30 October 2012 0 Comments

Harrisburg Debt Part 3 – School District Bankruptcy – Penn State Economics “Screw the Kids”

“The schools are facing unprecedented cuts as the district tries to close a massive budget deficit, while the city is running out of cash and could do so before the end of the year.

A declining tax base contributes to the overall problem — between 2009 and 2012, the assessed value of property in the city dropped by more than $30 million, according to a school district report.

Meanwhile, each time property taxes increase, fewer people pay them. According to a school district report, property tax collection rates have fallen from 87 percent to 83 percent.

Huge swaths of the city are owned by tax-exempt organizations — including state government. Together they account for 49 percent of the city’s tax base.”

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