Property Taxes and the Achievement Gap - MN2020 Hindsight

By Bryan Martin, Undergraduate Research Fellow, January 25, 2013 at 7:30 am

Over the past 10 years, Minnesota has followed the increasing nationwide trend in using property taxes to finance schools. In 2003, state aid provided 75% of school revenue, now state aid provides 66% of school revenue. Steep cuts and local property taxes make up a majority of the lost revenue, increasing from 12% of total school revenue to 20%.

This trend puts enormous pressure on property poor districts to keep up with wealthier areas of the state, which tend to be rural communities and many of the first-ring suburbs. Levying a percentage on the value of a $350,000 home yields a much larger return than $125,000 property, making it hard for property poor districts to overcome state cuts.

?

Source: Minnesota Department of Education

Several studies confirm that family income also correlates with student achievement, so these wealthier districts are already at an advantage.? Minnesota's achievement gap puts us in the bottom half of states, and increasing a funding gap isn?t going to help. Money does matter in education.

Minnesota must recommit to a more equitable education and community investment policy, which go hand-in-hand when it comes to closing an achievement gap. We had been served well by a system where the state used its vast taxing authority?sales, income, property?to raise revenue in a progressive manner, then equitably invested in community assets statewide. Minnesota should move forward together?no one community would be left too far behind, and no one community should advance too much farther ahead, according to the theory.

Instead, a decade of "no-new-tax" state policy has hampered our ability to make good on that promise to collect revenue progressively and make statewide investments. It's produced budget deficit after budget deficit. In turn, lawmakers balanced about a decade of state budget gaps by shorting schools and cutting revenue sharing with local communities.??

The burden fell to property taxpayers and you're familiar with the results. Governor Dayton's fiscal overhaul takes a step forward toward recommitting Minnesota to the promise of shared prosperity.

His proposals direct more state money to schools, which includes free all-day kindergarten funding for districts choosing to offer it. All-day kindergarten has documented and reported benefits for children, and could go far in helping get students susceptible to the achievement gap ready for 1st grade. (Watch our Early Start for Future Success video on what students learn in kindergarten.)?

Furthermore, he's easing overall pressure on local property taxpayers in two ways: increasing state revenue sharing with local governments and offering $500 property tax rebates.

Property taxes will still be part of the funding mix, and for the short-term a big part of the school funding mix. But in the future, the goal is to shift education opportunity away from a community's willingness or ability to pass a school levy or property wealth and back to fair and equatable funding for a world class education regardless of zip code.?

Posted in Education | Related Topics: "No New Taxes"? Education Funding? Property Tax?

Source: http://www.mn2020hindsight.org/view/property-taxes-and-the-achievement-gap

halftime super bowl 2012 super bowl score madonna super bowl performance superbowl commercials best superbowl commercials madonna half time m.i.a