In a story by Kelsey A. Kemp, "A survey recently conducted by the American Association of School Administrators reported that the American Recovery and Reinvestment Act funding has prevented school districts nationwide from implementing reform and changes.
The survey, Schools and the Stimulus: How America's Public School Districts Are Using ARRA Funds, reports that while the ARRA funds mean additional dollars in school districts, most of that money is being used to shore up fiscal budget holes and, even then, the stimulus money is often not enough to prevent school districts from eliminating personnel and core subject teaching positions. According to the survey, more than 67 percent of the 160 school administrators said that the stimulus dollars were being directed toward filling state and local budget holes, and 53 percent of the administrators surveyed said they were unable to save teaching positions for either core subjects or special education."
Does it surprise anyone that stimulus money is being used to fill holes created by budget shortfalls? The money from the federal government was supposed to be used for new programs and innovations. What does this mean for the future of our schools? You can bet the opponents of public education will talk about how the stimulus money didn't work without addressing the real issues.
It's time we let President Obama and Secretary Duncan know what is taking place and we need to hold our legislators accountable for the budget mess they've created.
Showing posts with label Tax Cuts. Show all posts
Showing posts with label Tax Cuts. Show all posts
Thursday, August 27, 2009
Thursday, July 30, 2009
Editorial Facts and Common Sense
An editorial in the Oklahoman, addressing Oklahoma's poor showing in per pupil expenditure based on the latest US Census Bureau's report, brought out suspect arguements as it tries to refute Oklahoman's support of the HOPE campaign (SQ 744).
In an effort to address perceived short-comings, Oklahoma is compared to Utah whose students do better on the NAEP, despite warnings by NAEP officials for states not to compare results if states have their own state standards.
Utah's students are recognized by the writer as being "predominately white and more affluent" than Oklahoma's students. For years, the impact of poverty on kids has been a strong indicator of success. In comparing kids from the USA to other countries, America's public schools are bashed for not being competitive. But when you take out the scores of students in poverty, our kids come out on top.
No one is saying you ignore those in poverty, but to ignore the role poverty plays in students lives is irresponsible.
Another "fact" is that common education receives 35% of the Oklahoma budget. What the article fails to mention is that common ed use to receive 39% of the budget as its share continues to decrease.
Oklahoma is supposedly working very hard and will do better "when the economy recovers and revenues permit." Oklahoma is an oil state. The revenues coming in were incredible. Because Oklahoma had so much growth revenue, the legislature, thinking the revenue would last forever, cut taxes. They learned nothing about oil revenue, tax cuts and the impact on revenues occurring in the 1980's. For Oklahoma, our revenue problems, with a shortfall of $2B, are largely self-imposed.
The piece even states "[t]he claim that the Legislature enacted tax cuts at the expense of schools is unfounded...." Is it really? The state has a shortfall of a couple of billion, and it's not at the expense of schools? Not only schools but everything else.
Addressing salaries for the Oklahoman has always been about merit pay and the salary schedule. When presented with ways to enhance teacher pay, they balk at the possibilities and always return to the same old arguments.
Paying teachers to be competitive with other states and other professions gives Oklahoma the opportunity to recruit and retain people. However, when we aren't competitive, we end up with teacher shortages the legislature addresses by passing a variety of ways to become a teacher. We don't have a teacher shortage in our state. We have a number of graduates with education degrees who are in other professions because the pay and benefits are so low.
As more information is made available showing the legislature's embarrassingly low commitment to kids and our future, you will continue to see responses that try to white-wash the truth. Sadly, all Oklahomans are impacted by the "white-wash" and our state will have a difficult time competing and growing in its second century if the truth is not told.
In an effort to address perceived short-comings, Oklahoma is compared to Utah whose students do better on the NAEP, despite warnings by NAEP officials for states not to compare results if states have their own state standards.
Utah's students are recognized by the writer as being "predominately white and more affluent" than Oklahoma's students. For years, the impact of poverty on kids has been a strong indicator of success. In comparing kids from the USA to other countries, America's public schools are bashed for not being competitive. But when you take out the scores of students in poverty, our kids come out on top.
No one is saying you ignore those in poverty, but to ignore the role poverty plays in students lives is irresponsible.
Another "fact" is that common education receives 35% of the Oklahoma budget. What the article fails to mention is that common ed use to receive 39% of the budget as its share continues to decrease.
Oklahoma is supposedly working very hard and will do better "when the economy recovers and revenues permit." Oklahoma is an oil state. The revenues coming in were incredible. Because Oklahoma had so much growth revenue, the legislature, thinking the revenue would last forever, cut taxes. They learned nothing about oil revenue, tax cuts and the impact on revenues occurring in the 1980's. For Oklahoma, our revenue problems, with a shortfall of $2B, are largely self-imposed.
The piece even states "[t]he claim that the Legislature enacted tax cuts at the expense of schools is unfounded...." Is it really? The state has a shortfall of a couple of billion, and it's not at the expense of schools? Not only schools but everything else.
Addressing salaries for the Oklahoman has always been about merit pay and the salary schedule. When presented with ways to enhance teacher pay, they balk at the possibilities and always return to the same old arguments.
Paying teachers to be competitive with other states and other professions gives Oklahoma the opportunity to recruit and retain people. However, when we aren't competitive, we end up with teacher shortages the legislature addresses by passing a variety of ways to become a teacher. We don't have a teacher shortage in our state. We have a number of graduates with education degrees who are in other professions because the pay and benefits are so low.
As more information is made available showing the legislature's embarrassingly low commitment to kids and our future, you will continue to see responses that try to white-wash the truth. Sadly, all Oklahomans are impacted by the "white-wash" and our state will have a difficult time competing and growing in its second century if the truth is not told.
