Legislative Updates
This is the PSEA legislative update for Thursday, May 04, 2006.

Tax Reform
Last night, the House of Representatives abruptly ended session as the
House Republicans declared they would not be voting on Special Session
House Bill 39, which contained the tax reform package recently adopted
by the House/Senate Conference Committee. This occurred just one day
after the Senate passed the bill by a substantial margin of 40-9.

House Republican leaders held a brief press conference following session
to explain that they believed the plan could not muster the 102
affirmative votes necessary for passage. House Democrats and the
Governor expressed frustration and outrage that a vote would not be
held. Instead, the House Republicans have indicated that a vote could
be taken on the proposal when the House returns to session on June 5.

Many House Republicans indicated they felt the property tax reductions
provided for in Special Session HB 39 were not substantial. The bill
would target tax relief to senior citizens initially through the
expansion of the Rent Rebate Act. Additionally, voters would have an
option to increase their local earned or personal income tax, with the
revenues being used for property tax reduction. Furthermore, once
gambling tax revenues reached a certain threshold, these funds would be
distributed to school districts for additional tax reduction.

The legislation also contains backend referendum provisions that would
apply to all school districts. This language is similar to Act 72 of
2004; however, PSEA was able to secure amendments to the referendum
provisions that provide for increased school district flexibility;
particularly with regard to special education and pension costs.

Ultimately, it is not clear what the future holds for this legislation.

TABOR
In other legislative news SB 884, the state spending cap (TABOR)
legislation was unexpectedly moved out of the House Appropriations
Committee on Monday evening and sent to the House floor for an expected
vote. However, thanks to the quick response of PSEA members and staff,
the bill was withdrawn for consideration due to a lack of votes.
Notwithstanding, we must continue to keep the pressure on House members
following the Primary Election. It is expected that the bill will be
brought up for a vote sometime this June. Thanks to all of you who
contacted your House member on this issue.

Additional House Action
Additionally, the House did pass HB 382 by a vote of 198-0, which amends
the School Code to provide for state reimbursement for modular
classrooms. The bill now moves to the Senate for consideration.

PSEA members can find their legislators' e-mail and paper mail
addresses, fax and phone numbers at http://capwiz.com/psea. Just enter
your zip code in the box at the top of the page.