it do so 180 days before the deadline to adopt that resolution (Sept. 14). In the absence of specific guidance, the official appointment of the commission should be no different than any other official action taken by the board. Once the board agrees on the names of the appointees and the size of the commission, it should adopt a resolution, which includes all the names of the appointees, signifying that the commission is hereby appointed. There is no need to approve each and every name of the commissioners. Once the official appointment is agreed to, the 90-day clock begins to tick.
As we've stated in previous newsletters regarding the commission, appointees should be well aware of the nature of their responsibilities, the time requirements and other commitments they will have to make before accepting the position. The last thing anyone wants is to have appointees quit the commission because they misperceived their duties and responsibilities.
PSBA suggests that the district superintendent and the business manager be named as official advisors to the commission. In addition to taking that action, the commission should, at its initial meeting, elect a Chairperson and a Vice Chairperson. A commission Secretary should also be appointed, it is our advice to appoint the board secretary as the secretary of the commission. The Secretary will then help the commission meet its Sunshine Act obligations. The commission, with the advice of the district superintendent and business manager, should also decide whether or not to retain legal counsel and/or a financial advisor, who can help pull together the information that the commission is required to review.
Superintendents and business managers can also help the commission set a schedule of meetings to be held over the next 90 days, as well as establishing the agenda for the commission's initial meeting and an order of business for all subsequent commission meetings. PSBA's Act 1 resource page contains draft operating procedures and by-laws that can be proposed to the commission at its initial meeting.
Regarding the Act 1 index, PSBA now has a list of the specific index amounts for all school districts on their members only resource page. The 2007-08 index ranges from the base 3.4% to 5.4% in the state's poorest school districts.
QUESTIONS AND ANSWERS
Q: Does the prohibition on being a relative of a school district official or employee apply to a board member who is appointed to the Local Tax Study Commission?
A:
PSBA believes the answer is no. The Act reads as follows "Except that one member of the local tax study commission may be a member of the board of school directors, no member shall be an official or employee or a relative thereof, of the school district." PLEASE NOTE THAT THIS SENTENCE DOES NOT READ THE SAME IN THE PAMPHLET LAW REPRINT AS IT DOES IN THE ACTUAL LAW.
Q: What if my district simply can't find any volunteers for the commission?
A:
In that case, the board should start aggressively recruiting for members using personal contacts in the community. Remember, a district resident or taxpayer is eligible for appointment. If a person owns commercial property in your district but lives elsewhere, you can appoint them to your local tax study commission.
Q: What if our recruiting results in a commission that is not representative of the community?
A: The language of Act 1 requires that members of the commission "reflect the socioeconomic, age and occupational diversity of the school district to the extent possible." If the board has made a good faith effort to recruit diverse members and no one volunteers, PSBA believes it has met the requirements.
Q: Are there any consequences for districts that do not appoint their commissions by Sept. 14?
A: The Act does not specifically list any consequences for not having a commission appointed in a timely manner; however, PSBA strongly suggests that you try to avoid this situation. While there are no consequences from the state, locally it will appear to taxpayers that the district is trying to "steamroll" the entire process without any input from the public. Make every effort to have your commissions appointed by this Thursday.
Web Conference for Tax Study Commission Members
Don't forget to register your tax study commission members for PSBA's upcoming Web conferences on their roles and responsibilities. This Web conference will be held on Sept. 21 at 7 p.m., and will be repeated Sept. 29 and 30 at 10 a.m. Register at http://mymeetingcentral.com/registration/Register_List.aspx?custid=15105