Gov. Christine Todd Whitman sworn in this week, ran on a concrete proposal to start correcting runway taxes--promising most New Jersey residents a 30 percent income tax cut. And in her inaugural speech, she repeated that vow. While definitely moving the state tax burden in the right direction, no one to put it mildly, believes that such a cut will help the deficit. Though the lower income tax rates probably will reduce revenues by less than the projected $1.5 billion, the question still remains: Where will the money come from?
One answer to these financial woes can be found in another Whitman's campaign promises: school choice. If you want to save money you start with where it is being spent, and that is public education. Last year, all levels of government in New Jersey spent a total of almost $11 billion on schools. Public education and secondary schools make up the largest single portion of the state budget--30 percent.
The potential savings are tremendous, While New Jersey spent an incredible $10,561 per pupil last year. The national average cost per pupil for nonreligious private schools was only $4,00 and for religious schools a mere $1900. Educational vouchers cost money, but they cost less than what otherwise would have been spent on public schools. The tricky part comes when payments are on behalf of those already attending private schools since this represents a new financial obligation. The key question is whether enough students will switch from public to private school to offset the payments to those already attending private schools.
Hotels de IzolaIn New Jersey, a $4000 voucher would require fewer than 10 percent of those currently in public schools to switch to private ones before the program would break even. If a third switched-- and polls of public school parents in other states indicate this is a safe bet-- Whitman could more than pay for her proposed income tax cut.
My numbers are based on public schools continuing to receive $10,561 per pupil, but there's no reason why this should continue to be the case. A system that spends 66 percent of its noncapital expenditures on items like administration instead of compensating teachers deserves to be shaken up. The public schools' high costs might generate less opposition if New Jersey had something to show besides a giant educational bureaucracy and falling test scores. New Jersey teachers are among the very best paid in the nation and they have the fourth smells class sizes, yet their students ranked only 39th nationally in SAT scores. Over the last 20 years, the states per pupil expenditures have risen by far the fastest in the nation (145 percent faster than inflation), yet SAT sores fell more than in 25 other states.
New Jersey schools have more money than they know how to spend wisely. Under an equal funding program-- one that would give public and private schools the same amount to spend-- a $4000 voucher could reduce educational costs by $6.7 billion annually. Even a generous $6000 voucher could save almost $4 billion. How these savings are shared between state and local governments will determine how much of this can reduce the state's budget problems. Any such plan presumably would have to be phased in over several years to get around difficulties with union contracts. Vouchers also have additional benefits. They would allow the state to meet easily the state's court mandate for equal funding for all children. They would eliminate some glaring unfairness by putting an end to private school parents paying twice for their children's education-- once through taxes for public schools, and again for private school tuition. Many of these paying Catholic school tuitions are actually poorer than the general population making this double taxation an especially unfair burden.
hôtels CordoueWhile competition would benefit everyone, those hurt most by the current government monopoly are also those least prepared to deal with the problems created by it-- the poor and the minorities in the inner cities. By giving parents increased control of their children's education, vouchers also encourage them to get directly involved. Why should they now when they are virtually powerless to change the public system?
Voters are jaded by politicians who promise either to cut middle-class taxes or at least not raise them only to swiftly break those promises once in office. Voters chose Whitman over former Gov. Jim Florio largely because he raised taxes.
five star hotel in ReadingWhitman by making school choice a reality, would show voters she is one politician who delivers her promise