Monday, January 26, 2009
Eliminating Tax Incentives Urged by George Kaiser
Our elected leaders hear from a wealthy Oklahoman on doing away with some tax incentives. Will they act on his ideas? It will make for an interesting legislative session.
Listen up! Rational tax policy urged
Stop giving me tax breaks, the billionaire oil man told legislators. Now there's a new story for you. George Kaiser — arguably Tulsa's smartest and most generous man, and inarguably the richest — told a legislative committee on Thursday to cut tax incentives for the oil and gas industry.
Listen up! Rational tax policy urged
Stop giving me tax breaks, the billionaire oil man told legislators. Now there's a new story for you. George Kaiser — arguably Tulsa's smartest and most generous man, and inarguably the richest — told a legislative committee on Thursday to cut tax incentives for the oil and gas industry.
Friday, December 26, 2008
Oklahoma's Budget Shortfall
Arnold Hamilton of the Oklahoma Observer addresses the state's budget crisis and gives a differing opinion than the state's largest newspaper:
Budget Blues
The numbers are worse than we thought: State lawmakers will have $309.6 million less to spend next year than they had last spring.
Government-haters will no doubt be cheering. But those who care about improving roads and education or caring for the mentally ill and poor – just to cite a few key areas – will be disheartened.
Budget Blues
The numbers are worse than we thought: State lawmakers will have $309.6 million less to spend next year than they had last spring.
Government-haters will no doubt be cheering. But those who care about improving roads and education or caring for the mentally ill and poor – just to cite a few key areas – will be disheartened.
Monday, September 08, 2008
Tax Cuts Create Reasons for HOPE Petition
During the early 1990's, common education received 39% of the state budget. Now common education is funded at 35%. Had the percentage remained at 39%, Oklahoma would not be under-investing in its kids. The HOPE Initiative wouldn't be needed. However, tax cuts have eliminated much of the growth revenue in our state and you can read about the results those cuts have had on Oklahoma's services.
OKLAHOMA'S INCOME TAX CUTS: Revenue Collections Dampened by $400 - $600 Million; Benefits of Top Rate Cut Go Primarily to Wealthiest
Cuts to the individual income tax have decreased state revenues by several hundred million dollars, with most of the benefits going to the highest-income Oklahomans, according to a pair of new fact sheets from Oklahoma Policy Institute.
The first fact sheet calculates that, if not for the tax cuts enacted between 2004 and 2006, the state would have collected $400 million to $600 million more in revenues last year than it actually did. This revenue could have been invested to meet our urgent priorities as a state.
The second fact sheet reveals that when fully phased in, the wealthiest fifth of households will receive 73 percent of the benefit from lowering the top income tax rate, totaling $423 million. By contrast, the bottom 40 percent of households will receive only 3 percent of the benefit from cutting the top rate, totaling $17 million. Tax cuts going to the wealthiest 1 percent of households alone ($169 million) are the rough equivalent of the cost of a $1,500 salary increase for every teacher in the state, a 3 percent cost-of-living adjustment for state employees, and additional staff for our child welfare system and correctional facilities.
Matt Guillory, executive director of Oklahoma Policy Institute, stated that, "During this time of robust economic growth in our state, it is unfortunate that decisions made in recent years have squandered what could have been a real opportunity to create a better educated, healthier and more economically competitive state."
Click here to link to the two fact sheets; or click here to view OK Policy's full press release.
OKLAHOMA'S INCOME TAX CUTS: Revenue Collections Dampened by $400 - $600 Million; Benefits of Top Rate Cut Go Primarily to Wealthiest
Cuts to the individual income tax have decreased state revenues by several hundred million dollars, with most of the benefits going to the highest-income Oklahomans, according to a pair of new fact sheets from Oklahoma Policy Institute.
The first fact sheet calculates that, if not for the tax cuts enacted between 2004 and 2006, the state would have collected $400 million to $600 million more in revenues last year than it actually did. This revenue could have been invested to meet our urgent priorities as a state.
The second fact sheet reveals that when fully phased in, the wealthiest fifth of households will receive 73 percent of the benefit from lowering the top income tax rate, totaling $423 million. By contrast, the bottom 40 percent of households will receive only 3 percent of the benefit from cutting the top rate, totaling $17 million. Tax cuts going to the wealthiest 1 percent of households alone ($169 million) are the rough equivalent of the cost of a $1,500 salary increase for every teacher in the state, a 3 percent cost-of-living adjustment for state employees, and additional staff for our child welfare system and correctional facilities.
Matt Guillory, executive director of Oklahoma Policy Institute, stated that, "During this time of robust economic growth in our state, it is unfortunate that decisions made in recent years have squandered what could have been a real opportunity to create a better educated, healthier and more economically competitive state."
Click here to link to the two fact sheets; or click here to view OK Policy's full press release.
Thursday, May 29, 2008
Standstill Budget = Cuts?
An issue brief examines the standstill budget and whether or not it will bring about cuts to vital Oklahoma services. Keep in mind the impact the tax cuts had on this budget.
A question to ponder: can it really be a standstill budget when it increases $47M?
The Oklahoma Legislature adjourned last week after having approved appropriations for the upcoming year of $7.089 billion, an increase of just $47 million, or 0.7% compared to the current year.
A new issue brief from Oklahoma Policy Institute examines the main features of the FY '09 budget and reveals that flat funding may lead to cuts in programs and services in the year ahead.
With tax cuts enacted in previous sessions hampering revenue collections, most state agencies received no additional funding to cover rising costs or mandatory employee benefit increases. The brief notes that inflation for the goods and services purchased by state and local government are rising even faster than costs for the economy as a whole. In addition, agencies have been left to absorb costs for employee pension contributions that have increased by $66 million in the past three years and employee health care costs that have more than doubled since FY '03.
