Sell the Crowns to Save the Schools
Author:
Richard Truscott
2000/02/09
As the tax revolt spreads across Saskatchewan, our school age children are being squeezed between provincial funding cuts and tapped-out municipal taxpayers. Unless we find a way to fund the schools without breaking the back of taxpayers, we are risking nothing less than the future of our children and our economy. At this difficult time Saskatchewan people must consider: Should we sell the Crowns to save our schools
Ratepayers in dozens of municipalities have voted to withhold their local property and school taxes. I have attended many meetings to speak of the need for a democratic outlet for this tax revolt, like citizen initiative mechanisms and taxpayer protection laws. And while sympathizing with hard-pressed taxpayers, I have tried to be clear that the Canadian Taxpayers Federation cannot counsel or advise people withhold their taxes.
But the people at these meetings also make it clear that they have been pushed to tax revolt as a last resort. They want to pay their taxes, and they don't want to hurt their local governments and school boards, but they feel they have no other choice.
School and property taxes have skyrocketed while rural incomes have dwindled and the province has retreated from school funding. About 61% of the cost of schooling is now covered by local property taxes. That's the second highest school tax burden in Canada after Ontario (62%) and much higher than our neighbours in Manitoba (50%), Alberta (43%) and BC (30%). Both Ontario and Alberta are moving quickly to cut school taxes while shoring up funding for education. It's also important to note that three of the four Atlantic provinces fund education completely through provincial government revenues.
But the pressure on school taxes in our province is not about to let up. Teachers are asking for another salary increase, and many other costs are rising. Meanwhile, schools are closing (an average of 10 per year), and there are fewer school age kids in towns and on the farm.
This is very bad news for the future. In this new century our prosperity (both personal and provincial) will depend more and more on education and brainpower. How can Saskatchewan - already crippled by high taxes, a struggling farm economy, and low job growth - succeed if our education system fails due to lack of funding
Fortunately, Saskatchewan has a choice and a potential source of school funding. I propose that to fund Saskatchewan's schools it is time to sell the Crowns.
We wouldn't have to sell all of the Crowns, or even sell any Crown completely. But if the government would open up ownership to private partners and shareholders, and use the proceeds to pay down the province's debt, money that would have gone into debt payments could go into a "Future Fund". This Future Fund could help to fund schools, improve the quality of education, and lessen the burden on taxpayers.
The age of government-owned dinosaurs has come to an end almost everywhere but Saskatchewan. By selling Crown assets, and establishing a Future Fund, these icons of the past can do our future a great service. Our Crowns represent the economy of the past; our schools and children represent the economy of our future. We cannot afford to hang on to the past at the at the expense of the future. Think of the Crowns as an education savings bond: It is time to cash in that bond, and send our children to school.