Tuesday, December 15, 2009

GOP candidates and local officials should unite!

I strongly recommend that everyone actually reads this bulletin.

http://www.masstaxpayers.org/files/State%20fiscal%20crisis%20bulletin%20with%20header.pdf

Republican candidates for Legislature and Governor should wave this bulletin high in the air to show how the Democrats have mishandled the budget for the last few years. They should also be touting the examples of how state spending could be cut to solve this gap.

Many GOP reform recommendations were ignored last year. Bring them back on the campaign trail as a way to close this gap so voters have a choice between reform and revenue.

Local officials need to push reforms at the state level too. If we sit back and let the MTF, Mass. Municipal Association and the Mass. Teachers Association lead the charge, we will be left with more "local option taxes" and calls for higher taxes at the local (via overrides) and state level to save jobs!

The claims of massive job cuts at the local level will be a reality if there is not a push for wage freezes and state spending reform.

The fiscal crisis can't be ignored any longer. This bulletin is a nice outline of the situation. We know there will be plenty of calls for new taxes, but who will be out there offering alternative options to reduce the level of expense growth?

Friday, December 11, 2009

Bring Corporate Sponsors to the local level

I wholeheartedly applaud the Acton-Boxborough school administration for taking the initiative to explore corporate sponsorships for their athletic programs.

Acton-Boxborough may ask businesses to sponsor school teams - - Budget Blues - Boston.com

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I have long thought that this is a missed opportunity for high school programs, as well as potential sponsors. The benefit to schools (and the taxpayers of the community) is pretty obvious. More private money used means less public (TAX) money needed. It would also allow us to take a step towards making a public school education free of "additional fees" that limit our kids ability to explore multiple extracurricular activities.

There are also a benefits to the corporate sponsors. The customer loyalty that will be immediately gained from the community. This loyalty will be based on the goodwill generated by parents and students knowing that a specific business made it possible for them to participate in extracurricular activities. This would especially benefit small "mom and pop" businesses that rely on local customers choosing them over the "big box" stores that are often cheaper.

I would also like to see sponsors receive "charitable contribution" tax credit for money donated to support extracurricular activities. Notice, I didn't say athletic teams. It shouldn't matter whether its the football team or the drama club, each of these programs add to the degree of opportunity our kids have, and each deserve support. A tax credit would not only incentive corporations, but also individuals who would be willing to support their local school.

Some may argue that there would be risks of having corporate sponsors at the high school level. I don't see the risks that exist at the collegiate level because there is no money awarded to schools who win state titles. In fact, when you consider that corporate sponsors have been supporting little league teams for decades, the high school level is the only area where sponsors do not contribute.

Private, charitable contributions are something every school district should be exploring. And incentives for the private sector should be something our state and federal government provide.

Wednesday, December 2, 2009

Let's put the kids first...and compromise!

In Massachusetts, there are 153 municipalities that will be facing an education funding crisis in FY11 (which begins on July 1, 2010) because the Federal Economic Stimulus plan has not jumped started the economy to replenish the "one-time" influx of cash. Don't get me wrong, its not all the federal government's fault. Officials at both the state and local level have to accept responsibility for using this money to fund on-going operating expenses (mainly to pay for raises to existing staff). And every employee and labor union who refused to engage in a dialogue about wage freezes because this money was available shares in the blame as well.

The willingness at the state and local level to punt the financial issues until next year was a conscious decision by most. It would almost be better if people didn't understand the implications of using this money ($451 million state-wide, according to Stimulus Money For Education Running Out - Team 5 Investigates News Story - WCVB Boston) to fund the contractual raises due to existing staff. The reality, however, is that everyone took the money and agreed to "hope for the best".

Well, the best didn't happen. The federal stimulus money did not generate a large boom to the US economy. The tax increases implemented by the Massachusetts state legislature actually generated LESS revenue. And few towns found (or even tried) a compromise with employees to alter the contractually obligated raises that were negotiated in a better economic climate. So, where does that leave the cities and towns who were relying on the Federal and State governments to be able to replace the stimulus funds with revenue from a revived economy?