* Current status of State funding for public education
1. Support improvements to the way the State funds public education.
2. Support full-day, 4-year-old kindergarten for all low-income children in the state.
3. Support public school choice and oppose school vouchers and tuition tax credits.
4. Support full implementation of the school bus replacement law.
OTHER IMPORTANT ISSUES
* Support an increase in the state cigarette tax to increase the number of children with health insurance.
* Support significant changes to the federal No Child Left Behind (NCLB) law.
* Oppose local spending caps.
PRIORITY ISSUES FOR 2009
Current status of State funding for public education.
State funding for public education cut by $334 million in 2008-09. PK-12 public education in 2008-09 has suffered drastic mid-year state funding cuts totaling $334 million. While these cuts are less than the percentage funding reductions for other state agencies and services, they have resulted in the average school district losing 10% of their state funding. In total the state has cut $1 billion dollars out of an original $7 billion state budget.
Without action by the state legislature or the injection of federal stimulus package dollars, improvements in state revenue are not expected until the 2010-11 fiscal year.
Growth in state revenue and expenditures less than population growth plus inflation.
Over the last ten years (FY97 to FY07) revenue growth in the State General Fund averaged 4.5 percent a year from 1997 to 2007 with a sharp drop in 2000 to 2004. However, over the past decade, revenue has not kept up with population growth and inflation.
General Fund expenditures grew more slowly than revenue at 3.2 percent a year since 1997. Adjusted for population growth and inflation, state spending declined by an average of 2.1 percent a year between 1997 and 2007 including reductions in elementary and secondary education and higher education.
Adjusted for population growth and inflation, current state spending is $1.3 billion below spending levels of 1999, and is $312 less per capita than the 17-year average from 1986-97 to 2002-03.
Recent changes in state sales taxes have a large negative impact on public education. In terms of revenue, the impact of declining sales tax revenue is particularly troublesome for elementary and secondary education in South Carolina. Recent changes in funding sources for Schools have incurred reduced Education Improvement Act (EIA) funding. The amount allocated to schools from this fund depends totally on a dedicated 1-cent sales tax. In the past two fiscal years, sales tax revenue took a big hit as the legislature reduced the sales tax on unprepared food from five percent to three percent, and then in the next year to zero. Sales taxes on groceries were the most stable source of sales tax revenue. The state legislature made no provision for replacing this lost revenue.
Further dependence on sales tax revenue occurred as a result of Act 388 of 2006. This law eliminated local school operations property taxes on owner-occupied homes and replaced it with another increase in the state sales tax of 1 cent. The property tax, which is a stable source of school district funding, was replaced with sales tax revenue which varies with economic conditions.
In 2007-08 Act 388 sales tax revenue was $14.5 million below what was required to reimburse school districts. Under the law, this deficit has to be made up with money from the state General Fund. This year the sales tax deficit is projected at $47 million climbing to $81.5 million in 2009-10. Thus over three years, the General Fund will have been reduced by a total of $143 million.
The General Assembly also made a significant change to the individual income tax in 2007-08 with the elimination of the lowest tax bracket (2.5 percent) for all taxpayers. The two sales tax changes plus this income tax reduction have reduced state revenue by $521 million.
1. Support improvements to the way the State funds public education.
* Support a joint House-Senate resolution for district flexibility in using state funds
* Support reforming state funding of school districts: allocation method and revenue structure
* Support a joint House-Senate resolution for district flexibility in using state funds. As described above, in 2008-09 school districts have, on average, incurred a 10% reduction in state funding from mid-year funding cuts. These reductions are making it extremely difficult for school districts to avoid impacting classroom instruction and required operational services.
OUR POSITION: The Alliance for Quality Education supports a joint resolution by the House and Senate that would provide local school districts and the State Department of Education with flexibility to suspend state mandates that exceed federal ones, to transfer funds between line-item accounts and to co-mingle funds regardless of source. Providing school districts with the maximum funding and program flexibility will allow them to manage their funds to protect core instructional and operational services to students.
CURRENT STATUS: On Jan. 27, H.3352 was introduced in the House and referred to the Ways and Means Committee. Covering the current school year and 2009-10, the bill would allow school districts to transfer state funds as needed and it would suspend some state mandates.
