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SQ779 – 1 Cent Sales Tax for Teacher Pay

This state question is tough because it is a really good cause, but may not be the best way to go about it.  The measure increases sales tax by 1% across the state and adds the revenue directly to education funding.  It prevents the legislature from decreasing funding from other sources.  It also prevents these funds to be used for superintendent pay.  However, it is not only for common education and teachers as you may have expected.  The funding breakdown is as follows:

  • Common Education – 69.5%
    • 86.33% of this portion goes directly to teacher salary increases and adding teaching positions
    • 13.67% of this portion is to go to improving reading in early grades, high school graduation rates, and/or increase college or career readiness
  • Higher Education – 19.25%
  • Career & Technology Education – 3.25%
  • Early Childhood Education Prior to Common Education System – 8%

I highly encourage you to read the exact constitutional language that would be added based upon this state question.  It is lengthy, but understandable.  This language can be found at the link below.

https://ballotpedia.org/Oklahoma_One_Percent_Sales_Tax,_State_Question_779_(2016)

The causes are noble and you can read more about those reasons at the Yes for 779 website linked below.  Our teachers deserve professional level pay as this is indeed a noble profession.  Educating the children of our state is a critical need for our future.  It is pretty easy to see how challenged our Common Education system is for funding.  Just talk to parents, teachers, or administrators in your community and they can tell you some very sad stories.  Higher Education has been increasingly funding its operation through tuition increases and private donation.  State funds help offset this cost, making education more affordable so it becomes attainable for more Oklahomans or prevents them from starting careers straddled with student debt.  If we do not address our ability or lack thereof for funding education in Oklahoma we will be setting ourselves up for failure in the future.

http://yesfor779.org/

However, this measure is really bad policy.  It is not a good way to achieve this needed funding and there are multiple arguments as to why this is bad policy.

Increasing our sales tax by another 1% would make Oklahoma number 1 among all states for sales tax rate.  Being the highest sales tax state in the nation is not a good way to promote tourism.

Sales tax is the only way allowed by law to fund city government other than what they make through municipal authorities such as water and sewer rates.  Increasing sales tax by this large amount prevents cities from being able to raise additional funds for necessary projects because the sales tax rate would be as high as the citizens may tolerate.  Many cities would exceed 10% sales tax.  State and County governments already use a blended tax approach between income, property, sales and other fees to fund government activities.

Career Tech is already adequately funded.  When was the last time you heard Career Tech complain about a lack of funding?  Contrast that to what you hear regarding Common Ed or even Higher Ed.  They have a lighter educational burden than either Common Ed or Higher Ed, but the best funding mechanism.  Looking around the state, they are well staffed, the staff is well paid, and are expanding their facilities.  Creation of an additional funding mechanism for Career Tech is not necessary.

This sales tax becomes constitutionally permanent.  It could only be repealed by another vote of the people.  Many cities reject permanent sales tax measures because it is hard to predict the most significant need for funds on a perpetual basis.  The vote of the people hurdle to change or remove taxation at the city level is often considered too high, which causes people to vote no.  Why would this be different at the state level?

A significant amount of funding, 8%, is directed to the State Department of Education for early childhood educational opportunities prior to entering the Common Education system.  This sounds great and enhancing the opportunities for the most vulnerable Oklahomans, young children, is a definite need.  It is a cause I believe in and support.  I do this by serving on the Oklahoma Partnership for School Readiness Board.  This board, sometimes more recognizable for its association with Smart Start Oklahoma is statutorily responsible for assessment of programs and promotion of best practices for children birth to 5 years of age.  This includes a significant report on kindergarten readiness, early childhood educational programs, collaborations with head start and many other endeavors.  These efforts are being conducted with very little money.  This board received roughly $2 million in funding annually when I began my service a few years ago, but was only appropriated a little over $500,000 for the current fiscal year.  This increased funding would be welcome, but this board would never see it.  The OPSR is funded through DHS, not the Department of Education.  Adding this money to the Department of Education would be outside their mission and appropriate it to the wrong organization.  Again, great cause, bad policy.

The primary cause most people support this measure, teacher pay raises, actually receives only 60% of the money from the new tax.

I will be voting NO on this state.  There are some great causes associated with it, but too many adverse consequences.  It is just plain improper to appropriate the funds poorly to organizations that don’t need it or may even be the wrong agency.  It is detrimental to the state as a whole by severely impacting the ability of city governments to maintain our cities and towns.

Comments (1)

  • Boz

    October 13, 2016 at 9:07 am

    Excellent write-up. I learned many new things. Thanks, Ryan.

Comments are closed.

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