Comments on: The governor’s ‘tax relief’ sleight-of-hand http://publicassets.org/blog/the-governors-tax-relief-sleight-of-hand/ Government for the People Tue, 31 Jan 2012 21:37:08 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Rep. Cynthia Browning http://publicassets.org/blog/the-governors-tax-relief-sleight-of-hand/comment-page-1/#comment-57 Rep. Cynthia Browning Sat, 06 Feb 2010 21:11:51 +0000 http://publicassets.org/?p=2330#comment-57 Readers of this piece may be interested in my summary of testimony by Secretary of Administration Neale Lunderville before the House Institutions Committee on which I serve on the afternoon of Thursday 1/28. The Governor has proposed $5 million to continue to pay off the back log of the state share of past school construction from the Education Fund rather than the Capital Bill, and more such payments in future years until the $35 million is paid off. Secretary of Administration Neale Lunderville said that the justification for this is that all education spending should be from the Ed Fund. While that is a valid topic for discussion in terms of how to pay for this going forward, it seemed odd to some of us on the committee to assert that the back log should be paid off in this way. The Ed Fund is largely town property tax dollars, along with state income, sales, and purchase and use tax, and the lottery proceeds. To shift the payment of the accumulated state share of past school construction from the Capital Bill to the Education Fund means that to some extent ALL Town property taxpayers will be helping to pay off the STATE'S share of past school construction for PARTICULAR Towns. We certainly transfer property tax dollars from town to town based on the criteria in Acts 60/68. But in this case the recipient towns are determined simply by historical accident in terms of who built a school or put in a biomass furnace, not any agreed upon policy goal. Mr. Lunderville insisted that it was appropriate to do this. Mr. Lunderville also insisted that if all of the Governor's many other education proposals are implemented along with the shift in the school construction obligation, the net effect would be that property taxes would go down. We finally got him to admit that holding everything else constant, shifting things like school construction onto the Ed Fund would make property taxes go up. Rep. Cynthia Browning, Arlington Readers of this piece may be interested in my summary of testimony by Secretary of Administration Neale Lunderville before the House Institutions Committee on which I serve on the afternoon of Thursday 1/28. The Governor has proposed $5 million to continue to pay off the back log of the state share of past school construction from the Education Fund rather than the Capital Bill, and more such payments in future years until the $35 million is paid off. Secretary of Administration Neale Lunderville said that the justification for this is that all education spending should be from the Ed Fund. While that is a valid topic for discussion in terms of how to pay for this going forward, it seemed odd to some of us on the committee to assert that the back log should be paid off in this way.
The Ed Fund is largely town property tax dollars, along with state income, sales, and purchase and use tax, and the lottery proceeds. To shift the payment of the accumulated state share of past school construction from the Capital Bill to the Education Fund means that to some extent ALL Town property taxpayers will be helping to pay off the STATE’S share of past school construction for PARTICULAR Towns. We certainly transfer property tax dollars from town to town based on the criteria in Acts 60/68. But in this case the recipient towns are determined simply by historical accident in terms of who built a school or put in a biomass furnace, not any agreed upon policy goal. Mr. Lunderville insisted that it was appropriate to do this.
Mr. Lunderville also insisted that if all of the Governor’s many other education proposals are implemented along with the shift in the school construction obligation, the net effect would be that property taxes would go down. We finally got him to admit that holding everything else constant, shifting things like school construction onto the Ed Fund would make property taxes go up.

Rep. Cynthia Browning, Arlington

]]> By: Bill Schubart http://publicassets.org/blog/the-governors-tax-relief-sleight-of-hand/comment-page-1/#comment-52 Bill Schubart Thu, 04 Feb 2010 20:55:44 +0000 http://publicassets.org/?p=2330#comment-52 Jack,Paul, Language is everything. The broad point you make about the Governor's "give and take" math, though correct, becomes obscured in your choice of metaphor and sets up a polarity very quickly between those who accept your point and those who might if it were couched in a less judgmental metaphor. Is the point of Public Assets to inform or inveigh? Bill Jack,Paul,
Language is everything. The broad point you make about the Governor’s “give and take” math, though correct, becomes obscured in your choice of metaphor and sets up a polarity very quickly between those who accept your point and those who might if it were couched in a less judgmental metaphor. Is the point of Public Assets to inform or inveigh?
Bill

]]> By: ralph howe http://publicassets.org/blog/the-governors-tax-relief-sleight-of-hand/comment-page-1/#comment-49 ralph howe Wed, 03 Feb 2010 22:25:30 +0000 http://publicassets.org/?p=2330#comment-49 No surprise here. Slight of hand politics is always a vote getter, because it gives the appearance of helping someone, while stealing his/her future. Let's cut more and more, but effectively cost shifting to guess who? ----the same poor and middle class folks who are already over burdened! I hope not. It is time to invest when the market is down---invest in ways that will address the causes of poverty and low economic productivity up front, rather than after the human casualties accumulate and the factory doors are closed. Investments in people and innovations, really small ventures and expansions of successful small business, plus investments in strong communities will turn the ocean liner around. Cutting all engines and breaking off the rudder will only lead to more icebergs. No surprise here. Slight of hand politics is always a vote getter, because it gives the appearance of helping someone, while stealing his/her future. Let’s cut more and more, but effectively cost shifting to guess who? —-the same poor and middle class folks who are already over burdened! I hope not. It is time to invest when the market is down—invest in ways that will address the causes of poverty and low economic productivity up front, rather than after the human casualties accumulate and the factory doors are closed. Investments in people and innovations, really small ventures and expansions of successful small business, plus investments in strong communities will turn the ocean liner around. Cutting all engines and breaking off the rudder will only lead to more icebergs.

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