August 2, 2005

MEMORANDUM

SUBJECT: Proposed Legislation
TO: All House Members
FROM: Rep. Nicholas A. Micozzie

When the House returns to session in September, I will introduce a new and improved Successful School Budget (SSB) proposal, which I ask you to co-sponsor. It would comprehensively reform our system for funding public schools to provide adequate funds that are equitably distributed with large and permanent local tax cuts.

Summary
The SSB operates like a matching program. Up to specific limits, the state would match local education revenues. The amount of the state share is limited according to the economic conditions in each school district and the characteristics of the students in each district. The system would be phased in over two years.

The SSB calculates a budget for each school district that should be adequate to meet state and federal requirements for student achievement. This cost is based on the real-world expenditures of 58 school districts that already meet standards of success. This cost ranges from $8,295 per student to $11,002 per student. The median is $8,740 per student.

The SSB does not require school districts to spend at any particular level, but it does limit how much the state will have to match. The SSB does not prohibit school districts from spending above their SSB amount, but it does require expenditures above that amount to be funded entirely by local revenues.

Tax Cuts and Taxpayer Protections
The SSB mandates a permanent cut in local taxes of $2.750 Billion, or an average of 27.4 percent – 2.7 times as much as the tax cut under Act 72. Additionally:

• School districts must give priority to cuts in local property taxes.