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- Feb 08 (30) - IRS migration data,
and what it says about RI, a close look at "entitlements", historic
credit taxonomy, an investment banking sub-primer.
- Dec 07 (29) - A look at the state's
underinsured, economic geography with IRS data.
- Oct 07 (28) - Choosing the most
expensive ways to fight crime, bait and switch tax cuts, review
of Against Prediction, about the perils of using statistics
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fall heaviest on some neighborhoods, biotech patents in decline, no photo
IDs for voting, review of Al Gore's Against Reason
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Security Trustees' Report
- May 07 (25) - Municipal finance: could citizen
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What some Depression-era economists had to say on investment, and why
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- Mar 07 (24) - The state budget
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borrowing, unfunded liabilities, the works.
- Jan 07 (23) - The impact of real
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Book review of Blocking the Courthouse Door on tort "reform."
- Dec 06 (22) - State deficit: What's
so responsible about this? DOT bonding madness, Quonset, again,
Massachusetts budget comparison.
- Oct 06 (21) - Book review: Out of
Iraq by Geo. McGovern and William Polk, New rules about supervisors
undercut unions, New Hampshire comparisons, and November referenda guide.
- Aug 06 (20) - Measuring teacher
quality, anti-planning referenda and the conspiracy to promote them,
affordable housing in the suburbs, union elections v. card checks.
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tax cut really shrink government?, Casinos and constitutions, State historic tax
credit: who uses it.
- May 06 (18) - Distribution
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how to reform health care, and how not to.
- Mar 06 (17) - Critique of commonly
used statistics: RI/MA rich people disparity, median income, etc.
Our economic dependence on high health care spending. Review of
Crashing the Gate
- Feb 06 (16) - Unnecessary
accounting changes mean disaster ahead for state and towns, reforming
property tax assessment, random state budget notes.
- Jan 06 (15) - Educational equity,
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interview with Thom Deller, Providence's chief planner.
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housing laws.
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- Jul 05 (12) - Kelo v. New London:
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tax incentives.
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- Oct 04 (7) - RIPTA and DOT, who's really in crisis?
- Aug 04 (6) - MTBE and well pollution, Mathematical problems with property taxes
- May 04 (5) - A look at food-safety issues: mad cows, genetic engineering, disappearing farmland.
- Mar 04 (4) - FY05 RI State Budget Critique.
- Feb 04 (3) - A close look at the Blue Cross of RI annual statement.
- Oct 03 (2) - Taxing matters, a historical overview of tax burdens in Rhode Island
- Oct 03 Appendix - Methodology notes and sources for October issue
- Apr 03 (1) - FY04 RI State Budget critique
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Responsibility:
Tom Sgouros
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Fri, 07 Sep 2007
Paying for war with your school budget
[Appeared this past week in the Woonsocket Call, Pawtucket Times, and
several other papers in the RIMG group.]
Over the last several years, the cost of educating our children has
been the major driver of the rise in property taxes in Rhode Island.
The biggest part of the rise -- by far -- has been the cost of special
education. According to state department of education numbers,
general education costs rose an average of 48% between 1998 and 2006,
while special ed costs went up 83%. As of the 2005-2006 school year
(the latest year published on the Education Department web site), we
spend $444 million to educate these children out of nearly $2 billion
for all the state's' public schools.
In 1975, Congress passed the Education for All Handicapped Children
Act, now known as the Individuals with Disabilities Education Act
(IDEA). This was the landmark legislation that established that the
policy of our public schools would be to teach children with special
needs in the same classrooms as everyone else, wherever possible.
Where it isn't possible, the policy is to teach them in the same
buildings as everyone else, and where that isn't possible, it's the
school district's problem to pay for that child's education somewhere
else.
It's a noble goal, but the problem is paying for it. In the past,
children with serious education problems were shipped off to
institutions like the state-run Ladd School. The current policy is a
great step forward, but one can't help but notice that when the Ladd
School closed, the savings in the state budget was not redirected to
local school districts.
The state is an offender in this regard, but it is only a penny-ante
player compared to the federal government. When IDEA was created, it
established the laws that now rule special education. It was quite
clear that the laws would create big financial burdens on states and
local school districts, and the only way that it got through Congress
was by including a promise to fund 40% of the costs of the new special
ed rules and programs. All fine and good, of course, until you
realize that now, 32 years after the law was passed, the federal
government only funds 17% of the costs of this law.
Gerald Ford signed the bill into law, and the first year, the federal
government paid 5% of the costs. The level climbed to about 12% by
the time Jimmy Carter left office. Under Reagan, it slipped back to
8%, where it stayed, more or less, until 1993. During the Clinton
administration, the level advanced to 14%. Progress continued after
George Bush rode into town, until we started the Iraq war, when it
stalled at 18%, and has backslid since.
This all seems a little abstract, so let's talk dollars. If we now
fund 17% of special ed costs, and the goal is 40%, then what is that
amount really? It's $13 billion, which seems like a lot of money, but
is equivalent to about 41 days of what we are currently spending in
Iraq. Rhode Island's share would be about $46 million, or about three
and a half hours or Iraq spending. This week, Bush intends to ask
Congress for another $50 billion to fund the war. That's a
supplemental request, to go on top of the $147 billion he already
requested, but hasn't been approved yet. To date, we've spent over
$447 billion. (Check out the ticker to the right for more.)
So there you have it. Next time you're moaning about your property
tax bill, remember that the fastest-growing part of the expenses it
pays for are expenses that the Federal government was supposed to pay
for, but doesn't, because of the war and the Bush tax cuts. (And we
haven't even mentioned the costs of No Child Left Behind.) The added
expense would be a drop in the federal budget bucket, but it's a major
burden for your town.
But it's all tax money, you say. Who cares if it comes from federal
taxes, state taxes, or property taxes? You do, and the reason is who
pays those taxes. Income taxes are higher on wealthy people than on
poor ones, and property taxes are exactly the reverse, with poor and
middle-class people paying a much higher percentage of their incomes
on property taxes than the rich. According to the Tax Policy Center
in DC, the Bush tax cuts on the wealthiest half percent of our
citizens were worth over $100,000 in 2007. When he refused to
increase the funding for IDEA, he made your property taxes higher,
because federal law still requires those special ed programs. That's
the way it works these days, at the federal, state and local levels:
the interests of the poor and the middle are routinely sacrificed for
the interests of the wealthy. This sounds like rabble-rousing, but
it's right there in the numbers if anyone cares to argue about it.
In 21st Century America, the military is not drawn from a
cross-section of our world. Lots of people don't even know anyone
who's been in combat. But the war still affects all of us, and one
place you can see it is in your property tax bill.
23:53 - 07 Sep 2007 [/y7/cols]
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