Jenkintown and Act 511: A Missed Opportunity

Borough Council forfeits revenue that could restore our police department, fund new pumper

Does Borough Council bother to read applicable Pennsylvania law? We suspect that most Council members haven’t read the Sunshine Act since they know nothing about it, but it also appears none of them have read Act 511 either. Act 511 allows them to impose certain local taxes, one of which is the Earned Income Tax.

Section 311 of the Act allows municipalities and school districts to impose a personal earned income tax not to exceed 1%.

The same section provides that if two political subdivisions (i.e., a municipality and a school district) impose the same tax, then the tax levied by each shall be one-half of the rate allowed, and that one-half rate shall become effective from the day it is imposed.

In Jenkintown, the School District receives the full 1% of the Earned Income Tax. According to the District’s 2024-2025 Budget, that revenue is estimated to be $1.4 million.

The Borough can also impose this tax and, following notice to the School District, would then receive half of that one percent or approximately $700,000. The Borough does not need the School District’s agreement in order to impose this tax.

An additional $700,000 in revenue would enable the Borough to maintain its police department at safe and appropriate staffing levels of two officers per shift.

And before the objections start rolling in regarding the School District’s need for this $700,000, consider the following: The District’s total budgeted revenue for 2024-2025 is $19,367,092. $700,000 is 3.6% of the total budget, not a significant loss to the District.

Further, past experience has shown that the District will and does tax Borough residents up to the limit allowed by law. If the state allows them to raise taxes by 6%, they raise taxes by 6%, with no effort to economize. Additionally, with the plans currently underway to purchase the Salba property, it is a given that school taxes will go up significantly in the years ahead. The reduction in revenue of $700,000 in a budget exceeding $19 million (which will undoubtedly increase in the years ahead) is inconsequential.

If you object to the school district covering that loss of income with another property tax hike, then take that up with the school board. They are supposed to represent you, the taxpayer. Not the administration.

So why hasn’t Borough Council acted to take advantage of this tax revenue? Perhaps they should educate themselves by reading the law and then acting on this opportunity.

Read the law here: Act 511 Section 311