50 years ago today in #phled news...

School board president Richardson Dilworth says Philly schools may CLOSE at the end of April because the state Supreme Court struck down a city tax on liquor.

Yes, Philly schools and state interference have a loooong history...(thread)
The "over-the-bar" liquor tax was super contentious. Mayor James Tate opposed it. City Council overrode the veto.

The State Supreme Court said it was illegal, citing a state law that said a municipality can't tax something in the same "field" as something the state already taxes
After the setback, City Council prez Paul D'Ortona says they'll have to figure out something else to tax to keep the schools open. Asked by the Inky what's left to tax, D'Ortona quips:

"Yes, toenails."
What happened next?

Well, the school board lost its appeal in February. More dire predictions followed...

The school board said it needed a change in state law so the city tax could go through...
Thanks to a loan extension, the school district was able to stay open through May.

But as that month began, officials warned they'd have to close before June 1.

The school year was scheduled to run through June 24.
The VERY NEXT DAY...state leaders said they had the votes to pass a bill allowing Philly and Pittsburgh to put a 10% tax on bar sales.

Richardson Dilworth was happy, but cautious...

"I've been up here too often," he said.
All was not well, though.

By May 25, there was still no state law. The school board told teachers they may have to work without pay.

The union (which had already struck earlier that year) was NOT having it.
Then June arrived...STILL no state law!

The district managed to forestall about $7 million in loan payments and straight up told teachers...you're gonna have to work two days this month without getting paid.

Meanwhile, 2000 protestors showed up in H'burg to yell at lawmakers.
A week later 500 tavern owners bussed out to Harrisburg...to yell at lawmakers.

A true mess...
FINALLY...on June 10...Harrisburg passes the law green-lighting a city tax on bar sales.

Hooray?

Well, City Council still has to re-pass the tax, apparently...
And this time? They don't have enough votes to plow past a veto by Mayor Tate!

So the thing just dies...as far as I can tell from the archives.

All that lobbying and bickering and...they don't even pass a tax!
The schools were able to stay open that year thanks to some deferred bank payments and teachers eventually agreeing to take IOUs.

The financial equivalent of scotch tape...
So, yes...

50 years ago Philly schools were in financial turmoil, unleashing a drama that involved state politics, local control, and a bitter fight over taxes.

Sound familiar?

#phled
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