Job Creation Remains Number One Priority

Last week’s News & Views outlined the PA Works Now proposal and highlighted my belief, as well as that of many of my colleagues, that creating jobs and improving our economy should be our number one priority this fall in Harrisburg.  I remain committed to doing everything in my power to ensure that creating and retaining good-paying jobs is part of any discussion that we have at the state level – and pledge to work with my colleagues to accomplish that this fall in Harrisburg.  That being said, there are two issues that are of great importance to my constituents and that we have the opportunity to address in Harrisburg this fall.  

First, the court-ordered reassessment of Allegheny County continues to move forward.  Earlier this month, Judge Wettick ordered that the assessments be completed in the city first in order to save the city and its schools as much as $2 million in short-term borrowing costs if not completed on time.  The county must certify the updated values in the city by January 1st, according to the judge’s order.  His rationale is that the city and the city school district operate their budgets on a calendar year and collect taxes by May.  Suburban municipalities and school districts operate on a fiscal year and so pass their budgets in the summer months. 

The county is asking Judge Wettick to reconsider his order.  Mike Wojcik has said that if assessors are allowed to follow their original schedule, all taxing bodies could have aggregate numbers by January 15th.   The numbers would be uncertified and preliminary, but would be accurate enough to allow all taxing jurisdictions to set their tax rates.  If there are not changes made to the order, the non-city municipalities and school districts will not receive their property values until March or April. 

Regardless of the Judge’s decision, the fact remains that the current property assessment system is increasingly inaccurate and, at some point, will become unconstitutionally non-uniform.  It is why I have introduced Senate Bill 1280 that would impose a moratorium on court-ordered assessments through November 2012, or until the state acts on assessment reforms.  A similar bill, passed by the state legislature in June, was vetoed by the Governor because it singled out just one county.  My bill will apply to all court-ordered assessments in the Commonwealth. 

People in nearly every municipality in my Senatorial district have written to me, with the same pleas we have heard from county leaders. They want the system fixed before they are burdened with huge property tax increases.  A state-wide moratorium on real estate tax assessments will help these communities avoid the tremendous burden that comes with reassessment. 

Our state constitution insists upon uniformity in property assessments, yet the mandate on Allegheny County creates inequities instead.  In Allegheny County, municipalities have seen residents leave the area and move to neighboring counties which have lower real estate values and costs of living. Twenty-two counties have not completed inspection of properties since at least the mid-1980s. Each county differs in their property markets and assessment systems. 

Just last year, the Legislative Budget & Finance Committee made recommendations to enhance the current system and also provide options to the legislature for major changes to the system.  The House of Representatives currently has more than one task force developing uniform standards for reassessment contracts; a self-evaluation tool for counties to determine when a reassessment is warranted; and criteria and procedures for data submission, verification, and collection.  A moratorium would avoid the negative effects of reassessment without a uniform, state-wide system while allowing the General Assembly the opportunity to address the deficiencies in the current system. 

Second, the dispute between the University of Pittsburgh Medical Center and Highmark continues in our region.  It has become very clear – particularly in light of the ongoing dispute between these two non-profits – that there are such organizations out there which have no concern at all about contributing to the common good or lessening the burden on government and taxpayers.  Instead, it’s about their bottom line.  

I introduced Senate Bill 1281 last week which would require all non-profits to pay on the assessed value of their land only (no buildings) and would exempt the first $200,000 of total land value.  The exemption would not be on a per parcel basis, but would instead apply to all properties owned by the entity. 

I recognize that many non-profits provide services that the government would otherwise have to perform and that many of these institutions are central to the revitalization of the communities in which they are located. My bill seeks to address the imbalance created by organizations where profit is clearly their driving factor. We see non-profits in the community buying up real estate and expanding, getting bigger and bigger while making decisions that actually harm our communities. Asking them to pay taxes on only their land value starts to address that inconsistency. 

There are many, many other issues that Harrisburg should be focused on and addressing this fall – including imposing a Marcellus Shale impact fee/tax and beginning to move forward to fund our transportation infrastructure needs.  With your help, we can keep leadership’s eye on the ball and insure that they are focusing on the issues that impact your daily life and that matter to you.  As always, I look forward to communication with you on these and other issues that are of interest and importance to you – and welcome your comments.