Every Kid Deserves a Great School Wisconsin

1. Is Our Tax System Fair To Our Schools? You Decide… Every Kid Deserves a Great SchoolWisconsin Building an Economic Foundation for School Success in Fond du Lac Ted Eischeid & Tony Prus - January 2006 (Draft 7.21.05)

2. is a land of opportunities… …but these opportunities are being compromised by unfair tax, inadequate school funding, and uneven economic development policies… …and not everyone is aware.

3. Public education is at risk • Why are schools in such financial peril? • What can be done about it? • What can YOU do?

4. Revenue caps force yearly cuts • Statewide revenue-cap growth is about 2.5%. • But… the cost of providing the same services from year-to-year grows by 4.1%. • That difference squeezes budgets, causing structural deficits and cuts. Remember our cut? There’s more to come… Source: Institute for Wisconsin’s Future survey

5. Reality: Cuts, cuts, cuts… • If the quality of schools decline, it’s not just the kids who are hurt: • Wisconsin’s economic health will suffer. • The value of Wisconsin residents’ single largest investment – their homes – will also decline, because schools and property values are directly related. • Wisconsin’s economic future depends on great schools! • Source: 2003-2004 study by the Wisconsin Association of School District Administrators and the Wisconsin Education Association Council

6. ….and more cuts… • How many of these cuts have affected us here in FDL the last few years?: • 69% laid off teachers or other support staff. • 68% increased class sizes. • 60% offered fewer courses. • 55% reduced programs for gifted and talented students. • 53% reduced courses in art, music, theater. • 51% reduced extracurricular programs. • 49% reduced programs for at-risk students. • Source: 2003-2004 study by the Wisconsin Association of School District Administrators and the Wisconsin Education Association Council

7. Taxes To ensure equal educational and economic opportunity for all, we need to do three things - can you say “TEF”?: • Make Taxes fair • Level the Economic playing field • Fund schools adequately Economy Funding

8. We value living in a prosperous and civilized society. Fair taxes are the best way to support and preserve such a society. Economy Make Taxes Fair Funding

9. Taxes Taxes on the wealthiest Wisconsinites are going down. Taxes on the rest of us are going up. Source: http://www.itepnet.org/wp2000/wi%20pr.pdf

10. Taxes Tax Distribution by Income Group = NOT Progressive! Source - http://www.itepnet.org/wp2000/wi%20pr.pdf

11. Taxes

12. Nationwide since 1980, state corporate income tax payments as a percentage of reported profits have fallen dramatically. Richard S. Sims

13. Taxes Some corporations use loopholes to avoid paying taxes… Wisconsin Corporate Taxes Source: Wisconsin’s Legislative Fiscal Bureau.

14. Taxes The bottom line? “Tax Shifting” is occurring. Is this progressive? Is this fair?

15. Taxes Making taxes fair by closing loopholes would generate significant revenues and create a more equitable system.

16. Level Economic Playing Field In today’s knowledge-based economy, the most effective economic development strategy is investing in public education — our human capital.

17. Government’s Role… • State and local governments can waste tax money in subsidies to big business while the neighborhood “store next door” goes bankrupt. • The role of government is to level the playing field, not choose winners and losers. Economy

18. Economic Development Subsidies - Nationwide • Using tax incentives / tax abatements to attract big business into a certain locality costs taxpayers more than $40 billion annually. • These incentives are often given with no strings attached, i.e., there are usually no accountability provisions. Economy Source: Greg LeRoy

19. Economic Development Subsidies in Wisconsin The Milwaukee Journal reported that the state of Wisconsin gave away more than one billion dollars in tax subsidies to specific private corporations between 1987 and 1999. $35 millionof those subsidies went to 112 companies. Question: How many jobs were created with these subsidies? The answer is… Economy

20. 0 Jobs! No new jobswere created and no one was held accountable. Some would call this “corporate welfare.” Economy

21. Examples of Economic “Gifts”: • Beaver Dam’s Wal-Mart distribution center received $7.7 million in subsidies, including reimbursement of the $5.4 million purchase price for the land, from city and state governments. This represents a “gift” of over 13 million dollars of tax funds. • Tomah subsidized a Wal-Mart distribution center in the amount of $6.6 million for infrastructure improvements. • Is this a fair system? Economy “Shopping for Subsidies: How Wal-Mart Uses Taxpayer Money to Finance Its Never-Ending Growth,” Good Jobs First, May 2004.

