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    Rendell Tax Justification Memo 072409

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    jmicek
    The document is a memo from a Republican press secretary criticizing Governor Rendell and House Democrats' proposal to increase taxes to fund education. It argues that only half the revenue from the proposed tax hike would go to schools, and that the Republican budget proposal would increase school funding across the state by 11% without raising taxes, using federal stimulus funds. It also claims the Governor is not being transparent about the flexibility provided by the federal government to use stimulus funds for general education expenses rather than just expanding programs.

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    Rendell Tax Justification Memo 072409

    Uploaded by

    jmicek
    269 views3 pages
    The document is a memo from a Republican press secretary criticizing Governor Rendell and House Democrats' proposal to increase taxes to fund education. It argues that only half the revenue from the proposed tax hike would go to schools, and that the Republican budget proposal would increase school funding across the state by 11% without raising taxes, using federal stimulus funds. It also claims the Governor is not being transparent about the flexibility provided by the federal government to use stimulus funds for general education expenses rather than just expanding programs.

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    A memo put out by PA House Republicans on the Rendell administrations tax hike proposals.

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    The document is a memo from a Republican press secretary criticizing Governor Rendell and House Democrats' proposal to increase taxes to fund education. It argues that only half the revenue from the proposed tax hike would go to schools, and that the Republican budget proposal would increase school funding across the state by 11% without raising taxes, using federal stimulus funds. It also claims the Governor is not being transparent about the flexibility provided by the federal government to use stimulus funds for general education expenses rather than just expanding programs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    269 views3 pages

    Rendell Tax Justification Memo 072409

    Uploaded by

    jmicek
    The document is a memo from a Republican press secretary criticizing Governor Rendell and House Democrats' proposal to increase taxes to fund education. It argues that only half the revenue from the proposed tax hike would go to schools, and that the Republican budget proposal would increase school funding across the state by 11% without raising taxes, using federal stimulus funds. It also claims the Governor is not being transparent about the flexibility provided by the federal government to use stimulus funds for general education expenses rather than just expanding programs.

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    You are on page 1of 3

    House of Representatives

    Commonwealth of Pennsylvania

    Memo
    To: Capitol Correspondents, News Reporters, Editors and News Directors
    From: Stephen Miskin, Press Secretary to the Republican Leader
    717-705-1852
    Date: July 24, 2009
    Re: Democrat Tax Increase for Education?

    Governor Rendell and his House Democrat allies have been using education
    to justify their call for a Personal Income Tax (PIT) hike, yet as you will see,
    only HALF of the $1.3 billion that would be generated by the tax would
    actually go to support schools and children.

    The Republican budget proposal (contained in SB 850, Senate-amended HB


    1416 and the Civera amendment) would increase funding for every school
    district across the state WITHOUT increasing taxes. Specifically, the statewide
    average funding increase would be 11 percent. Funding is provided with a
    mix of state dollars and federal stimulus funds.

    Attached is a spreadsheet put together by House Republican Appropriations


    Committee staff showing the difference between the governor’s funding level
    and the Republican funding level; the difference is $581, 226,298.

    Increasing the PIT at the level proposed by Governor Rendell will generate
    $1,270,489,139 in state revenue. When the difference between the
    governor’s and Republican education funding is subtracted, the "leftover" PIT
    revenues are $689,262,841.

    For example, under the governor’s plan, the Cumberland Valley School
    District would receive $684,521 in additional monies. However, to receive
    that money, the taxpayers in Cumberland Valley would have to pay a total
    increase of $7,663,827 in their state income tax – or $6,979,306 more in
    state income taxes than the $684,521 they get back for their school district.
    (Full disclosure, I live in the Cumberland Valley School District)

    In the attached spreadsheet, the last column represents the difference


    between what the taxpayers shell out in PIT and what they get back in
    education funding for their respective school district. These taxpayer funds
    from working Pennsylvanians could be going to other school districts OR any
    of the unidentified programs Governor Rendell wants to fund. Philadelphia
    SD for example is getting more than twice what it pays in – more than $100
    million more.

    Additionally, I am attaching a document with the actual language of the


    American Recovery and Reinvestment Act (ARRA) .

    It is important to understand there are some limitations to the use of the


    federal funds and that they expire in two years. But it also important to know
    what the ARRA Act states:

    The Governor shall first use ARRA funds:


    • to restore State support for elementary and secondary education
    to the fiscal year 2008 level; and
    • to restore State support for postsecondary education to the fiscal
    year 2008 level.

    Something the Rendell Administration is trying to keep from you, the U.S.
    Department of Education (USDOE) two weeks ago issued guidance increasing
    the flexibility on the use of the Title I and IDEA funds.

    USDOE Guidance States ...“Among other things, the Education Stabilization


    funds may be used for activities such as: paying the salaries of
    administrators, teachers, and support staff; purchasing textbooks, computers,
    and other equipment; supporting programs designed to address the
    educational needs of children at risk of academic failure, limited English
    proficient students, children with disabilities, and gifted students; and
    meeting the general expenses of the LEA”...

    In the PA Department’s guidance to school district in March includes the


    following statement:

    PDE GUIDANCE TO SCHOOL DISTRICTS - March 2009:

    “If a school district receives an increase higher than inflation, at least


    80% of the additional amount must be used to EXPAND
    programs and services to students from a menu of specific proven
    academic programs.”

    Governor Rendell is telling school districts to use funds that go away in two
    years to expand programs and services.

    Mind-boggling.

    ###

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