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Copyright 2000 P.G. Publishing Co.  
Pittsburgh Post-Gazette

October 11, 2000, Wednesday, REGION EDITION

SECTION: EDITORIAL, Pg. A-11

LENGTH: 732 words

HEADLINE: TED HALSTEAD AND MICHAEL LIND A FEDERAL FUND FOR EDUCATION LOCAL PROPERTY;
TAXES ARE THE MOST UNFAIR WAY TO SUPPORT SCHOOLS

BODY:


WASHINGTON

The debate over how to improve America's system of K-12 education is raging at all levels this electoral season. At the national level, Texas Gov. George W. Bush proposes a limited school-voucher plan, which Vice President Al Gore rejects in favor of more money for conventional public schools. The same issues are being debated in California, where voters will decide on Proposition 38, which would give every schoolchild a $ 4,000 voucher, and Proposition 39, which would make it easier for local voters to pass school bonds.

None of these proposals, however, addresses the greatest problem facing K-12 education: the long-standing tradition of financing primary and secondary education through unpopular local or state property taxes.

You would never know it from listening to the presidential candidates, but the federal role in funding education is minuscule. Until recently, the primary source of school funding has been local property taxes, supplemented by a small amount of aid from state governments and even less from the federal government.

Other countries do not organize school financing the way that we do. Among countries belonging to the Organization for Economic Cooperation and Development (OECD) in 1995, an average of 54 percent of funding for primary and secondary education came from central governments, 26 percent from regional and 22 percent from local. In the United States, by contrast, the federal government supplied only 8 percent of funding, with the rest divided between state and local governments.

The largest single federal program for schools, Title I of the Elementary and Secondary Education Act of 1965, provides only about $ 8 billion, less than 3 percent of all local, state and federal education expenditures.

The United States does not suffer from a lack of overall school funding. On the contrary, it spends a greater share of national income on K-12 education than any other OECD country except Canada and Denmark. But the practice of funding schools by means of local and state property taxes has resulted in vast disparities in funding among states, cities and even neighborhoods.

The perversity of the system is easy to illustrate. Suppose you have an impoverished inner city whose per-pupil taxable property base is $ 50,000; the per-pupil property-tax base of an affluent suburb nearby is $ 250,000. The inner-city would have to levy a painfully high 10 percent property tax to raise the same amount of money -- $ 5,000 a student -- that the suburb could raise through a mere 2 percent rate.

The link between education and localism in the United States is a relic of the colonial and rural past. It is time to consider equalizing school funding on a national basis.

If educational opportunity should not depend on the fortuity of a child's residence in this or that county within a state, then surely it should not depend either on the child's residence in this or that state in the United States. Per-pupil spending in 1997-98, adjusted for cost-of-living differences across states, varied from $ 4,000 in Mississippi to greater than $ 9,000 in New Jersey. Surely, this is no way to run the education system of a modern nation, least of all one that aspires to remain at the forefront of the information revolution.

The federal government, like the central governments in virtually all other advanced nations, should pick up most or all of the tab for K-12 education -on the condition that state and local governments reduce their taxing and spending on education commensurately. It might be objected that the "rich states" would subsidize the "poor states." But there are no rich and poor states. There are only rich and poor Americans, who are unevenly distributed across America's continental territory.

The last decade witnessed a debate over statewide equalization of school funding; this decade should see a long-overdue debate about nationwide equalization. The best ways to equalize school funding should be debated. But the overall goal is clear: ensuring that the access of American children to adequate education no longer depends, as it does now, on accidents of geography.

Ted Halstead is president of the New America Foundation, where Michael Lind is a senior fellow. They are co-authors of the forthcoming book "The Radical Center." This first appeared in the Los Angeles Times.

LOAD-DATE: October 11, 2000




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