While most agencies will do whatever they can to avoid cutting services to the public, in some cases cuts may be unavoidable. As the new fiscal year approaches, close monitoring will be needed to understand what decisions are being taken to manage the budget squeeze, and to track the effects of these decisions on public programs and the clients and communities they serve.
The brief also notes that while Oklahoma has so far dodged the economic downturn plaguing other states, any prolonged or deep economic slowdown is likely to exacerbate the state's current budget challenges and create major shortfalls in the years ahead.
Just click here to read and download the full issue brief or a two-page fact sheet on the FY '09 Budget Basics from the OK Policy website.
A question to ponder: can it really be a standstill budget when it increases $47M?
The Oklahoma Legislature adjourned last week after having approved appropriations for the upcoming year of $7.089 billion, an increase of just $47 million, or 0.7% compared to the current year.
A new issue brief from Oklahoma Policy Institute examines the main features of the FY '09 budget and reveals that flat funding may lead to cuts in programs and services in the year ahead.
With tax cuts enacted in previous sessions hampering revenue collections, most state agencies received no additional funding to cover rising costs or mandatory employee benefit increases. The brief notes that inflation for the goods and services purchased by state and local government are rising even faster than costs for the economy as a whole. In addition, agencies have been left to absorb costs for employee pension contributions that have increased by $66 million in the past three years and employee health care costs that have more than doubled since FY '03.
While most agencies will do whatever they can to avoid cutting services to the public, in some cases cuts may be unavoidable. As the new fiscal year approaches, close monitoring will be needed to understand what decisions are being taken to manage the budget squeeze, and to track the effects of these decisions on public programs and the clients and communities they serve.
The brief also notes that while Oklahoma has so far dodged the economic downturn plaguing other states, any prolonged or deep economic slowdown is likely to exacerbate the state's current budget challenges and create major shortfalls in the years ahead.
Just click here to read and download the full issue brief or a two-page fact sheet on the FY '09 Budget Basics from the OK Policy website.
Tuesday, May 27, 2008
Common Ed Press Release on Bonds
Bond Jeopardizes Schools
Class sizes are growing, fuel costs are increasing and resources are scarce. At what point do the record 641,000 school children, up 3,000 from last year, in Oklahoma Public Schools become a legislative priority?
Today, the legislature approved a $475 million bond package. It will cut future common education funding from two dedicated revenue sources.
“This is a poor way to fund our state. Passing bonds to make-up for cutting taxes is irresponsible government. Some of the things funded in the bond are pressing needs for Oklahoma, but at what cost to our schools? If the children are our future, why not protect that investment,” said Roy Bishop, Oklahoma Education Association President.
The bond included $300 million for roads and bridges, $100 million for higher education, $25 million for a Tulsa river project, $25 million for dams and $25 million for a Native American cultural center.
More than $30 million annually is expected to come from the general revenue fund to pay back the bond debt, devastating already cash-strapped state agencies.
Schools stand to lose even more funding. Money from Motor Vehicle Fees and Taxes will also be used to increase funding at the expense of schools. In addition, the proposal removes a trigger which required state revenue growth before additional funds were earmarked for roads. This proposal guarantees that schools will have less money available for appropriations in the future.
According to state statute Title 47, the intent of the legislature is that motor vehicle fees and taxes be used for general government functions of the state, counties, municipalities and schools. Now schools will be put on the back burner so mandated road programs can be funded.
“Chambers, realtors and businesses always make the point that a good education system is what will attract people to our state. Funding education will grow our economy,” said Mark Bledsoe, United Suburban Schools Association Executive Director.
With early predictions estimating a multi-million dollar budget shortfall for next year, education leaders said their fiscal situation is grim.
“Our school districts are already downsizing. In addition to rising fuel costs straining our budget, we are not hiring first-year teachers back, our class sizes are getting bigger and we have to cut essential electives,” said Randall Raburn, executive director of Cooperative Council of School Administration.
Class sizes are growing, fuel costs are increasing and resources are scarce. At what point do the record 641,000 school children, up 3,000 from last year, in Oklahoma Public Schools become a legislative priority?
Today, the legislature approved a $475 million bond package. It will cut future common education funding from two dedicated revenue sources.
“This is a poor way to fund our state. Passing bonds to make-up for cutting taxes is irresponsible government. Some of the things funded in the bond are pressing needs for Oklahoma, but at what cost to our schools? If the children are our future, why not protect that investment,” said Roy Bishop, Oklahoma Education Association President.
The bond included $300 million for roads and bridges, $100 million for higher education, $25 million for a Tulsa river project, $25 million for dams and $25 million for a Native American cultural center.
More than $30 million annually is expected to come from the general revenue fund to pay back the bond debt, devastating already cash-strapped state agencies.
Schools stand to lose even more funding. Money from Motor Vehicle Fees and Taxes will also be used to increase funding at the expense of schools. In addition, the proposal removes a trigger which required state revenue growth before additional funds were earmarked for roads. This proposal guarantees that schools will have less money available for appropriations in the future.
According to state statute Title 47, the intent of the legislature is that motor vehicle fees and taxes be used for general government functions of the state, counties, municipalities and schools. Now schools will be put on the back burner so mandated road programs can be funded.
“Chambers, realtors and businesses always make the point that a good education system is what will attract people to our state. Funding education will grow our economy,” said Mark Bledsoe, United Suburban Schools Association Executive Director.
With early predictions estimating a multi-million dollar budget shortfall for next year, education leaders said their fiscal situation is grim.
“Our school districts are already downsizing. In addition to rising fuel costs straining our budget, we are not hiring first-year teachers back, our class sizes are getting bigger and we have to cut essential electives,” said Randall Raburn, executive director of Cooperative Council of School Administration.
