Posted: | September 4, 2014 10:54 AM |
---|---|
From: | Representative David R. Millard |
To: | All House members |
Subject: | Additional Commonwealth Contributions to School District Account |
In the near future, I plan to introduce legislation which is designed to generate immediate revenue and alleviate the rapidly growing pension liabilities of Pennsylvania school districts. In FY 2013-14, the average employer contribution rate (ECR) for school districts was 16.93 percent of payroll. In FY 2014-15, the ECR for school districts is scheduled to increase to 21.4 percent of payroll. It is my strong conviction that school districts need financial assistance in meeting these exorbitant pension costs, which are payable to the Public School Employees’ Retirement System (PSERS). Specifically, my legislation establishes a restricted receipts account within the State Treasury known as the “Additional Commonwealth Contributions to School Districts Account” and assesses an additional $3 fee, payable at the same time and in the same manner as under 27 Pa.C.S. §6301 (relating to disposal fee for municipal waste landfills). This fee is commonly known as the “tipping fee”, and is assessed per ton on all solid waste received at landfills in the Commonwealth. An additional $3 fee is projected to generate $51 million annually. Fee revenues will be deposited into the “Additional Commonwealth Contributions to School Districts Account” and will be subsequently disbursed to school districts (excluding charter schools) on a prorated basis. All funds must be utilized by school districts to pay its employer pension contributions as required under law. Your support and cosponsorship are appreciated. |
Introduced as HB2529