Contact your representatives in the state legislature to voice your opinion.
* Support reforming state funding of school districts: allocation method and revenue structure.
The State has multiple and complex methods to fund public education in South Carolina - - methods that are not efficient and do not provide adequate, equitable and reliable funding for school districts. Some funding methods are decades old and do not adequately fund today's classroom needs. Increasing requirements in academic areas, technology, quality teaching, testing, accountability, and student safety require funding streams that keep pace with these changes. Other funding methods depend on unstable sales tax revenue - - revenue that varies with economic conditions.
Listed below are the major sources of current state funding for school districts along with their major deficiencies.
Major sources of current funding and their deficiencies
* Education Finance Act (EFA)
* Based on a 1977 definition of "adequacy" with annual increases for inflation.
* State did not fully fund from FY01 to FY05 and is not fully funding this year.
* State categorical funding grants
* More than 70 different categories of funding.
* Education Improvement Act (EIA)
* No funding replacement for loss in revenue from elimination of sales tax on groceries in 2007.
* 2008-09 projected revenue is $85 million lower than it was in 2006-07 - - a decrease of 13%.
* Property Tax Relief of 2006 (Act 388)
* Replaced stable local property tax revenue with less stable state sales tax income.
* Property tax burden falls on business property; No natural growth from this source.
* Sales tax revenue deficits: $47 million for 08-09; $81.5 million in 09-10.
* Deficits are funded out of the state general fund.
* Higher school district growth results in lower per pupil funding.
* Inequities in extra funding for children in poverty and high-poverty districts.
* State reimbursement for previous loss of local property tax revenue
* Frozen at the FY03 amount for the $100,000 Property Tax Relief enacted in 1994.
* Frozen at the FY07 amount for the $50,000 Homestead property exemption for age 65+ .
The major method of state funding for public education is the Education Finance Act of 1977. This methods provides a per pupil amount of funding (the "base student cost") that was deemed adequate to fund a child's education in 1977. This amount increases with inflation every year; however, it does not increase with the new and expanding requirements necessary for a quality education. What is required in the schools of today is radically different than the expectation 30 years ago.
The Property Tax Relief Law of 2006 (Act 388) radically changed the way school districts are funded. Local property taxes on homes for school operations were eliminated and in exchange school districts receive state funding from a 1-cent increase in the state sales tax.
OUR POSITION: The Alliance for Quality Education seeks comprehensive reform of state funding for public education to establish an efficient system that provides school districts with a more adequate, equitable and reliable stream of state revenue and a broader set of funding tools for local, elected school boards. This includes A) Reform of the methods used to allocate funds to school districts to include a revised adequacy program that meets today's instructional requirements and needs; and B) Support comprehensive tax reform to develop a new state tax structure that is broad based and provides a reliable stream of revenue that is minimally impacted by changing economic conditions.
CURRENT STATUS: A) The State Department of Education's task forces on school funding released their recommendations in December 2007. Committees in both the State Senate and House have been reviewing the issue of how best to allocate funds to school districts. No bills have yet been introduced in the legislature. B) The Palmetto Institute has issued a call for an independent, professionally-staffed tax study commission that can research and develop a new tax structure for the state. The commission's proposal would be presented to the General Assembly and voted on as is without any amendments. Senate bill S.12 provides for the establishment of such a commission and the procedure for submitting and voting on their proposal. The bill is now before the Senate Finance Committee.
Contact your representatives in the state legislature to voice your opinion.
2. Support full-day, 4-year-old kindergarten for all low-income children in the state.
Brain research shows a child's intellectual capacity is largely set before he ever reaches kindergarten. Poor children are far less likely than middle-class children to receive the sort of brain stimulation they need at home.
Children who start kindergarten ready to learn are less likely to have to repeat a grade. Children who don't have to repeat grades are more likely to graduate from high school, which means they're much less likely to become dependent on welfare or involved in crime and more likely to become productive, taxpaying citizens.
A substantial body of research has found that cost savings to society far exceed the cost of pre-school education with benefit-to-cost ratio estimates of 8:1.
