Corporate Tax Handouts Harm Public Schools, NEA Report Finds
A study commissioned by the NEA reveals that local policymakers are doling
out tax breaks and other subsidies to corporations with little or no accountability.
These tax handouts often come at the direct expense of public schools,
with school boards lacking any input in the decision.
"Our study shows that public schools are getting shortchanged by
elected officials who give away the store to corporations in the form
of tax subsidies," said NEA President Reg Weaver. "Whether intended
or not, these decisions hurt both schools and businesses in the long run.
The fact is, a high-quality public school system benefits everyone in
a community - especially the corporations that need highly skilled employees
to succeed. For long-term economic growth, communities should invest in
both their children and their businesses by investing in public schools."
The 50-state study, Protecting Public Education from Tax Giveaways to
Corporations, was performed by Good Jobs First, a nonprofit corporate
and governmental accountability group. It found that:
- Only two states shield public school funding from property tax breaks
(abatements) and other property tax-based subsidies known as tax increment
financing (TIF).
- Only four states give school boards full input in making decisions
about these two tax subsidies.
- Many states do not even have adequate corporate disclosure requirements,
making it hard for citizens to know how their tax dollars are being
used.
These findings come at a time when policymakers in many states are searching
for ways to solve the worst budget crisis since World War II while providing
public schools with the funding they need to insure that all children
receive a quality education.
"With the states' fiscal crises squeezing vital services such as
education, it is critical that school boards have a voice in protecting
their revenue base," said Greg LeRoy, director of Good Jobs First
and principal author of the study. "We hope this study will help
schools and school boards become full partners in the process of economic
development."
"This is a time when policymakers, educators, corporations, and
average citizens should come together to create a stronger economy and
a stronger America so that all our children have the best future they
can possibly have," added Weaver.
To view the full
report, or its executive
summary, visit the NEA Web site.
Posted January 22, 2003