Linking a transfer tax to schools

CARY -- Do you know how to boil a frog? If you throw a frog in boiling water it will jump out. But if you put a frog in a pot of cool water and gradually raise the heat, the frog will adapt to the increases in temperature and you can boil the frog. (Please don't.)

I thought of that old saw when I heard the latest information about the number of Wake's schoolchildren in trailers -- 27,000. Two years ago -- 22,000. Seven years ago -- 13,000.

Then, many were outraged. Now, trailers are the norm. We ignore the lines for the toilets and the water fountains, the overloading of the cafeteria and resource rooms. No one cares any more. We are boiling the frog.

More important, the funding to operate Wake's schools runs $32,000 per year per classroom below the national average (2005). This includes instruction and supporting expenses. Five years earlier the gap was only $20,000. The average funding gap across the state is about the same. In fast-growing counties such as Wake, the mushrooming cost of construction diverts funds for the classroom. This contributes heavily to North Carolina ranking 47th in the nation in support of public education.

When WakeUP was advocating transfer taxes in the General Assembly, we pointed out these gaps. Some legislators were amazed. They said the state is above average in supporting K-12 education (read: marginally). But they had a blind spot regarding the counties' contribution. North Carolina counties' meager contribution accounts for the support gap. And Wake, considering its wealth, is a major offender.

Legislators noted that the counties could increase the property tax. But most legislators were no more ready to raise taxes for the state than the commissioners were for their counties. The vibe we got was that many in both groups were concerned about retaliation from special-interest groups.

The Wake County Board of Commissioners' majority pointed to the state's responsibilities and all the money the county was spending on schools. But their contribution was falling short of growth plus inflation. When WakeUP proposed cutting a variety of non-school costs -- fuhgetaboutit. It's much easier to blame the school board.

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BOLD LEADERSHIP IN THE GENERAL ASSEMBLY ignored the threats of the special interests and supported the real estate transfer tax as a major new source of county funds for schools and other infrastructure. A ferocious fight with pro-development legislators resulted in a weak compromise -- but it was a foot in the door. And now an alliance of Realtor and homebuilder lobbies and anti-public school/anti-tax groups is attempting to slam the door shut.

On Election Day, they succeeded in all 16 counties' referendums on the transfer tax. The powerful, well-funded associations for Realtors and developers (in a campaign whose total outlays were estimated at $800,000) said the property tax and the sales tax were fairer ways to raise money for schools (read: taxpayers, subsidize growth and our profits.) The executive director of Americans for Prosperity warned, "If they put a tax on the ballot, it'll get defeated. ... And so will some of the commissioners." End of Round 1.

Success in Round 2 will depend on well-financed support for transfer taxes linked unequivocally to schools. The No. 1 need is to educate the public. A multi-media campaign every bit as efficient as those of the opponents is needed. Municipal and grass-roots support should be encouraged. Counties should pool their resources and form regional referendum committees. Without a regional effort, counties will be picked-off one-by-one.

Growth may slow a bit over the next year or two, but fortunately it's not going away. And with gasoline at $3 per gallon, energy-intensive building materials will become increasingly costly. Wake and other counties will continue to lose teachers to better-funded schools in Georgia and Virginia where salaries and working conditions are superior.

Many people in Wake County and elsewhere in the Triangle, including individual Realtors, developers and other business leaders, are highly supportive of public education. But where is leadership now that we need it? Due to the tireless efforts of the school board, staff and dedicated teachers, there isn't any crisis -- yet.

But you boil a frog slowly, raising the temperature bit-by-bit.

(Stan Norwalk is vice-chairman of WakeUP Wake County. He can be reached at stann@nc.rr.com. )