CURRENT STATUS: To respond to a court order, in 2006 the State Legislature funded a two-year, full-day 4K "pilot program" in eight poor school districts. Other school districts have been receiving state funding to offer half-day, 4-year-old kindergarten. However, to offer full-day programs, districts must allocate local funds, apply for grants or use federal Title I money.
In 2008, the State Senate passed a bill (S.815) to expand full-day, 4K to all low-income children in the state. With a revenue shortfall, the bill did not pass the House. However FY09 funding was appropriated to continue the program in the "pilot" districts.
OUR POSITION: The State should expand its current efforts and fund full-day, 4-year-old kindergarten for all children in low-income families. This funding would have a tremendous return on investment for our state.
Contact your representatives in the state legislature to voice your opinion.
3. Support public school choice and oppose school vouchers and tuition tax credits.
School choice within the public school system provides parents with alternatives to their assigned school. This includes charter schools and within Greenville County Schools both magnet schools and open enrollment-assignment to another school that is below capacity. School vouchers and tuition tax credits use state tax dollars to pay for student enrollment in a private school.
The Alliance for Quality Education (AFQE) supports public school choice because these options are both accountable to taxpayers and accessible to all students. Taxpayers know how their tax dollars are being spent at any school as well as each school's academic record. Poorly performing schools are publicly identified and are required to take specific steps to improve. All students have access to public school choices and transportation is often provided to choice schools.
The Alliance for Quality Education (AFQE) opposes school vouchers and tuition tax credits.
Here are some primary reasons:
* Private schools funded through school vouchers and tuition tax credits are not academically and financially accountable to taxpayers.
* Independent charter schools, which are accountable to taxpayers, can be established in any school district in the state.
* Extensive, independent research shows no student academic gains from school vouchers and tuition tax credits and has found that public schools do as good or better job of educating students than private schools.
* Vouchers and tuition tax credits primarily benefit families with students already in private schools.
* Voucher programs do not provide publicly available information on schools nor provide parents the ability to do an "apples-to-apples" comparison of schools.
* Taxpayers will be forced to support failing private schools they don't know are failing. (The experience in Milwaukee demonstrates that some parents pick poor schools for their children and keep them there.)
* For more information on these reasons, see: Lack of Accountability ; No Achievement Gain ; Parent Accountability Alone Doesn't Work .
CURRENT STATUS: In 2008 a Public School Choice bill was introduced in the House but no action was taken. Legislation to provide tuition tax credits for special needs students did not make it out of a House committee.
OUR POSITION: The Alliance for Quality Education (AFQE) supports more choices for parents within the public school system and opposes school vouchers and tuition tax credits for any purpose. The 2008 public school choice bill would have assisted Greenville County Schools by providing state funds for transporting students to and from district choice programs. Currently our school system has to use its own funds for transporting magnet students.
Contact your representatives in the state legislature to voice your opinion.
4. Support full implementation of the school bus replacement law.
In 2007 the State Legislature passed a law providing a 15-year replacement cycle for school busses. (In South Carolina, the state is responsible for providing school busses for each school district.) In 2008 the legislature did not comply with the law. It did not provide the required funding.
Complying with the law is critical for the welfare of our children. 36% of Greenville County students ride the bus. Of the busses they ride:
* more than 30% are 15 years or older including 12% that are 20 or more years old
* some don't have heat
* many lack modern safety features
* On average, there is one breakdown every 2 days.
* Older parts are no longer available & must be scavenged from backup busses
* Changing busses along the side of a road is dangerous for children. Students that are late for school fall behind in their school work.
For more information see the following:
* Findings from an investigative series in the Charleston Post and Courier
* Bus fleet data - Greenville County Schools and the State
OUR POSITION: The Alliance for Quality Education (AFQE) supports annual, full compliance with the 15-year bus replacement cycle law. For too long school bus replacement has been an afterthought or outright neglected by the legislature. The safety of our children should always be a priority for state funding.
CURRENT STATUS: For 2008-09 $10 million was allocated for new school busses - - an amount well below what is required in the law. Furthermore instead of purchasing a few new busses, the funds went to paying the higher cost of fuel. No new busses will be provided. With no increase in projected state revenue for 2009-10 and the unstable price of fuel, it is likely that no new busses will be purchased in the next school year.
Contact your representatives in the state legislature to voice your opinion.