HARRISBURG -- Finding a better way to fund public education is not only a question of fairness and finance. The right solution has to work in all parts of a diverse state and appeal to its equally diverse politicians.

Senate Republican leader Bob Jubelirer has seen first-hand the difficulties coming up with a property tax reform plan that has statewide appeal.

Jubelirer, R-Blair, mobilized opposition to block a complex local tax reform plan put forth a dozen years ago by the late Gov. Robert Casey.

Jubelirer says there was nothing in Casey's plan to prevent property taxes from going up again after an initial round of cuts. The plan went down to defeat at the polls 3-1 mainly due to fears on the part of senior citizens that pensions would be taxed.

Four years ago, Jubelirer won legislative enactment of his own property tax plan -- Act 50 of 1998 -- which sets up an optional process for school districts to reduce property taxes by switching to local income taxes, provided they have voters' consent. But only a few of the 501 school districts have implemented Act 50.

Most shun Act 50 because they are leery of the act's provision mandating a voter referendum on any future property tax hikes above the rate of inflation. However, this referendum provision is a favorite with statewide taxpayer groups. They want the same provision attached to any new property tax reform.

In hindsight, Jubelirer said he wished he had written Act 50 to made it mandatory that school boards draft a tax change plan and put it before voters.

"If there was a mistake with Act 50, it was not mandating it," he said recently during an interview in his office.

As lawmakers unveil a new wave of school funding bills, Jubelirer says he has yet to see a proposal that would draw statewide support -- whether it involves hiking the state income tax or state sales in return for property tax cuts or setting a deadline to eliminate property taxes in order to force lawmakers to agree on a replacement tax.

"It's been an issue with me as long as I have been here," said Jubelirer who was elected to the Senate in 1974 and serves in a dual role as Senate president pro tempore and lieutenant governor. "There's no silver bullet here."

Democratic legislative leaders say the Republicans who control the executive and legislative branches of government need to step forward with a comprehensive plan. The Democrats have yet to embrace any of the new wave of tax shift bills.

"The state needs to provide more support for basic education in order to relieve property taxes," says Tracy Yates, spokeswoman for House Minority Leader William DeWeese, D-Greene. "However, it is not going to happen until we get leadership from the governor, the House Republican leader and Senate Republican leader. They are not serious about the issue."

Members of a special House committee on public education funding know what a difficult issue this is. They obtained a third extension on a deadline to recommend proposals to replace property taxes, achieve equity spending and ensure that education spending brings academic results.

Agreeing on a replacement tax is the toughest nut to crack.

"On the revenue side, suggestions have centered on the personal income tax, but arguments have been made to look to the sales tax, cigarette taxes and gaming," said Rep. Mario Civera, R-Delaware, the panel chairman.

Each replacement tax carries its pros and cons. Take a hike in the state's six percent sales tax, for example. Using the sales tax to fund schools is a popular idea in the Pocono regions where thousands of out-of-state tourists come year-round to dine in restaurants, shop and book motel rooms.

A group representing small business owners -- the National Federation of Independent Businesses -- takes a dim view of a sales tax hike.

"Raising a sales tax can be tantamount to driving customers across the border," says NFIB official Kevin Shivers. "I think we need to look very carefully at raising the sales tax."

The House Local Tax Policy Caucus favors a local personal income tax as the replacement tax. Caucus co-chair Rep. David Steil, R-Bucks, said he found little support among his members for a state income tax hike.

But equity advocates say only state income taxes will yield the needed revenue to bridge the gap in what rich and poor schools spend per pupil.

Three-fifths of the school districts fell below the state average income of $39,223 for 1999, thus leaving them with a potentially inadequate income tax base.

"The only way to create an equitable system for the state is to fund education the same way it funds highways," says Tim Potts, director of the Pennsylvania School Reform Network. "Bring money to Harrisburg, then redistribute where it's needed the most."

Many lawmakers in western Pennsylvania are skeptical about a state income tax hike unless it fully addresses the equity funding issue. The state levies a flat income tax, meaning all taxpayers' income is taxed at a 2.8 percent rate no matter what the level. The state Constitution proscribes that taxes fall uniformly on all classes of taxpayers. A state court threw out a graduated state income tax as unconstitutional 30 years ago.

