Bake Sales in Massachusetts

It's school budget time in Massachusetts (and elsewhere), which means it's time to lay off teachers, increase class sizes, and cut funding for everything from basic supplies (i.e., make teachers pay more out of their own paltry salaries) to "extras" like music, art, or P.E.. As the Boston Globe has reported this week (here and here), some towns are putting measures on the ballot to allow them to assess additional property taxes for school funding and other municipal services. Since 1981, Massachusetts has prohibited municipalities from raising property taxes more than a certain amount unless voters specifically approve the increase by referendum (details here). In "Taxachusetts," although some towns are enacting the increases, many are voting them down (not to mention those towns where the council doesn't even put it on the ballot). If only we lived in a society where "Support Our Teachers" had the same valence that "Support Our Troops" commands now.

Because Massachusetts severely limits the ability of municipalities to raise revenue (for example, municipalities are not entitled to impose a sales tax), property taxes are one of the few tools municipalities have. Opening up commercial space is less attractive for towns—they'll get all the negatives like traffic, noise, and light, with less of the financial benefit. (This limitation on the autonomy of cities in Massachusetts hinders the ability of Boston to grow and develop and sets somewhat undesirable incentives, as this report by Professors David Barron and Gerald Frug demonstrates.) It's an empirical question, though, whether more home rule would solve this problem, or if it would just be used—in the case of schools—to shift the tax burden from property to sales.

Unlike with schools, support for obscene funding of the military-industrial complex has been politically necessary in this country since World War II. As this essay from the New York Review on Cold War military budgets argues, “[t]he $5.5 trillion spent on nuclear weapons—‘enough to buy everything in the United States except for the land,’ noted Carl Sagan—was money not invested in domestic needs,” while “the aggressive American buildup created new dangers without diminishing the Soviet problem.” And consider the example of Iraq. As long as the U.S. is committed to a mission there, even the war's fiercest opponents support fully funding that mission. When it comes to schools, though, Congress comes through with grand mandates, but refuses to fund these supposed commitments. Local school districts, even relatively wealthy ones, do no better: residents fly their yellow ribbons but vote down property-tax increases that would increase funding. Maybe the problem, as this editorial cartoon suggests, is that school funding requires a referendum to increase taxes, while Congress funds the wars outside the budget through borrowing. In any case, he Women's International League for Peace and Freedom put it best in 1979: "it will be a great day when schools get all the money they need, and the air force has to hold a bake sale to buy a bomber."


Comments (4)

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Thank you, Phil. As a sitting School Committee member in a North Shore community, I can only add a little to the points you make.

While commercial development has it's own problems, many communities aren't able to take financial advantage of that possibility, because the tax rate is often the same for residential/commercial, and in the case of "our city", tax incentives offered to businesses wipe out any possible net gain.

Residential development is also a loser; on average for every $5000 it generates in tax revenue, it cost the city $7000 to service it- schools, police, fire department, etc.

As a result of prop. 2 1/2, most towns and cities abandoned any sort of thoughtful and intentional infrastructure repair and capitalization 20 years ago- so schools and roads, sidewalks and sewage treatment plants are is very bad shape across the commonwealth.

Home rule options are one way to help generate revenue. In particular, we estimate that the ability to levy a meals tax could generate upwards of $250,000 a year for our city, the brunt of which would fall on non-resident tourists- but as you know, the Speaker of the House represents the North End of Boston, where there are as many restaurants as there are storefronts, so he remains adamantly opposed to such a tax. With the recent recognition of the Wampanoag tribe, gambling is most assuredly coming. Personally, I am bitterly opposed to the idea; however, it is coming regardless, and the Governor's plan to get ahead of the Wampanoags and set up a state-partnered highly regulated trio of casinos was a wise and thoughtful, making lemonade out of lemons approach. Again, the Speaker is dead set against it.

In the end, this is the approach our city is taking. The state is in no current position to address the declining support they have given to schools since 2004. In our city alone, we have RIF'd more than 15% of our teachers since then. We have some ideas, but we recognize we will have to solve these problems by ourselves, as a municipality, for the foreseeable future.

So if the state won't help, they damn well ought to get out of the way and let us dig ourselves out with the tools (home rule) we need.

Thanks. I needed to say that.

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As a current School Committee Chair, a parent, and a former member of the State Board of Ed in Massachusetts, I think that while "Home Rule" might help some districts, it is not a complete answer.

In fact, as the excellent recent article in The Atlantic explains, a key problem with public education in the U.S. is that we localized funding and control, way too much. Massachusetts, with its long tradition of "local autonomy" is an extreme example. As a former resident of the North Shore, and as a current resident of a small rural district, I strongly believe that students and communities would be better served by funding and managing education on a regional, or state-wide, and even national basis.

Please read the Atlantic Monthly article, "First Kill all the School Boards" and let me know what you think.

http://www.theatlantic.com/doc/200801/miller-education

avatar

As a current School Committee Chair, a parent, and a former member of the State Board of Ed in Massachusetts, I think that while "Home Rule" might help some districts, it is not a complete answer.

In fact, as the excellent recent article in The Atlantic explains, a key problem with public education in the U.S. is that we localized funding and control, way too much. Massachusetts, with its long tradition of "local autonomy" is an extreme example. As a former resident of the North Shore, and as a current resident of a small rural district, I strongly believe that students and communities would be better served by funding and managing education on a regional, or state-wide, and even national basis.

Please read the Atlantic Monthly article, "First Kill all the School Boards" and let me know what you think.

http://www.theatlantic.com/doc/200801/miller-education

avatar

Phil - I think the main issue you've overlooked is that local funding of education, whether through property tax or other taxes, leads to inequality of standards among local jurisdictions. An approach to "home rule" that gave to municipalities the ability to access additional tax bases (or that increased their autonomy when it comes to setting property tax rates) would of course enpower those municipalities with relatively strong tax bases to offer higher standards of service in education and other areas.

This is a problem if one believes that all citizens ought to have similiar opportunites in the area of education.

As others have pointed out, above, a reasonable alternative would be to have the state shoulder more of the burden of funding education, with funds flowing to local jurisdictions based on some sort of formula.

Here in Ontario, elementary and secondary education is funded through a mixture of property taxes and provincial grants...of course, no system's perfect, and there are many grievances associated with our approach to education funding...plus the province sets education property tax rates for municipalities...

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