This is an astonishing article about the battle for fair funding of public education in Washington State, where billionaires pay a lower tax rate than working stiffs. The article appeared almost two years ago, but it remains relevant today.
“Despite its image as the cutting-edge land of Microsoft, Boeing, Amazon, Starbucks, and many other corporate icons, the state ranks near last place nationally in education categories such as per-pupil funding, class size, and college attendance.”
A valiant lawyer, Thomas Ahearne, took on the case more than a decade ago and found Stephanie McCleary, a mother with two young children, who was willing to step up and be the public face of the struggle. The state’s courts have ruled in favor of McCleary, but the legislature has failed to raise taxes on the wealthiest or to come up with a plan to fund the schools equitably.
Bill Gates, the most famous billionaire in Washington State, has exerted his energy to push through charter schools, not to fund all schools better. As compared to tax reform, charter schools are a bargain.
“Washington has long cited a paucity of tax revenues for such failings. Yet, at the same time, it gives away more money in corporate tax breaks than any other state aside from New York, which has nearly three times the population. It is the result of what some call a “war between the states” to lure companies with treasury-draining giveaways — a trend so strong that this state’s governor likened it in an interview to corporate “extortion.” politicians would rather give corporate tax breaks than fund the schools in their district. They forget that good public schools attract corporate talent.
Here is a major reason that Washington state is not funding its schools: tax breaks for corporations that threaten to leave the state. Boeing threatened to leave, and the governor and legislature gave Boeing a deal in 2013 that “provided Boeing with $8.7 billion in tax breaks through 2040, the largest ever granted to any company by a state. The deal was meant to ensure that Boeing built its new 777X plane in Washington. In recent months, however, Boeing has transferred 3,500 jobs to other states and plans for at least 2,000 more to be moved, reviving concerns about the tax deal.”
Washington is a blue state with a Democratic Governor, Jay Inslee, but it must take care not to offend the billionaires.
“The billions for Boeing were given as the state struggled with the broader issue of tax inequities. Washington has the nation’s most unequal tax structure, according to a report by the nonpartisan Institute on Taxation & Economic Policy. The state’s poorest 20 percent of residents pay 16.8 percent of their income in state and local taxes, while the wealthiest 1 percent pays just 2.4 percent.
“We have the most regressive tax system in the United States by a long shot,” Inslee said. That “has exacerbated income inequality, [and] it has been much more difficult to find a source that would adequately fund education,,,.”
“The state’s agricultural, timber, and mining industries paid even less than high-tech – a combined $14.6 million. And the aerospace industry, which includes Boeing, paid $72 million in the Business and Occupation Tax.”
How can a state fund education when its richest industries pay meager taxes?
Almost three years ago, the state’s highest court fined the state $100,000 per day for every day it does not adopt an acceptable plan. The money is accruing in a bank account, and the state has failed to comply.
Meanwhile the billionaires of Washington state enjoy their low taxes, complaining about the public schools, and plugging for a handful of charter schools. This allows them to call themselves “reformers” while they profit from the underfunding of the state’s public schools.

Reblogged this on David R. Taylor-Thoughts on Education.
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“Despite its image as the cutting-edge land of Microsoft, Boeing, Amazon, Starbucks, and many other corporate icons, the state ranks near last place nationally in education categories such as per-pupil funding, class size, and college attendance.”
Not “despite”. Because. I’ve heard decent things about Starbucks and I don’t know much about Boeing, but Amazon and Microsoft are both evil companies. Neither is going to part with a dime that doesn’t directly benefit them. Those types of companies have little use for public schools except as holding tanks to keep “those kids” off the streets. Their future educated workers will come from private schools like Lakeside and their future menial workers don’t need no stinkin’ education no how.
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Diane,
This is a typo? Please resend with the correction since I wanted to hand out your post at a meeting tomorrow night.
“The money is accruing in a bank account, and the state gas failed to comply.”
Thanks,
Barbara
Barbara Bennett, M.A. Educational Therapist • Educational Consultant • ADHD Coach
http://www.barbara-bennett.com
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will fix
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Barbara,
The error is fixed.
