A good investment

Photo credit: Dale Folkerts/WEA Photo Richard Sims talks about Washington's tax structure and the disparity between state taxes and school costs at an Education Finance Summit in Olympia in 2004.

Richard G. Sims is among the school funding experts who will speak at the June 14 Washington Learns Steering Committee meeting. Washington Learns is the governor's initiative to undertake a comprehensive review of the state’s education system. It will produce a final report in November. WE asked Sims to help shed light on school funding and build a better connection between investing in schools and investing in our communities.

Q: The Washington Education Association is undertaking a long-term funding effort to permanently increase funding for public schools. It's easy to say that investing in schools will strengthen our economy and our communities, but getting people to understand and buy into that notion is more difficult. Can you talk about why investing in schools is good not only for Washington’s students but its economy?

A: Education supporters need to make themselves aware of the linkage between education and the state's economy. While education advocates and economic growth proponents are often seen as being on opposing sides, their goals in fact are mostly overlapping. The quality of the educational system is one of the first things business location consultants look to when advising businesses on re-location or expansion decisions, and is one of the top issues for residents considering moving to or buying a home in an area. Education is, in fact, among the most critical aspects of a state's economic future, both long term and in the very near term.

Q: You've worked with various legislatures and spent a decade in the other Washington. What advice do you have for WEA members when it comes to what they can do to help the public understand the importance of adequately funding our schools?

A: The first step for Washington education supporters is to take a look at the results of adequately funded schools. Studies show that good schools matter. They matter in terms of producing better prepared students and more productive future workers; they matter in terms of making the surrounding community more attractive to business and workers, and they matter in terms of being a good source of jobs and income for state residents. Washington Education Association members should incorporate the discussion of education's role in the economy into their daily dialogue of conversation on public issues.

Q: We know you will be speaking at an upcoming Washington Learns Education meeting. What will your main messages be?

A: To view education and taxes as two intertwined parts of economic growth. No taxes and great schools might be ideal, but in the grim world of economics we have to consider the trade-offs involved. Education has many roles, one of which is as a component of economic development.

Q: What do you think are the greatest barriers for getting people to see that funding schools really is a good investment for the economy, the community, etc.?

A: Public awareness. Most people have a fairly full life and do not spend their days thinking about such things as the economic trade-offs involved in dealing with taxes and public spending in a world of balanced budgets and the rate of return on public investments. I envy those people. Nevertheless, citizens who are concerned with the well-being of their community have an obligation to inform themselves about decisions that affect their future and to demand that their elected leaders give serious, thoughtful consideration to these issues.

Q: We understand you've analyzed school funding, taxes and economic growth in all 50 states. Where does Washington state stack up?

A: Not well. Washington's tax structure is not particularly well designed for funding public services, producing taxpayer fairness or promoting economic growth.

Q: What does it mean when people say Washington state has the most regressive tax system in the U.S.? What does that mean for school funding?

A: In ordinary terms, that means that the lowest income households in Washington pay more of their income in state and local taxes than do high-income households. And in fact, the difference between the shares of income paid in taxes by low-income households compared to high-income households is greater in Washington than in any other state. From a school funding standpoint, that means that compared to other states, Washington depends heavily on the income of low- and middle-income households to pay for its public services, such as education. However, by far the largest share of the income produced by economic growth in recent years has not gone to the comparatively high taxpaying low- and middle-income households, but rather to individuals and households in the upper-income categories. This means that Washington's publicly funded educational system does not benefit as much from growth as do most other states.

Q: Getting citizens to engage around economic and tax policies is tough. And, getting them to see the connection to school funding is probably even more difficult. Do you have any suggestions for our members in tackling the two issues?

A: Educate, educate, educate. First themselves, then their neighbors, then their community at large. Talking to people about taxes is never easy and tax policy is not among the most captivating of topics. Nevertheless, I am certain that educators who, for example, can convince small restless boys to learn to read because that’s how you learn about cars and airplanes, are up to the challenge.

Q: In Washington's Take the lead campaign, we're focused on communicating some of the most startling facts about where Washington's schools stack up: 42nd in education spending; 46th largest class sizes; $2 billion less for schools this year because of the decline in state funding that began two decades ago; $548 less per student than in 1992; dead last in compensation about West Coast states. Is there a fact you would suggest adding that is in line with what you'll be talking about at the meeting?

A: I would add to the list that Washington's taxes on its wealthiest 1 percent of taxpayers are 3.3 percent. That rate is among the lowest level of taxation in the nation for high-income earners, and is only around one-fifth as large a share as that paid by the one-in-five Washingtonians who earn $17,000 or less. With tax-share disparities that wide, it doesn't seem to be an insurmountable challenge for Washington to design a system of funding public services that is fair to all taxpayers, provides adequate levels of public services, improves the state's competitiveness and promotes economic growth.

Reach WEA Editor Linda Woo at lwoo@WashingtonEA.org, via postal mail at WEA, PO Box 9100, Federal Way, WA 98063-9100; phone 253-765-7027 (or toll-free outside Seattle-Tacoma: 800-622-3393 ext. 7027); or fax 253-946-7612. We welcome story ideas, letters to the editor and suggestions for improving WE-Washington Education, or WEA Online.