The single issue attracting the attention of state government is the attempt to "fix" state reliance upon property tax as a source of funding for public education and essential community services such as fire and police protection. As a former classroom teacher and as an employee of the Indiana State Teachers Association, I am greatly concerned that the quest for a solution to rising property taxes may jeopardize the quality of learning opportunities for not only the current generation of Hoosier students but also the opportunities for future generations of Hoosier students. So what is the solution as proposed by the Indiana State Teachers Association?
First property taxes provide stable support for instructional programs. Many economists are forecasting a recession as is evidenced by the massive layoffs already occurring in the RV industry and elsewhere. State revenues are already more than $200 million below projections. Because of the last recession, state funding for instruction was reduced in 2006 and 2007. Our children deserve better! The Indiana State Teachers Association offers this proposal.
Retain instructional program property taxes. Those taxes fund classroom instruction. Replace property tax revenues for school building projects with state and local income taxes or any other combination of taxes specified to provide modern libraries, state of the art technology, and sufficient classroom space. Utilize current public input processes (school budget hearings, Department of Local Government Finance reviews, remonstrance, and school board elections) to hold public officials accountable for any and all school building projects. Allow local property taxes to construct other school facilities. In fact, Governor Daniels issued Executive Order 05-19, declaring that "school building projects should first and foremost support the academic needs of the student population." Thirteen states already use state funding for more than 50 percent of school construction costs.
This position is supported by a September 2006 study done by Purdue University professor Larry DeBoer. That study showed that instructional program property taxes were not the cause of property tax increases because the instructional program is the slowest growing of all school and local government tax levies. The Purdue study also showed that other local and school construction property taxes are the fastest growing of all school and local government tax levies. Replacing property taxes for school construction is a more fair and certain plan for property tax reform. This plan will work if given a chance.
I hope that all Hoosier taxpayers will not be taken in by the rhetoric of legislators who view property tax reform as the platform to gain election. A strong Hoosier economy needs strong schools now more than ever. Strong public schools are essential to economic development and I know that no child should be told to wait until next year for a quality education.
