HARRISBURG -- Republican gubernatorial candidate Lynn Swann has unveiled his plan to rein in property tax growth without raising other taxes.

He promised cuts of $150 to $200 per homeowner next year -- if he's elected in November -- and, later, a fairer and more predictable property tax system.

"My plan will provide every homeowner with long-needed property tax relief and structural reform," he told an audience of 150 at the Pennsylvania Press Club's monthly luncheon yesterday.

Initial tax reductions would be paid out of future state budget surpluses, augmented by savings from requiring employees in each school district to enroll in a consolidated statewide health care benefits program.

The size of the budget surplus on June 30, 2007, which might be Mr. Swann's first year in office, isn't known yet, of course. But for the current 2005-06 fiscal year, ending this June 30, the state is expected to have a surplus of about $600 million. Mr. Swann expects the first year of his tax cuts to cost about $500 million.

Eventually, under the Swann plan, property taxes would be based on a home's purchase price instead of its assessed value. This would require a change to the state constitution. Tax bills would be limited to 1 percent to 2 percent of a home's sales price.

If the new calculation would result in a higher tax bill for a homeowner, the difference would be paid out of the state's anticipated gaming revenue, which could reach $1 billion, explained Ray Zaborney, Mr. Swann's campaign manager.

The Swann plan also calls for spending caps on municipal, county and school budgets that would prevent tax increases of more than 3 percent.

The current tax system is based on a property's assessed value. The earliest a statewide vote could be taken on a constitutional amendment is May 2009.

"I do not expect to turn around our broken system overnight, but I have a property tax reform plan ... that will create a simpler, more predictable property tax system," Mr. Swann said. "The basis for reform lies in creating a more stable, more predictable system that prevents arbitrary fluctuations in rates that overburden families."

Gov. Ed Rendell's re-election team called the plan unrealistic and harmful to schools.

"Education expenses will continue to climb, but funds will remain static. That's going to create a major hole," said Dan Fee, Mr. Rendell's campaign spokesman. "Who is going to fund the schools?"

Mr. Swann's proposal is different from dozens of plans considered this term by Mr. Rendell and the Legislature. Those plans largely call for property taxes to be offset by increases in other taxes, like income, sales or real estate transfer taxes.

"We don't like tax shifting. That's just picking new winners and losers," said Mr. Zaborney, the Swann aide.

"This is about long-term stability," he said. "The worst that could happen under the Swann system is that your taxes will stay the same. Most people's will decrease."

Mr. Swann's speech yesterday criticized Mr. Rendell for failing to provide the tax relief he promised during his 2002 campaign.

"What good is all his experience -- 22 years of political experience -- if he cannot fulfill that promise?" Mr. Swann asked. "We cannot wait another four years before we take real action."

Mr. Swann's plan is similar to California Proposition 13 of 1978, which benefited owners of the fastest appreciating homes and became a disincentive to sell property.

"California didn't get everything right. They took no steps to control the sharp rise in state government spending," Mr. Swann said. "But unlike California in the 1970s, I have a vision for a Pennsylvania of tomorrow that prepares for new challenges by reining in government spending and reducing the size of government."

One priority is reducing the size of the state Legislature, which has 253 members, more than any other full-time legislature in the country.