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Here’s another scam and a bad idea. I just don’t GET IT. High school is NOT college.
http://www.aurorasentinel.com/news/new-charter-school-offer-high-school-students-college-credits/?utm_source=Chalkbeat+Colorado&utm_campaign=12dccc1419-EMAIL_CAMPAIGN_2017_04_17&utm_medium=email&utm_term=0_588bc72838-12dccc1419-86506697
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High school may not be college, but what is studied in high school is sometimes the exact same thing that is studied in college. It’s the nature of some subjects.
I have taught dual credit courses with ten hours of college credit given for satisfactory work of four years in high school Spanish. The students received actual college credit and when they go to apply to a college they have the university send a transcript with the actual college credits listed. What is covered in four years is what is basically covered (actually it is usually more in HS) in the first two five hour semester college courses.
Why should a student sit through all of the basics of learning a second language twice when they can continue on to a higher level right away, saving money in the process?
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Lost post in progress!
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Hey, it showed up!
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I thought people had voted down charters down several times and then, when Bill finally bought his vote for them, the State Supreme Court ruled them unconstitutional. My understanding is that Bill and buddies tried unsuccessfully to unseat the judges who had ruled against charters. I also remember hearing that he had done something to make one public school a financial hub for all charters to get around the law but I’m really fuzzy on that one. I have thought of Washington voters as heroic. How can we help?
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marynwill,
You are exactly right. Gates tried three times to pass a referendum to authorize charters. On the fourth try, he won by less than 1%. Than the State Supreme Court ruled that they are not public schools. Gates used one school as a hub to keep funding the charters while he fought on. The legislators he bought are trying to find a permanent funding stream for Bill’s charters. If you don’t go to a charter, Gates writes you off.
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Where did the money for those hub charters come from. I hope it wasn’t from the communities that had been paying for them before they were declared unconstitutional. Did it come right out of State money or did Gates honorably donate it?
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How long before the billionaires start taking out “contracts” on the judges who don’t do what they want?
Or perhaps it is already happening.
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If I may mention an important point. To suggest that Gov. Inslee signed tax breaks willy nilly without the context of overwhelming legislative support might mean readers are missing a critical point. Senate Bill 5952 passed our state’s Senate 44-2 and in the House it passed 75-11. There was only one clawback provision: lawmakers included provisions in the bill that take away the preferential tax rates for Boeing if it moves production of the 777X out of state. That said, the post is spot on. For those of us paying attention, it seems clear our legislature will be going into an extra session or two. The saving grace for students and parents, I believe, is the “Paramount Duty” clause in our state’s constitution. We await legislative action and I eagerly await state supreme court response if they fail to act. The legislature is already in contempt of court.
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“The legislature is already in contempt of court.”
Jail the bastards!
If you or I told the court to eff off as the legislature is doing you can bet our peeon asses would be sitting in a jail cell.
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http://www.dailykos.com/stories/2017/4/13/1652839/-The-Trump-DeVos-plan-for-special-needs-kids-Go-to-private-school-and-give-up-your-legal-rights
http://www.afscmeinfocenter.org/blog/2017/04/state-education-policy-tracking.htm#.WOb9xb3uSAY
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I have my own public education blog in Seattle – Seattle Schools Community Forum – so know all of this all too well.
It is quite a thing to have Bill Gates in your backyard, trying to force his ideas about public education down the throats of everyone in the country. (He strangely rarely says anything about public education in Washington state. Naturally, his own children went to private schools.)
Washington State has a unique constitution that states that “the paramount duty of the state” is to “amply” fund public education. That one line has made for major unhappiness for Republicans but they certainly have been able to stave off fully funding public education for decades. They have continued even with the Supreme Court ruling and it appears that our legislative session will end next weekend without this work getting done.
Yes, for all that Boeing and Starbucks and Microsoft and Amazon want great workers, they don’t want to have to pay to educate them. One thought is that even thought WA state is near the bottom for both funding and class size, we rank in the middle for outcomes. I suspect that’s good enough for Republicans.
As for charters, the newest law is once again being challenged (the first challenge to this law was turned back in a lower court). But the fear of the lawsuit seems to be holding off many charter operators as there are only a handful of applicants for new schools. Green Dot and Summit seem to be the biggest players.
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The Gates Foundation gave the Center for American Progress $2.2 mil. from 2013-2015. The VP of Education Policy at CAP was formerly the VP of Education Policy at TFA. Shortly after the presidential election, a CAP staffer co-wrote a Forbes article that proposed a right wing plan to remove faculty from the college accreditation process (strikingly similar to Rubio’s legislation introduced in March). The CAP staffer was formerly an employee of Gates-funded New America.
