Superintendents Applaud Income Tax Proposal
August 1, 2005
Superintendents gave Shapleigh a standing ovation after he pitched a plan that would put an additional $11.5 billion into public education and cut property taxes by 90 percent.
Written by Steve Taylor, Rio Grande Guardian
ROUND ROCK - The superintendent of a fast growing Rio Grande Valley school district says his community may need more convincing that it would be financially better off under a state income tax.
Joe Gonzalez, superintendent of Donna ISD, was speaking after listening to a power point presentation on the state income tax option by Sen. Eliot Shapleigh, D-El Paso. Superintendents gave Shapleigh a standing ovation after he pitched a plan that would put an additional $11.5 billion into public education and cut property taxes by 90 percent.
"I know many people in the community, when they hear they are not going to be charged school district taxes, will like the sound of it," Gonzalez said.
"But it's still up for review. We need to really look at it in terms of how it is going to impact our people. I've seen other states that are happy with it and others where it has flopped, and the school districts are in chaos."
Gonzalez said Texans always think of themselves as being No. 1 and that is where he wanted to see the state's education system. He said Shapleigh's presentation was compelling and thought provoking.
Shapleigh gave his presentation, 'Invest in Our Kids, Invest in Our Future,' to superintendents, assistant superintendents and school district business managers at a two-day conference organized by the Equity Center and Schwartz & Eichelbaum PC.
Shapleigh started his power point presentation with a recap of where the state's public education was today. One chart showed the gap in passing rates between 'property poor' students and others shrinking. Shapleigh said this showed that improvements in equity had worked. He said another chart showed how property taxes would "go through the roof" if the share-the-wealth Robin Hood system were abolished. He said nine out ten Texas students benefited from Robin Hood.
"Robin Hood is better than any bill we've had at the table, and no bill is better than a bad bill," Shapleigh said. The audience cheered.
Shapleigh said states get what they pay for. He said Texas had been in a "race to the bottom" over the past four years, and now stood at 46th in the nation for secondary teachers with degrees in the subjects they taught, 48th for average SAT scores, and 50th in high school graduation rates.
Shapleigh also pointed to the changing demographic face of Texas, citing statistics from State Demographer Steve Murdock about household income declining by $5,000 in 2030 if the state did not do a better job of educating Hispanic students.
To catch up, Shapleigh said, Texas needed more money for education. Citing National Education Association data, Shapleigh said Texas spent $613 per student less than the national average. Just to keep up with population growth, the state would have to find $1.5 billion this year, he said.
Shapleigh cited data from the Comptroller's office to show how the property tax was regressive and the sales tax even more so. The Comptroller calculates that an average Texas family pays 32 percent more in sales taxes than property taxes. Those earning between $21,797 and $39,743 pay 6.7 percent in property and sales taxes combined, while those earning more than $96,693 pay 4.2 percent.
Getting those in the audience to pretend they were state senators, Shapleigh asked for a series of votes on which taxes to increase to pay for a quality education system. A larger majority ended up backing a state income tax.
Shapleigh pointed out that the Texas Constitution requires that an income tax needs to be approved by voters, that two-thirds of the revenue generated would be dedicated to property tax relief and one-third to education. Any increase would also have to be approved by voters.
Using the Kansas model, a state income tax in Texas would raise 34.6 billion. Of this $23.1 billion would go to reducing property taxes by 90 percent, with the remaining $11.5 billion going to public education. "70 percent of Texans would be better off," Shapleigh said.
Shapleigh said the country's democracy rested on a good public education system. He pointed to the success of Campestre Elementary School, in El Paso, which, despite having high numbers of economically disadvantaged students, consistently achieved 'exemplary' status. "They are living the American Dream," he said.
He also blasted the "ten people" who were writing education bills in back rooms at the Capitol. They were more interested in property tax cuts than education, he said.
Shapleigh urged superintendents to show the income tax presentation to their legislators and to get their school board, chamber of commerce and local civic organizations to pass resolutions and start ballot initiatives in favor of the plan.
Though not endorsing the income tax plan at this time, Donna ISD Superintendent Gonzalez acknowledged that his fast growing but property poor district could do with increased funding. He said around 87 percent of students were economically disadvantaged and a similar number were limited English proficient.
"We are growing seven or eight percent a year, with close to 900 new students every year, so facilities have become a serious issue," Gonzalez said. "Funding has become a serious issue. Teacher recruitment has become a serious issue. We are one of the poorest district in the state so we have had to develop special programs for our students."
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