Stack Unveils Plan to Help Raise Money for
Schools Through Payment of Delinquent Taxes
With new tools, the city and other municipalities would be able to increase funding for education and the School District of Philadelphia would not be fighting to find the money to close a blistering $300 million budget hole, he said.
Stack (D-Philadelphia) today stood with the Philadelphia Federation of Teachers to unveil a five-bill proposal that would give the city the power to collect $380 million in back property and business income and receipts taxes.
“It is wrong that delinquent property and business owners are playing a big part in the starvation of Philadelphia school students and teachers,” Stack said during a press conference at the front entrance of Abraham Lincoln High School on Ryan Avenue. “It’s equally wrong that the city lacks the legal muscle to take action against the negligent people who are robbing our students of a quality education.”
Stack’s five-bill package – Senate Bill 970 to Senate Bill 974 – would give the city the power to go after $249 million in unpaid property taxes, $91.5 million in delinquent business income and receipts taxes, and $47 million in late wage taxes.
If approved, Philadelphia and all Pennsylvania municipalities would be able to place a lien on any piece of property for the unpaid taxes. Those governments would also be able to add the cost of collections to any lien attached to a delinquent property or business.
Additionally:
Local governments would be able to attach the bank account of a delinquent debtor;
Philadelphia would be able to garnish the wages of delinquent property and business owners at the same 10 percent rate other municipalities now charge; and
Municipalities would be permitted to use the same enforcement system now used to track the financial health of delinquent child support payers.
“This legislation would let those who don’t pay their taxes know that the City of Brotherly Love has the necessary and appropriate powers to instill some loving punishment and collect what it is owed,” Stack said.
"This year's proposed school budget eliminates vital services, programs and extracurricular activities that are needed for a quality education," said Philadelphia Federation of Teachers President Jerry Jordan, "We're glad to see Sen. Stack and other elected officials proposing sustainable education funding that will end the current practice of taking programs away from our children."
Stack said he has worked with the Philadelphia Senate Delegation and Philadelphia Mayor Michael Nutter in his development of his five-bill legislative proposal.
Lincoln High School special education teacher Louise Jordan and parent Claudia Qeisi spoke in support of Stack’s legislation and the dire need for the state and city to come up with the revenue to properly educate Philadelphia’s school children. City Councilman Bobby Henon has pledged his support for the legislation.
Forty-six percent of the School District of Philadelphia’s operating budget is tied up with fixed costs and cannot be adjusted. The balance includes mandated costs, such as retirement, which is increasing from 12 percent to 15 percent next year. Also, the district will see a 12 percent drop in enrollment to charter schools next year if it does not close its $300 million deficit.
Stack said the district is being forced to walk down a creaky plank.
“The water below is shark-infested and will doom this great American city to a future that will be hard to turn around, unless we step up and listen to people like Jerry Jordan, Louise Jordan, and Claudia Qeisi,” the senator said.
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