‘Wise men’ discuss public school finance, tax reform

Seventy-five people heard “three wise men” discuss public school finance and state fiscal reform Jan. 22 at First UMC, Austin.
The Austin District Amos Commission sponsored the event, “Three Wise Men, One Lone Star.”
The “Three Wise Men,” top experts on school funding and taxation, presented varying viewpoints. 
Bill Allaway, president, Texas Taxpayers and Research Association, pointed out that 50 percent of sales taxes are on businesses’ purchases, not individuals’, and that 54 percent of property taxes are derived from business property.
Taxes in Texas are oriented to products, but the economy is increasingly based on services, Allaway said. The business sectors with the largest tax burden are those with the slowest growth.
Estimates of “lost revenue” from loopholes and exemptions are speculative, he said, since the application of taxes could cause a diversion of investment and activity.
Scott McCown, executive director, Center for Public Policy Priorities, said Texas ranks 21st in average per capita income among the states but is 41st in amount of taxes per capita.
Texas ranks second in the United States in percentage of population over 25 without a high school diploma and first in percentage of population without health insurance, McCown said.
Measures of a good tax are adequacy, fairness and workability, McCown said. He proposed a graduated state income tax of 3 to 6.45 percent, which would allow lowering property taxes to 50 cents per $100 valuation.
Lynn Moak of Moak, Casey and Associates said the controversy over taxation and public education finance had four roots:
> State leaders think funding is adequate. However, enrollment growth of 2 percent per year and inflation of 3 percent per year require a $4.5 billion increase per biennium just to maintain the status quo.
> State leaders contend that major reforms of the educational establishment need to occur before absolute funding should be increased. But lawmakers have proposed a set of revisions that don’t address the core issues.
> State leaders think schools are failing to perform. Schools that excel in 35 of the 36 measured areas are considered low-performing.
> The legislature has been unable to reach compromises.
The Rev. Ted Wardlaw, president of Austin Presbyterian Theological Seminary, concluded his introductory remarks by saying, “We care because God cares!”
Co-sponsors of the forum were Texas Impact, The Christian Life Commission of the Baptist General Convention of Texas, Austin Area Interreligious Ministries and the Austin Chronicle. 
For more information contact the Rev. Mimi Raper, Austin District Amos Commission chair, (512) 478-5684, Extension 214, or Martha Rogers, secretary, (512) 345-3969.