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Sunday, October 04, 2009

Choose Schools Over Corporate Tax Breaks

By Ellen Bernstein
Albuquerque Teachers Federation
          Education employees and parents have been appalled to learn that lawmakers already cut the dollar value of schoolchildren during the last session. Now, we're angry because they are planning to do it again! We're asking them to make the right choices during tough times. We are inviting everyone who cares about education and the future of our students to come to our Demonstration for Education on Friday starting with a rally at the Santa Fe Rail Runner Depot at noon.
        Even if lawmakers are not at the Roundhouse, we will leave them a clear message — you can make the right choices by creating revenue sources for schools even in tough times. Unfortunately, some lawmakers appear to be more interested in protecting the wealthiest New Mexicans and out-of-state corporations than funding our schoolchildren.
        Lawmakers cut student funding last January in order to balance a $500 million deficit. Ironically, that made the problem worse. When they cut spending, they also reduced the amount of tax revenues flowing into the public treasury. Now, our state budget has another deficit of $433 million. What's the definition of insanity? Doing the same thing over and over again and expecting different results.
        Senators John Arthur Smith, Tim Jennings and the "Gang of 12" are back with more of the same: Cut the value of schoolchildren. This second round of proposed education cuts, if approved by a majority of lawmakers during October's special session, will speed up the death spiral of lowering tax revenues in New Mexico, raising unemployment numbers and making this year's schoolchildren worth less than they were worth last year.
        This is most definitely not the way to take care of the next generation. Kids deserve better — better problem-solving from those in power, better choices by those that profess to care about public education and better stewards of their future.
        Teachers and parents know that, if we're unable to dissuade lawmakers from cutting education, they will be back in January 2010 to cut again instead of doing their job — ensuring the creation of a sustainable and sufficient revenue source for schools that values rather than devalues the education of our students.
        "We believe we have little choice," says Rep. Luciano "Lucky" Varela. We don't agree, although it seems as if making the right choices is difficult for some lawmakers.
        There are a number of choices that are far superior to cutting the value of school kids. Two of the better choices are:
        • Roll back tax cuts for wealthiest New Mexicans. This will produce an estimated $450 million in tax revenues.
        • Close tax loopholes for big out-of-state corporations. This will produce approximately $100 million in tax revenues.
        Lawmakers could use these additional tax revenues to restore the student value cuts they made in January and prevent more cuts.
        It's important to note an essential distinction: Rolling back tax cuts granted by lawmakers during a time of huge state budget surpluses is not the same as raising taxes. Some would like the public to think they're the same. But, they're not.
        According to the governor's office, tax cuts for the richest residents and largest corporations are worth $1 billion a year. The Albuquerque Chamber of Commerce said we need to rein in spending. We're happy that we're on the same page with the chamber, finally.
        We agree that spending should be curbed. New Mexico lawmakers must quit spending taxpayer money on tax breaks that don't benefit the average New Mexican, including tax breaks for the wealthiest and tax loopholes for corporations.
        The state must cut down spending on tax breaks and corporate favoritism that is costing our state. Tax cuts for the wealthiest New Mexicans and corporate tax loopholes that allow big box corporations not to report on their profits or pay taxes on them in New Mexico are costing the state $1 billion.
        Taxpayers should not be asked to foot the bill for tax breaks that hurt them. Because the Legislature and governor keep making the same political choices, we have a budget deficit. That deficit is hurting education because lawmakers keep choosing to continue tax breaks instead of funding education. Their choice so far has been to cut education 8 percent, and now they are proposing to cut education by another 5 percent.
        We propose that our lawmakers rein in spending on tax breaks that we cannot afford. We propose our lawmakers meet their constitutional obligation to sufficiently fund our children's education. We propose they make the right choice.