tabling SALT

Here’s how the Republican tax plan could threaten New York’s education funding

PHOTO: Kevin P. Coughlin-Office of the Governor/Flickr
Mayor Bill de Blasio and Gov. Andrew Cuomo at a press conference in 2014.

Republican lawmakers in Washington appear poised to approve sweeping tax legislation, which New York Governor Andrew Cuomo has dubbed an “economic death blow” to the state.

That blow, advocates say, could punch a hole in school budgets.

Schools across New York are already shortchanged billions of dollars, according to school-funding advocates, even as the state faces a $4.4 billion budget gap. The tax plan, if approved, has the potential to divert even more state and local funding from schools.

“I’ve been dealing with the state budget for more than 30 years and this is as volatile and uncertain as anything I can recall,” said Bob Lowry, deputy director of the New York State Council of School Superintendents.

The House and Senate must still combine their tax bills and pass a final version. Below is a guide to some of the worst-case scenarios for New York schools if that happens.

“Downward pressure” on local taxes

A provision of the tax plan would sharply reduce state and local tax (often called SALT) deductions a proposal that would hit high-tax states like New York hardest. The average SALT deduction in New York is $22,169, according to a report form the Governor Finance Officers Association, using data from 2015.

Advocates worry that voters whose tax burdens rise without the deductions will be less inclined to sign off on increases to their local school board budgets, which voters approve in most parts of the state. In New York City, school funding may be more insulated because residents do not vote on a budget.

However, the city could feel pressure to offset the lost SALT deductions by lowering local income taxes — a move that could shrink budgets across city agencies, including the education department.

“It stands to reason that there will be downward pressure for us to reduce our local taxes, which in turn would create less revenue for city services,” said New York City spokeswoman Freddi Goldstein in an email.

Flight of the super taxpayers

A small number of super-wealthy New Yorkers help keep the state and city governments afloat.

In New York City, about 25,000 families contribute more than 40 percent of the city’s personal income-tax revenue, according to the most recent figures analyzed by the city’s Independent Budget Office.

Their tax burdens could balloon without the SALT deductions, spurring a rush to lower-tax locales. While some experts said a mass exodus is highly unlikely, in a district where approximately 57 percent of school funding comes from the city budget, any significant loss of tax revenue could strike a serious blow to school funding.

“People who live on Park Avenue are not going to move to Alabama to pay lower taxes,” said Michael Borges, executive director of the New York State Association of School Business Officials. “But they may move to Scarsdale because they don’t have to pay a city income tax.”

A three-way “tidal wave of disaster”

Lost local revenue isn’t the only way school budgets could take a hit. In fact, it could be part of a triple whammy.

The tax plan would leave the federal government with a gaping $1.4 trillion deficit. Experts expect lawmakers may eventually plug the hole by slashing spending on healthcare and possibly other programs like education.

“It may result in lower federal funding for everything,” said George Sweeting, deputy director at the city’s Independent Budget Office. “If that happens, that would have an impact on federal funding for New York City.”

Still, school districts only get a fraction of their funding from the federal government. In New York City, federal money accounts for just 6 percent of school spending. (By contrast, 37 percent of the city’s education funds come from the state.)

However, federal spending cuts could have an indirect impact on New York’s education funding. If Washington provides less healthcare funding, for instance, New York could have to pick up the tab — creating a ripple effect, where it would have less to spend on schools.

The federal pressure would come at the same time New York is already facing a $4.4 billion budget deficit. Officials from Governor Andrew Cuomo’s office say the tax plan would be a blow to New York — but they also insist that Cuomo is committed to funding education.

Still, schools are staring at a “loss of federal aid, a loss of state aid, and a loss of local revenue,” Borges said. “It’s like a tidal wave of disaster.”

An under-the-radar change would cause “significant harm”

Finally, a little-noticed bond issue in the tax plan could cause New York schools pain.

Congressional Republicans would remove provisions that help schools borrow money for school construction projects, according to a letter signed by Board of Regents Chancellor Betty Rosa and State Education Commissioner MaryEllen Elia. The loss would “significantly harm districts’ finances,” it reads.

This measure would have a devastating impact on schools, school districts, local taxpayers and, most significantly, our students,” the letter continues. “That impact would be felt most dramatically by districts in poverty; in other words, the districts that would be hurt most are those that can least afford it.”

taking action

Denver to dismiss students early as teachers rally for more school funding

PHOTO: RJ Sangosti/The Denver Post
Colorado educators rallied outside the State Capitol on April 16, 2018. More rallies are planned for next week. (Photo by RJ Sangosti/The Denver Post)

The Denver school district will cut short the school day on April 27 after the local teachers union announced its members would join an afternoon rally at the Colorado Capitol to advocate for more state education funding.

District-run schools will have an “early-release” day with students being dismissed sometime between 11:30 a.m. and 1:30 p.m., Denver Public Schools spokeswoman Jessie Smiley said. Exact dismissal times will depend on a school’s transportation schedule, she said.

Innovation schools, which are district-run schools with additional autonomy, can opt out of the early dismissal and operate on a normal schedule, according to a letter from Superintendent Tom Boasberg that explains why the district is declaring an early-release day. Denver Public Schools is the largest school district in the state, with 92,600 students.

