School district lines have become engines of inequity in many states. But with many districts facing severe budget cuts because of the coronavirus pandemic, a new report proposes a radical solution: Leave the lines, but spread the wealth.
as a result of the coronavirus pandemic. State revenues, driven largely by income and sales taxes, make up the other half of schools' funding, after local sources, and with revenues crashing states have already warned schools to prepare for steep cuts. That's why, Sibilia says, it's more important than ever for state lawmakers to rethink how communities collect and share their local property tax revenue.
"This is an idea that's ... unbelievably difficult and is not something that would help in the fall," says Michael Griffith, who studies school funding at the Learning Policy Institute. Communities who would stand to lose money would need to be convinced that the change is still in their best interest, he says."If this were easy to do, it would have been done."
That sweeping property tax cut, says Griffith, helped people to buy in. But it also made Michigan's schools more dependent on sales tax revenue, which is more volatile than property taxes in an economic downturn.
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