News & Observer | newsobserver.com | Taking 7 steps for schools

Published: May 10, 2007 12:00 AM
Modified: May 10, 2007 06:10 AM

Taking 7 steps for schools

 

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CARY - Wake County public schools are in an incredible mess. Following Judge Howard Manning's decision, the focus is on the school board for a solution. No one who has observed the history of the last 15 years could believe the school board is primarily responsible or can devise a lasting solution.

Over and over, voters have voted against those who increased property taxes. The voters have been egged on by a constant drumbeat from anti-government organizations. "Taxes are bad. Big government can't be trusted. Big schools are worst of all."

Over the years, Wake's county commissioners have encouraged growth but failed to pay for it. Property taxes have not kept up with growth plus construction inflation. Wake's tax rate is the lowest of any urbanized county in the state. County commissioners have not sought maximum efficiencies in the $500 million nonschool operating budget they control. Ditto for the almost $1 billion in the capital improvement plan for nonschool construction.

As a result, wealthy Wake County is in the bottom third of all North Carolina counties in financial support per student -- in a state that is in the bottom 20 percent nationally.

There is a powerful developers' and real estate lobby. The estimated $5 billion per year the development community takes in in Wake County is sacrosanct. Sixty-plus million dollars in transfer taxes paid by new development (around 1 percent) is more than they can bear, even though most of it will be passed on to buyers.

Over the last 18 years, state legislators have voted in favor of the development lobby, denying any means of growth paying for growth. The result: North Carolina is 43rd in the nation (2005) in per student support of K-12. While state funding is adequate, local funding of education falls $45,000 per year per classroom below the national average.

Public school systems have gone critical in the two economic dynamos of the state, Wake and Mecklenburg counties, (plus surrounding bedroom communities). Yet too many legislators are not sure what to do or are against any solution opposed by the development community.

In these treacherous waters, the Wake school board hasn't batted 1.000. Who does? Most notably, it didn't give enough weight to those families unwilling to sacrifice for a better education for their children.

There are no easy solutions. However, raising the bar of quality education must come first. The issue is not school construction. The issue is that Wake and other high-growth counties are taking all they collect in property taxes and using it for construction. What is vital is preparing the next generation for competing in a global economy.

Here is a seven-step solution:

1. County commissioners should lobby the legislature for another source of funds in addition to the property tax. A statewide, local option 1 percent transfer tax, earmarked for schools and other vital infrastructure, would make a big dent in relieving overcrowded schools.

In Wake it could support $1.20 billion in bonds without increasing the property tax. Then Wake and other counties could supplement the state's contribution to public education. A requirement for a referendum would allow the public a choice between sharp increases in property taxes or a transfer tax.

2. Plan B is a 20-cent increase (per $100 of assessed valuation) in property taxes.

3. The school board should actively lobby the legislature, alongside the county commissioners and the business community, for a transfer tax.

4. The legislature should show leadership by passing a transfer tax. The state should require that any county so empowered must support the operation of schools at a level equal to the average of the state's counties (read: well above Wake's level).

5. Another school bond referendum should be put before Wake voters this year. The commissioners should pledge that the date for the referendum will not interfere with the school board election.

6. The legislature should clarify accountability and allow more effective financial decisions for education by passing HB 1740. This bill allows for school boards to set local property tax rates. Eighty percent of the nation's school boards currently have that authority.

7. Finally, county commissioners should call an emergency meeting of all municipal leaders and jointly explore the savings that could be achieved by consolidation of services in Wake County. They should also explore the feasibility of a countywide school impact fee -- and jointly slowing growth if all else fails.

These are extraordinary times for public education in Wake County. They demand extraordinary measures and extraordinary leaders.

(Stan Norwalk is vice-chairman of WakeUP Wake County.)

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