Budget Talk

As we get closer to the end-of-June deadline, our legislators are finally talking about the state budget. Yesterday, the Republicans in the PA House proposed their own budget in response to Governor Corbett’s plan, announced in February. [See “Budget with a But”] Their version adds $10 million more for education, bringing the total increase to $100 million. [PA House GOP Proposed 2013-14 Budget] After two devastating years of cuts, any increase is good – but $100 million doesn’t get us close to the nearly $2 billion our kids have lost.

Perhaps most telling, the Republican plan counts on $85 million in “savings” from all the teachers who lost their jobs last year (since the state now won’t have to pay their portion of Social Security and pensions). However, rather than putting those “savings” fully back into education, the House GOP shifts $75 million over to other line items. Yet overall, this Republican budget spends $100 million less than even Gov. Corbett proposed, so there are plenty of cuts all around – including $32 million less for the Department of Public Welfare and a $3 million cut to child care services for the working poor. Meanwhile, the legislature would receive a $4 million increase for itself under this plan. [Pennsylvania Budget and Policy Center analysis, 5-29-13]

The House GOP budget also fails to grapple with desperately needed pension reform. Gov. Corbett proposed some pension changes earlier this year, but this plan does not include any savings from those proposed changes. It also fails to take advantage of savings that Pennsylvania would see under the Affordable Care Act. By refusing to expand our Medicaid program using available federal aid, Gov. Corbett and the Republican-controlled legislature are refusing crucial funds that could free up other dollars to help school districts crippled by their own budget cuts. Is it any surprise that Corbett’s disapproval rating just ranked him as the 5th worst Governor in the nation? [FiveThirtyEight at the NYT, 5-28-13]

At least his crazy plan to tie school funding to liquor privatization seems to be off the table for now. [See “Kids or Booze”] And the PA Budget and Policy Center reports that, “some lawmakers—and even the Corbett administration—are considering a delay in the phaseout of the capital stock and franchise tax.” The state has been rolling back this corporate tax, which is scheduled to be completely eliminated by next year. But if lawmakers freeze the tax at 2012 levels, the state could raise around $390 million to offset additional budget cuts. [PBPC, 5-29-13] This one is a no brainer. Pennsylvania taxpayers simply can’t afford all these corporate giveaways, which have tripled in just the past ten years: the legislature is now handing out well over $3 BILLION of our dollars to their corporate friends every year. [PBPC, 3-12-13]

While putting some money back into the “basic education subsidy” (one line item in the state education budget out of many), the proposed House Republican budget also leaves out many things. Our friend Larry Feinberg of the Keystone State Education Coalition reminds us that in fiscal year 2008-09, well before any federal stimulus money was applied to the state budget, “there were several line items in addition to the basic education subsidy that no longer exist or are significantly reduced.” [KSEC, 5-30-13] These include:

  • High School Reform, $10.7 million eliminated
  • Accountability Block Grant, $171.4 million reduction
  • Tutoring, $65.1 million eliminated
  • Dual Enrollment, $10.0 million eliminated
  • Science: It’s Elementary, $13.6 million eliminated
  • School Improvement Grants, $22.8 million eliminated
  • Charter School Reimbursement, $226.9 million eliminated

That’s a total of $520.5 million eliminated to these programs alone. [See data comparison from Philadelphia Senator Vincent Hughes]

While House Republicans released their budget yesterday, House Democrats held a public hearing on education over on the other side of the state. Parents were invited to speak, along with our colleagues at the PA Budget and Policy Center and the Education Law Center. But I was disappointed to see that the corporate-reform group, Students First, was also given time on the agenda.

That is the organization founded by former D.C. school chancellor Michelle Rhee, most well known for firing people live on film, mass closings of schools, and a high-stakes-testing cheating scandal that appears to have unfolded with her knowledge. Despite that scandal, and confirmed cheating by adults in 37 other states, Rhee and her Students First continue to promote high-stakes-testing as the solution to our education woes. [See “A Plague of Cheating”] Students First PA promotes a school letter grading system based on the results of those tests, along with parent trigger laws – also known as parent “tricker” laws, which trick parents into thinking they have control over their schools, when in reality they are handing control over to privately managed companies. [See “Won’t Be Silent”]

Fortunately, our friend Colleen Kennedy, a public education advocate in Upper Darby and founder of the grassroots group, Save Upper Darby Arts, was at the hearing and reports, “Overall it was a productive meeting, and I think that most of the legislators are not falling for the corporate Students First approach.” Let’s hope she is right.

Speaking of Upper Darby, another group of parents in that district (which is right outside of Philadelphia), created a helpful petition on special education funding aimed at our state legislature during this budget negotiation season. This is a particularly detailed petition laying out the problems with the current way the state funds special education, negatively impacting all of our schools. I encourage you to read it and sign.

It’s time to get our legislators talking about what our kids really need in the next state budget: adequate, equitable, and sustainable public funding for their public schools. Get to work and fix special ed funding. Fix the charter funding formula. Fix the state funding formula. Get serious about pension reform. Accept available federal dollars to provide expanded healthcare coverage in Pennsylvania and free up funding for our schools. And stop giving away billions of our taxpayer dollars to corporations. You’ve got four weeks until the state budget is due. Go.

2 thoughts on “Budget Talk

  1. While you mention the line items that are gone, don’t forget about the $200 million in revenue that has been diverted to the EITC (Educational Improvement Tax Credit)and the EITC 2.0 (Opportunity Scholarship Tax Credit . From an earlier post on Yinzercation :

    “The EITC program is clearly not about what is best for students. It is about giving corporations huge tax breaks while sending public dollars to private and religious schools, doing an end-run around our own state constitution and draining our public schools of desperately needed resources. It’s about labeling schools as failing and then using the rhetoric of failure to legitimatize the privatization of public education. Now that’s an epic failure.”

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