Showing posts with label growth. Show all posts
Showing posts with label growth. Show all posts

Saturday, April 28, 2007

The Value of Art Education

This may be a particularly apropos time for a diary on this topic. This very week The Bill & Melinda Gates Foundation joined forces with The Broad Foundation and announced a $60 million political style campaign for Strong American Schools called Ed in 08.

In Florida, my home state, the combination of rising property insurance premiums and property tax increases is driving the state legislature towards draconian changes in the tax system. The major target is property taxes which are the only source of revenue for local school funding requirements and the major source of revenue for local governments. The state legislature's well intended efforts to provide much needed relief to property owners are about to have some very severe unintended consequences for the quality of life here in Florida.

Caught squarely in the headlights of those unintended consequences are the arts and art education. The arts are always high on the list of the first place to cut funding in times like these. Follow me below the fold to examine why this is precisely the wrong place to start cutting.


My good friend Alonewolf , has heard more than enough about workforce training. As the CEO of an innovative high tech company, he worries about creating the next generation of leaders and creative thinkers. "Workforce Training" makes him think of the 1984 Apple Super Bowl commercial with the suited automatons marching over the cliff. At a recent "Regional Leadership Breakfast" in St. Petersburg, the topic was "Education in Florida". There were several comments and questions about "workforce training." But at this "leadership" breakfast, no one seemed to much care about leadership training.

New Horizons for Learning provides a terrific resource for the value of arts in education. Their prologue states in part:


Today it is recognized that to be truly well educated one must not only learn to appreciate the arts, but must have rich opportunities to actively participate in creative work. The arts are languages that most people speak, cutting through individual differences in culture, educational background, and ability. They can bring every subject to life and turn abstractions into concrete reality. Learning through the arts often results in greater academic achievement and higher test scores.

In Why are the Arts Important?, Dee Dickinson provides a 15 point checklist. Here are my favorites from that list:


They improve academic achievement -- enhancing test scores, attitudes, social skills, critical and creative thinking.

They exercise and develop higher order thinking skills including analysis, synthesis, evaluation, and "problem-finding."

They provide the means for every student to learn.

To my way of thinking, that should be enough to end this diary right here. But not every decision maker is influenced solely by these factors. So here is something decision makers do understand - $$$$$$.

The Economic Impact of Florida’s Arts and Cultural Industry released by the Florida Cultural Alliance in January 2004 is a study by Dr. William Stronge of Florida Atlantic University. The study is based on fiscal year 2001. Some highlights are:


Florida’s arts and cultural industry is one of the fastest growing in the state. Its annual statewide economic impact has grown from $1.7 billion in 1997 to over $2.9 billion and now supports over 28,000 full-time equivalent jobs. (That is $104 thousand per full time equivalent job!)

Attendees at the programs and events of not-for-profit cultural organizations exceeded 400 million in 2000-01. Audience participation is significant because attendance at these events generates related commerce for local businesses such as hotels, restaurants, and shops.

An estimated 7 million out-of-state tourists visited Florida’s cultural facilities or attended cultural events as a primary activity. These “cultural” tourists spent $4.5 billion, adding $9.3 billion to the state's gross regional product and creating 103,713 full-time equivalent jobs with a payroll of $2.6 billion.


The Florida Department of State has also published a brochure, Return on Investment: Florida's Cultural, Historical and Library Programs which highlights not only the economic impact of the arts but also the impact of our state's historic preservation and libraries.

Any fair reading of these studies leads to but one conclusion. Funding for the arts and art education is the last place that should be cut. Please join with me in letting our legislative and business leaders know that if they want to be leaders in the future and they want Strong American Schools , they need to lead with the arts.

