It is time to restart state funding for school facilities. It is a critical part of a healthy school finance system, and it has been missing in Pennsylvania since 2016 when PlanCon, the state’s longstanding school facility reimbursement program, was shut down.
In the absence of state support for major facilities projects, many schools have been forced to make difficult decisions such as whether to defer vital projects, take on more debt, or raise property taxes. This has been the case for a school district in my legislative district, Muhlenberg School District, whose population growth is making the existing facilities inadequate.
When PlanCon was operational, the commonwealth reimbursed school districts for a portion of the debt service for a new construction or major renovation project (e.g., annual state payments of 20% of the project’s debt service for 20 years). For wealthier districts, the state share was close to or under 10% of the total project costs, while the amount for lower wealth districts was higher.
In 2019, the legislature codified the recommendations of the Public School Building Construction and Reconstruction Advisory Committee, which streamlined the application process and modernized the reimbursement formula. However, “PlanCon 2.0” has never been operational. This bill reopens the program, allowing school entities to seek approval and reimbursement for new and ongoing projects.
Please join me in co-sponsoring this legislation to help reduce property tax burdens for school construction and ensure students and teachers have adequate learning environments.