Friday, May 23, 2008
Tax cuts and Funding for the Elderly
Try to follow the arguments of this logic where editors champion tax cuts and later complain about the standstill budget and funding priorities for other agencies. With over $560M in tax cuts this year and projections totalling $2B in the near future, the leaders of our state had money to allocate to a variety of state agencies.
Here are a couple of excerpts from the above mentioned editorial:
"The state has not made nursing homes a priority; this year's standstill budget ensures continued below-cost reimbursement rates and an inadequate number of inspectors....
We will toast the day when care of the elderly brews up as much discussion among lawmakers and the public as do education and child welfare."
Here are a couple of excerpts from the above mentioned editorial:
"The state has not made nursing homes a priority; this year's standstill budget ensures continued below-cost reimbursement rates and an inadequate number of inspectors....
We will toast the day when care of the elderly brews up as much discussion among lawmakers and the public as do education and child welfare."
Wednesday, May 07, 2008
Standstill Budget & Bonds
Representatives of CCOSA, USSBA, USSA, OROS and the OEA held a press conference (1) to state our opposition to bond proposals and the impact they would have on the state's general revenue fund.
The state’s $7.1 billion budget for fiscal year 2009 is a standstill budget and has virtually no increased funding for schools or other state agencies. The state arrived at the standstill budget because of $560 million in tax cuts over the past couple of years.
Legislators are contemplating the use of a bond issue that will allow the state to sell bonds for specific projects, and pay off the bonds with state general revenue beginning next year.
The proposed bond issue is thought to have highway money, Higher Education Endowed chairs, Native American Culture Center, and a laundry list of legislator requests.
The contemplated projects are all worthy projects which deserve funding from the general appropriations process but this is bad economic policy. The state of Oklahoma will be buying on credit and the Governor and legislative leaders have already told us next year could be worse than this year.
We are in this mess because of tax cuts ($560M with potential to reach $800m-$1B) that could have funded our vital state services and education's needs including money for operations and getting teachers to the regional average in salary.
It's time for responsible members of the Oklahoma House and Senate to step up to the plate and put an end to this issue.
The following is the press release:
Education advocates said the FY 2009 $7 billion balanced budget may not be balanced at all. Despite the Oklahoma law requiring a balanced budget, lawmakers are deciding to borrow money in the form of bonds.
“We are simply buying on credit and leaving Oklahoma’s children to foot the bill,” said Dr. Randal Raburn, Executive Director of the Cooperative Council of School Administrators.
If the proposal is passed, a bond package of at least $500 million dollars would be borrowed with the promise of paying back the money from future state general revenue funds.
“We are not opposed to all bonds,” said Perry Willis, Executive Director of the Organization of Rural Oklahoma Schools. “It is one thing to pay them off with already designated money and quite another if they intend to use future general fund revenues that could be going to education.”
Oklahoma already ranks 48th in per pupil expenditures. With increases in fuel and other operations costs and no new money coming to schools, school districts are feeling the pinch. Over the last three years, schools operations funding have been short an average of $29 million, according to the Oklahoma State Department of Education.
“We are mortgaging our future with this type of deficit spending. This is clearly the negative impact of the $560 million dollar tax cuts,” said Roy Bishop, Oklahoma Education Association President.
A record student enrollment of 641,000 this year, nearly a 3,000 increase, and a fast-changing population challenged by poverty and language barriers require a commitment from our legislators to fully-fund education and protect its revenue sources.
The state’s $7.1 billion budget for fiscal year 2009 is a standstill budget and has virtually no increased funding for schools or other state agencies. The state arrived at the standstill budget because of $560 million in tax cuts over the past couple of years.
Legislators are contemplating the use of a bond issue that will allow the state to sell bonds for specific projects, and pay off the bonds with state general revenue beginning next year.
The proposed bond issue is thought to have highway money, Higher Education Endowed chairs, Native American Culture Center, and a laundry list of legislator requests.
The contemplated projects are all worthy projects which deserve funding from the general appropriations process but this is bad economic policy. The state of Oklahoma will be buying on credit and the Governor and legislative leaders have already told us next year could be worse than this year.
We are in this mess because of tax cuts ($560M with potential to reach $800m-$1B) that could have funded our vital state services and education's needs including money for operations and getting teachers to the regional average in salary.
It's time for responsible members of the Oklahoma House and Senate to step up to the plate and put an end to this issue.
The following is the press release:
Education advocates said the FY 2009 $7 billion balanced budget may not be balanced at all. Despite the Oklahoma law requiring a balanced budget, lawmakers are deciding to borrow money in the form of bonds.
“We are simply buying on credit and leaving Oklahoma’s children to foot the bill,” said Dr. Randal Raburn, Executive Director of the Cooperative Council of School Administrators.
If the proposal is passed, a bond package of at least $500 million dollars would be borrowed with the promise of paying back the money from future state general revenue funds.
“We are not opposed to all bonds,” said Perry Willis, Executive Director of the Organization of Rural Oklahoma Schools. “It is one thing to pay them off with already designated money and quite another if they intend to use future general fund revenues that could be going to education.”
Oklahoma already ranks 48th in per pupil expenditures. With increases in fuel and other operations costs and no new money coming to schools, school districts are feeling the pinch. Over the last three years, schools operations funding have been short an average of $29 million, according to the Oklahoma State Department of Education.
“We are mortgaging our future with this type of deficit spending. This is clearly the negative impact of the $560 million dollar tax cuts,” said Roy Bishop, Oklahoma Education Association President.
A record student enrollment of 641,000 this year, nearly a 3,000 increase, and a fast-changing population challenged by poverty and language barriers require a commitment from our legislators to fully-fund education and protect its revenue sources.
Monday, May 05, 2008
On Paying Teachers
Thank you Ken.