Several charter schools also plan to dismiss students early so teachers can participate in the rally. They include schools in the district’s two biggest homegrown charter networks, DSST and STRIVE Prep, according to officials from those networks.

Other Colorado school districts have canceled school for a whole day. Colorado has among the lowest level of school funding in the country, and a recent study ranked the state last for the competitiveness of its teacher salaries.

Read Boasberg’s letter in full below.

Dear DPS Community,

As we have been communicating with you, DPS has been working extraordinarily hard and in partnership with superintendents across the state to press our state government to restore education funding to our schools, and ensure our students and our educators receive the supports and compensation they deserve.

In Colorado, the state funds education at an average of $2,500 per student less than the national average. That is short-sighted and wrong. Our state needs to dramatically increase our investment in education, and all of our voices play a vital role in this effort.

The statewide teachers association, the Colorado Education Association, is planning a statewide rally of educators on Friday, April 27 to advocate for greater state funding and expects that many of our teachers will participate. As such, we’ve been working with our teachers on a plan that will have as minimal impact as possible on our students and families

Given the number of teachers expected to participate in CEA’s event that afternoon, we have decided to schedule an early release day for all district-managed schools on Friday, April 27. Innovation schools can opt out of the early release schedule and decide to operate on a normal schedule. We felt it was important to get a decision on this as early as possible so schools and families can plan ahead.

The planned early release will not impact student meals. We are committed to feeding every child every day, so bagged lunches will be available for every student on April 27.

Also, the planned early release day will not impact the 34th Annual Shakespeare Festival. The festival will follow its regular schedule. Transportation will be provided to students who go back to school after the celebration.

We are working with Transportation Services to provide accurate information about transportation for Friday, April 27. We will share this information as soon as it’s available.

We are communicating with school leaders and families to provide you with answers to your questions about your school’s schedule, transportation, and after-school activities. Please look for a detailed communication from your student’s principal by the end of the day Thursday, April 19.

As in every case, our students’ safety is our top priority, and we will make necessary revisions to these plans to prioritize their well-being. Thank you for your support of our educators and your partnership in our students’ education.

Best,
Tom

get out the vote

Can schools encourage students to be more involved citizens? A new study suggests yes they can.

Democracy Prep charter network superintendent Seth Andrew at a 2012 admissions lottery event.

In a city of roughly 1,800 schools, many have names that have little to do with what students experience.

Not so for Democracy Prep, a network of charter schools that a new study concludes makes students far more likely to vote once they turn 18.

The study, conducted by independent researchers commissioned by Democracy Prep, took advantage of New York City’s charter school admissions rules to examine the impact of applying to, getting accepted to, and enrolling in the network’s schools on later civic participation.

Looking at more than a thousand students who applied between 2007 and 2015 who were old enough to vote in 2016, the researchers found that just being selected in the admissions lottery was correlated with a slight increase in voting rates. Students who were chosen voted 6 percent more often than students who were not.

The impact was much greater on students who were chosen and actually enrolled: They voted 24 percent more often than students who applied but never got a chance to attend.

The findings suggest that Democracy Prep is achieving its explicit goal of promoting civic participation. They also offer one answer to the question of whether charter schools, which are publicly funded but privately managed, undermine democracy.

“Democracy Prep provides a test case of whether charter schools can successfully serve the foundational purpose of public education—preparation for citizenship—even while operating outside the direct control of elected officials,” the researchers write. “With respect to the critical civic participation measures of registration and voting, the answer is yes.”

Seth Andrew, who started the network with a single middle school in Harlem in 2006, said he was pleased by the findings — and unsurprised, because the network has baked civic participation into its culture and academic program. Students must take on a personal “Change the World” project and pass the U.S. citizenship exam to graduate.

“This idea of ‘change the world’ was very central to what we were trying to get our kids prepared and excited to do,” he said.

Creating more engaged citizens takes more than just adding a civics class, said Katie Duffy, the CEO of Democracy Prep. Schools have to make democracy a part of the daily culture, she said.

“The more you talk about the importance of voting, the importance of elections, the importance of advocacy,” she said, “the more it becomes ingrained in our kids.”

The network has also long used Election Day — when district-run schools are often closed so their buildings can be used as polling stations — as a teachable moment.

In 2008, Democracy Prep students spent the day working to get out the vote in their neighborhoods. Four years later, Democracy Prep schools were among the few housed in city space that got special permission to stay open — and the network sent students out to advance the “Vote for Somebody” campaign it had kicked off in a catchy viral video. The next year, students promoted a different message — “I can’t vote but you can” — in an effort to boost the city’s 11 percent primary election voter participation rate.

The network’s influence extends far beyond its students. In 2012, six years into the network’s existence, officials estimated that students had helped 5,000 New Yorkers register to vote. Now, the network runs 22 schools in five states.

Andrew said the study’s findings about the impact of the network — which he left in 2012 to work on other civic engagement initiatives, including at the White House — offer only a start at a time when the United States lags behind other developed countries in voter turnout.

“I was thrilled with the outcome,” said Andrew. “But the as the guy that founded Democracy Prep I feel like there’s a whole lot of room to grow.”