Last night, the Tyrone Area School District held a public information and input session regarding Act 72.
The legislation was approved and signed into law by Governor Ed Rendell last year to provide a property tax reduction for home owners and farmers in the state through the use of funds generated by slot machines. The gambling measure was approved by the legislature and signed into law as Act 71 by Rendell.
Both laws have encountered legal challenges with the state’s school board association asking for a delay on the deadline districts have to make a decision. The deadline stands at May 30 of this year. The courts handed down a decision recently denying any extension request. There is also court action questioning the legality of Act 71 which allows for the gambling revenues to be generated through the slot machines.
More than a dozen people from the district attended the meeting last night with several school administrators and school board members on hand.
Attendees heard introductory information from Superintendent Dr. William Miller and school board president Lee Stover. The audience also saw a videotaped presentation by Dr. William T. Hartman of Penn State. Hartman, an education finance expert, had given a presentation in April in Altoona about the ramifications of Act 72. The professor was hired by Tyrone and other school districts to help them sort out the complexities of the law and inform the public.
Business administrator Cathy Peachey also offered information using a series of graphs and charts provided by Hartman to explain the individual impact Act 72 would have on homeowners, farmsteads and renters.
The law not only provides for a property tax reduction but also requires districts to increase the earned income tax by 0.10 percent if they decide to opt in to the program. Voters will be given the opportunity to approve a referendum to lower the real estate tax further by raising the earned income tax to even a higher level.
The law also gives school districts the opportunity to raise taxes annually by staying below an inflation-based index. The law provides for a referendum giving voters the right to vote on certain tax increases if it is above the index. The law does provide for exceptions to having a referendum on some types of property tax increases.
After hearing the presentation and having their questions answered, attendees were asked to fill out a survey indicating whether or not they were in favor of the school board voting to “opt in” or “out” of the program. Of the 12 surveys received, only one person said they wanted to see the district “opt in” to the property tax relief. The other 11 said the district should “opt out” and property tax decisions should continue to be made the same as they are now.
Dr. Hartman’s presentation provided a list of expected “winners” and “losers” under the program. Hartman said winners would include property owners with little or no income such as seniors or those on fixed incomes. Hartman also explained farmstead owners would come out ahead since they are able to receive the reduction twice; once as a homeowner and the other as a farmstead owner. Hartman said the losers would be renters, two-income families, higher income homeowners, school district budget makers and gamblers.
He also noted those who don’t apply for the reduction through a homestead/farmstead exclusion would not receive the benefit of the program.
Snyder Township resident Eleanor Miller said she favored the district “opting in” because of the makeup of the residents in her community.
“The majority are seniors who, as of course you know, they would gain on that and I know there are quite a number who are low income as they are applying for money to do repairs on their homes,” said Miller. “I’m for Act 72, that’s what I’m judging it on.”
A Tyrone Township resident, Grant Hormell, expressed concerns that school districts and property owners didn’t have all the answers they needed and officials were being pressurized to make a decision by the May 30 deadline.
“You are asked to buy a pig in a poke,” said Hormell. “You don’t know what you are getting, they don’t know what they are giving it to you for.
“Then they ask, ‘you have to do this by today,’” said Hormell. “It’s like going and buying a car and if you don’t sign on the dotted line today… this deal is no good tomorrow.
“They are threatening you, they are telling you to do things and they don’t even have ways as to how to do it.”
Attendees were told the Tyrone Area School District faces the issue of equalizing taxes since it is comprised of residents from three counties. School administrators have been seeking answers about how equalization would be done properly and legally under Act 72. Just yesterday, administrators received a written response to their concerns from state education officials. Dr. Miller said the district needed time to analysis the information before commenting on it.
After the public input session, Dr. Miller said he thought the evening provided “a very lively and responsive discussion.”
Miller said, “I think most of those in attendance seriously questioned opting in to ACT 72 even though there was a concern about retirees and those on fixed incomes.”
He noted more than 30 percent of the district’s residents are senior citizens.
School board president Stover said, “I was very pleased with the understanding that the audience demonstrated on the subject of Act 72. The people in attendance here tonight, even though it was small, compared to the size of our district, had a very good level of understanding. I think they had a balance of concern.
“The seniors are concerned properly,” said Stover. “Those concerned about a wrong message to children are well taken.”
Stover indicated he thought the other attendees were undecided.
“That’s just the way the board has been about it to. There are just so many gray areas, unanswered questions and yet we are asked to make a decision,” said Stover.
The school board is holding a work session and regular meeting tonight and has another meeting scheduled for May 10. Yesterday, officials confirmed a third meeting on May 26 has been scheduled. It is expected a decision by the school board on Act 72 won’t be made until that meeting, barring an unlikely extension of the May 30 deadline being granted through the courts or the legislature.
“We are going to wait to the last possible moment because there are lots of things going on,” said Stover. “There is new information, as of today, (that) is flowing in and we don’t want to make a hasty decision on this at all.”
Tyrone is among several districts holding sessions to inform the public on Act 72. The Bellwood-Antis School District is holding a public information session on Act 72 at 6 o’clock this evening in the high school cafeteria.