A sad Oklahoma story
By KEN NEAL Senior Editor 5/4/2008
State is mired in the past on teachers' salaries
The Sand Springs Education Foundation recently honored a "hometown boy" for his outstanding record as a football coach and educator.
He was a fellow with whom I started first grade. He and I finished high school at Sand Springs in 1953. I am leaving his name out because he would be embarrassed for me to tell this story.
But it is Oklahoma that should be embarrassed because his experience tells us a lot about what has been and still is wrong with the state's education system.
Our man attended college in a Midwestern state, played football there and obtained a degree in mathematics.
Upon graduation from college, he began looking for teaching opportunities. He wanted to return to Sand Springs to coach football and teach math.
But, then as now, Oklahoma was not the land of opportunity for teachers.
In fact, the state had just refused to raise teachers' salaries.
So our man answered an advertisement seeking teachers in a far-off northern state. He got a job in a small city, coached there for a few years and then became head coach in a suburb of a northern metropolis.
He coached there for 20 years, won his league's championship 15 times and was runner-up the other five years.
He was coach of the year several times in a large state and was honored by his coaching colleagues many times. He was so revered in his city that when the high school built a new stadium it was named for him.
He compiled a record of 161 wins and only 31 losses as a head coach. He retired early in 1986 to allow his trusted assistant to move up, but continued to teach for another five years.
He had a remarkable career. The sad part is that he could have had that career in Oklahoma. It's even sadder that he tried to do that, but could not justify returning home to work for far less money than he could make elsewhere.
That has been -- and still is -- the story of Oklahoma. We won't pay teachers salaries that make the state competitive. For that matter, we don't pay prison guards, welfare employees, judges and attorneys or just about any state worker what they could earn in other states.
We have had Legislature after Legislature that expects teachers and state employees to work for less than elsewhere, presumably because they are willing to sacrifice their families' welfare for the privilege of living in our great state. Lovely as it is, it is not that great.
Even now our Legislature has broken its word to teachers. Three years ago, lawmakers resolved to raise their salaries to the regional average. This year schools needed $64.9 million to do this, but the lawmakers failed to appropriate a dime for the raises.
The reason? The Legislature for the past two years has cut taxes, claiming the cuts would boom the economy. Of course, that is what George H.W. Bush called "Voodoo economics." The only thing that has kept Oklahoma spending from sinking even lower than it has is the soaring price of crude oil. The state gets 7 percent of the gross sales and a booming oil industry means more income tax revenue and bigger and bigger royalty checks.
Even with this oil windfall, the state's income has not met expectations. Lawmakers wring their hands and cry over no new money and a "steady state" or level budget. This, from the guys who engineered this state of affairs with their irresponsible tax policy.
For schools and other state agencies this "steady state" budget means sharp cuts, because all costs, particularly transportation costs, are higher than last year. In some school districts, teachers will be fired in order to pay those higher costs.
Lawmakers have convinced themselves and the people, that taxes in Oklahoma are too high and that government is spending too much money.
The facts are that Oklahomans are taxed at a level lower than most of the states and spending on education, highways, corrections and other services is less than almost any state.
But what of our Sand Springs boy who was forced to spend a highly productive career in another state?
He did well. He influenced hundreds of high school football players in a positive way. He taught hundreds of students to be mathematicians. He obviously influenced generations of people in his adopted hometown, far from Oklahoma.
But Oklahoma suffered. It reared this man; it educated him; it inspired him to be a coach and a teacher; it set him on his way in life, only to let him down when it came time to provide him a job.
Oklahoma was the loser in this transaction.
One wonders how many times this sad little story has been repeated in the past 30 years. How many of our best and brightest have we lost to other states because of our short-sightedness in paying teachers and others?
How many Oklahoma students have been deprived of being led by a man like our honoree at Sand Springs because of legislative stupidity (sorry, there's hardly another word for it).
The lawmakers even now are heading toward adjournment without making substantive progress on necessary services like public schools, highways, and corrections.
They never learn. It has been 50 years since our man struck out to teach and little has changed with Oklahoma education.
We are mired in the past.
A sad Oklahoma story
By KEN NEAL Senior Editor 5/4/2008
State is mired in the past on teachers' salaries
The Sand Springs Education Foundation recently honored a "hometown boy" for his outstanding record as a football coach and educator.
He was a fellow with whom I started first grade. He and I finished high school at Sand Springs in 1953. I am leaving his name out because he would be embarrassed for me to tell this story.
But it is Oklahoma that should be embarrassed because his experience tells us a lot about what has been and still is wrong with the state's education system.
Our man attended college in a Midwestern state, played football there and obtained a degree in mathematics.
Upon graduation from college, he began looking for teaching opportunities. He wanted to return to Sand Springs to coach football and teach math.
But, then as now, Oklahoma was not the land of opportunity for teachers.
In fact, the state had just refused to raise teachers' salaries.
So our man answered an advertisement seeking teachers in a far-off northern state. He got a job in a small city, coached there for a few years and then became head coach in a suburb of a northern metropolis.
He coached there for 20 years, won his league's championship 15 times and was runner-up the other five years.
He was coach of the year several times in a large state and was honored by his coaching colleagues many times. He was so revered in his city that when the high school built a new stadium it was named for him.
He compiled a record of 161 wins and only 31 losses as a head coach. He retired early in 1986 to allow his trusted assistant to move up, but continued to teach for another five years.
He had a remarkable career. The sad part is that he could have had that career in Oklahoma. It's even sadder that he tried to do that, but could not justify returning home to work for far less money than he could make elsewhere.
That has been -- and still is -- the story of Oklahoma. We won't pay teachers salaries that make the state competitive. For that matter, we don't pay prison guards, welfare employees, judges and attorneys or just about any state worker what they could earn in other states.
We have had Legislature after Legislature that expects teachers and state employees to work for less than elsewhere, presumably because they are willing to sacrifice their families' welfare for the privilege of living in our great state. Lovely as it is, it is not that great.
