`history Nut' Chronicles Union's Past

Airport Bosses Bank On Public Using Atlanta Routes

MARK GUYDISH
 Saturday, February 09, 2002 &nbsp;&nbsp;&nbsp;&nbsp;Page: 7A 





It's called trickle-down economics, and if you're not familiar with it from
the 1980s, trust me, you'll take a bath in it this year. &nbsp;&nbsp;&nbsp; 
 It's an old idea made famous by Ronald Reagan: Cut business taxes and
there's more business, more jobs, more money for everyone. &nbsp;&nbsp;&nbsp; I'll keep my opinion about the Reagan economy to myself. The important
point is that local school districts are singing the bottom-line blues thanks
to the latest brand of this financial fiddling. &nbsp;&nbsp;&nbsp; 
 The idea of lightening the tax load for business people has appeal and
makes sense - if corporate bosses always put employees ahead of fat profits.
Like Enron did, right? &nbsp;&nbsp;&nbsp; 
 And unfair taxes are unfair whether they are personal or business levies. &nbsp;&nbsp;&nbsp; 
 But when your local school district raises taxes, cuts services, or
announces it has used up the last of its cash reserves - and these things will
soon be happening often without changes - don't just blame the school board
and the teachers union. &nbsp;&nbsp;&nbsp; 
 Blame the county for refusing to reassess property values for nearly four
decades, making the system so flawed a monkey could file a tax appeal and win.
With each successful appeal, a little more demand drips down to you. &nbsp;&nbsp;&nbsp; 
 Blame the state for the Keystone Opportunity Zone program - an idea I
fundamentally support - for creating so many tax free zones that local school
boards can't cheer when a new business moves in, since that business won't pay
taxes for years. More drips coming your way. &nbsp;&nbsp;&nbsp; 
 Blame George W. Bush, whose 10-year tax cut turned a federal surplus into a
deficit before the national debt was barely touched, and before basics like
education, Social Security and Medicare were firmed up. Drip, drip. &nbsp;&nbsp;&nbsp; 
 Blame state lawmakers and pension gurus, who boosted pensions for state
employees - including teachers - confidently predicting it wouldn't cost
taxpayers an extra penny. They were wrong. Drip, drip. &nbsp;&nbsp;&nbsp; 
 &nbsp;&nbsp;&nbsp; 
 Governor's budget doesn't help us &nbsp;&nbsp;&nbsp; 
 &nbsp;&nbsp;&nbsp; 
 &nbsp;&nbsp;&nbsp; 
 And blame Gov. Mark Schweiker, whose first and only proposed budget gives a
scant 1 percent increase in basic education spending, and 1.5 percent in
special education, even as state mandates for local districts drive costs up. &nbsp;&nbsp;&nbsp; 
 I like Schweiker. I met him in person years ago when he stopped in Hazleton
to boost one of the city's worthiest causes, Helping Hands - an agency
dedicating to kids with special needs. &nbsp;&nbsp;&nbsp; 
 But Schweiker's budget is so full of accounting magic and fiscal tap
dancing he could headline a Broadway show. He is draining a $1.1 billion
``rainy day'' fund - appropriate, since it was made to weather tough economic
times - but he's using that money to fund new anti-terrorism efforts. &nbsp;&nbsp;&nbsp; 
 He proposed having a state authority borrow $280 million for more
anti-terrorism, and to continue phasing out the admittedly unjust capital
stock and franchise tax - levied regardless of a business's profitability,
which, many claim, scares away new business. &nbsp;&nbsp;&nbsp; 
 No doubt. But I'll bet high property taxes and mediocre public education
scare away businesses, too. &nbsp;&nbsp;&nbsp; 
 I'm not a ``big government'' proponent, and believe in letting the ``free
market'' stay pretty free. But public education is a necessity, not a perk and
- for most people - not a choice. &nbsp;&nbsp;&nbsp; 
 State and federal governments have shortchanged education for a long time,
and that fact is printed in your property tax bills. Here's hoping legislators
put a little more balance in the governor's balanced budget. &nbsp;&nbsp;&nbsp; 
 Schweiker said there were tough choices to make, and that he made them. &nbsp;&nbsp;&nbsp; 
 He's half right. He made choices, but he passed the tough part down to us. &nbsp;&nbsp;&nbsp; 
 Call Guydish at 829-7161 or e-mail markg@leader.net. &nbsp;&nbsp;&nbsp; 
 &nbsp;&nbsp;&nbsp;

Bad Economics Is What's Really Trickling Down