The headline reads “Cigarette-tax plan draws fire,” but there’s nothing in the article criticizing the Governor’s proposed 40-cent increase in cigarette taxes.
Maybe it should have said “Ragsdale wants more.”
Knox County would get about $3.3 million of the new money if the tax increase and Bredesen’s spending plans are enacted, according to data provided by the governor’s office Tuesday. That is less than schools in any other major urban area of the state.
The biggest bump in education funding would come from the State’s fully funding the needs of at-risk (economically disadvantaged, poor, whatever label appeals) students. Just two weeks ago, I met with the Knox County Finance Director, John Werner, to see if we could find any common ground on changes in education funding. Funding for at-risk and ELL (students who are learning English as a second language), as well as State funding for growth in the student population, were three of the four items of agreement, and all three were included in the Governor’s proposal.
The fourth was to return to having the State pay 75% of their version of teacher salaries, reduced to 65% about five years ago. That’s going to cost more, and would likely have to be phased in.
I’ll accept Bredesen’s proposal for increasing funding in these three areas with gratitude, even though Oak Ridge won’t benefit nearly as much as Knox County. The important point is, no one is harmed by this proposal — every school system will receive these funding improvements commensurate with the burdens borne in each of the three areas.
It’s not enough to bring Tennessee from the depths of our standing nationally, but it’s moving in the right direction. Simply tinkering with the distribution formula isn’t going to improve education statewide — only rearrange the problems.
In Tennessee, education funding is a responsibility shared by State and local governments. The amount contributed by the State depends on the ability of the local government to generate revenue for schools, according to the fiscal capacity formula (taking into account the sales and property tax base, average income, etc.). Local governments are required to contribute a specified amount, but nearly all contribute more than the required minimum.
Local governments set priorities, then raise the necessary revenue (through taxes) to fund them. Oak Ridge has historically established education as one of it’s highest priorities; Knox County unquestionably has the tax base to do so, but to date, has not.
To insist on stepping upon someone else to raise your own standing is a bully tactic. Let’s not go there, Mayor Ragsdale.
Do I have this right? The state spending assumes a portion of local spending so that those locales that have a higher paying tax base can take advantage of the state increase as proposed since the local portion would already be covered? Otherwise, other jurisdictions must increase the local funds which would serve as the “match” for the state?
The article in today’s Oak Ridger clarifies that ALL school districts do have to supply matching funds to get the additional money, but the amount of the match required depends on the fiscal capacity (ability to pay) of the school districts.
It appears that Oak Ridge would get $2.21 from the state for each local dollar contributed; Knox County would get $1.04 for each local dollar, because they have a much larger tax base. Morgan County, with a much smaller tax base than either Anderson or Knox County, would receive $16.55 in new state money for every dollar of local money.
Oak Ridge’s fiscal capacity is the same as that of Anderson County, under the current formula.
Sounds fair to me. 😉