Sen. Judy Schwank spoke about pension reform and property tax reform during a recent Northeast Berks Chamber of Commerce breakfast Sept. 19.
“We do need to look at (pension reform) in Pennsylvania… We definitely need to do something about it,” said Schwank during her update about legislation to chamber members. “Anything worth doing is worth doing right. And when you’re talking about billions of dollars in investments in the state pension funds as well as the lives of at least 5 billion people in terms of retirement, it’s critical we get this right.”
Schwank said a number of plans have been proposed, one by Gov. Tom Corbett that would move new employees into a defined contribution. “The problem I see is that the new plan we’re talking about does not help the big old problem that we have, which is that $50 million liability.”
Also discussing property tax elimination Senate Bill 76, Schwank said Berks County has among the highest school property taxes in the Commonwealth. “I’ve been a supporter of it, recognizing that that bill needs a lot of work. But one thing I know for sure is that people are feeling not just pain but severe financial distress because of school property taxes, particularly senior citizens. I’m pushing it because I want to see something happen that makes a difference for my constituent.”
She noted that there will be things that will be taxed that were not before, such as legal services, fiscal services, expansion of food that is taxed, as well as clothing. There will also be an increase in personal income tax, from 3.07 to 4.34.
“It’s a tax shift; you’re going to pay for it somewhere, the money has to come from some place. But a lot of people are looking for a more equitable way to fund our schools,” said Schwank.
She has heard a few people say they have not had children in school for 20 years or they never had any children.
“You know those kids that you see getting on the bus. They are our future social security checks. They are the ones who will be paying and help supporting the economy that we need… we need to enure we have a well educated work force and plenty of young people to keep that going.”
