ERIC Number: ED600492
Record Type: Non-Journal
Publication Date: 2019-Nov
Pages: 23
Abstractor: ERIC
ISBN: N/A
ISSN: N/A
EISSN: N/A
The Canary in the Gold Mine: The Implications of Marin's Rising Pension Costs and Tax Revolt for Increasing Education Funding
Melnicoe, Hannah; Koedel, Cory; Ramanathan, Arun
Policy Analysis for California Education, PACE
Voters in Marin County have long been willing to pass parcel taxes to fund their schools. In 2016, taxes faced unprecedented opposition from local activists; taxes in Kentfield and Mill Valley were defeated or passed by previously unheard-of narrow margins, respectively. What changed? This case study uses district financial and demographic data as well as interviews and focus groups with advocates and education leaders to answer this question. It was clear that: (1) The current financial situation is not sustainable. Because of rising pension costs, other rising costs, and factors such as declining enrollment, Marin districts are making cuts to services or plan to do so in the near future; (2) There is a tension between teacher compensation and recruitment. Despite their financial constraints, districts feel immense pressure to increase teacher salaries in order to recruit and retain teachers in high-cost Marin County. Increasing pension costs are diminishing the flexibility afforded by the Local Control Funding Formula (LCFF) to fund local programs and priorities; (3) There is strong support for teachers and programs for students, but even in Marin County, where the community is engaged and well-informed, there is limited public awareness of district flexibility to respond to the impacts of rising pension costs; and (4) Due to growing concern that dollars are not reaching schools, but instead being used to fund pensions, parcel taxes have faced increasing opposition in Marin County. This case study also offers lessons for local and state education leaders, including: (1) Districts facing real and unavoidable cost increases simply need more funding; (2) Education leaders must continue to build awareness of the impact of rising pension costs, and work together to identify solutions; and (3) Given the increasing vulnerability of local taxation, state and local advocates should prioritize a statewide funding solution. With this report, the authors aim to build deeper understanding among policymakers, advocates, and state and local decision-makers about the funding challenges felt by local school districts, and how these challenges are affecting students, educators, and the broader community. This report sheds light on how these local pressures are playing out in Marin County and is meant to provide one illustrative case study and share insights and lessons learned that may be instructive to state and local leaders as they seek to improve education funding and quality in California.
Descriptors: Educational Finance, Finance Reform, Taxes, Retirement Benefits, Costs, County School Districts, Teacher Salaries, Teacher Recruitment, Funding Formulas, Public Opinion, Case Studies, Educational Trends, Retrenchment
Policy Analysis for California Education, PACE. 520 Galvez Mall, CERAS Room 401, Stanford, CA 94305-3001. Tel: 650-724-2832; Fax: 510-642-9148; e-mail: info@edpolicyinca.org; Web site: http://www.edpolicyinca.org
Publication Type: Reports - Research
Education Level: N/A
Audience: Policymakers; Community
Language: English
Sponsor: Laura and John Arnold Foundation
Authoring Institution: Stanford University, Policy Analysis for California Education (PACE); Pivot Learning Partners
Identifiers - Location: California
Grant or Contract Numbers: N/A