| Update on tax cuts, budgetWhile there is still some thought that a plan for major tax reform may be abandoned until the short session (May, 2014), here is the most current information we have regarding what is currently on the table.
Last week, Senate Pro Tem Phil Berger offered an alternative tax cut plan to the Senate Finance Committee. This new plan is an attempt to arrive at a compromise that addresses House concerns over the previous Senate tax cut proposal. This plan would establish a 5.75 percent flat tax rate, defer the elimination of corporate taxes for one year, and likely expand the goods and services subject to sales tax. It cuts $3.3 billion from state revenue over a five year period.
What’s the potential impact to K-12 education?
- The 7.25% corporate income tax transfer to the Public School Building Capital Fund would be permanently eliminated. (It has been frozen for the past four years.) This would cost school districts a projected $325.6 million over five years.
- Sales tax refund repealed for local governments
- Income tax deductions eliminated for educator expenses
- Exemption of events held at elementary and secondary schools, such as student performances and athletic events, from sales taxes.
There is a no-holds-barred assault on public education underway in North Carolina. Tax cuts will only serve to further reduce funds available to public schools. Teacher salaries are not competitive with what is offered in nearby states. Other cuts appear in bills that seek to eliminate salary increases for teachers who have earned a master’s degree, cut teaching assistants, hand over millions in taxpayer funded voucher dollars to private and religious schools, slash money for textbooks and other supplies, and fund rural charters that will spell the end of small public school districts. The list seems endless.
The Philadelphia story (click here or see below for the Ed Week article) is the cautionary tale of how one large school district has been overwhelmed by underfunding. Let’s not allow NC schools to succumb to the same mismanagement of resources. Please keep contacting your legislators to keep public dollars in public schools!
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Meanwhile, discussions about the biennial budget continue in small meetings held behind closed doors. We will share news as accurate information becomes available.
What’s new with charter schools
At the beginning of the month, the NC Charter School Advisory Council agreed to interview three additional applicants who wish to open their doors in the 2014-15 school year. This brings the total number of applicants to 32.
As you may recall, earlier in the year, 28 applications submitted for consideration were deemed incomplete. After further review of these applications, it was determined that three schools did qualify for consideration: South Brunswick Charter (Brunswick County), KIPP Halifax College (Halifax County), and University Public (Cabarrus County). The Council will make its recommendations to the State Board of Education in August.
Status of active education bills
 We’ve been following a number of education bills this session. Many will not likely move forward. Here’s the status of several key pieces of legislation that remain active:
SB 337 – NC Charter School Advisory Board (link to bill)
Status: In conference committee. Likely to be voted on next week.
The bill restructures the current Charter School Advisory Council, but does not create a new body separate from the State Board of Education. In addition, it requires licensure for 50 percent of charter school teachers; the original bill had totally eliminated a licensure requirement. (Currently, 75 percent of charter school teachers must be licensed.) Finally, this bill maintains language that says charters must “reasonably reflect the racial and ethnic composition of the general population.”
HB 250 – Charter School Enrollment and Charter Revisions (link to bill)
Status: In conference committee. Likely to be voted on next week.
The current version of this bill would allow charter schools to grow by a single grade–without requiring approval from the State Board of Education. And, contrary to the language contained in SB 337, this bill would weaken the requirement for charter schools to reflect the racial and ethnic diversity found in the general population where the charter is located.
Read Progressive Pulse: Two Key Charter Bills Behind Closed Doors on Jones Street
SB 236 Counties Responsible for School Construction
(link to bill)
Status: In conference committee. Likely to be voted on next week.
SB 236 was rejected by the House Government Committee, but was then moved (by Rules Committee co-char Rep. Paul Stam-Wake) to the House Rules Committee for consideration. The bill would allow county commissions to seize ownership and control of school property from local school boards–for no less than 10 years. Yet equipment, maintenance, and repair responsibilities for the same properties could remain with the local school district. As currently written, it covers nine counties: Beaufort, Dare, Davie, Guilford, Harnett, Lee, Rockingham, Rowan and Wake. |
Before you know it, Fall school board races will be upon us. The following districts will have elections:
