unding for Education is the top concern of the New Hampshire legislator currently.
In December of ’97, the New Hampshire Supreme Court ordered the legislature to find some way to pay for education other than local property taxes. This decision is known as Claremont two; the first Claremont decision came in ’93 when the High Court ruled that the state had an obligation to provide an adequate education for its children.
Since Claremont 2, the state has developed a state-wide property tax that is really just a local property tax that the state takes from localities and redistributes across the state. The problem with this is that property taxes are regressive (the poorest taxpayers in New Hampshire pay the highest percentage of their income in taxes), and were already too high to begin with. Another solution is needed, but what is it? An income tax? Sales tax? State gambling?
The Republicans running for governor have an ostensibly better idea, a constitutional amendment that says New Hampshire does not have to adequately educate our children. To be fair, this does not mean that the three GOP candidates do not want to educate children; it just means they do not think the court should be involved. This constitutional amendment could not come into existence until at least 2005 (it needs to pass the legislature and then be approved by the voters). However, and until then, the state, like all other states, because of the current recession, would run a deficit.
To summarize, New Hampshire has two options: raise more money or eliminate the need to spend the money in the first place by overturning the courts’ decision with the GOP amendment. But since the amendment cannot happen immediately, the state needs to somehow raise money in the next three years. Impossible?
“Not if you increase the statewide property tax to fund the education trust fund,” Republican gubernatorial candidate Bruce Keough told the Concord Monitor.. Oops.
Telling voters in New Hampshire that you are going to raise their property taxes is like telling voters in Texas that you are going to confiscate their guns and sell them to Communist China to help finance a Gay Pride Parade in Dallas. Property taxes are already too high, opponents argue, and regressive to boot. It is not surprising that they are unpopular, and raising them further, even temporarily, as Keough would do, would be a very bad idea politically.
All this is to say that Bruce Keough does not have a good chance of winning. Which is a shame, because at least Keough was being temporarily intellectually honest. That is more than one can say for his GOP Primary opponents.
First, there is Gordon Humphrey, who used to be a US Senator, much like John Ashcroft. The difference is that instead of appointing Humphrey Attorney General, George Bush shunned him at a UNH rally in retaliation for Gordon’s support of John McCain in 2000. The message was clear: Don’t Mess with Dubya. This has nothing to do with education funding in New Hampshire, but it is interesting to note that the Bush family operates like a clandestine mafia outfit. At any rate, Humphrey’s plan for school funding is as simple as it is silly. The government, he says, needs to “pinch pennies until they spit nickels.” ‘They,’ meaning the pennies. Maybe if New Hampshire is frugal enough, maybe there will be enough nickels to buy every student in New Hampshire a pack of Juicy Fruit.
Then there is Craig Benson, who was not a US Senator, or Congressman, or State Senator, or dogcatcher; well, you get the picture. He did used to be wealthier than he is now, which is what happens when you spend a lot of money on your own gubernatorial campaign. Maybe he should hire Gordon Humphrey to pinch pennies.
His plan for school funding is absolutely devoid of substance, although his website does claim that it “meets the challenges of the 21st century.” Like his GOP opponents, he is against a sales or income tax, and he wants a constitutional amendment. Like Humphrey, he wants to cap property taxes based on income, which is commendable. Like Humphrey, he is avoiding the real issues.
Now, I have bashed Humphrey and Benson quite a bit, and maybe that is not fair. Actually, both say they want to target funding for districts that need it, which is a good decision. And, as I mentioned previously, the property tax caps are also a good way to prevent people from being taxed out of their homes.
The problem is that their plans are simply not feasible, because they are aimed at garnering votes more than anything else. People like to hear that the Governor wants to lower their taxes without cutting services. The Republicans claim that capping the money spent on education at $905 million a year and redirecting funds will solve the crisis. They say that cutting the property tax will have a negligible effect. They argue that the problem is the influence that the rich towns have in the legislature, which doles them out as much money as is given poorer towns like Claremont.
Sounds good, right? Essentially, it is a very liberal argument; the rich buying influence at the expense of the poor. Assuming that this is true, and that $900 million is enough (the lawyer for the plaintiffs of the Claremont case says that studies have shown that the actual amount needed is $1.2 billion), the Republican plans still do not make sense.
For Gordon Humphrey’s plan to work, for example, we would have to hope that:
-$900 million is actually an accurate number to pay for our schools.
-Those rich towns suddenly decide not to lobby legislators in Concord.
-Property tax cuts somehow do not equal a decrease in state revenues.
-We ignore the fact that state employees are already underpaid and that increased frugality in Concord is possible only by cutting funding elsewhere or not increasing it where it is desperately needed.
Then again, the Patriots won the Super Bowl, so I suppose anything is possible. What is unfortunate is that the Republicans seem unwilling to deal with the New Hampshire voters with any intellectual honesty. Their ideas are either impractical or impossible, either because the numbers do not work or because implementation would require something that just is not going to come to be (such as the rich towns deciding not to lobby for education funding from the State Legislature, which is run by Republicans, by the way).
In an editorial in the Manchester Union-Leader, former New Hampshire Democratic Party Chair Joseph O’Keefe argues that all campaign plans are “essentially dishonest”:
“They are either empty campaign promises (usually a curious combination of lower taxes plus more government services) or simple restatements of the same old positions (income tax, gambling, constitutional amendment) that have failed to yield a majority consensus. Candidates who offer such plans either (1) know they are simply campaign ploys and stand little chance of being enacted into law, or (2) misunderstand the nature of electoral mandates. Voters will not choose a “plan” this November; they will choose a governor. Gubernatorial candidates who think voters are familiar with the painstaking details of their grandiose plans suffer from a bad case of, well, grandiosity.”
At this risk of being grandiose, here are some truths that are easily overlooked by fancy campaign promises.
First, it does not really matter whether or not the Supreme Court rules that we adequately fund our children’s education, because it needs to be done no matter what. Overturning the court’s decision solves nothing, and moral decency cannot be ignored is not a commendable goal. A constitutional amendment overturning Claremont is the equivalent of cutting prison costs by legalizing armed robbery. It brings twisted meaning to the term “supply-side.”
Second, opponents of the current tax system have some good points. The p
oorest 20% of New Hampshire pays the highest percentage of their income in taxes, and the trend continues all the way to the top, where the richest 1% carries the lowest burden. Humphrey wants to cap property taxes at 10% of personal income, which would help out the poorest fifth of the state, which currently pay 10.8%. Yet the next bracket up still pays only 8%. Such a cap would be nothing more than a Band-Aid on a giant flesh wound of inequity.
Third, a sales tax, like other solutions, is a controversial idea. New Hampshire thrives on citizens from Vermont and Massachusetts streaming across the border to shop. Which means the burden of taxation might fall on citizens of those states, which would be good, but they would stop coming, which would be bad. Fourth, one of the greatest problems in school funding is that poor towns do not support bond measures because they are already overburdened with property taxes. Eliminate this problem, and perhaps we might pinch a few pennies and spit a few nickels on the local level.
The most odious argument coming from the GOP candidates, however, is that a constitutional amendment would be the only way to preserve the “New Hampshire Advantage,” in other words the lack of a sales or income tax and yet being surrounded by states that do. Otherwise, New Hampshire would be just like Maine, Vermont, or (gasp) Massachusetts! The argument that a discussion on an income or sales tax cannot happen because that is not the New Hampshire Way completely ignores the discussion of what is best for NH citizens, taxpayers, and school children. Sometimes, it seems as though the state motto should actually be Live Stubborn or Die. But state mottos, like campaign promises, are usually not an accurate representation of reality.