Friday, April 23, 2004

The Ragged Edge: Follow the money to tax reform

If you think that there is no connection between campaign contributions and the drive to change the way we fund Texas' public schools, think again.

An editorial we published in our April 8 edition asserted that only a few school districts are clamoring to reform the way Texas finances public education but that Texas Legislators are beholden to these districts for votes and campaign contributions.

A new report states plainly that these few school districts also have tremendous clout with Texas' political leadership. Last week, Campaigns for People, an Austin-based political action committee, released a study indicating that the districts that stand to benefit the most by dismantling the so-called "Robin Hood" school finance system are also those whose citizens donated most generously to political campaigns. This study draws its conclusions through information gleaned from campaign finance reports filed with the Texas Ethics Commission.

Indeed, the report points out that campaign contributions from people living in the top 10 wealthiest school districts accounted for almost 28 percent of all campaign contributions to all candidates in the 2002 election.

House Speaker Tom Craddick was the chief beneficiary of this largess. Nearly 31 percent of his campaign contributions came from within these school districts. Donors from only two wealthy school districts - Austin and Highland Park -- accounted for over 15 percent of all the money Craddick raised to finance his 2002 re-election bid.

These districts took care of Gov. Rick Perry as well. In all, he raised over 25 percent of his 2002 war chest from people living in the top 10 wealthiest school districts.

Of course, these districts represent some of the wealthiest communities in Texas so it's probably not too surprising that they also contributed to re-election campaigns at higher rates than the rest of the state. Still, when you look at the numbers this way, and you recognize that many of these same districts are the ones hollering the loudest for school finance reform, it's got to make you wonder.

Now, I'm not diving back into this issue because I'm opposed to reforming the way we finance our public schools; nor do I think holding a special session or three to address the issue is a waste of time.

It's not a waste of time. Wealthy schools are right to beef about this and rural schools have been watching their state-sponsored revenue stream steadily dry up over the last few years. The current plan isn't really working for anyone. It was, at best, a band aide applied to our tax structure in order to get out from under a Texas Supreme Court mandate. We need to find a more permanent fix, not another crazy-quilt patchwork cobbled together because of political expediency.

My biggest heartburn is with the idea that any system devised at the behest of people from wealthy school districts will be entirely fair to small rural schools or to middle class taxpayers.

Everybody, it seems, insists that our property taxes be reduced, despite the fact that Texans have one of the lowest state and local tax burdens in the United States. The Tax Foundation, a non-profit Washington group, found that Texas ranks 46th nationally. Only Tennessee, Alaska, Delaware and New Hampshire pay lower state and local taxes than Texans.

Further, high property taxes don't seem to be deterring anyone (who can find a job there) from moving to Richardson or Plano or Alamo Heights. These school districts maintain tremendously high growth rates. If low property taxes were such a draw, more folks would be moving to Granger or Buckholts or Zapata.

If we cut property taxes, we'll have to find some other source (or series of sources) for the balance of the $26 billion required to pay for our public education system. You're kidding yourself if you believe that there will actually be more money in education's pot, after all the dust settles. There won't. It's entirely possible that there will be less.

In fact, few of the financing schemes I've heard about actually end Robin Hood. Most of them establish a sort of Super Robin Hood plan that ships all property tax money off to the state for redistribution.

You'll also be kidding yourself if you believe that middle class taxpayers will have a lower tax burden when this is all over. Our property taxes may see a small cut but most of us will pay more in sales and "sin" taxes than we saved. Even the most ardent supporters of tax reform acknowledge this.

So, once the Legislative shell game has run its course, our schools won't have any more money than they do now and most Texans will have a higher tax bill. Does that sound right?

I don't know what the answer is. I think it was former Gov. Ann Richards who said you can't really "fix" school finances; all you can hope to do is manage them.

Our tax system needs to be reformed but it's just not right to "manage" the state's education budget on the backs of rural schools and middle class taxpayers.

This column was published April 22, 2004 in the Cameron Herald.