Now some in the K-12 lobbying circles are reaching an all-time low by saying that further cuts to K-12 would result in the Kansas economy going into a "death spiral". Kansas Liberty published a good report earlier this week.

Education lobbyists urge raising taxes to give schools more money
Last week the Kansas Department of Labor confirmed that the state’s economy is continuing to suffer as the unemployment rate rose to the highest it has been in 26 years, but lobbyists and representatives of the K-12 school districts have kept the pressure on legislators to maintain state funding for schools despite the latest dismal economic reports.

As it stands, Dale Dennis, deputy commissioner of education for Kansas, said schools are set for a $317 decrease per pupil for the 2009-2010 school year. Schools were supposed to receive an increase in funds based on the increase in the consumer price index.

The CPI-adjusted amount for the 2009-2010 school year was set at $4,497 base aid per pupil. Due to a huge gap in the amount of revenue the state was bringing in, and the amount it was spending, the Kansas Legislature instead approved a $4,280 amount for the 2009-2010 school year.

However, as reported in a previous Kansas Liberty article, when additional funds from other sources, including federal funds and local education funds, are added, the difference in funding is closer to a $29 per pupil cut for the 2009-2010 school year.

Most observers and lawmakers agree that school funding in Kansas will be cut, but the final amount is still up in the air. Dennis said he expected Democratic Gov. Mark Parkinson to make an announcement in the next week making additional cuts to state spending.

Whether that strategy will work or not is unknown. “I am just not sure whether or not these cuts will impact schools at this time,” Dennis told Kansas Liberty.

Throughout the session, teachers' union and other education lobbyists faced off against business-friendly groups, such as the Kansas Chamber of Commerce and Americans for Prosperity, in arguing that tax increases should be used to lessen the burden placed on schools.

In a Kansas National Education Association “Under the Dome” 2009 session wrap up, the teachers' union accused Americans for Prosperity-Kansas, which strongly supports limited state spending, of wanting to see the “government shrunk to a size that it can be drowned in the bathtub.”

The union accused the group of misleading lawmakers. “Far too many of our legislators adhere to the Americans for Prosperity dogma that all taxes are bad and all tax cuts are good," KNEA said in its wrap up.

Richard Kraemer, a board member of Hays' USD 489, is working to continue the discussion by sending out an email to legislators that argues further K-12 cuts could result in putting the Kansas economy in a “death spiral.”

“Yes, taxes and the forgiveness of taxes are often considered to be the primary motivation for industry thinking about relocating to Kansas,” Kraemer said in the email. “It is one, but in my opinion not the most important reason. What good are low taxes if there is a limited or nonexistent educated work force?”

Kraemer, who will start his ninth year as a board member in July, said while the 2009 cuts were hurtful he is more concerned with how cuts in the 2010 legislative session will impact Kansas schools, and therefore Kansas’ economy.

“The damage has been done for the 2009 school year; I am more worried about the cuts that are coming down the pipe,” Kraemer told Kansas Liberty. “We can make schools cheaper, but it certainly won’t be better."

Despite a recent University of Kansas study that showed no correlation between increases in funding and student test scores, Kraemer said he believes that since the Montoy decision was reached and USD 489 received an increase in funding, there has been an increase in student achievement and outcomes in Hays.

“That money has really made a difference,” Kraemer said.

Kraemer said he would first promote eliminating tax breaks for businesses as a way to generate more money for schools. Then, if that didn’t work, he said he would support a tax increase.

Another option Kraemer said he would support would be to decrease the amount of government-mandated programs and services that schools have to provide by law, as a way to save more money for schools.

“Given what I know about K-12, I would say either raise my taxes, or take away some of those mandates,” he said. “I would be very interested in having someone show me how cheapening our K-12 education system will be good for the Kansas economy.”

Americans for Prosperity-Kansas state director, Derrick Sontag, said the argument that maintaining a high level of funding for K-12 is necessary in maintaining the economy is unfounded. In the current economic downturn, the state has lost a large number of manufacturing and other businesses and more than 25,000 public sector jobs, while increasing government payroll by adding 2,500 positions.

“What surely sends up a ‘do not come to Kansas’ sign is an increase in the tax burden, and many associated with the K-12 lobbying side propose to raise taxes and to raise taxes on businesses,” Sontag told Kansas Liberty. “We have a fundamental difference of opinion.”

Sontag said businesses who are possibly looking at moving to Kansas would be much more concerned with the type of tax burden the state has, as opposed to what type of education system the state has.

“They need to go back in and make the amount of cuts that is necessary to balance the budget and do it without raising taxes,” Sontag said. “That is the big fear, the threat of a tax increase. The first step is for legislators to acknowledge they are spending way too much money.”

Sontag said legislators should not be fully blaming the economy for the budget issues, and instead should be looking at the fact that spending for the state increased between 2004 and 2008 by 48 percent. A significant portion of the state’s budget has gone towards public schools.

“That is a spending problem, not a revenue problem,” Sontag said.

The cuts for school spending would have been much greater had the federal government’s stimulus dollars not been available. Kansas schools were awarded $301 million in American Recovery and Reinvestment Act dollars earlier this month and had already received about $100 million in stimulus funding.

The money went toward offsetting the difference in the amount of funding promised by the Kansas Legislature and the amount the state had available to pay schools. Dennis said that there was not any remaining available stimulus dollars at this time and that they had been completely used.

Kansas will be able to apply for an additional $148 million in stimulus dollars in the fall.

Sen Steve Abrams, R-Arkansas City, tried to get legislation passed during the 2009 legislative session that would have informed the State Finance Council in detail how much it would cost the state to use the stimulus funds and how exactly they would be used for all state agencies, including education.

“It was meant for everyone to see how much it would cost us to get this money and what is the cost-benefit ratio,” Abrams told Kansas Liberty.

But Abrams said the accountability legislation failed to get out of the Ways and Means Committee. The committee is chaired by Sen. Jay Emler, R-Lindsborg.

Abrams, former chair of the Kansas Board of Education, said even with the stimulus dollars, it would be almost impossible not to make further cuts to education, and pointed out that the latest revenue numbers released in May fell short by $100 million of what the estimate had been.

Abrams said he did not agree with the argument that cutting education further will lead to the demise of the Kansas economy.

“The economy is already crashing in Kansas,” Abrams told Kansas Liberty. “Obviously it will hurt but there is no doubt about it if we continue to lose $100 million as we did in May…it is going to be a challenge to get through, and have a balanced budget without cutting a bunch from all the agencies.”

-Holly Smith