Even now our Legislature has broken its word to teachers. Three years ago, lawmakers resolved to raise their salaries to the regional average. This year schools needed $64.9 million to do this, but the lawmakers failed to appropriate a dime for the raises.
The reason? The Legislature for the past two years has cut taxes, claiming the cuts would boom the economy. Of course, that is what George H.W. Bush called "Voodoo economics." The only thing that has kept Oklahoma spending from sinking even lower than it has is the soaring price of crude oil. The state gets 7 percent of the gross sales and a booming oil industry means more income tax revenue and bigger and bigger royalty checks.
Even with this oil windfall, the state's income has not met expectations. Lawmakers wring their hands and cry over no new money and a "steady state" or level budget. This, from the guys who engineered this state of affairs with their irresponsible tax policy.
For schools and other state agencies this "steady state" budget means sharp cuts, because all costs, particularly transportation costs, are higher than last year. In some school districts, teachers will be fired in order to pay those higher costs.
Lawmakers have convinced themselves and the people, that taxes in Oklahoma are too high and that government is spending too much money.
The facts are that Oklahomans are taxed at a level lower than most of the states and spending on education, highways, corrections and other services is less than almost any state.
But what of our Sand Springs boy who was forced to spend a highly productive career in another state?
He did well. He influenced hundreds of high school football players in a positive way. He taught hundreds of students to be mathematicians. He obviously influenced generations of people in his adopted hometown, far from Oklahoma.
But Oklahoma suffered. It reared this man; it educated him; it inspired him to be a coach and a teacher; it set him on his way in life, only to let him down when it came time to provide him a job.
Oklahoma was the loser in this transaction.
One wonders how many times this sad little story has been repeated in the past 30 years. How many of our best and brightest have we lost to other states because of our short-sightedness in paying teachers and others?
How many Oklahoma students have been deprived of being led by a man like our honoree at Sand Springs because of legislative stupidity (sorry, there's hardly another word for it).
The lawmakers even now are heading toward adjournment without making substantive progress on necessary services like public schools, highways, and corrections.
They never learn. It has been 50 years since our man struck out to teach and little has changed with Oklahoma education.
We are mired in the past.
Friday, April 18, 2008
Press Release on Standstill Budget
While their are some that think additional money is a surplus, the truth of the matter is it's called growth money and it funds our roads and bridges, corrections, schools, and other vital services the citizens of Oklahoma need.
Our press release follows and there are others (Tulsa World) that address the tax cuts too.
Standstill Budget Direct Result of Tax Cuts
Educators statewide said the “standstill budget” agreed upon by lawmakers Wednesday is a direct result of tax cuts. Most state agencies will not get an increase despite rising operational costs.
“Tax cuts are the reason we have this mess. We would have had enough money to invest in our schools, roads and bridges and other vital state agencies if our legislators hadn’t enacted $560 million worth the tax cuts,” said Roy Bishop, Oklahoma Education Association President.
Education leaders are not sure the budget is even at a standstill.
“Despite stable economic growth in Oklahoma, the legislature has $114 million less to spend this year and who knows what will happen this coming year,” Bishop said.
Bishop said legislators promised to increase teacher salaries to the regional average and now they say there simply isn’t enough money.
“They failed to keep the promise they made to teachers and the citizens of Oklahoma,” said Jill Dudley, Moore Association of Classroom Teachers President. “We will see quality, experienced educators leave the profession.”
Some say a standstill budget would be palatable if all of the other expenses were standing still. The price of everything from fuel to a dozen eggs is increasing while our state revenue is decreasing.
Education leaders fear the worst is yet to come.
If the permanent tax cuts enacted a few years ago continue, lawmakers can expect $215 million more in lost revenue over the next two years.
“Investing in education would have grown the economy more than the tax cuts will,” Bishop said.
Our press release follows and there are others (Tulsa World) that address the tax cuts too.
Standstill Budget Direct Result of Tax Cuts
Educators statewide said the “standstill budget” agreed upon by lawmakers Wednesday is a direct result of tax cuts. Most state agencies will not get an increase despite rising operational costs.
“Tax cuts are the reason we have this mess. We would have had enough money to invest in our schools, roads and bridges and other vital state agencies if our legislators hadn’t enacted $560 million worth the tax cuts,” said Roy Bishop, Oklahoma Education Association President.
Education leaders are not sure the budget is even at a standstill.
“Despite stable economic growth in Oklahoma, the legislature has $114 million less to spend this year and who knows what will happen this coming year,” Bishop said.
Bishop said legislators promised to increase teacher salaries to the regional average and now they say there simply isn’t enough money.
“They failed to keep the promise they made to teachers and the citizens of Oklahoma,” said Jill Dudley, Moore Association of Classroom Teachers President. “We will see quality, experienced educators leave the profession.”
Some say a standstill budget would be palatable if all of the other expenses were standing still. The price of everything from fuel to a dozen eggs is increasing while our state revenue is decreasing.
Education leaders fear the worst is yet to come.
If the permanent tax cuts enacted a few years ago continue, lawmakers can expect $215 million more in lost revenue over the next two years.
“Investing in education would have grown the economy more than the tax cuts will,” Bishop said.
Monday, March 10, 2008
Attacks on School Funding
This editorial appeared in yesterday's Tulsa World.
School funding under attack
By DAVID AVERILL Editor, Editorial Pages 3/9/2008
Education funding in Oklahoma is under attack on several fronts. This is not good news in a state that already spends less per student than most others and whose teachers are among the nation's lowest paid. The fronts on the undeclared war against education funding are these:
· Declining state revenues. Tax collections, especially corporate income tax revenues, for the current fiscal year are lower than was anticipated when the budget was written last year. As a result the House Bill 1017 Revolving Fund, named for the historic 1990 education reform and revenue law, is short by $37 million. In addition, state lottery proceeds, which are dedicated to schools, are $4.6 million less than anticipated.
