Tag Archives: Delinquent Property Taxes

Three reasons why Philadelphia public schools fail (and what can be done about it)

by Christopher Paslay

Acknowledging three key problems—and providing solutions—can save the Philadelphia School District.

Thursday the Boston Consulting Group (BCG) released a report detailing “key findings and recommendations” on how to improve the workings of the Philadelphia School District (PSD).  Titled “Transforming Philadelphia’s Public Schools,” the BCG was paid $4.4 million from private donors to produce it. 

Here are three “commonsense” findings and recommendations not included in BCG’s multimillion dollar report:  

 COMMONSENSE FINDINGS: WHY THE PSD CONTINUES TO FAIL

1.  The PSD remains unable to remove the violent and unruly 15 percent of students who cripple the entire school system and ruin the educations of the hardworking 85 percent. 

Despite “School Safety Advocates” and “zero tolerance policies,” the fact remains that Philadelphia public schools are rife with violence and inappropriate student behavior (see the Inquirer’s Pulitzer Prize winning series Assault on Learning).  Unfortunately, in today’s politically correct environment where a suffocating brand of educational socialism is promoted, the rights of the incorrigible few supersede the rights of the admirable many.  In other words, it is near impossible to remove students from PSD schools (even “permanently expelled” students can file a right to return to their neighborhood schools after their “sentence” is served). 

One reason is that under PA’s Compulsory Education law, school districts are responsible for providing alternative placements to students they remove from schools, and this can be quite expensive; as a result, troublemakers are forced to coexist with their peers and negatively impact classroom learning environments.      

Another reason is that social justice lobby groups (such as the Education Law Center) and student activist groups (such as Youth United for Change, the Philadelphia Student Union, and the Campaign for Nonviolent Schools) play the race card and fight to keep violent students in schools instead of putting their resources behind the educations of the majority of their hardworking peers struggling to learn.  (This is why charter schools are able to thrive in poor urban districts: instead of removing the bad to save the good, charters simply remove the good from the bad).        

2.  Too many PSD parents are “passengers” and not “drivers,” and feed off of the school system instead of fueling it. 

In the PSD, 81 percent of families are economically disadvantaged.  But this isn’t simply a financial issue; it is a cultural one as well.  In the suburbs, parents and communities drive the school system—they are the core that makes the schools run.  They parent their children and teach them that education is a priority.  They understand that being a stakeholder in their school means making an investment (chaperoning trips, helping with homework, attending teacher conferences, instilling core values in their children, etc.). 

Tragically, too many families in the PSD want to be a stakeholder without making any real investment; they suffer from an entitlement mentality, and believe that the district owes them despite the fact that they have only taken from the system and never carried their own weight and produced their fair share. 

The cycle of poverty in the PSD is tragic, but undeniable: out-of-wedlock teenage births; domestic violence; crime, drug addictions; etc.  This kind of environment is a drain on the PSD, not a force that fuels and propels the system.        

3.  Too many Philadelphia residents do not pay their property taxes.   

Why is the PSD suffering from money problems?  A major reason is because Philadelphia residents owe over $500 million (a half a billion dollars!) in property taxes.  What has the City done to address this problem?  Increase the property taxes of those residents who already pay their fair share!    

 COMMONSENSE RECOMMENDATIONS:

1.  Expedite the removal of the PSD’s violent and unruly 15 percent by building alternative schools that specialize in remediation and alternative curriculum instead of expanding charters. 

In short, remove and remediate the maladjusted and don’t let civil rights or social justice groups bully policy makers into keeping troubled students in classrooms and continuing to rob our hardworking children of a quality education. Do this by building alternative schools instead of pumping more money into charters (or require charters to service the alternative population).      

2.  Run a grassroots campaign to strengthen the culture of PSD families and communities.

The PSD should fight to instill traditional values into its students and their families.  Community leaders should preach that citizens are the captains of their own ship rather than fostering the idea that they are victims of an unjust system.

In addition, the PSD should: rail against teen pregnancy; promote the importance of two-parent families and call for men to father their children; promote personal responsibility and individual achievement; speak out against misogyny, violence and materialism; encourage students to cooperate with police and law enforcement officials; bring back the abstinence only message in sex education; reinforce speaking Standard American English; launch a campaign to cut down on TV watching, internet surfing and video game playing; promote exercise, good diet and proper nutrition; and make Bill Cosby’s book Come On People: On the Path from Victims to Victors part of PSD required reading for 9th graders.    

3.  Collect the $500 million owed the PSD by seizing and auctioning-off the property of all Philadelphia residents who do not pay their property taxes.

Tax delinquents, whether rich or poor, should not be allowed to deprive the PSD of money and rob our city’s hardworking children of their educations.  If residents don’t pay their property tax, their homes or businesses should be confiscated by the city and sold at auction.   