Income levels are lower in western Pennsylvania than in eastern Pennsylvania.

Median household income in Mercer County was $34,666 in 1999, compared to $60,829 in Montgomery County (a Philadelphia suburb), according to the 2000 U.S. Census.

"It's (school tax issue) a bear," says William Green, a Pittsburgh-based GOP political consultant. "If there was an easy way to do it, we would have probably done it."

Still, with a new governor ready to take office in January and widespread recognition that the education funding system needs a wholesale fix, hope for change springs eternal.

"The opportunity is there," adds Potts. "The only question is whether they (politicians) will seize the opportunity or run from it."<hr>

Here are key proposals for school property tax reform:

   » Democrat Ed Rendell -- Reduce school property taxes by 25 to 40 percent and find alternate sources of revenue for schools: legalize slot machines at racetracks, double state's 31-cents-a-pack cigarette tax and restructure state government to cut spending. Require referendum for any future property tax hikes of "significant" level.

   » Republican Mike Fisher -- Call special legislative session as governor to focus on education funding. Open mind on alternative revenue sources to allow shift away from property taxes. Sell state-owned liquor stores to private investors and put $1.5 billion in proceeds in trust fund to cover special education costs.

   » Senate Bill 1373, Sen. James Rhoades, R-Schuylkill -- Hike state income tax rate from 2.8 percent to 4.8 percent in order to cut property taxes.

School would be required to reduce local taxes dollar-for-dollar by an amount equal to increase in state funding. Redistribute state aid to schools under new formula to partially bridge equity gap.

   » House Bill 2408, Rep. Kelly Lewis, R-Monroe -- Eliminate property tax over two years. Hike the state income tax rate from 2.8 percent to 3.9 percent and hike state sales tax rate from 6 percent to 7 per cent. Direct Joint State Government Commission to recommend elimination of $3 billion worth of in state tax credits and tax exemptions.

   » House Bill 2334, Rep. Nicholas Micozzie, R-Delaware -- Hike the state income tax rate from 2.8 percent to 4.6 percent over two years in order to reduce property taxes. Put cap on remaining property taxes. Distribute enough state aid to ensure that all 501 school districts spend what 33 of the state's most academically successful school districts spend per student.

   » House Bill 2250, Rep. Tom Caltagirone, D-Berks -- Hike state income tax rate from 2.8 percent to 5.6 percent in order to eliminate school property and so-called nuisance taxes.

   » House Bill 2616, Rep. David Steil, R-Bucks -- Authorize schools to levy a local personal income tax to pay for 75 percent of school costs associated with personnel salaries and benefits and classroom materials. Rely on smaller property tax to pay for fixed-costs items like building maintenance, utilities. State assumes $1.5 billion annual cost of special education for students with disabilities.

   » House Bill 2639, Rep. Stephen Stetler, D-York -- Double state cigarette tax to fund education.

   » House Bill 1351, Rep. Fred Belardi, D-Lackawanna -- Dedicate any surplus state revenues to school property tax voucher fund. Vouchers go to taxpayers to help pay property tax bills.

   » House Bill 418, Rep. Daryl Metcalfe, R-Butler -- Phase out property tax over six years. Increase state income and sales taxes and allow municipalities to raise local earned income tax.

   » Senate Bills 1239 and 1362: Sponsored by Sen. Michael O'Pake, D-Berks, and Lisa Boscola, D-Northampton, respectively -- Eliminate authority of school districts to levy school property taxes after set date. The goal behind bills is to force General Assembly to deal with issue. Bills propose no replacement revenue source.

   » Keystone Research Center -- Provide "circuit-breaker" where low-income and middle-income homeowners would receive state rebates if local property tax exceeds 3.5 percent of their annual incomes. Rebates capped at $500.

   » House Resolution 42, passed June 2001 -- Created 15-member committee to provide recommendations on ways to reduce property tax, find alternate revenue sources, bring equity to school funding and make school officials accountable for academic performance. Committee given a third time extension to make its report.