February 2010

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“Something is limiting Utah’s ability to perform at a level that would be expected for a state with its demographic profile.  With per-pupil funding $3,000 lower than its peer-group average, financial limitations are a likely limiting factor.”  Utah Foundation

 

Utah cut public education spending for the 2009-10 school year and plans to cut it again for the 2010-11. We feel it’s important that you know what Utah’s school children are going without because of these cuts and the constant ratcheting down of the revenue effort used to fund public education. Some of Utah’s policymakers consider reducing the ongoing revenue stream to public education sound policy in good economic times as well as in bad.  These recent budget cuts and this constant reduction to revenue effort affects what Utah students experience in terms of class size and support services that impact student achievement.  Research outlining Utah’s tax policy changes show that over 1 billion dollars a year have been eroded from public education funding.

 
If you are reading this blog, you’re probably already familiar with the statistics that show Utah last in the nation in per pupil spending, but what do the students in other states have that Utah students do not?  Utah spent an average of $5,437 per pupil in 2005-06, compared to $9,138 nationally.  Thus, the gap between Utah and U.S. average per pupil expenditures during that period was $3,702.  That difference increased to $3,977 in 2006-07, which is the most current period for which such statistics are available.  Follow the discussions concerning this year’s public education budget at: http://twitter.com/UTPS

 In the report issued by the Utah Foundation entitled “What Can $3,702 Buy? How Utah Compares in Education Spending and Services,” it indicates that Utah’s students get less and have lower achievement than five peer states. The report shows Utah’s five peer states (identified in Utah Foundation’s 2007 report as being demographically similar to Utah) spent between $7,700 and $10,000 per pupil.  Utah scored lowest on NAEP of all of its peer states in every category.  The states scoring lower than Utah are almost all states that struggle with entrenched poverty, heavy immigration or other demographic disadvantages.  Those with similar demographics to Utah scored higher.

Utah Students have Larger Classes

Utah Students have Larger Classes

Utah Students have fewer Counselors

Utah Students have fewer Counselors

 

 

Utah Students have larger School Districts

Utah Students have Larger School Districts

Utah Foundation states in its report, School Testing Results, 2006 & 2007: How Utah Compares to Other States—” The report finds that Utah is scoring well below what would be expected for a state with its demographic profile. In math, reading, and science tests for 8th graders, Utah ranked 30th (math), 29th (reading), and 18th (science). But if Utah were in the middle of its demographic peers, it would score in the top 10 nationally in science and in the top 15 states for math and reading. Utah’s closest overall peer states are South Dakota, Montana, Wisconsin, Iowa, and Nebraska. These are generally high-scoring states, and Utah falls behind each of them in each test examined.”

When Compared to Peer States Utah Scores Last

When Compared to Peer States Utah Scores Last

 It is imperative we have a tax system that is fair, equitable, broad-based, stable, and in sync with our economy, along with a school funding system that meets the needs of our children, ensuring adequate class sizes and quality educational opportunities for all students. The revenues invested in public schools are an investment in our state’s future. Public education should be funded at a level that meets the educational needs of Utah’s children, which will help to ensure the state’s economic future.

 

 

 

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On Wednesday, the Utah Legislature passed a budget bill for public education that reduces revenue by 12-15%.  With 11,000 new students enrolling in Utah’s public schools, the only way to accommodate this huge cut is to reduce class offerings and increase class size, both of which directly affect the academic success of Utah students and ultimately Utah’s economy.  Legislators have until March 11th to increase funding for HB 1, the public education budget bill, making the decision to invest in Utah’s children.

Is the budget crisis an unavoidable consequence of the economic downturn?  Let’s take a look at some recent revenue changes…

Fact Sheet: Changes to Utah's Individual Income Tax

Fact Sheet: Changes to Utah's Individual Income Tax

This 2008 fact sheet prepared by the Office of Legislative Research and General Counsel states:

 
“The Utah Legislature has cut taxes by nearly $400 million during the last two years, including significant cuts and changes to the state income tax [remember income tax is dedicated to public education]…”            

 ”The Legislature continues to reduce the rates of state and local sales tax as part of tax reform.”
 

 

 

 

 

Estimated Tax Cuts by 2007 Legislature

Estimated Tax Cuts by 2007 Legislature

 A research report written by the Utah Tax Commission states:

 ”…the Governor, the Senate, the House of Representatives, and special interest groups [special interest groups????]…passed the largest tax cut in the history of Utah.”

 

 

Research reports commissioned by Utahns for Public Schools find that systemic, if not systematic, changes have occurred in the past decade that, if reversed, would bring more than a $1 billion in revenue back into Public Education. 

Tax Policy Changes Cost to Public Education over $1 Billion Per Year

Tax Policy Changes Cost to Public Education over $1 Billion Per Year

Based on the School Funding and Tax Policy Series 2010

Funding at Risk Policy Recomendations

Diverting Education Funds from K-12 Public Education

School Funding and Tax Policy Series Report I

Poliferation of Sales Tax Eemptions and Corporate Property Tax Breaks

School Funding and Tax Policy Series Report II

Cuts to Minimum Program Property Tax Rates

School Funding and Tax Policy Series Report III

Income Tax Breaks to the Wealthy

School Funding and Tax Policy Series Report IV
 

Utahns for Public Schools recommends that the Legislature reconsider its actions of the last decade and once again conclude that Public Education should be its top long-term economic development priority. 

The Salt Lake Chamber of Commerce understands the importance of public education on the economy.  The Chamber said that education is the key to Utah’s economic future.  The Chamber stated: “In a challenging year for the state budget, the business community calls upon the State Legislature to fully fund both public and higher education–holding them harmless as cuts are administered to other programs and funding for enrollment growth.”  Watch their video, Building a First Class Workforce.

 
Utahns for Public Schools believes that it’s imperative that we have a tax system that is fair, equitable, broad-based, stable, and in sync with our economy, along with a school funding system that meets the needs of our children, ensuring adequate class sizes and quality educational opportunities for all students.  The revenues invested in public schools are an investment in our state’s future.  Public education should be funded at a level that meets the educational needs of Utah’s children, which will help to ensure the state’s economic future.