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New PA law expands property tax rebate program

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New PA law expands property tax rebate program


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HARRISBURG — Thousands more older and disabled Pennsylvanians will qualify for help from a landmark state property tax rebate program, after Democratic Gov. Josh Shapiro signed a major expansion into law on Friday.

The program, which provides a partial refund on rent or property taxes paid the previous year, offers a financial cushion to some of Pennsylvania’s most vulnerable residents. But the number of people receiving the benefit has fallen every year since 2009, after state lawmakers failed to update the income limits to qualify.

The new law reverses that decline and seeks to prevent it going forward. An estimated 173,000 households will be newly eligible, while roughly 400,000 current recipients will receive a boost in the dollar value of their rebates. The income limits will also be adjusted for inflation each year to ensure that small, routine increases to Social Security benefits do not knock people out of the program — a major factor in the shrinking number of residents getting help.

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For Shapiro, expanding the property tax and rent rebate program fulfills a key campaign promise. The changes represent “the largest targeted tax cut for seniors in nearly two decades,” he said before signing the bill at a community center in Scranton, calling it a “much-needed update.”

Despite reservations from some Republican lawmakers about the potential for automatic spending increases, the bill passed the state House with widespread bipartisan support and was unanimously approved by the state Senate.

The rebate program had not received a comprehensive update since 2006 despite repeated attempts by state lawmakers from both parties to stem the decline.

As a contentious budget impasse over school vouchers draws to a close, Shapiro said the expansion is an example of “what it looks like when Republicans and Democrats come together to actually get stuff done.”

Previously, the income cap to qualify was $15,000 for renters and $35,000 for homeowners. The new measure eliminates this disparity by raising the limit to $45,000 for both. (As before, the program’s rules only count half of someone’s income from Social Security benefits.)

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The lowest-income households will be eligible for rebates of $1,000, up from $650, the previous maximum.

The law also resolves the mismatch between state and federal law that fueled the program’s waning usage.

The federal government adjusts Social Security payments each year to keep pace with inflation. Although most people who are eligible for state rebates also receive Social Security payments, the state program didn’t account for this. As a result, many recipients found that small cost-of-living increases to their Social Security benefits nudged their incomes over the limit to qualify for a state rebate — even though their underlying financial situation had not changed. The new law solves this problem by tying the income thresholds for the rebate program to inflation so that they will gradually increase over time.

The changes will not go into effect until next year. Until then, the downward trend in rebate recipients will continue. The state Department of Revenue, which administers the program, estimates that roughly 11,000 fewer people will receive rebates this year compared with 2022.

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Pennsylvania

Suspect in killing of woman in Pa. motel in custody in N.J., cops say

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Suspect in killing of woman in Pa. motel in custody in N.J., cops say


A suspect in the homicide of a woman in Bensalem, Pennsylvania is in custody at the Trenton Police Department, police said Wednesday afternoon.

The suspect and victim’s identities have not been made public.

The Bensalem, Pennsylvania police and the Buck County District Attorney’s Office said in a statement that officers found a woman dead at the Sleep Inn & Suites, on Street Road, early Wednesday. They did not detail the circumstances of her death.



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Shapiro threatens to pull Pennsylvania out of PJM over electricity prices

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Shapiro threatens to pull Pennsylvania out of PJM over electricity prices


Pennsylvania Gov. Josh Shapiro (D) is warning regional electricity grid operator PJM that the state will consider leaving the organization if it doesn’t do more to protect consumers against soaring power prices.

Shapiro’s letter marks a sharp escalation of his dispute with PJM, the largest U.S. wholesale power market and transmission coordinator, serving 65 million people from the Atlantic Seaboard to Chicago.

The risk of more power price escalation “threatens to undermine public confidence in PJM as an institution,” Shapiro said in his letter to Mark Takahashi, chair of PJM’s board of managers.

In a statement Tuesday, PJM said, “We appreciate the governor’s letter and have reached out to his office to discuss next steps.”

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Group weighs potential and peril of performance funding for Pa. universities • Pennsylvania Capital-Star

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Group weighs potential and peril of performance funding for Pa. universities • Pennsylvania Capital-Star


A group of lawmakers, university administrators and the head of the Department of Education heard Tuesday about the possibilities — and perils — of tying public funding of state-related universities at least in part to their performance and students’ academic outcomes.

The Performance-Based Funding Council was created by the General Assembly last summer and tasked with making recommendations on a performance-based funding formula by the end of April. Members include four lawmakers, Interim Acting Secretary of Education Angela Fitterer and three non-voting members from the state-related schools that would be affected: Penn State, Temple University and the University of Pittsburgh. Lincoln University, an HBCU and a fourth state-related university, would not be affected.

Currently, the three state-related schools collectively receive more than $550 million in state funding annually. The move to a performance-based funding formula has been supported by lawmakers from both parties, as well as Gov. Josh Shapiro.

“These legislative hearings offer a unique opportunity to fundamentally reassess how we align public resources and educational outcomes,” said Rep. Jesse Topper (R-Bedford), the council chairperson. “I believe we need to show the public how those resources are used and why — why we invest in higher education.”

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More than 30 states already use a performance-based funding model. According to testimony heard by the council, the most common academic targets in states with performance-based funding models include graduation rates, student retention and degree or credential completion. But a potential formula could also take into account factors like research output, administrative efficiency, and employment rates of graduated students.

While policies vary greatly around the country, about 10% of money sent to four-year schools in states with performance-based funding formulas is based on the targeted metrics, according to testimony by Andrew Smalley, a policy specialist who focuses on higher education at the National Conference of State Legislatures.

But experts warned that coming up with a comprehensive formula can be “daunting.”

“Everyone knows that colleges and universities subject to these formulas find themselves in a bit of a Catch-22,” said Charles Ansell, vice president of research, policy and advocacy at Complete College America, a nonprofit focused on best practices in higher education. “They need funds for their performance and improved graduation rates, but they cannot access funds without demonstrating improvement first.”

One potential solution, another expert testified, could be awarding funds based on improvements at an individual school over time instead of an arbitrary benchmark, like graduation rate, that applies to all schools.

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Experts also warned that some performance-based funding models can exacerbate disparities in educational outcomes between high- and low-income students, and between white and minority students.

“Performance funding is typically tied to advantages for the advantaged students and disadvantages for the disadvantaged,” said Justin Ortagus, an associate professor of higher education administration and policy at the University of Florida. Though he noted that a funding formula can take these pitfalls into account by incentivizing enrollment and degree or certification attainment for students in impacted groups.

Speakers also highlighted the benefits of performance-based funding models. Ortagus noted that they can promote institutional accountability.

It could also provide predictability when it comes to school budgets.

As it stands, Pennsylvania’s method for funding these universities requires a two-thirds vote of the legislature, which has led to months-long delays in the past. Creating a predictable funding formula that would be distributed through the Department of Education would mean future appropriations would only require a simple majority.

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Moreover, lawmakers could use performance metrics to encourage specific educational outcomes. Part of the funding formula, for example, could rely on students enrolling or graduating in programs of study that would lead to them entering high-demand fields in the job market.  

The state could also target specific outcomes based on goals like increasing low-income, veteran or minority student graduation rates, encouraging adult education and incentivizing students to enter high-demand jobs by focusing on particular majors. And the formula can be adapted when new needs or issues arise.

“It’s very common for states to revise these frequently,” Smalley said.

The council expects to hold three more hearings, some at the campuses of affected state-related universities.  Its recommendations are due to the legislature and governor April 30.

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