New tax will distribute school infrastructure funds more fairly

This week Governor Culver signed into law a bill that establishes a statewide 1-cent sales tax for school infrastructure. That tax will replace the local-option sales tax for school infrastructure, which has been adopted in all 99 counties.

The problem with the local-option sales tax has been that school districts in counties with a large retail base get much more funding per student than school districts in counties without many local retail options. Why should students in Warren County have to learn in crumbling schools because there are more shopping options in Polk and Dallas counties?

A few years back there was an uproar in Des Moines when it emerged that the school district didn’t have enough money to fix up all the schools. Partly that was due to poor budgeting, but the explosion of big-box retail in Dallas County played a role as well, because fewer local-option sales tax dollars were staying in Polk County.

Des Moines’ alternative weekly Cityview doesn’t like the new law. They may be right that the motivation for passing it was to make sure voters wouldn’t be able to ditch the extra penny sales tax. The old law forced counties to get voters to renew the local-option sales tax every ten years, and many people think Polk County voters would have rejected any proposal to renew the local-option tax approved in 1999.

The new statewide sales tax won’t expire until 2029.

Cityview is also troubled by the move away from “local control,” but here I am 100 percent with IowaVoter:

This crazy local-option sales tax was created in a previous Republican-run legislature.  It siphons money from counties with little retail trade to counties with larger trade, such as Polk county.  It sounds like something rural Republicans should have opposed, but they always go for regressive taxes.  The local control aspect took the burden off them, too.

Thank Democrats for partly fixing this folly.  The tax is still regressive but now it will give rural areas a fair shake.  Republicans lost control of the legislature for a reason.  Democrats should not shrink from the burden of correcting old errors, even if Republicans drag their feet.

Cityview doesn’t seem to get how the current system operates and is bothered that the new law

expects taxpayers in Des Moines, for example, to bail out crumbling schools in Sioux City or Davenport or some other place where we have no say in how our money is being spent. It isn’t that Iowans shouldn’t bond together to help one another, but it should be left to local taxpayers to vote on how their money is spent as a way to keep school districts in line – not a group of bureaucrats.

But of course, the current system gives people in the majority of Iowa’s counties little more than the illusion of local control. Whether or not they approve a local-option sales tax in their own county, they still end up pumping money into school districts located in other counties–and neither they nor their local school boards have any say in how that money is spent.

Students should not be punished for living in a county without many retail options.

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