Rendell Administration Seeks Property Tax Relief for Every Pennsylvania Homeowner

PA Labor & Industry Secretary Visits Scranton to Educate Public on Governor's Fall Agenda; Says Minimum Wage Increase Overdue

SCRANTON, Pa., Sept. 29 /PRNewswire/ -- Every Pennsylvania homeowner would be eligible for property tax relief under a proposal announced earlier this month by Governor Edward G. Rendell and outlined today in Scranton by Secretary of Labor & Industry Stephen M. Schmerin.

Schmerin said limited slots gaming approved last year will generate at least $1 billion for statewide property tax cuts. Governor Rendell wants to require all school districts to offer gaming-funded property tax relief. He has asked the General Assembly to amend Act 72, the legislation that will implement property tax relief, by removing language giving school boards the power to decide whether gaming revenue will be used to reduce property taxes in their districts.

"Rising property taxes are a problem for all Pennsylvania homeowners," Schmerin said. "They are especially burdensome for older Pennsylvanians and others living on fixed incomes.

"School boards should not be able to say 'no' to $1 billion in school property tax cuts. Property tax relief should be automatic, statewide and it should happen as soon as possible."

Schmerin said Governor Rendell also wants to eliminate the mandatory Earned Income Tax increase that was part of Act 72. School boards would still be able to ask voters to decide if they want to increase the local Earned Income Tax or Personal Income Tax to pay for additional property tax cuts.

The Governor would retain a back-end referendum that gives taxpayers greater control over school tax increases.

Governor Rendell's fall legislative agenda also includes raising the state's minimum wage to $6.25 an hour, effective January 2006, and to $7.15 an hour by January 2007. The minimum wage is currently $5.15 an hour.

Schmerin said 17 states - including the neighboring states of New York, New Jersey and Delaware - have raised their minimum wage above $5.15 an hour.

"The minimum wage was last increased in 1997," Schmerin said. "Since that time business profits have risen, worker productivity has increased and the costs of basic necessities like food, clothing and especially energy have skyrocketed.

"Pennsylvania's 254,000 lowest-paid workers deserve a raise now. It's not acceptable that an adult can work full-time, and take home just $10,712 per year. That's below the poverty level even for a family of two."

Governor Rendell is also calling for passage of legislation that will provide $500 million in continuing investments in economic and community development through the Redevelopment Assistance Capital Project program.

Rounding out Governor Rendell's fall legislative agenda are proposals to provide financial relief to members of the Pennsylvania National Guard and veterans. Other initiatives include establishing tougher penalties for individuals convicted of sex-related crimes and restricting access to ingredients needed to make methamphetamines.