Funding Options for Comprehensive Public Education Reform: Tax Overview Contrary to scare tactics about cost, USA Today and other sources agree;  about $70B a year, total, 50/50 60/40 66/33 split federal and state Remove social security cap; otherwise coming gap will have to be filled by general revenue Reduce estate tax exemption to earlier levels Increase top marginal rates from 37% to 45% above $400,00, 55% above $2,000,000 Tax worldwide profits of US corporations no matter where earned or incorporated Eliminate pass-through provision of Trump tax bill Re-look at dividend tax, now 15% Look at capital gains tax, now 20% Consider wealth tax Consider tax on earnings of tax-exempt organizations ( $3-% T in assets) Increase audit of high earners, now at the lowest level in 50 years. In summary ---broaden the tax base, and increase marginal rates A closer look at IRS Enforcement, (Audits)   Source: IRS Data Book 2018 Enforcement and audits are way down, particularly at the top 2010   $5.5 on Enforcement,  just under 1% of all returns audited;  100% of corp. over $20B in revenue 2018    $4.7 un adj. for inflation, audit rate down by 42% to .5   enforcement staff down 42% Individual Under $25,000 now audited at a higher rate than those over $500,000  (reversal) GAO  - Government Accountability Office report: The gap between owed and aid is $458 B Enforcement bought in $59 B in taxes Return on enforcement;  over $5 for every $1 spent.

CPI Perspectives

Funding Options for Public Education: Tax Overview

A Plan for Comprehensive Educational Reform    Traditional to split education into 2 main components; K-12--- higher ed, including 2-year colleges, public colleges, and private universities/. Now add pre-school.   Review Current structure   Pre-k, patchwork, no central funding, very expensive, inhibits workforce participation, etc. K-12 varies by state, but approx. 60% local property tax, 32% state funds, 8% federal funds Higher ed; public univ. varies, about 35-50% state, balance private funds;  Limited vocational and apprentice programs for non-college bound  Concrete Proposals:   Universal child payments to families to be used as payment for staying home or put to childcare expenses. (CHOICE) Many options.   Rand Corp. study estimates about $2B a year for universal pre-k; also estimates benefits of between $2 and $4 for every $1 spent, depending on assumptions made.   K-12;  states have not gotten back to pre-2008 levels. Need full funding      % of GDP:   2009 3.9%;   now 3.1% about $150 billion shortfalls from the previous funding level,     based   on 2018 GDP of   ~$20 T   Need a more equitable approach to charter schools that drain funds from public schools; particularly need to look at on-line and for-profit schools.   Various inequities in charters create a financial strain on public schools with little if any gain;  Study by Independent Media Institute highlighted severe financial problems in systems where charters have grown;  singled out Boston, and Chicago city schools, as well as state wide problems in PA, MI, NC and CA. All experiencing financial drain on education due to unequal treatment of charters and public schools. Public/Private partnership including unions to build a national program of paid apprenticeship an entry to high paying no-college careers.   Higher Ed Public 2 and 4-year colleges and univ. tuition-free   Schools must be fully accredited  States must provide at least 50% of tuition cost, as in the past, but now about 35% (Sanders’ bill proposes 2/3:1/3)   Intuitions may not raise tuition year over yr by more than the pace of inflation. The federal government pays the balance, based on in-state tuition Schools must roughly reflect the ethnic makeup of the population by adopting equitable  admissions procedures;  e.g. accepting top 10% of all high school graduates.

A Plan for Comprehensive Educational Reform

Perspectives from the Contemporary Policy Institute. Episode One, History of Public Education in the United States. Background: Product of the Enlightenment. The 1780s, France, development of the individual through state-sponsored education emphasizing critical thinking. United States Phase 1 1635, Boston Latin School became the first secondary school in the US. 1642,  New England towns required to hire teachers, but attendance not mandatory.  Reading -writing –Latin-religion- classics  Established the right to school instruction At age 7, Latin and Greek Mostly classical education modeled on British schools with religious instruction. Phase 2 1751,  Ben Franklin, Philidelphia, “useful learning.” Modern languages, history, science, navigation. Boys only.        Mostly private academies, some public subsidies. 1778 Phillips Academy, in Andover MA real business of living Southern US, different plan, public support for the poor only.  Industrialization and urbanization produce a gradual call for the state being responsible for ed for all. Germany and France lead; US and UK slower to adopt, first for poor only (charity)  Jefferson; Democracy requires an enlightened citizenry. 1779, Jefferson tries to have VA fund 3 years of universal ed; not successful. Phase 3 Up until the 1850s private, mostly religious schools predominate. 1837,  Breakthrough Horace Mann Supt of Ed for MA.  Free education through High School, but not mandatory. 1850s academics, math and reading, become common, public school att. About 59% (Elementary) 1870  MI supreme court upholds state funding for HS State-mandated Elementary education funding By 1900 31 states mandate public ed. - 8-14; only 500,000 students in HS; 3-4% go to college. By 1918 all states require some elementary ed. 1920’s, math, English, social studies, etc. Smith-Towner Bill, federal funds for public schools. Helped dissolve near-monopoly of parochial schools Ironically, partly encouraged by anti-immigrant fear of not integrating into American society. By 1950, 95% to HS. About the same today. Helped drive the success of the US economy.  Helps in promoting diversity (all go to the same school.) Provides common experience. Phase 4 Today’s challenges in public education. What do we mean by public? Movement for vouchers, charters, etc. change the idea of universal public education. Usually sold as “choice’ without mentioning taxpayer money Now for-profit players, religious and non-profit players, with specific agendas draining public schools which stick to broad universal mandate with private schools available at private cost. Sources: Wikipedia;  National Center for Educational Statistics; Encyclopedia Britannica; Teachers Curriculum Institute.

Brief History of Public Education in the United States

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