Chairman Kornheiser on Tuesday asked Legislative Counsel to walk the House Ways & Means Committee through the new education finance mechanism in Act 127. It sounds like there were some side conversations after last week’s hearings about tweaking the implementation of the legislation.
The law generally redistributed taxing capacity from wealthy and urban districts to poor rural districts. Under the new distribution, two thirds of districts would benefit while one third would see an increase in their tax rate for the same level of spending. A hold harmless mechanism as added that would trigger if a school districts property tax rate increased by 5% or more in FY2025 over FY2024. If a districts tax rate is capped in FY2025, in subsequent years (up to FY2029) they would continue to be capped.