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Fair-Share Plan For Philadelphia Schools

Philadelphias public schools deserve to have nurses. Our children deserve music and the arts. They
need teachers. They need counselors. The Governor is doing his part to restore funds at the state level.
In the meantime, Philadelphia needs to ensure a solid guarantee for Philadelphias kids in September. I
support Mayor Nutters call for additional local funding for schools, but the Mayors proposal puts too
much of a burden on Philadelphia homeowners. We can fix our schools AND keep our city livable for
families but only if we all do our fair share. This is my fair share package to provide our schools with the
funds they need, while minimizing costs to homeowners:


1. Increase the Use & Occupancy (U & O) tax rate.
Funds available in FY16
YES
Are funds recurring?
YES
Impact on School District budget
+$42.5 million
Impact on City budget or services
NONE
Requires State action
NO

Under AVI, commercial property owners received unintended tax breaks estimated at $72 million
per year. I call for an increase in the Use and Occupancy tax to simply recapture part of this increase.
Business leaders, like Center City Districts Paul Levy, recognize the importance of differentiating
between the taxes paid on commercial vs. residential property. We dont need to wait for a
constitutional amendment in Harrisburg. Adjusting Use & Occupancy is within Councils control.

SCHOOLS BENEFIT: $42.5 million

2. Increase taxes on Center City parking lots.

Funds available in FY16
YES
Are funds recurring?
YES
Impact on School District budget
+$7.5 million
Impact on City budget or services
NONE
Requires State action
NO

The plethora of downtown surface parking lots and garages, in the words of the Inquirers
architecture critic, visually strangle city life. They are a prime example of what happens when we
criminally under-assess land values and allow cheap and ugly development to exploit that failure. A
modest rise in parking lot taxes not only makes economic sense; it makes environmental sense.


Parking lot owners argue that they will raise prices if this happens, but basic economic theory
suggests that they are already charging as high a rate as they can.

SCHOOLS BENEFIT: $7.5 million

3. Establish a modest PILOT program for large non-profits.
Funds available in FY16
YES
Are funds recurring?
YES
Impact on School District budget
+$10 million
Impact on City budget or services
NONE
Requires State action
NO

Great cities are marked by vibrant philanthropy. As our non-profit giants flourish in the city, City
leaders have a role in revitalizing civic investment in our major institutions and there is no greater
need than our public schools. I call for City leaders to leverage their relationships and vision to re-
establish a modest PILOT (Payment in Lieu of Taxes) program from our largest non-profits. Non-
profits can focus the PILOT program on areas of need school nurses for example or resources for
the school breakfast and lunch programs. A modest PILOT program will collect $10 million per year
in the first year.

SCHOOLS BENEFIT: $10 million

4. Reduce Mayors proposed tax hike on homeowners.
Funds available in FY16
YES
Are funds recurring?
YES
Impact on School District budget
+$45 million
Impact on City budget or services
NONE
Requires State action
NO

Property taxes are the bread and butter of school funding, but homeowners shouldnt have to be
the sole source of local funding, especially when so many other actors dont pay their fair share.
Under Governor Wolfs proposed budget, Philadelphia homeowners will still see a major property
tax decrease in the next year. In a fair share plan, instead of asking Philadelphia families to bear the
brunt of school funding, I ask that homeowners support a modest $3.75 per month surcharge on
properties (for the median property). Within one additional year, homeowners will still see a
significant net decrease in overall property taxes with the state relief. Parents are already paying
more than this every year to make sure their childs school has paper, football uniforms, and school
staff. Lets pitch in together to make sure our children begin to have what they need.

This is how the property tax plan would break down:


Current
Helen Gym proposal
Mayors proposal
Current total rate
1.34
1.3937
1.4651
City portion
0.6018 (45%)
0.6018
0.6018
School District portion
0.7382 (55%)
0.7919
0.8633

Helen Gym City Council At-Large

Education Funding Plan



Median property tax in
FY16
Median property tax in
FY17 (w/ Wolf plan)


Annual change in tax FY16
Change in tax FY17 (with
Wolf plan)

Current
$1,116.00

Helen Gym proposal

$1,160.95

Mayors proposal
$1,220.00

$759.11

$789.53

$829.00

Helen Gym proposal
$44.95
-$326.47

Mayors proposal
$104.00
-$287.00

SCHOOLS BENEFIT: $45 million

This investment cannot be a blank check. Instead it must come with real accountability and oversight.
Every line of the School District budget must be scrutinized. I have done this oversight as a private
citizen, and I will do it as a Councilwoman.

The bottom line is this: Parking lot owners, large nonprofits and commercial building owners can afford
to do their fair share to fund good schools. If they do, Philadelphia homeowners will pay less than half of
what the Mayor requested, $3.75 a month for the typical homeowner, with future reductions promised
under Governor Wolf, to ensure our schools have adequate teaching staff, nurses and sports.

There are many long-term solutions to get the District on sound footing, including increases in tax
collection, increasing the Districts proportional share of property tax funding, oversight of the parking
authority, accurate assessment of land values, and a rethinking of our approach to property tax
abatement. The District should also deny future requests for abatements, TIFs and KOZs on the School
District portion of taxes; and City leaders should work with the Philadelphia Parking Authority to ensure
that the proposed sale of 61 new taxicab medallions is subjected to the City-School District profit sharing
agreement. All these ideas are important. But they will not get us to our goals this year, and our
children cannot afford another year of inadequate funding choices for our schools.

The current primary race has exposed enormous weaknesses in every single Mayoral and Council
candidates plan for funding schools. Every single Mayoral and Council candidate should provide a
specific dollar figure they will provide for schools, and show us exactly how to get there, this year within
the Citys control and without punting to Harrisburg. If they cant or wont get our schools to $105
million, they should show us what programs they will cut.

Its time for us to take the May 19th primary seriously and with real options for our schools and our city.

SUMMARY


Helen Gym budget
Mayors budget
Use and Occupancy recapture
Parking lot tax increase
PILOTs
Real Estate tax
TOTAL

$42.5 million
$7.5 million
$10 million
$45 million
$105,000,000 SHARED

$0.00
$0.00
$0.00
$105 million
$105,000,000

Helen Gym City Council At-Large

Education Funding Plan