22. Taxes Investing additional money in education would create more high-paying jobs and economic prosperity than would providing tax subsidies to big box retailers… Economy Funding

23. The Bottom Line for Wisconsin: Spending on Education Leads to More Economic Development Than Tax Cuts Tax Shift Resulting in a 2% Cut in education Tax Shift To Fund a 2% Increase In Education Jobs Lost-2,700 -5,000 Jobs Created 5,000 2,700 Net Jobs2,300 -2,300 Source: Richard Sims.

24. Economy Research Shows: Lower student-teacher ratios Higher spending per student Higher proficiency test scores Home prices are benefited by Great Schools = Strong Local Economies! Source: Richard Sims

25. Providing all students with an excellent education reduces costs associated with crime and poverty, saving the taxpayer money. You can pay me now, or you can pay me later… with interest! Economy

26. 4,400 3,566 Ten Lowest States Ten Highest States Source: Statistical Abstract of the United States 2000

27. Investing in Education = Savings in Crime • One more high school graduate = $1,200 savings in crime and welfare costs • Investment of $1.00 in after school programs = savings of $3.00 in crime and welfare costs. • Investment of $1.00 in pre-k education = savings of $19.00 in crime and welfare costs. SOURCE: www.fightcrime.org

28. A strong democratic and economic future depends on the capacity of our schools to provide all students with a fair chance to succeed. AdequatelyFunds Schools

29. Adequate school funding is necessary to build the capacity to deliver excellence. • Accountability is only rational when schools have the capacity to do their job. • Are recent budget cuts in FDL helping you do your job? • Oil Change Analogy… It’s an investment, not a cost! Funding

30. Wisconsin schools need 32% more funds to achieve adequacy and equity. Funding

31. It can be done… • Revenue Sources to meet school needs: • Exempt from property tax first $60,000 in value of owner-occupied home. • Financed by closing loopholes on sales and income taxes on services largely used by corporations $625 million. Additional money for schools: • One more penny for sales tax (from 5% to 6%) would generate $800 million. • Or, shift income tax (from a range of 4.6% to 7.75% to a range of 5.0% to 8.75%) would generate $600 million. • Or, combinations of various tax adjustments. Dept of Revenue 2005 Study on tax exemptionswww.dor.state.wi.us/ra/05sumrpt.pdf

32. Teacher Compensation Matters, Too! Teacher quality is at risk as teacher pay stagnates and falls further and further behind the pay of other occupations requiring a college degree… Funding

33. Funding

35. The gap between the salaries of teachers and the salaries of other college- educated professionals in Wisconsin has widened dramatically. $61(1940)vs.$11,692(2000) Will this gap help us attract the best & brightest? Funding Source: U.S. Census (2000)

36. What goes around comes around – the teacher – ESP connection. • It’s not just teachers who are affected by revenue caps and inadequate funding... • ESP employees are the first to be laid off as districts seek to protect their core mission for which they are accountable.

37. Work is often shifted, not eliminated. • When ESP’s are cut back or laid off, the work is often shifted to teachers without compensation in time or pay. • Has this happened to you recently???

38. Despite adversity, Wisconsin public schools have performed well! • 98.6% of the teachers meet the "highly qualified" ESEA standards. • For 16 consecutive years, Wisconsin high school students have scored 1st or 2nd on the ACT exam. • Wisconsin's graduation rate is the second highest in the country. • Wisconsin's 2.3% dropout rate is second lowest in the nation. • Second in the world on an international science test comparison. • Third highest SAT college entrance exam scores in the country in 2004. Wisconsin public schools consistently outscore Wisconsin private schools on the SAT. These great results are because of YOU! But… How long can this last in the current funding environment?

39. Taxes Economy Funding To ensure equal educational and economic opportunity for all, we need to do three things… • Make Taxes fair • Level the Economic playing field. • Fund schools adequately Say it with me…. TEF!

40. How Can You Help? • Be informed and be heard! • Talk TEF to political representatives, family, friends, & neighbors. • Vote (“Yes” - Tuesday, April 4th!). • Attend Lobby Day in June - experience the power of collective action!

41. More Information • FEA Hedy Eischeid (hedy@fonddulac.k12.wi.us ) • Winnebagoland UniServ Paula Voelker (voelkerp@weac.org) • NEA Research Ed Hurley (ehurley@nea.org) Dwight Holmes (dholmes@nea.org) Michael Petko (mpetko@nea.org)