Pennsylvania has strict limitations on funding schools. Local governments heavily influence the funding that does occur. The school district governance in Philadelphia has been a subject of debate. A large majority of the revenue that the local government receives is from property taxes. In the year 2000 property taxes regarded for almost $10 billion of the revenue in Pennsylvania. That was 30 percent of the total revenue that the local government received and 70 percent of all local government tax revenues. Property taxes accounted for roughly 85 percent of the overall tax revenues for Pennsylvania school districts in 2000. Practically half of all the school district’s revenue came from the compilation of property taxes. The one thing…show more content… Rendell stated that lawmaker “made a mistake” as a result of giving school districts the option to participate in Act 72. The major “no” said by most schools to Act 72 left Pennsylvania as the only state where school districts had the free ability to tax and spend. In 2004, nine states just flat out gave no independent control over tax increases to school districts. Another “Thirty-five states limited a school district’s ability to raise taxes. Also, twelve states limited school spending. In spite of the failure of Act 72, the governor vowed to deliver property tax relief to Pennsylvania homeowners.” In 2006, lawmakers went back to work drafting new property tax reform legislation. This was the result of the Taxpayer Relief Act or better known as Act 1. This relieved all school districts from property tax.
Act 1 is exactly what the legislators predicted and wanted to accomplish over a period of time but failed at with the last three acts. With a closer inspection, the law shows that the advantages of Act 1 are without doubt overpowered by the disadvantages. Even though that it is named the Taxpayer Relief act, they did not relieve anything they just made a tax shift. In 2007 the people of the community were asked if they would pay higher income taxes in order to basically deduct property taxes. For this some taxpayers will not see a difference but others will have to pay even more. For example in the ensuing hypothetical “The Williams are a