Diven measure finds $572 million in state money; increases state’s share to education to 50 percent

Harrisburg, March 5 – State Rep. Michael Diven, D-Allegheny, today called on the House of Representatives to adopt a measure that could potentially slash property taxes by 40 percent and increase the state’s share for public education costs to 50 percent.

The measure also creates another $572 million in revenue for the state.

Diven unveiled his resolution and subsequent plan at a Capitol news conference today, a plan that could ease budget-related tension.

"If local tax reform is to be accomplished by having state taxpayers assume greater responsibility for the costs of operating our public schools, then it is critically important for the Commonwealth to gain control over the growth in spending in this critical arena."

Diven’s resolution would authorize a study to determine the feasibility and cost-effectiveness of placing public school employees’ benefits under the state’s jurisdiction. In turn, the state would be able to provide health-care benefits to employees, which would alleviate the burden of schools having to pay for benefits.

"This idea could save the state almost a billion dollars," Diven said. "Since public schools currently negotiate their benefits locally, the state has no control over the growth of these expenses. In turn, the state would be contributing 50 percent to education costs – a percentage that Democrats and Republicans both want."

There are more than 211,000 public school employees statewide, including teachers, administrators and support staff.

Because the state can purchase health-care benefits at a cheaper, bulk rate, Pennsylvania would generate $572 million in savings by paying for benefits.

Diven noted that a Pennsylvania Department of Education report on its initiative, Your Schools Your Money, noted that salaries and benefits for school employees comprise almost 70 percent of all school district spending statewide. Benefits account for $2 billion, or 14 percent of the spending.

Diven’s resolution, if adopted, would require the results of the study to be presented to the General Assembly by Dec. 31.