WESTFALL, PA — If property tax reform is approved in Harrisburg, the 2017-18 budget could be the last revenue budget for the Delaware Valley School District (DV) and 499 other Pennsylvania school districts.

The Property Tax Independence Bill, Senate Bill 76, would eliminate school district property taxes and replace them with increases in state sales taxes. Districts could also seek voter approval of an income tax for additional revenue. The bill was brought up before in 2013 and 2015 and lost both times, the last time upon a tie vote in the Senate.

The measure is said to have a chance of passage this year.

Proponents say the law would stabilize incoherent state funding and eliminate most sheriffs’ sales of seniors’ homes and family farms, caused by owners’ inability to pay, since sales tax revenues are based solely on purchases already made.

This is a problem for DV on several levels, Superintendent Dr. John Bell said at the school board meeting on January 19. A cost-of-living annual increase would favor districts with higher per-student spending levels, while DV’s prudent cost per student to taxation level ratio is among the best in the state.

Additionally, Bell said that 33% of the property in the district is owned by out-of-state residents, who could not be expected to contribute a like amount in sales taxes. Also, the loss of the property tax deduction on federal income taxes would send another $600 million to Washington, he said. “Legislators are tired of getting beat up about school taxes…  It’s a runaway train against us,” Bell said.

School property tax elimination would be accomplished in a two-year phase-out of school property taxes. In the first year after enactment, school property taxes would be frozen at their current level; in the second year they would be completely eliminated except for a small portion to retire the individual district’s long-term debt, typically 10% of the original school tax bill.

Property tax funding would be replaced dollar-for-dollar by SB76 revenues, with future supplemental funds tied to economic activity, gauged by the Pennsylvania Average Weekly Wage (AWW) or available revenue, whichever is less.

Should the bill pass the Senate, Gov. Tom Wolf has the final vote, and he reportedly does not favor the legislation.

In other business last week, the board approved the sale of $10 million in bonds for the construction of a career technical education extension at the high school campus; and decided to roll back a proposed four-year, $5.9 million construction and replacement plan to a one-year $1.6 million plan.

The board heard presentations from chairpersons of the math, science and technology departments explaining their efforts to provide joint direction of a STEM program.

STEM is an acronym for a theory of instruction that assumes that success in the 21st century will require familiarity with and acceptance of the dynamic studies of discovery; and melds or combines elements of the disciplines of Science, Technology, Engineering, Math (STEM) into study programs employing and encouraging exploration of each area. In practical terms, elements of these disciplines, in varying degrees according to the endeavor, will continue to become a requirement for both the research physicist and the truck driver.