View in browser

Welcome to "Mike's Memo," an update on what's happening in the 48th Legislative District, the State Capitol, and the progress of my legislative priorities. If you haven't done so already, please take a few moments to visit my website at to learn more about issues that may affect you and your family.

Week of April 10, 2017

Column: Local Tax Reform Myths
I support Senator Argall’s Senate Bill 76 to eliminate school property taxes and I’m perplexed opponents offer no alternative – except supporting the status quo, which isn’t working. Consider some of the myths SB 76 opponents are spreading.

Opponents say SB 76 eliminates local control. I agree, we need to address cost drivers plaguing education: pensions, health care, collective bargaining, Prevailing Wage, and other state and federal requirements. While some of these costs are determined locally (i.e., contracts), we can’t continue to ignore these issues. However, SB 76 is just one piece of the puzzle.

Many of us have fought to repeal mandates only to feel we’re standing alone. The zeal of opponents against SB 76 is nowhere near the same as their support for lifting mandates. If they brought the same passion to lifting mandates as they’ve shown in opposing SB 76, many mandates would have been gone years ago.

SB 76 gives schools two options to raise revenues locally: Personal Income or Earned Income Taxes – after voter approval, like other states. Voter referenda are not unique: seven states require referenda to approve school budgets, 34 require them to approve property tax increases, and 19 require a referendum to approve increases over a certain limit.

When I first joined the Senate, I was told the Constitution required the Commonwealth to pay 50% of education costs. I carry a copy of the Constitution and know there’s no such requirement. Nonetheless, Pennsylvania taxpayers have been generous in their support of education, spending nearly $28,000,000,000 a year – $875 a second – in federal, state, and local taxes.

Another SB 76 myth is the uncertainty of the Sales Tax. Enacted in 1953 as a “temporary” 1% levy, the Sales Tax evolved into support for public education: revenues roughly equal state appropriations for basic education. Last year, sales taxes raised nearly $9.8 Billion and the state appropriated over $10.7 Billion for basic education.

Sales and Personal Income Taxes account for 77% of the Commonwealth’s budget and nearly 37% of the budget supports education. Even in lean years with a weak economy when sales and personal income lagged, the state share for education increased or stayed the same. If the Commonwealth can support education with these taxes, why can’t we do the same as proposed by SB 76?

Opponents of SB 76 say advocates mislead with the claim it will completely eliminate school property taxes. They say it doesn’t because “43% of school districts will maintain a property tax of at least 20% of their current rate.”

As an accommodation to opponents, SB 76 excludes existing debt service from the dollar-for-dollar property tax reductions until schools liquidate that debt. Once repaid, all school property taxes would be eliminated.

Is the glass half full or half empty? I believe it’s 80% full as SB 76 would result in immediate reductions in school property taxes statewide: the average would be nearly 80% and only 23 districts would have reductions under 50%.

I understand the concerns with SB 76. However, no one has offered an alternative to eliminate school property taxes. This is why emotions of supporters run high: we want total elimination – not partial elimination, no tax credits, and no state programs that benefit some but not all.

If you support the total elimination of school property taxes, you should support SB 76. If you don’t support SB 76– or say “there’s a better plan” – I anxiously await your alternative.

In the interim, I’ll stand with taxpayers in supporting Senate Bill 76 because I believe no tax should have the power to leave you homeless.

You can also listen to my remarks on the Senator Floor from March 28th regarding this same issue here:

Middletown VFW Post 1620 Celebrates 50 Years
Congratulations to the Middletown Veterans of Foreign Wars (VFW) Post 1620 for commemorating their 50th anniversary! The post was established in 1967 with 100 members to honor the memory of the fallen. Thank you for your service to the community!

PA DMVA Partners with VVMF for Vietnam Veterans Memorial Wall
The PA Department of Military and Veterans Affairs (DMVA) has again partnered with the Vietnam Veterans Memorial Fund (VVMF) to find a photo of every Pennsylvanian whose name appears on the Vietnam Veterans Memorial Wall. The VVMF is posting the photos to a virtual Wall of Faces in order to put a face and story to every name. Great progress has been made to find all 3,151 photos of PA service members whose names are on the The Wall, but there are still 105 missing. A list of PA Vietnam Veterans whose photos are still needed can be found here.

CFA Approves Grant for Northeastern York County Sewer Authority
The Commonwealth Financing Authority (CFA) approved a PA Small Water and Sewer Grant in the amount of $175,330 for the Northeastern York County Sewer Authority located in Mount Wolf Borough, York County, in the 48th Senatorial District. The Authority has effectively served its customers for over 30 years, and I hope these grant moneys help them maintain the high quality services provided to the over 3,600 customers they serve.

LVEDC Awarded PIDA Loan on behalf of Matthew and Louise Nolt of Myerstown
The PA Industrial Development Authority (PIDA) approved a $400,000, 15-year, low-interest loan for Lebanon Valley Economic Development Corporation (LVEDC) on behalf Matthew and Louise Nolt to acquire a 92-acre farm on Krumstown Road, Myerstown, where they have a dairy operation and two broiler houses contracted through Farmers Pride. The loan will also help with the construction of a broiler house. The total project cost is $1.7 Million. PIDA loans are to help development in PA, and create and retain jobs. In 2017, PIDA approved $14.3 Million in low-interest loans that have resulted in $23.8 Million in private investment and supported 425 created and retained full-time jobs.

My April Community Report Cable Show: Hidden Still Spirits
Check out Hidden Still Spirits in Lebanon City, who will release their all-American made David E Bourbon April 1st! Hidden Still is the largest bourbon producer in PA, and also produces internationally award-winning gin, rum, shine and vodka, and has a full PA Preferred menu. You can watch the show below, on my website, Comcast on Demand and Harrisburg Broadcast Network (Harrisburg, WHBG-20).

April 2017 -  Hidden Still Spirits

Contact Information
Please feel free to contact me at any time on state-related issues that are of concern to you. I may be reached through my website or my Lebanon or Harrisburg offices.

When contacting my office by e-mail, mail, or telephone, please be sure to share your e-mail, telephone number, and address so that we can follow up with you in a timely manner. Many inquiries can be handled with a phone call or email.

Was this message forwarded to you? Visit my website if you would like to receive your own copy of "Mike's Memo."

If you no longer wish to receive "Mike's Memo," please click here to unsubscribe.

Privacy Policy
2017 © Senate of Pennsylvania