Ensuring the public schools I represent receive their fair share of state aids is a priority goal for me. The just-passed state budget included a fundamental shift away from that goal and that is the primary reason I joined 53 Democrats and Republicans to vote no on the budget.
Although the budget contained a record high amount of public school aids, instead of helping lower-income, rural districts in our region, much of that new money benefits wealthier suburban and urban districts. Allow me to explain.
A goal for the state is for all students to receive a comparable education. That means spending comparable amounts per student with funds coming from both property taxes and state aids. However, there is a dramatic range in the amount of property wealth between school districts. Wealthy districts can afford to educate their students with little or no state aid. Without state aid, poor districts would have much higher property tax rates to raise a comparable amount of funding per student.
Under the state school aid formula, when the state increases general school aids, most districts I represent benefit because they have less property wealth. That's where this budget fails most rural school districts. Instead of increasing general school aids, this budget dramatically increased a funding tool called the School Levy Credit.
The School Levy Credit is a “shared revenue” program, distributed to municipalities based on their share of statewide school levies. Ironically, schools never see the money and instead, as the name suggests, the funding reduces property tax bills for property owners statewide. That means the biggest share of the School Levy Credit benefits property-wealthy school districts.
This budget’s increase in the School Levy Credit is a fundamental shift away from our state’s progressive goal to provide state resources where they are truly needed - districts with low property tax bases. Under this budget, by 2009, the School Levy Credit increases 26 percent while General School Aids increase less than 1 percent.
The School Levy Credit serves a purpose, but as the state makes it a higher priority over direct aid to schools, most of our schools suffer as wealthier property owners benefit.
Please visit the homepage for information on other ways the budget impacts you and to send me an email with your views on the budget.