Students offer clever financial ideas to lawmakers

SNOHOMISH -- Seniors in Tuck Gionet's government and law classes at Snohomish High School are well aware of the growing national recession and eroding job market.

They also know the state faces a $6 billion shortfall over the next two years.

So, when they drafted bills for state lawmakers to consider this session, many did so with the idea of helping young people avoid pitfalls that have contributed to the financial mess the country finds itself in today.

They're hoping high schools will do more to teach teenagers about mortgages, interest rates, the risks of credit and the importance of savings.

In separate groups, students proposed laws that would require financial education be taught in high school.

Derek Kuleta, Chentel Young, Aaron Jessen and Harrison Outlaw proposed legislation that would integrate the lessons into math classes instead of creating new classes and an extra graduation requirement. They would leave it up to schools to figure out how to fit the lessons in.

"We figured that integrating it would be a lot cheaper than starting a new class," Kuleta said.

Outlaw said financial lessons will make math seem more relevant.

"I haven't once used a quadratic formula outside of math class," he said.

"It's easier if you learn how to apply it when you learn it," Young said.

Amber Beutler, Sherrie Proctor and Marissa Whybark proposed legislation that would impose a small tax on business owners to create a one semester finance education class.

They argued that the bill would save government money in the long run because young people would be more knowledgeable about financial issues and better prepared to manage their money. They also would be less susceptible to get credit cards and loans they couldn't afford, they said.

Beutler said she would hope a class would show the "flip side" of personal finances, particularly what can happen if money is managed poorly. "If they heard from people who have gone bankrupt, I think students would be going, 'Whoa, this could happen to me.' "

Rep. Mike Sells, D-Everett, told the bill's three authors he'd introduce the measure. He has since decided against doing so because of political and logistical challenges.

"They've got a great idea, but the devil is in the details," he said. "It would be impossible to get it done this session, but I will be looking at it in the next session."

The proposal contains two sizable issues requiring more work, he said.

First, it calls for taxing businesses to pay for the program and "nobody wants to talk about taxes down here" this year, Sells said.

With more time, he said he can look into how the program can be paid for. If a tax is needed, how it will be assessed and at what rate can be considered, he said.

Second, the bill requires passage of the class as a condition of graduation. This is a significant enough change that Sells said he would want involvement with the state Board of Education and Office of Superintendent of Public Instruction.

Proctor said she was hoping to see the bill passed this session, but that won't dampen her interest in expanding financial education in high school.

"Just because this is our senior year, I don't think we are going to stop," she said. "If you invest that much into anything, you don't give up."

Snohomish seniors Carly Johnson, Emily Harrell and Michaela Jeffs came up with a creative way to raise $6 million in funding for financial education classes. They proposed a 5-cent tax on mail solicitations sent by credit card companies to Washington state residents.

Their bill ran into legal issues. A federal law dating back more than a century prevents the kind of interstate taxation they have proposed. They are exploring options, including changing it to a surcharge.

Johnson said the state already has a curriculum for financial education courses.

"No one is teaching it right now," she said. "Our bill is just requiring that it be taught."

Rep. Marko Liias, D-Mukilteo, met with several students during their visit and said he's prepared to co-sponsor a bill to teach finance education when, and if, it gets introduced.

"I thought it was a really creative idea," he said. "All of their ideas were thoughtful. I agreed with some and I didn't agree with some."

For some of the students, whether their bills pass or not, is less important than the realization that they can be part of political change.

"This really has me interested in politics later in life," Kuleta said.

Reporter Eric Stevick: 425-339-3446 or e-mail stevick@heraldnet.com.