Acting PA Secretary of Education Zahorchak Touts Governor Rendell's Property Tax Relief Plan in Bethlehem

Homeowners in Bethlehem Area School District Would Receive $346 in Relief

BETHLEHEM, Pa., Sept. 29 /PRNewswire/ -- Acting Pennsylvania Secretary of Education Gerald L. today touted Governor Edward G. 's plan to provide to all Pennsylvania homeowners.

Yesterday, Governor Rendell addressed members of the General Assembly to kick off a special session to amend Act 72, the legislation that will implement property tax relief, to remove language that gave school boards the power to decide if gaming revenue is used to reduce property taxes in their district.

Zahorchak said limited slots gaming approved last year will generate $1 billion for statewide property tax cuts beginning in 2007 which would mean a $346 reduction in property taxes for homeowners in the Bethlehem Area School District.

"Pennsylvanians have waited far too long for property tax relief," Zahorchak said. "It's time for the state legislature to act to make property tax relief a reality for seniors on fixed incomes, middle class families and those who are purchasing a home for the first time."

Zahorchak said Governor Rendell also wants to eliminate the mandatory Earned Income Tax increase that was part of Act 72, but wants to retain a back end referendum that gives taxpayers greater control over school tax increases.

"The best news for schools is that the $1 billion in property tax relief, combined with the $1.2 billion in new investments by Governor Rendell in our classrooms over the last three years, will raise the state's fair share of public education funding," Zahorchak said. "Through the Governor's leadership, the share will rise to 44 percent, up from 35 percent.

"This is a huge step in the right direction."

Zahorchak also said that since the 1999-2000 school year, more than a third of the districts have increased their property tax rates by at least 25 percent -- in just five years a 25 percent jump in millage rates.

He also said that senior citizens on fixed incomes were particularly hit hard during this time.

"Nearly half of our school districts raised taxes faster than a senior citizen's ability to pay," Zahorchak said. "In the same five-year period, a cumulative cost of living adjustment was only 12.9 percent as opposed to the 25 percent jump in millage rates. This hurts our older Pennsylvanians."

In addition to seniors, the medium income in Pennsylvania rose by 16.9 percent over the last five years.

One hundred eighty school districts raised taxes faster than working families could afford to pay.