Unless the Legislature passes a $41.6 million supplemental appropriation in the next few days, school districts across the state will face budget cuts of about 2 percent. The cuts will affect the current school year. Local districts will have to do what they can to effect the cuts, possibly including staff reductions.
· Income tax cuts. In the past few years the Legislature has reduced income tax rates by an amount that will soon total an estimated $700 million a year. It is an item of faith among the tax-cut advocates that the reductions will spur economic growth that will more than offset the cuts. That hasn't happened yet and there is no evidence that it will anytime soon. Meanwhile, it is estimated that state revenues in the coming budget year will be about $110 million less than the current year -- a worse than no-growth situation.
Education is the big-ticket item in the state budget. Common schools -- grades K-12 -- receive about 36 percent of the annual budget. Throw in higher education and career tech education and the figure is closer to 60 percent. When state revenues are decreased by a dollar, funds available to common schools are reduced by about 36 cents. Knock $700 million out of the budget and you've cut the amount available to public schools by about $252 million.
· Ad valorem tax cap. A resolution is sailing through the Legislature which would, if approved by voters, cap growth of property tax valuations at 3 percent or the rate of inflation, whichever is smaller. The cap currently is 5 percent, one of the most restrictive in the nation.
Property taxes are the primary local funding mechanism for public schools. Seventy percent of the taxes collected go to schools in the county where they are collected. Applying the lowered cap in Tulsa County would reduce property values by an estimated $18.2 million and reduce taxes by $2.5 million, $1.5 million of which would go to Tulsa Public Schools. Statewide the yearly ad valorem tax reduction would amount to about $25 million.
· Pressure for increased highway spending. Everyone knows that Oklahoma needs to spend more money to build and maintain highways and bridges. The problem in a state with shrinking revenues and compromised tax base is how to do it. A highway advocacy group called Restore TRUST is pushing lawmakers to stop "diverting" motor vehicle taxes into the general revenue fund and "put them back on roads."
Their pitch is misleading. Motor vehicle taxes -- license tag fees -- are collected in lieu of personal property taxes on cars and trucks. They were never intended as highway user fees and were never dedicated to highway construction. So they are not being "diverted" and they can't be "put back" where they never were.
In effect, what the group is advocating is recutting the budget pie to give a larger slice to highways. Of course, recutting a pie to make one slice larger means that the other slices must be smaller.
By law, 36.2 percent of motor vehicle taxes go directly to local schools. Most of the rest goes to the general fund, about 36 percent of which is spent on common education.
The highway advocates are well-intentioned, and increased highway spending is a legitimate need. But it is a shame that they would boost highway spending at the expense of public schools.
These various revenue reductions, proposed or fait accompli, paint a gloomy picture for a public education system that already is underfunded.
Think about this: Rising natural gas and oil prices historically have meant Fat City for state revenue collections. But despite the fact that gas prices are rising and oil is at an all-time high, we're getting ready to cut local school funds that already have been committed. Where will we be when gas and oil prices cool? In the soup, that's where.
David Averill, 581-8333 david.averill@tulsaworld.com
School funding under attack
By DAVID AVERILL Editor, Editorial Pages 3/9/2008
Education funding in Oklahoma is under attack on several fronts. This is not good news in a state that already spends less per student than most others and whose teachers are among the nation's lowest paid. The fronts on the undeclared war against education funding are these:
· Declining state revenues. Tax collections, especially corporate income tax revenues, for the current fiscal year are lower than was anticipated when the budget was written last year. As a result the House Bill 1017 Revolving Fund, named for the historic 1990 education reform and revenue law, is short by $37 million. In addition, state lottery proceeds, which are dedicated to schools, are $4.6 million less than anticipated.
Unless the Legislature passes a $41.6 million supplemental appropriation in the next few days, school districts across the state will face budget cuts of about 2 percent. The cuts will affect the current school year. Local districts will have to do what they can to effect the cuts, possibly including staff reductions.
· Income tax cuts. In the past few years the Legislature has reduced income tax rates by an amount that will soon total an estimated $700 million a year. It is an item of faith among the tax-cut advocates that the reductions will spur economic growth that will more than offset the cuts. That hasn't happened yet and there is no evidence that it will anytime soon. Meanwhile, it is estimated that state revenues in the coming budget year will be about $110 million less than the current year -- a worse than no-growth situation.
Education is the big-ticket item in the state budget. Common schools -- grades K-12 -- receive about 36 percent of the annual budget. Throw in higher education and career tech education and the figure is closer to 60 percent. When state revenues are decreased by a dollar, funds available to common schools are reduced by about 36 cents. Knock $700 million out of the budget and you've cut the amount available to public schools by about $252 million.
· Ad valorem tax cap. A resolution is sailing through the Legislature which would, if approved by voters, cap growth of property tax valuations at 3 percent or the rate of inflation, whichever is smaller. The cap currently is 5 percent, one of the most restrictive in the nation.
Property taxes are the primary local funding mechanism for public schools. Seventy percent of the taxes collected go to schools in the county where they are collected. Applying the lowered cap in Tulsa County would reduce property values by an estimated $18.2 million and reduce taxes by $2.5 million, $1.5 million of which would go to Tulsa Public Schools. Statewide the yearly ad valorem tax reduction would amount to about $25 million.
· Pressure for increased highway spending. Everyone knows that Oklahoma needs to spend more money to build and maintain highways and bridges. The problem in a state with shrinking revenues and compromised tax base is how to do it. A highway advocacy group called Restore TRUST is pushing lawmakers to stop "diverting" motor vehicle taxes into the general revenue fund and "put them back on roads."
