The Various Reforms To The Current US Education System (Research Paper Sample)

US EDUCATION SYSTEM
K-12 EDUCATION
Introduction
Structural changes to the current US education system specifically the K-12 system are thoroughly analyzed these days. American education system is the most costly system in the world on a per-pupil basis, yet the K-12 education pupils still do not perform adequately well on a worldwide level CITATION Hox17 \p 1 \l 1033 (Hoxby, 2017, p. 1). It is clear why many are so interested in the school reforms for K-12 education. The K-12 education per-pupil expense has increased by approximately 80% since 1970 CITATION Hox17 \l 1033 (Hoxby, 2017). However, student achievement has been nearly the same level over the period. Most school finance systems have been reviewed to target more funds to the underprivileged pupils. Also, there have been other critical reforms in the structure of K-12 schools finance in the United States. Even though the majority of the states have endorsed some form of choice in public schools such as charter schools, state administrations are still less disposed to legislate programs such as tax incentives and vouchers that increase parents' ability to choose schools.
In this analysis, I highlight theoretical changes to the K-12 education system and also evaluate empirical data relating to the reforms. The hypothetical reforms highlighted in this paper include replacing all local property or other state taxes with state income taxes and introducing voucher programs to all public schools which will be funded by state income taxes. I will also highlight and analyze state obligation in data reporting and curriculum correction.
The recent discussions about K-12 education frequently highlight changes that strive for improvement to the quality of education. Though, what is currently lacking from the education reform discussions is how these modifications will be viable to the education system. Economic principles are valuable for the analysis of education system changes since econometric techniques and evaluation methods developed over time are very suitable for analyzing the changes. Also, most of the issues arising from the K-12 education system are associated with funding and operational school changes which are mostly established on economic principles. These policies and related opinions need to be subjected to empirical examination. In the following analysis on theoretical changes to the US education system, I have attempted to present these reforms through current empirical techniques and rigorous economic reasoning.
Empirical Evidence on K-12 Education Funding Reforms
The analysis of state income tax replacing local property taxes or other state taxes to fund K-12 education should begin with pointing out the shortcomings of local property taxes in funding K-12 education. The majority of the states construct education systems financed mostly by local property taxes. Public school finance systems are extremely complex and differ from state to state. The federal government contribution to education funds is about seven percent of the aggregate education finances, while the rest is divided between local and state aids, predominantly by local property taxes and state income taxes or excise taxes respectively CITATION Pet05 \l 1033 (Peter Bluestone, 2005). The method incorporated in the distribution of the state contribution to local schools is also rather complex. It involves some combination of basic funding, local option and categorical funding which involves additional state and federal funds, reserved for special education and schools with students from low-income families. This complexity often leads to significant disparities in funding acquired from local sources, federal and state. Naturally, wealthier localities generate more of their funding from local sources, whereas low-income districts are heavily reliant on federal and state sources ADDIN EN.CITE Charles Robinson201626-27(Robinson, 2016)17Charles RobinsonThe K-12 Funding Crisis26-272016(Robinson, 2016).
Through my study, I found out some insights on the usage of local property taxes as the source of school funds and the repercussions of replacing it with state funding. Local property values vary significantly in each region, so this form of financing will produce inequality of funding. The Supreme Court noted the need for changes to the K-12 school's finance aid and voiced concern about the extensive and substantial dependence on property taxes. Property taxes have been considered to be a stable source of income for schools at least until the Great Recession in 2008 ADDIN EN.CITE Charles Robinson201626-27(Robinson, 2016)17Charles RobinsonThe K-12 Funding Crisis26-272016(Robinson, 2016).
Many economic development advocates argue that lower property taxes attract business and industries to a state. The main issue is that property taxes affect the local government institutions such as school districts more than the state. Thus the states are pursuing strategic economic policies statewide that will help solve the issues hindering localities’ ability to fund their activities. States comprehend they have educational funding shortcomings and have initiated to look elsewhere for funding such as state income taxes. Some of the states that have considered this option of funding education include Pennsylvania, Illinois, Maine and New Jersey.
Pennsylvania
In Pennsylvania, Representatives of the State passed a legislature on education funding programs. The main points of the legislation are an increase in income tax that will give schools scholarships for pre-school and kindergartens in local schools that participate in the reform, funding tutoring programs and more funds to improve standardized test scores ADDIN EN.CITE Ryan Jamie Parot2008 (Jamie Parot, 2008)27Ryan Jamie ParotEducation Funding Sources2008 (Jamie Parot, 2008).
The state Senate adjusted the plan and eventually passed, though, with a lower income tax rise and subsequently lower education funding. Residents were not supportive of the state income tax rise, only when it was linked to school funding. The link to education funding increased the backing for the tax rise from most residents.
Illinois
In Illinois, the shift to state income tax was proposed by advocates of school funding reform who were pushing to increase state income taxes to fund education in 2005. Regardless of the effort Governor Blagojevich barred the bill because of his initiative of not raising taxes.
Maine
In Maine, a report produced by the Education Funding Reform Commission commended balancing the main methods of raising taxes between property taxes and state income taxes. They also proposed limiting the amount of property taxes that is raised to fund education and making up the difference by substituting with a reduced rate sales tax ADDIN EN.CITE Ryan Jamie Parot2008(Jamie Parot, 2008)27Ryan Jamie ParotEducation Funding Sources2008(Jamie Parot, 2008).
New Jersey
The state of New Jersey claims property tax financing as the source of the constant letdown to provide satisfactory and fair education funding for all pupils. New Jersey ranks as the fourth state whose school costs are mostly funded by local property taxes. New Jersey is making an effort to change a percentage of school funding from property taxes to state income taxes, hence the state funding almost half of the cost of public schooling ADDIN EN.CITE Ryan Jamie Parot2008(Jamie Parot, 2008)27Ryan Jamie ParotEducation Funding Sources2008(Jamie Parot, 2008).
The states above have incorporated state income taxes as a source of school funding to some extent. The results of eliminating local property taxes as the source in this plan will generate both some setbacks and advantages. First, people will not be entirely supportive of the tax raises as previously seen in Pennsylvania. State income taxes have fewer letdowns, unlike property taxes that fluctuate constantly. The above programs give an insight of state income taxes replacing local property taxes, and with the available data, it seems as if it is a much stable system in spite the possible criticism from taxpayers.
Economic Principles to Assess the Fairness of State Income Taxes
As an economist, I rely on the ability-to-pay and benefit principles to assess the fairness of taxes. According to the benefit principles, property taxes would be considered fair if there were a systematic correspondence between the taxpayer’s ability to pay as measured by income or wealth and the tax burdens generated. In my evaluation property taxes as a source of education funding seems to fail both of these tests. While income and net wealth are suitable gauges of ability to pay there is less agreement about how the ability to pay varies as the indicator varies. Does taxation in conformity to ability-to-pay require progressive or regressive rates? Despite the lack of certainty regarding the required link between the indicator of ability-to-pay and the tax rate, there seems to be a broadly based agreement that fairness in taxation requires a progressive rate structure.
Depending on the initial setup state income tax is relatively the most progressive tax available in the system where the wealthier people bear, the greater share of the taxes. State income tax has more benefits than other forms of taxes hence making it viable as a source of education funds. It is easier to administer and has the potential to generate a lot of revenue. The structure for the state income tax would be similar to the federal framework, and hence the states would only need to amend the rates and income brackets. Arguments against state income taxes claim that progressive income taxes rates decrease private earnings on economic activity hindering further economic growth. Income taxes are however unpopular politically because they are progressive, and the...