Wednesday, March 24, 2010

Tax increases

After last night's meeting with the County Commissioners and the School Board, it is clear to me and others that the only solution to our system's budget crisis is a tax increase. For too long, we have underfunded Durham's schools. Now, we are at a tipping point. The passion and hope on display at last night's meeting was inspiring. Now, we must focus this energy into pressure on our elected officials. I propose we ask for the creation of a special Durham School District Tax of .33 on $100 of assessed property value. This rate increase would happen over the course of 10 years with a 6% increase the first year followed by 3% increases the next 9 years. While it wouldn't immediately alleviate our current budget mess, it would show a real commitment to our children's future.

Some particulars: A .33 cent increase per $100 would mean roughly and extra $660 on a $200,000 house by the end of the tenth year. This would increase our per pupil spending in Durham County from $2,845 to $5,684 and far outpace the current state high spender, Chapel Hill-Carrboro. Who would not like that? Well...

Many will claim that if we raise taxes that much in Durham that people on fixed incomes like the elderly, unemployed, or poor, would be forced out of their homes. While this is a very real concern, I believe we cannot let our future suffer for the wrong policy decisions of the past. Provide limited tax increments for those who are on fixed incomes or in poverty which is not MOST of Durham's property tax base.

People will claim that housing prices will rise so much that only the affluent will be able to afford the taxes and only the affluent will enjoy the good schools. Do we have a problem with affordable housing in Durham County? Yes, but that is not because of our tax rate. It is a problem caused by developers not wanting to build affordable houses. It is the problem of a city and county officials giving sweetheart deals to big developers. Why do developers and Realtors fight so hard against ordinances that attempt to require certain percentages of affordable housing? It isn't because of the tax rate?

Would a higher tax rate drive the poor out of Durham and make their lives worse as Mike Ruffin suggested at last night's meeting? This logic seems so circuitous it makes my head hurt. Certainly, as schools improved, all home values in Durham County would increase. However, to make the argument that we should keep our schools underfunded and suffering so that poor people can still live in Durham and attend these suffering schools is the definition of insanity.

People will say that there are approximately 35,000 students in Durham County schools and there are 260,000 residents in the county. They will say that school children make up 13.5% of the population, yet DPS alone makes up roughly 30% of the county budget. They will point out that DPS funds no portion of their tax burden. (Like our children should be out selling chocolate bars so that they can keep teachers in their classrooms?) They will claim that we already have more than a "reasonable" amount of our tax dollars going to support our children-- more tax dollars than go to any other one agency in the County. We will be told that the county tax rate is 70.81 cents and the city tax rate is 54 cents, so Durham city residents (which is the vast majority all Durham County residents)pay a total of $1.2481 dollars per hundred valuation. Are we supposed to forget that pretty much one of the only reasons that local governments exist anymore is to educate (schools), protect (police and fire), and assist (social services)? What do these people want? A police and fire department as big as the school system? Well, that is what would happen, and is happening, if we continue to cut education.

Finally, we'll be told that Durham County schools are not underfunded at the local level, at least not in comparison to other systems in the state. We'll be told they are in the top 5 in local funding since forever. Hundreds of dollars more per pupil than surrounding counties and comparable counties, except for Orange County. We'll be shown this list from the 2009-10 Per pupil funding from the NCACC Budget and Tax Survey.
Alamance - $1,466
Buncombe - $1,758
Chatham - $2,727
Cumberland - $1,388
Durham - $2,854
Forsyth - $2,079
Guilford - $2,405
Johnston - $1,735
Mecklenburg - $2,267
New Hanover - $2,520
Orange - $3,073
Wake - $2,112

We'll be told to believe that this means we're succeeding. Yet, aren't all those other school systems suffering too? Aren't they facing the same if not greater problems? When we were getting the most money, weren't these same leaders pointing to DPS scores and asking us what good the money did? Durham has one of the highest concentrations of poverty in the state. Wasn't that one of the reasons for not raising taxes? But then, isn't it also a reason our schools need more money?

We are not fools. It is time for us to get together and demand proper funding for Durham's schools. Please, I'm not a policy wonk. I've started this blog in an attempt to reach out. We can make a difference. Think about what each of you can do.

4 comments:

  1. Michael,

    My name is Stan Chambers and I cover K-12 education in Durham for the N&O.

    I'd like to talk with you about your tax idea. Shoot me an e-mail at stan.chambers@newsobserver.com.

    I look forward to hearing from you.

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  2. I love this idea! I'm so glad I found this blog.

    There's a way to make property taxes more progressive: the homestead exemption. Ohio uses an income test and an age test to determine who gets a break on property taxes:
    http://tax.ohio.gov/divisions/communications/homestead_exemption_information.stm

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  3. DMills,

    Thanks for visiting. Your comment is just what I had in mind when I created this blog. I love it!

    Your link to the Ohio homestead exemption is a perfect example of a creative solution to this problem. No one wants to have the elderly or diabled lose their homes.

    Anyone out there know the nitty gritty about how NC State or local law might apply in this situation?

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  4. Stan,

    Thanks for showing interest in this blog. It was a pleasure to talk with you this afternoon. Good luck with your work.

    ReplyDelete