Because of the structural deficit of our tax system as well as the effects of the current, terrible recession on our economy, Michigan cannot generate enough revenue to sustain our schools, let alone create a top notch educational system that is absolutely necessary for the 21st Century. Reforms aside, schools need to both re-invest and re-structure themselves to meet the needs of a new, global economy and literate citizens who must sustain a democracy like ours.
If you have not already done so, you should take a half hour and listen/watch Professor Ballard’s tax presentation. (Link below.) He contends that there are enough resources to keep Michigan’s schools whole, but that it is necessary to re-structure our tax system to match the reality of our current economy. Simply put, the economy has changed from a goods based economy to a service based one. This indeed has happened all over the country. Wealth has not ‘disappeared’, but it certainly has shifted away from traditional sources. A realistic, fair tax system would reflect those changes.
However, given the heated nature of tax discussions –especially at the political level, it is very difficult to talk with any sense of objectivity about taxes. Despite the urgent need for new revenues many people simply oppose anything to do with taxes. This is a shame, because we are only as great as our wealth’s reflection in our institutions and citizens. We must start the discussion quickly.
Charles Ballard, Professor of Economics, Michigan State University illustrates very clearly where $429 million dollars could be generated from a sales tax on services. For example:
Repairs -$220 million
Entertainment -$95 million
Landscaping -$66 million
Dry Cleaning -$48 million
This makes sense and following this model 3 billion more dollars of revenue could be generated for this State without harm. All this may be seen at: http://mediasite.mivu.org/Mediasite/FileServer/Presentation/8559b26e94da4c8a8e6f5e64ce4f45a7/
In a few months schools must once again re-figure their budgets without knowing how much money they will have. They are not getting used to this method of “thinking behind”, rather than “thinking ahead”. Most have already made sacrificial cuts that would make the Aztecs look meek. Still, there is no doubt, they will be asked to make more. Ultimately there could be whole generations sacrificed, when in fact we could follow Mr. Ballard’s (and others) suggestions and refinance our and our children’s futures.
Let’s hope so. Write your congressman.