Where Does the Money Go?
What to know: In Texas, public school education foundations are nonprofits that are supposed “to use extra funds in support of our school programs.” And they’re big business.
The TPPF take: Too often, education foundations are opaque.
“Current estimates suggest that EFs across Texas boast an estimated $9 billion in assets, employ 1,841 people and generate more than $1 billion in revenue each year,” says TPPF’s Cameron Abrams. “The relationship between EFs and their respective ISDs has brought up questions concerning personnel, the use of grant money, and the tangled web of characters with a foot in both camps. And while a Texas school district is a public agency, governed by a locally elected board of trustees, accountable to the Texas Education Agency, and ultimately subject to the Texas Legislature’s authority over policy and finance, EFs fall under a different part of state code.”
For more on education foundations, click here.
Tax Reform
What to know: Texas Gov. Greg Abbott is calling for cutting local school property taxes.
The TPPF take: Property tax reform is in the Top 10 of TPPF’s Liberty Action Agenda for the upcoming 90th Texas Legislature.
“By continuing focus on meaningful structural changes, policymakers can put Texas on a pathway to eliminate property taxes,” says TPPF’s Greg Sindelar. “Policymakers should extend the same responsible spending policies required of the state to cities and counties, ensure public money goes to public purposes only, and require local governments to adopt balanced budgets.”
For more on property tax reform, click here.
Fraud
What to know: A new report says that the massive fraud we’re seeing in Minnesota isn’t limited to that state. Federal health care programs are being looted.
The TPPF take: If fraud in Minnesota looks bad, wait until you see what’s been happening in California.
“If Minnesota’s the starter, California’s the feast,” says TPPF’s Chuck DeVore. “Gov. Gavin Newsom’s budget gimmicks ignore the core issue: expanding programs without safeguards, then begging for bailouts when the math implodes. A presidential bid built on California’s mess? Good luck selling that to swing states tired of blue-state bailouts.”
For more on fraud in California, click here.