Implementing these straightforward commonsense solutions will go a long way in reclaiming Philadelphia’s public schools.

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Filed under Charter Schools, Holistic Education

To Mayor Nutter: Close Delinquent Properties, Not Schools

by Christopher Paslay

Instead of cutting badly needed school personnel and resources, Mayor Nutter should crack down on the city’s deadbeats who owe $472 million in delinquent property taxes. 

Despite laying-off teachers, nurses, school police officers and teacher aids, freezing salaries, cutting athletics, and shutting down after-school activities, the Philadelphia School District continues to struggle financially. 

Thomas Knudsen, the School District’s Chief Recovery Officer (who makes $25,000 a month), recently announced that the District faces a $218 million deficit for the 2012-13 school year, and that if Mayor Nutter’s new property-tax proposal does not pass City Council, the District may not open in the fall.

“It is not clear that we could, in fact, open schools this fall,” Knudsen said.

Nutter’s new property tax proposal, nicknamed “Actual Value Initiative,” would serve to reassess properties across Philadelphia and adjust taxes to an “actual” or current rate.  In theory, this is supposed to bring in an additional $94 million to the School District. 

But Nutter’s property tax reassessment plan is only a drop in the bucket, and continues to put the burden on hard working middle class citizens.  His plan does little to go after deadbeats who refuse to pay their fair share of property taxes, and does not adequately address the problem of vacant buildings. 

In August of last year, the Philadelphia Inquirer did a series on Philadelphia’s delinquent-property-tax collection system titled, “The Delinquency Crisis.”  In a report headlined “Taxes wither on the vine,” the Inquirer wrote:

Philadelphia runs the least-effective delinquent-property-tax collection system of the nation’s biggest cities, a system that has created a “culture of nonpayment” and cost the city and cash-strapped School District $472 million in unpaid real estate taxes, penalties, and interest.

It is a delinquency epidemic that reaches from Chestnut Hill to Point Breeze, infecting every neighborhood. In all, there are nearly 111,000 delinquent properties, or about 19 percent of all parcels in Philadelphia, according to an Inquirer and PlanPhilly.com analysis of city data.

The past-due properties include such pricey parcels as the proposed Foxwoods casino site, an Old City art gallery, a South Philadelphia hotel, and choice real estate a block off Rittenhouse Square.

But it is in low-income neighborhoods where the delinquency crisis has peaked and where the city’s response has been the least effective. . . .

According to the Inquirer report, Philadelphia has more tax deadbeats per property than any other big city in the country.  Here are some facts highlighted in the report

  • The delinquent tax problem has grown under the Nutter administration.  In May 2009, there were just over 100,000 tax-delinquent properties in Philadelphia. On April 30, 2011, the count had risen to nearly 111,000.
  • Tens of thousands of parcels are never subjected to any enforcement action beyond sternly worded letters from the city Revenue Department.
  • The city’s typical tax delinquent is 6.5 years behind and owes $4,249 in taxes, penalties, and interest.
  • 26,000 properties are at least a decade behind, and the owners of nearly 8,500 properties haven’t paid a dime for 20 years or more.
  • According to city records, the largest delinquent, owing $6.1 million in principal, penalties, and interest on five unpaid years including 2011, is Roman Philadelphia Property L.L.C. at 1499 S. Columbus Blvd., site of the potential Foxwoods casino.
  • Cumulatively, the city’s delinquent properties are 720,000 years behind in taxes.

Of the delinquent properties, Frank S. Alexander, a law professor at Emory University and a leading national authority on improving property-tax collection systems, told the Inquirer:  “That’s an astronomical level of delinquency. It is phenomenally high.  Those numbers tell you there is a very high rate of nonenforcement. It means that the city has made a decision not to go after these properties.”

Mayor Nutter may not be going after these tax deadbeats, but he is going after schools.  Nutter and Knudsen have targeted teachers, nurses, custodians, school police officers, noontime aids, cafeteria staff, athletic coaches, after-school activity sponsors, art programs, music programs, and unions, among others, in an effort to balance the School District’s budget, all of which will have a negative impact on learning. 

Not surprisingly, Nutter and Knudsen are now implementing scare tactics—à la Arleen Ackerman and the Great Full-Day Kindergarten Crisis—suggesting that schools may not be able to open in the fall.  Not unless, ahem, the School District’s five unions cough-up $156 million in givebacks, and Philadelphia’s hard working citizens (who actually pay their taxes) submit to another property tax increase.

It’s time for Mayor Nutter to get his priorities straight and make an honest effort to recover the $472 million owed to the city.  He must take the high road and finally confront the city’s tax cheats instead of balancing the School District budget on the backs of hard working citizens and their children.

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Filed under After School Programs, School Budget