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Pennsylvania Public School Funding. Kristen Manley April 20, 2009 MAT 5900 Prof. Klaus Volpert. Who Pays for Public Education?. You do! Real Estate Taxes State funding, 35% Federal funding, 4% Miscellaneous Revenue, 1%. What are Property Taxes?.
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Pennsylvania Public School Funding Kristen Manley April 20, 2009 MAT 5900 Prof. Klaus Volpert
Who Pays for Public Education? • You do! • Real Estate Taxes • State funding, 35% • Federal funding, 4% • Miscellaneous Revenue, 1%
What are Property Taxes? • State of Pennsylvania does not collect property taxes • Local governments (counties, municipalities and school districts) determine property taxes • Based on value of all real property
How to Calculate Property Taxes • Taxes are based on assessed value • Based on millage rates ($1 tax for every $1,000 in assessed valuation) set by individual municipalities • Vary from one county to another, and even from one town to the next • The amount of property tax you will owe is based on a combination of your assessed property value (as determined by the County Board of Property Assessment and Appeals) and the millage rates of the municipality and school district in which you live
Example - Property Taxes in Newtown Square You own a house and acreage in Newtown Square valued at $200,000. The millage rate is 14.54. What will your property taxes equal? • Millage rate = 14.54 • Assets valued = $200,000 • Property taxes = Assets x (Millage rate/1000)$200,000 x .01454=$2,908
Example – Property Taxes in Philadelphia You have moved to a house and acreage in Philadelphia still valued at $200,000. However, the millage rate in Philadelphia is 49.59. What will your property taxes equal? • Millage rate = 49.59 • Assets valued = $200,000 • Property taxes = Assets x (Millage rate/1000)$200,000 x .04959 = $9,918
Why do Property Taxes Continue to go Up? • A change in the base value of all property • A decrease in the actual collection of revenue • An increased need for revenue
What is the Cost of Running a School District? • Varies • Community preference • Student needs • Instruction costs • Support costs • Administration costs • Maintenance costs • Salaries • Average salary for PA teacher is $54,977 • Average salary for PA administration is $88,931 • Instruction Spending • Provide services for nonpublic school students
Marple Newtown School District • 3545 Students • 6 schools • 2008 budget was for over $60,000,000 • Over $17,000 per student • Graduation Rate almost 95%
Philadelphia School District • Approximately 200,000 students • 281 schools • 2008 budget is approximately $2 billion • $11,490 per student • Graduation rate is 59% Chart found at http://www.thenotebook.org/taxonomy/term/58
Governor Rendell’s Big Plan • Pennsylvania is made up of 67 counties • 15 school districts in Delaware County alone! • Condense Pennsylvania’s 501 school districts to less than 100! • Not a new idea • Past mergers • New Jersey
Is this good?... Yes! • More equal opportunities • Cut costs • Lower property taxes • Cheltenham would see a 47% decrease (according to philly.com) • Conforms with national trend • Struggling school districts like the idea • Spread development more evenly throughout a county
Is this good?... No! • Hundreds of administrative jobs will disappear • Worse scores less funding • Higher property taxes • Upper Merion would see a 48% increase (according to philly.com) • Well-off, high-achieving districts not keen on the idea
Works Cited • http://www.elc-pa.org/pubs/downloads/english/fun-Funding%20Public%20Schools%20in%20Pennsylvania.BK.pdf • http://hasd.tiu.k12.pa.us/focus.pdf • http://www.philly.com/inquirer/local/20090322_Bigger_school_districts__lower_taxes_.html • http://www.pde.state.pa.us/newsroom/lib/newsroom/OCDEL_fact_sheet.pdf • http://www.ed.gov/about/overview/budget/statetables/09stbystate.pdf • http://pittsburgh.about.com/od/taxes/p/property_tax.htm • http://www.mnsd.net • http://www.phila.k12.pa.us/ • http://www.thenotebook.org/taxonomy/term/58 • http://philadelphia.about.com/cs/delawarecounty/a/delco_schools.htm