PROPERTY TAXATION

As was noted earlier, one of the major problems related to local property taxation in Rhode Island is that it is used inefficiently to fund education.

By using local property taxes to fund a major portion of the education budget there are several concerns. If the local communities were given a free hand at implementation of labor contracts by the state, then there possibly could be a sensible approach to this issue, but the fact is that the state law actually hamstrings locals in labor matters, yet it expects so much of them under state law and regulation – expectations that are not paid for by the state.

In essence the state level of government has created a set of rules for locals and has not paid for them.

In order to meet these state mandates, the locals must tax, and their logical alternative is to utilize the property tax.

In the last session of the General Assembly I had legislation introduced at my request to change the funding away from local property taxes and shift the burden to the state via a 90% payment through income taxation.

This concept was soundly rejected in that it would require too much effort on the part of the State. It would require that the state actually work to have a functional economic development plan, that the state would have to better implement its mandates, and that the special interests in the legislature would not be satisfied.

An income tax based education formula seems most logical in that it allows for uniformity. In essence, a state education labor contract coupled with the funding responsibility in the state’s hands seems the most logical and fair, but then again, this is Rhode Island.

Instead, there is no real move to shift this burden. Instead, it will only increase as the state continues to impose regulations and other unfunded mandates.

With a tight budget there is an unlikely possibility that locals will get increased state aid to education. If so, then where is this funding coming from other than the local property taxes?

The fact is that the legislature needs to either relinquish control over education to give locals a free hand to negotiate its labor contracts or take the entire matter into the state’s responsibility. This bi-level government approach is little more than a recipe for failure, finger pointing and constant consternation.

Truth be told, the State needs to seriously revamp and restructure its entire taxation system. The piecemeal approaches and stop gap funding schemes of the last twenty years or so have done little to help. It functioned, albeit poorly, during good times, but it is ready to cease during this harder economic climate.

Education and taxation are clearly related to economic development. They serve as a triad. They must be perfectly balanced and continually adjusted to meet the current circumstances presented to government. The problem is that we have left these responsibilities in the hands of buffoons who really have little, if any, clue as to how these matters inter-relate.

We can put all the study groups in the state together to come up with an answer, but the fact remains, a camel is merely a horse made by a committee. We need a solid, well reasoned plan that restores prosperity. Instead, we look to the people who brought the state to this level to resolve the problems. Who’s stupider than we are?

Barring some heroics in the Assembly this session, I am sure this topic will return to a later discussion.