State lawmakers thought so much of Nick Hanauer’s tax increase idea that they decided to let him run with it.
The president of the League of Education Voters had his tongue firmly in cheek when describing that the Legislature declined the chance to vote for a 1 percent state sales tax increase to fund public education. Hanauer outlined the plan that has become Initiative 884 in a presentation Tuesday, June 15, to the Shoreline Rotary.
The 1 percent state sales tax increase called for in I-884 would move the rate from 6.5 percent to 7.5 percent. The increase would raise about $1 billion a year, Hanauer said. That money would go into a new, dedicated Education Trust Fund reserved for public education at all levels. I-884 also includes language that would protect it from legislators looking for revenue for other things during budget time, he said.
Hanauer, a business man who started with the family-owned Pacific Coast Feather and since branched out, said he became involved in the League and supports the initiative because it is good for business.
In 1970, only 20-30 percent of good jobs required a college education, but that has since risen to 80-90 percent, he said. In the meantime, high school graduation rates are falling and access to higher education is becoming tougher.
“From the point of view of business, that is a calamity,” he said.
“The most fundamental business decision is whether it is going to compete on cost or quality. In our state, that decision was made for us by China and India.”
The only way Washington will be able to compete is by being smarter and public education is the best delivery system but it needs help, he said.
The Education Trust Fund would funnel money to every level of public education, from preschool to universities as well as teacher pay.
Hanauer said the fund would address a number of needs, including:
• Fund 10,000 new preschool slots;
• Add 6,000 spots in the current state-funded preschool programs;
• Fund I-728, the voter-approved class-size initiative that was impacted by lawmakers;
• Raise the base pay for teachers and school employees by the 3.6 percent they would’ve received if the legislature hadn’t suspended I-732.
• Scholarships for teachers training;
• A $5,000 annual bonus for teachers who earn National Board Certification, and an additional $10,000 annual bonus for those who then who work in high-need schools
• Fund 25,000 slots 2- and 4- year colleges and universities.
• Expand the present Promise Scholarships to the top 30 percent of high school graduates.
• Invest research at universities to create new jobs and businesses.
Hanauer said I-884 is not aimed at the federal No Child Left Behind Act. “The problem with No Child Left Behind is that it doesn’t include any funding,” he said.
Hanauer said testing and accountability would also not be affected by I-884. “We believe testing is essential, tough testing,” he said. “From a business perspective, the only thing you can improve is what you can test.”
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