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Policy Note: Public Education Capital Outlay

Last Updated April 3, 2015: The state constructs and maintains schools, community colleges and universities through the Public Education Capital Outlay. Funds for PECO are designated from a Gross Receipt Tax (GRT) on natural and manufactured gas, electricity and communication services. Outside of the last few years, the tax has been quite reliable and grows, albeit slowly. Revenue dropped off some in the last few years, and a commonly held belief as to the culprit is the transition away from cable to streaming services, landlines to cellphones and toward energy efficient appliances. This drop also coincided with the aftermath of the Great Recession.

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