Despite strong rhetoric from policymakers and candidates about the importance of a high-quality education for all children, deep disparities persist in educational opportunities for Michigan children based on income, race and geography. The lack of equity in education has wide repercussions for Michigan’s economy and next generation.
Educational disparities do not occur in a vacuum and can be traced to public policies that limit employment and housing options for many parents, place children in schools without the resources to meet their needs, and often create insurmountable barriers to the American dream of a better life for our children and grandchildren.
This November, Maine voters will consider a ballot initiative (Question 2) that rolls back recent tax breaks for the wealthy and dedicates this revenue toward additional state level resources for schools. The Maine Center for Economic Policy (MECEP) examined the context for this initiative, its potential to promote tax fairness, and its capacity to improve educational outcomes and workforce readiness of Maine
Tens of millions of dollars in recent tax breaks compromise state capacity to invest in education. As a result of income tax cuts since 2011 that largely benefit wealthy households, Mainers will lose $297 million in state revenue in 2017 that would have been available for education funding. As the state’s contribution to education has decreased, local costs have increased—an average of $180 million a year. Shortchanging schools at the state level has a wide range of negative consequences for Maine students, businesses, and communities including: widening of the opportunity gap between students in high- and low-income communities; putting education quality at risk; hurting employers who struggle to find workers with skills their businesses need; compromising the fairness of Maine’s tax system; and making it harder for communities to thrive.
Missouri’s appropriations bill for higher education includes instructions that would leave immigrants who have been granted deferred action in the position of having to pay a much higher tuition rate at state colleges. For every student this discourages from going to community college, the student loses $7,000 in potential earnings and the state and local governments lose $630 in potential tax contributions. For those who don’t get a bachelor’s degree, it costs the typical student $21,000 per year in potential earnings, and costs the state and localities $1,890 per year in tax revenues.