Sunday, April 8, 2007

The Property Tax Puzzle

Cross Posted from Florida Kossacks

Property tax reform is one of the biggest, if not the biggest, issue facing the state legislature this year. There has been much hand wringing all around. Many hare brained schemes have been floated. Civic Concern has just published a thoughtful, reasoned history of the property tax problems in Florida and proposed some solutions. Some commenters on the St. Peterburg Times Buzz Blog piece on this report claim that
The people want major reduction in property taxes
Others argue

I don't think "the people" want a bunch of half-cocked, sound bite ideas. ...
Recent polls show they're pretty skeptical of all the various proposals.
Most of "the people", i.e. the voters in this state are already benefiting from the "Save Our Homes" tax cap. Homesteaders in the City of St. Petersburg saw their City taxes stay essentially flat this year in dollar terms. These are not "the people" clamoring the most for property tax reductions. The "Save Our Homes" amendment has worked exactly as it was intended. Homesteaders are not being forced out of their homes by rising property taxes.

There have been some unintended consequences, some foreseen, others unforeseen. The foreseen consequences are that other property tax payers would pay a larger share of the tax burden if homestead property taxes were "capped". That is certainly happening. Business property owners, and by extension, renters have been seeing their uncapped property valuations and their taxes going through the roof with the recent boom in real estate prices. Chief among the unforeseen consequences are homesteaders being "trapped" in their current homes because they couldn't afford the taxes on a new property if they moved and had to step up to current market valuations.

One of the most curious scenes in this whole property tax situation is how local governments are made out as the whipping boys in this "debate". I say curious because just last fall Leadership Florida did a comprehensive survey of Florida residents. Among the key findings in this survey was the relative approval ratings of the various levels of government. Fully 61% of the respondents see the state government as doing only a fair or poor job. County governments were rated fair or poor by 55% of respondents. Only 38% of city dwellers rated their city governments as fair or poor. The state government, which people like the least, is pointing the tax reform gun right at the heads of local governments, which people like the most. I'm not sure how well that is going to work out for them.

Besides, the increasing revenue requirements of local governments are not entirely of their own making. One of the biggest drivers of increasing expenditures by local governments is growth. And that is not just on a linear basis, because growth does not pay for itself. The new taxes generated are not sufficient to pay for the increased capital needs (roads, schools, sewer) or service needs (police, fire, garbage collection) caused by the growth. Neither have we collected sufficient impact fees to pay for this growth. This, in effect, has shifted the tax burden for growth onto existing tax payers and not the new ones.That is the major reason I am not at all bothered by the apparent inequities in taxes paid for newly built homes relative to existing homes covered by the "Save our Homes" amendment. To the extent that local governments could have ameliorated this situation by charging higher impact fees, it is their fault. To the extent that the state did not do a better job of regulating growth and anticipating the increased costs, it is their fault.

But the question really is not about the blame game. The question is what to do to solve the very real property tax problems that do exist. First, here is what not to do. Arbitrary roll backs of local government revenues are not the answer. Most local elected officials are much more careful with their taxpayers dollars than the folks in Tallahassee ever were. Do you really want them deciding how much your local government can spend on your police and fire departments?

We can do something to stop the bleeding for non homestead property owners. We can change the way properties are valued. Currently, non homestead properties are valued on the basis of their "highest and best use". That is to say that the corner ice cream shop will be taxed as if it were a luxury condo building site if that is what the appraisers deem the "highest and best use" for the property. Changing the valuation method to one based on the value of the current use of a developed property would keep businesses and renters from being pilloried by higher taxes due to speculation in the real estate market.

We can fix one of the unintended consequences of the "Save Our Homes" amendment. We can make the tax benefit accrued by a homestead property owner portable. If the difference between the market value and the capped value of a property is X, we could let that homestead property owner take that X amount of benefit to a new homestead with them. Some say that this might not withstand constitutional scrutiny. I believe that problem could be overcome by carefully crafting the law and developing an appropriate legislative history. All citizens would in fact be treated the same for tax purposes because they could all accrue tax benefits on an equal basis.

These two measures would solve the most egregious issues involving property taxes that we currently face. Turning back the clock and pretending that local governments could maintain the same level of services with less money is nonsensical. Having Tallahassee decide what those levels ought to be really makes no sense. Providing solutions that will work into the future is what we should be striving for.