Their pitch is misleading. Motor vehicle taxes -- license tag fees -- are collected in lieu of personal property taxes on cars and trucks. They were never intended as highway user fees and were never dedicated to highway construction. So they are not being "diverted" and they can't be "put back" where they never were.
In effect, what the group is advocating is recutting the budget pie to give a larger slice to highways. Of course, recutting a pie to make one slice larger means that the other slices must be smaller.
By law, 36.2 percent of motor vehicle taxes go directly to local schools. Most of the rest goes to the general fund, about 36 percent of which is spent on common education.
The highway advocates are well-intentioned, and increased highway spending is a legitimate need. But it is a shame that they would boost highway spending at the expense of public schools.
These various revenue reductions, proposed or fait accompli, paint a gloomy picture for a public education system that already is underfunded.
Think about this: Rising natural gas and oil prices historically have meant Fat City for state revenue collections. But despite the fact that gas prices are rising and oil is at an all-time high, we're getting ready to cut local school funds that already have been committed. Where will we be when gas and oil prices cool? In the soup, that's where.
David Averill, 581-8333 david.averill@tulsaworld.com
Monday, April 30, 2007
Tax Cuts-Fact 7
Fact 7-Tax cuts do not expand opportunities to increase investments.
Additional revenues are expected in years of strong economic growth. The bountiful years give the state an opportunity to invest in Oklahomans' common prosperity and prepare for the inevitable lean years by further stoking the economic coals with proven fiscal tools: investment in public education, health, technology and infrastructure.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Additional revenues are expected in years of strong economic growth. The bountiful years give the state an opportunity to invest in Oklahomans' common prosperity and prepare for the inevitable lean years by further stoking the economic coals with proven fiscal tools: investment in public education, health, technology and infrastructure.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Sunday, April 29, 2007
Tax Cuts-Fact 6
Fact 6-Tax cuts do not encourage new spending.
Since Oklahoma cannot run a deficit, tax cuts do not create new dollars to be spent. In fact, tax cuts may actually lower in-state expenditures since there is no guarantee that taxpayers will invest or spend the tax cut in Oklahoma.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Since Oklahoma cannot run a deficit, tax cuts do not create new dollars to be spent. In fact, tax cuts may actually lower in-state expenditures since there is no guarantee that taxpayers will invest or spend the tax cut in Oklahoma.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Saturday, April 28, 2007
Tax Cuts-Fact 5
Fact 5-Tax cuts do not encourage migration to the state.
In his numerous studies on labor migration, Harvard economist Edward Glaeser finds that the primary factors affecting migration are those that directly affect quality of life: health, safety, education and life amenities.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
In his numerous studies on labor migration, Harvard economist Edward Glaeser finds that the primary factors affecting migration are those that directly affect quality of life: health, safety, education and life amenities.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Thursday, April 26, 2007
Tax Cuts-Fact 4
Fact 4-Tax Cuts do not keep Oklahoma competitive.
Oklahoma is already a low tax state. The Tax Foundation ranks Oklahoma as having the fourth lowest combined taxation in the nation. Quality public services and a skilled workforce are what will keep Oklahoma competitive.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Oklahoma is already a low tax state. The Tax Foundation ranks Oklahoma as having the fourth lowest combined taxation in the nation. Quality public services and a skilled workforce are what will keep Oklahoma competitive.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Wednesday, April 25, 2007
Tax Cuts-Fact 3
Fact 3-Tax cuts do not increase tax revenue.
No economist--conservative or liberal--believes that tax cuts increase revenues. President Bush's former chief economic advisor and Harvard economics professor, Gregory Mankiw, called any economist that said tax cuts pay for themselves a "snake oil salesman trying to sell a miracle cure.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
No economist--conservative or liberal--believes that tax cuts increase revenues. President Bush's former chief economic advisor and Harvard economics professor, Gregory Mankiw, called any economist that said tax cuts pay for themselves a "snake oil salesman trying to sell a miracle cure.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Tuesday, April 24, 2007
Tax Cuts Fact 2
Fact 2-Tax cuts do not encourage Oklahoma businesses to invest further or out-of-state firms to locate here.
Investment decisions are based on maximizing profits. Since state taxes don't contribute much to the cost of doing business, they don't factor heavily in investment decisions. In numerous studies on business site selection, the Cooperation for Enterprise Development (CFED) has consistently found that level of taxation is of little significance.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Investment decisions are based on maximizing profits. Since state taxes don't contribute much to the cost of doing business, they don't factor heavily in investment decisions. In numerous studies on business site selection, the Cooperation for Enterprise Development (CFED) has consistently found that level of taxation is of little significance.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Monday, April 23, 2007
Fact One about Tax Cuts
The Alliance for Oklahoma's Future released a fact sheet about tax cuts. Over the next few days, I will share all of them with you.
Fact 1-Recent tax cuts have Not significantly contributed to Oklahoma's economic growth.
Oklahoma--like the nation, including states that did not cut their taxes--has been in an economic expansion that began well before state tax cuts took effect. After reviewing hundreds of economic studies, economist Robert Lynch found that state tax cuts have only a minor impact on growth and may have a negative impact if they are accompanied by a decline in public services.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
Fact 1-Recent tax cuts have Not significantly contributed to Oklahoma's economic growth.
Oklahoma--like the nation, including states that did not cut their taxes--has been in an economic expansion that began well before state tax cuts took effect. After reviewing hundreds of economic studies, economist Robert Lynch found that state tax cuts have only a minor impact on growth and may have a negative impact if they are accompanied by a decline in public services.
For the entire fact sheet check the web address at http://www.okbudgetalliance.org/pdf/budget/factsheet_TaxCutTRUTH.pdf. For more information about the Alliance, go to http://www.okbudgetalliance.org/.
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