Gates’ Impatient Opportunists unrelentingly plot to feed the data churning and measurement industry and, to take advantage of the communities of the middle class and poor..
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Corporations do not pay taxes. Corporations are not people, and only people pay taxes. For a corporation, taxes are a cost, like raw materials or plant. The costs of raw materials, labor, taxes, etc. are all included in the cost of the finished product. Only the final consumer pays taxes.
See
https://www.forbes.com/sites/timworstall/2011/09/22/corporations-do-not-pay-taxes-they-cant-theyre-not-people/#4a0ae4716222
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You apparently missed the Supreme Court ruling that corporations are people.
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The Gates’ political agenda to enrich the tech industry, Wall Street, and products like schools-in-a-box flourishes at the Aspen Institute where David Koch is on the board and, at the Center for American Progress where the Walton heirs and Gates flash their cash.
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Other than being able to steal ideas from Steve Jobs, Bill Gates is an idiot.
Airbus and China Airlines would love to build planes in Boeing’s back yard. Individual contractors working exclusively for Boeing would also love to have additional employers so when Boeing does leave, they’ll continue to work. That leverage gets the tax promises that are needed for schools.
Unfortunately it is about the incompetence, cowardice, and corruption of legislators in Washington state. A Seattle newspaper regularly points out that if only a select few tax breaks expired or were removed Washington could double its budget which would easily pay for schools.
Don’t worry though. These legislators are working “very hard” for us.
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The charge that Gates has no imagination is confirmed by his vulture philanthropy. His schemes are nothing more than cost cutting. Any hack (Harvard drop out or not) can implement schools-in-a-box. and “human capital pipelines”. But, it takes an inhuman animal to prey on kids.
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Meanwhile, amid the hoopla over STEM in public schools, Boeing continues to lay off engineers and technical workers. It is handing out more pink slips this Friday, it has cut its workforce by nearly 8 percent since 2016, and “additional engineering cuts” are likely.
And yet – for some unexplainable reason – STEM is still all the rage in public schooling.
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I am an engineer. The careers of the 21st century are in the technical fields. Low-end manufacturing is dead; these jobs have either gone to China, or are being done by robots.
Unemployment in Fairfax County VA is about 3%, the telecommunications companies (Sprint, Verizon,etc) are all hiring. My firm has many open positions, that we cannot find applicants for.
Believe me, there are enough people graduating with degrees in recreation and Italian literature.
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Charles,
It would be a bleak world indeed without people who major in the liberal arts. Like literature and history. Getting an education is not the same as job training.
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I am not saying that our society and our economy does not need people with liberal arts degrees. One of the side effects of choice, is that people make choices that are sometimes wrong, and then they have to live with these choices.
If a person wishes to study sociology, or biblical studies, that is their right. But when a person runs up $100,000+ is college loans, and then is unable to find employment, do not come complaining to me.
Here are the 30 worst paying career fields. Every high school student needs to take a reality-check, prior to selecting a college major.
http://www.thinkadvisor.com/2016/05/11/30-worst-paying-college-majors-2016
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The people driving school transmutation are the Walton’s, who pay substandard wages, Gates whose former business employs relatively few American workers (decreasing?) and DFER, i.e. hedge funds that get 10-8% returns from charter schools.
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Ms. Ravitch, thank you for your service. I do not believe the legislators have, in fact, put any money in a bank account to pay the contempt fines. This was part of the issue for the Supreme Court in continuing their jurisdiction and declining to strike the fines. http://www.courts.wa.gov/appellate_trial_courts/SupremeCourt/?fa=supremecourt.McCleary_Education
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Betsy DeVos won’t pay her $5 mil. in Ohio fines. The fines related to her propaganda for charter schools.
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Thank you for writing about this – there will be a big “special” election in the state this summer/fall that could change the balance of power. At least one of the candidates has publicly announced support for a better tax system, including an income tax. And he is an Accounting Professor and Moderate Republican – there is more to come from the Evergreen state.
http://www.heraldnet.com/news/state-senate-candidate-ken-smith-doesnt-fit-the-gops-mold/
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