MEA VOICE At Issue
In light of the state budget crisis, now—more than ever—Michigan public schools need a stable funding source. . .
TEF is the answer
...This bold, new initiative holds the promise for funding our future.
MEA's Lu Battaglieri: Investing in education will lift Michgian's economy.
MEA Executive Director Lu Battaglieri likes to play his own version of the popular television game show Jeopardy in presentations he makes about a new MEA initiative to provide a stable funding source for public education.
In playing MEA’s Jeopardy, audience members learn about TEF—for Tax structure, Economic development policies and Funding for schools—and how investing in public education results in a far greater economic return than tax cuts and subsidies routinely handed out to businesses like candy.
“Let’s play Jeopardy.”
“Lu, I’ll take Compensation for $300.”
“States that do this have less income inequality than other states.”
“What is investing more money in K-12 education?”
“That’s correct.”
And the game goes on, and so will the
unending cycle of unstable funding for
public education unless dramatic changes
are made.
“Public education will be in jeopardy if we continue on the same path we’ve followed for decades,” Battaglieri says. “I use Jeopardy to liven up topics that aren’t necessarily fun to talk about—taxes and economic development policies—and to educate people about the need for change.”
TEF holds that promise for change:
If we create a fair, stable and equitable Tax structure combined with sensible Economic development policies, then we will achieve an adequate and equitable Funding system for public education. This will result in an equal educational and economic opportunity for all of Michigan’s children.
The current tax structure is unfair, Battaglieri said. In Michigan, the wealthiest pay about $5 of every $100 of income in state and local taxes while the poorest pay about $13.
The share of taxes paid by corporations as a percentage of their profits has declined 50 percent over the last 20 years.
“For far too long, we’ve been putting all our eggs in the wrong basket,” Battaglieri said. “We’ve been giving away the store to provide tax breaks to businesses in the name of economic development with no strings attached, no accountability and no results.”
Nationwide, state tax subsidies, cuts, incentives and abatements offered to businesses and corporations in exchange for job creation carry an annual price tag of more than $50 billion.
In 2006 alone, Michigan’s state and local economic development giveaways totaled well in excess of $929 million.
“This investment in corporate welfare is bearing little fruit,” Battaglieri said. “Dollar for dollar, investing in education will bring a far greater economic return than any tax subsidies, tax breaks or other corporate tax giveaways.”
Educating MEA members, the public, the media and lawmakers will take time.
“TEF is about changing a whole mindset,” Battaglieri said. “We must demonstrate the inseparable link between investing in education and a healthy economy.”
Consider:
• America’s economy will grow by $309 billion if all high school students graduate.
• Every $1 invested in preschool education provides an economic return of $7.
• A high school graduate’s contribution in income tax revenues would result in savings of $37,388 in health care costs and $167,990 in crime costs over a lifetime.
“It’s becoming clear that the greatest attraction for businesses is an educated workforce,” Battaglieri said. “Why did Google come to Ann Arbor, a city with very high taxes? It was because of the brainpower available there. This is why we must start investing in education.”