WESTFALL, PA — Amid other business discussed at the school board meeting last month, Delaware Valley (DV) Superintendent Dr. John Bell hinted at the impacts of school tax reform; last week he rang the fire bell.

Using a ream of data provided by the seven major statewide associations representing public school boards, intermediate units, administrators, financial officers and teachers, Bell laid out a PowerPoint scenario in which the twice-failed reform bill, Senate Bill 76, could be revived and result in local economic as well as statewide educational chaos.

SB76 lost by a single vote the last time out in 2015, when Lt. Gov. Mike Stack (D), who presides over the state Senate, broke a tie with his negative vote.

Bell said the bill has not yet been re-introduced, that proponents had planned to quietly marshal their votes and “ram it through.” But when the scheme leaked, the education lobby responded. Legislators have not been readily available to talk to school officials since then. “Last time Sen. [Lisa] Baker voted for it, but we don’t know if she was supporting it, or already knew it would fail and was voting to stay in line with Republican leadership,” Bell said.

In brief, the reform bill would replace $14 billion in statewide school taxes by a 1.88% (to 4.95%) increase in the income tax and a 1% increase (to 7%) in the sales tax. Items such as groceries, clothing, beer, liquor, non-prescriptive drugs and financial, funeral and salon services would become taxable.

School property taxes would cover only remaining debt and be replaced by quarterly payments based on the last tax levy, with guaranteed annual cost-of-living-adjustment (COLA) increases. New debt and budget increases beyond the COLA would require public referenda. “Just how receptive do you believe the public will be after the increases they will be getting in their income and sales taxes?” Bell asked.

Bell argued that income and sales taxes are cyclical and fall off in a recession, as they did between 2007 and 2010, a combined 15% according to Bell’s presentation. “How would the state make that up to keep its guarantee? I don’t believe it,” he said.

If the bill should become law by June 30, DV would be on the hook for the cost of the recently approved $10 million bonding of the Career Tech Education addition. “They’re changing the rules in the middle of the game. We’re not sure it would count as existing debt. It could require payment from our operations budget,” Bell said.

Pike has many second and vacation homes, and the presentation represented the reform as a windfall for their out-of-state owners, to be made whole by Pennsylvania taxpayers.

The presentation also showed a windfall for the IRS, which would collect an additional $600 million annually with the elimination of the property tax exemption.

Then there is the local economy. How will the many chain stores gathered on PA side of the New York and New Jersey border fare when the sale of groceries, over-the-counter drugs, beer and liquor prices all become taxable? Exemptions vary, but groceries and many of these items are not taxable in neighboring states.

Bell’s presentation covered numerous details and concerns that will be posted on the district website. The presentation also directed residents to visit the PA School Boards Association site at www.pasbo.org/propertytax.

Bell strongly recommended contacting legislators and the governor and informing others in the community.