A Republican lawmaker in Pennsylvania is pushing a sweeping plan to eliminate school property taxes by creating a multibillion-dollar education endowment fund. The proposal would replace the roughly $16 billion collected annually from taxpayers for public schools.
Rep. Jason Ortitay, who represents a district southwest of Pittsburgh, unveiled the plan Wednesday. His legislation would establish the Pennsylvania Education Endowment Fund, financed through one-time state asset sales, expanded natural gas drilling on leased state lands, a share of gambling revenue, public-private partnerships, and investment returns from state-issued bonds.
“For decades, Pennsylvanians have demanded relief from the crushing burden of school property taxes, especially seniors, working families, and homeowners on fixed incomes,” Ortitay said in a memo. Unlike past proposals relying on tax swaps, Ortitay argued, this endowment would provide a sustainable alternative for funding public education.
The plan comes as Democrats, who control the state House and governorship, push for increasing yearly appropriations to public schools instead. Gov. Josh Shapiro has overseen more than $2 billion in new education spending since taking office in 2023, but gaps persist between poorer and wealthier districts due to local reliance on property taxes.
In 2023, a state court ruled Pennsylvania’s funding system unconstitutional, putting pressure on lawmakers to find new solutions. Shapiro and Democratic leaders want to address the ruling by continuing to boost annual state appropriations, while Republicans argue for structural reforms that reduce reliance on local taxpayers.
If Ortitay’s endowment plan advances, it could mark a fundamental shift in how Pennsylvania funds education, potentially relieving homeowners of a tax burden that has been a political flashpoint for decades.
