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School
spending needs math
lesson
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- Robert
Robb
- The
Arizona
Republic
- Mar.
21,
2003
The
discussion of
education spending
in the state tends
to be generalized
and selective.
For example,
Arizona's relatively
low ranking among
the states in
per-pupil operating
expenditures is
widely cited. But
the fact that
Arizona ranks first
in per-pupil school
construction
expenditures is
virtually never
mentioned.
Nor does this high
rank in capital
costs result from
making up for years
of neglect, as
sometimes claimed.
Even before Students
FIRST, Arizona
ranked seventh in
per pupil capital
spending.
Spenders want a
simplistic
discussion and
debate: Are you for
or against
education?
But the state's
school finance
system is
extraordinary
complex, with lots
of moving parts.
Carefully and fully
examined, several of
those parts are in
need of reform.
The school finance
formula limits what
school districts can
spend, roughly based
on the number of
students they have.
That substantially
circumscribes local
control of
education. But it's
necessary to achieve
equalization, which,
rightly or wrongly,
is the principle
that drives
education finance in
the state right now.
School districts can
ask voters for
permission to spend
slightly above what
the state spending
limits provide. But
there are a couple
of areas in which
school districts
have authority to
impose additional
local property taxes
without voter
approval.
Unsurprisingly,
school district
expenditures in
these areas are
rapidly increasing.
And the state shares
in the cost through
the homeowner
rebate, which
subsidizes 35
percent of
residential school
district property
taxes.
In Monday's special
session on this
year's budget
deficit, the
Legislature took
action to rein in
one of these runaway
expenses, so-called
"excess utility
costs."
This program was
started in 1986 and
allows school
districts to
directly levy
additional property
taxes to cover
utility costs that
supposedly grow more
rapidly than budget
capacity under the
state spending
limit.
Since the program
started, expenses
that school
districts have
claimed as
"excess utility
costs" have
skyrocketed by more
than 700 percent,
despite moderate to
declining utility
rates.
Eliminating the
program over nine
years was part of
the education sales
tax plan approved by
voters in 2000 -
some fiscal
discipline the
business community
insisted on in
exchange for
supporting the tax
hike.
Instead of beginning
to phase out such
expenditures,
however, school
districts have
continued to
escalate them, by 34
percent just since
the ballot measure
passed.
Last year, the
Legislature capped
such expenditures,
but school districts
finagled a way
around it. So in the
special session, led
by Senate President
Ken Bennett,
R-Prescott, a harder
cap at last year's
spending level was
adopted.
A politically more
delicate example is
desegregation
expenses. School
districts can also
levy additional
property taxes
without voter
approval to comply
with a desegregation
court order or a
civil rights
agreement with the
federal government.
In 1984, there was
only one school
district in the
state under a
desegregation order.
Although Jim Crow
hasn't exactly been
on the march in
Arizona schools
since, there are now
19.
Only one of the
additional 18 came
through the hard
work of filing and
winning a lawsuit.
The rest are
agreements reached
with the civil
rights office of the
federal Department
of Education,
something districts
are quite willing to
do since it gives
them unlimited
access to local
property taxes.
Spending has grown
more than 2,000
percent without
schools becoming any
more integrated.
This has contributed
to another
unremarked
phenomenon in
Arizona education
finance. Most of our
inner-city schools
already spend
considerably more
than the state
average. In fact,
most already spend
at or above the
national average.
Reform measures (HB
2357 and HB 2358)
have passed the
House, championed by
Republican Steve
Huffman from Tucson,
where the abuses
have been the
greatest. These cap
such expenditures,
limit what they can
be spent on, require
voter approval for
future desegregation
program levies, and
eliminate the state
subsidy. The
legislative
leadership budget
would also eliminate
the state subsidy.
Legislators are more
willing to brave the
political flak from
reining in such
programs because of
their impact on the
anemic state budget.
Encouragingly, Gov.
Janet Napolitano has
said she won't veto
the cap on excess
utility costs passed
in the special
session.
Perhaps there will
be an opportunity
for a fuller and
more sensible
discussion of
education spending
after all.
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