The Cost of saving Money
Thursday, January 22nd, 2009As it turns out, and contrary to some published reports, Otter Valley High School is not going to stop teaching French after all.
The school will reduce its one French teacher’s schedule from almost full-time to half-time, said Principal Dana Cole-Levesque. This will allow all the students now studying the language to continue through a fourth year if they choose.
There won’t be any first-year French class offered next year, Cole-Levesque said, but the plan is to restart a full French program as soon as possible, so that in the future “any students who want to start” studying French will be able to do so.
So it’s not a phase-out. More like a one-year suspension of French One to save some money.
That’s not all that Otter Valley has done to save money, Cole-Levesque said. It is also trimming a technical education teacher and will replace a retiring English teacher with someone who already works in the school. As a result, he said, the property tax rate in the Rutland Northeast Supervisory Union (Leicester, Whiting, Sudbury, Brandon, Goshen, Pittsford, Mendon and Chittenden) is tentatively slated to go down by one cent. These cuts, he said, will not lower the quality of education in the schools.
What the district did not do, Cole-Levesque said-what it considered and refused to do-was cut its budget so much that its per-pupil costs next year would be “level-funded,” meaning no more next year than this year.
That would have diminished the quality of education, Cole-Levesque said.
“When the board looked at the implications from an educational standpoint, to try to create level funding, it was really draconian,” he said. “It was going to start hurting our programs.”
The problem-not just for Otter Valley but for the whole state-is that level funding of per-pupil cost is exactly what Gov. Jim Douglas is demanding of Vermont’s schools right now. Arguing-correctly-that almost every other unit of government in the state is going to have to spend less in the next fiscal year, Douglas asks why the public schools should be treated differently.
In his Inaugural speech, when he first announced his intention to hold down school spending, Douglas mentioned some specific steps that might be taken to reduce costs without making the schools worse. One of them was consolidation, though he did not specify whether he meant actually combining schools or just merging some of the 61 supervisory districts.
Either way, many experts say-and it just makes sense-that consolidation could make the schools cheaper without making them worse. It might weaken “local control.” But it would probably save money.
Since that speech, though, Douglas has said nothing about specific cost-cutting proposals. He’s just pressuring the schools to “level-fund” per-pupil cost.
Needless to say, that would save money, too. But as the Otter Valley example illustrates, perhaps at the cost of diminishing the quality of the state’s schools.
Not across the board, though. One result of the governor’s proposals could be greater inequality both within the schools and in the way they are financed.
For instance, that employee that Cole-Levesque is moving over to replace the retiring English teacher is now working in a “support program,” offering “academic tutorial support for students who for one reason or another need some special help.”
The program will continue, Cole-Levesque said. But it will continue with one less teacher. Maybe it can be as effective without that teacher. But quite possibly it cannot.
And the students in that program are more likely to be from lower-income homes, precisely the students, Cole-Levesque said, among whom the school has “failed to meet adequate yearly progress.”
Elsewhere around the state, schools have been cutting “technical education” (the current preferred term for what used to be called “vocational education”). In some cases these cuts may make sense because special “technical centers” (vocational schools) have opened nearby. Either way, the students most likely to be affected come disproportionately from lower-income families.
These are not the governor’s decisions. They are school board decisions in response to pressure to cut cost. Nor does all the pressure come from Douglas. No doubt some of it comes from taxpayers. But the taxpayers with the most clout are not the parents of children who take vocational classes or “need some special help.” They are more likely to be the parents of children who study French.
On the financing front, what Douglas wants to do is cut the amount of money that the state’s General Fund contributes to its Education Fund. Most of the money in the General Fund comes from the “broad-based” sales and income taxes. More of the Education Fund money comes from property taxes.
If the schools and the Legislature adopt the governor’s plans, then, more school spending will come from property taxes, less from income and sales taxes. According to one study, that means the burden of school financing will shift downward, from the more to the less affluent.
In a 50-page paper prepared for the prestigious Social Science Research Network, Professor Susan Pace Hamill, with statistical help from Robert S. McIntyre and Matthew Gardner of The Institute on Taxation & Economic Policy has compiled tables showing that in almost all states, including Vermont, lower-income residents pay a higher percentage of their income in property taxes than do the wealthy.
Hamill makes no claim that she is objective. Her paper is called “The Vast Injustice Perpetuated by State and Local Tax Policy,” and while she rates Vermont as one of the four most responsible and progressive states, she doesn’t think any state spends enough on education, or raises the money for it fairly. Vermont’s public finance system was rated “slightly regressive” in her paper. Her assessments are open to debate; her statistics appear to be solid.
In Vermont, a typical taxpayer in the bottom fifth of the income distribution scale pays 5.6 percent of his or her income in property taxes. Middle income people pay 3.6 percent. The very wealthy pay only 2.6 percent of their income.
Sales taxes are similarly regressive, with the poorest paying 5.7 percent of their income and the richest 3.3 percent. Only the income tax-where the poorest pay nothing and the very wealthy 4 percent of their income in state taxes-counter-acts the regressive influence of the other taxes. So the more that schools are paid for by property taxes, the more they seem likely be paid for by lower income taxpayers.






