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Tuesday, August 19th

Meeting Summary 
 

Presentation on Public School Funding by Steve Kroes from the Utah Foundation

 

Public school funding sources:

State income tax (Utah is the only state to earmark all of state income tax to public education.)

State-mandated property tax levies

Local property tax levies

Federal funds

 

Utah had one of the highest funding efforts in the nation until 1990

 

Reasons for the decline include:

  • “Truth and Taxation” which has driven down property tax every year since 1995
  • A constitutional amendment allowing higher education to share income tax
  • Income tax cuts

 2007 & 2008 budgets were very good, but the 2009 economic slowdown made for more cautious appropriations.
 

Companies are looking at the education systems in a state--future growth will take place in those states with the best schools.  Economic development will take place where there are smart and knowledgeable people.  People are not using technology to expand out into rural areas,  they are clustering around city centers and using each other to build a sort of synergy. 

Lessons to Apply

 

         Utah doesn’t have to be last in the nation in per-pupil spending

         Our tax systems generate ample revenue when the economy is good

         If education spending is boosted to a more adequate level, Utah’s demographics could produce much higher results

         Spending can be boosted over time without tax increases

        Avoid tax cuts, especially with a reasonable flat income tax going forward and a low-ranked property tax

        Avoid shifting spending growth to other categories (should be less possible soon with the earmarking flexibility almost used up)

         

Ideas for securing better funding

 

         The “blame game” doesn’t work

         Stronger earmarking probably won’t work (politics will find a way…)

        Other states don’t earmark their income taxes; just because we used to do it doesn’t mean it’s the highest and best form of budgeting

        The real reason $$ have been shifted to other programs is that the education community simply hasn’t sold policy makers on the value of more $$

         Need to overcome the distrust

        “Success breeds success” – decision makers more likely to invest if they feel confident $$ will be well spent and will make a difference

        Highlight areas of excellence and their results – how can they be replicated?

        Seek to understand legislators’ motivations without ascribing evil intent

        Brainstorm messages and ways to “market” what schools do to legislators (they are somewhat like customers – they have the money!)

        Need a high-profile visible goal with a deadline (e.g., class size under 20 by 2020

 

Risks to class size reduction 
 

          Exacerbates teacher shortage

        Tough to do when we have this big wave of new students coming through our schools

          Bad examples from California:

        Reduces teacher quality

        Reduces classroom facility quality

        Sudden shock to 4th graders when move from class of 20 to 40

        Increased inequity for poor schools – experienced teachers transferred out because demand had made new positions available in more wealthy schools

 

Please view the attached PowerPoint for more details including graphs and charts.

Steve also provided the following report:

What Can $3,702 Buy? How Utah Compares in Education Spending and Services

 

 
 

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