Varsity-Packet-Final

Examples can be found in state level adoption of

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Unformatted text preview: ic — they assume health-care cost increases over the next decade somewhat lower than the past several years. If the reforms proposed by Patrick and the legislative leadership eventually knock 2 percent or 3 percent off the annual growth in Medicaid and other government health costs, the budget will be in long-term balance. Still, as the report observes, “This reduction . . . would only allow for maintenance level spending for existing government programs and would not allow for increased investments for transportation infrastructure, education (or) restoration of past budget cuts.” 12 | P a g e States CP Aff BDL Massachusetts Spending DA – Shell [____] B. Education is vulnerable – Lack of existing revenue to spend on education causes cuts Federal Reserve Bank of Boston, 1997 (“Perspective on State Tax Policy,” http://www.bos.frb.org/e conomic/nerr/rr1997/winter/prtv97_1.htm) In recent years, states have been more inclined than they have in the past to cut spending in response to shrinking revenues, and to restrain spending growth as revenues have recovered. In the recession of the early 1990s, when revenues fell dramatically throughout New England, the largest cuts often came in higher education. And rather than cut their own budgets further, state legislators often chose to give less "local aid" to cities and towns,where the cuts had s imilar effects. Raising local taxes was difficult, especially in poorer communities, so cuts in local aid tended to result in cuts in spending. As the largest budget item, education often bore the brunt. At both the state and local levels, revenue cuts thus often led to reductions in education spending. 13 | P a g e States CP Aff BDL Massachusetts Spending DA – Shell [____] C. Investments in education is critical to the economy and economic opportunity Calvert-Henderson 2012 (Quality of Life Indicators, 2012, http://www.calvert-henderson.com/edu.htm) In today's globalized information-based economy, knowledge is now widely recognized as a key factor of production. Politicians in many countries, including the USA, run for office on platforms that stress education. The World Bank and other multilateral institutions now agree that investments in education (particularly at preschool and K through 12 levels) are the new keys, along with investments in health, to economic development. Nothing is changing our business and academic institutions faster than the new definitions of human and intellectual capital. As many new Internet-based, e-commerce businesses know, a company cannot "own" the part of its knowledge base that resides in the heads of its employees. This new evaluation of intellectual capital, on which all technical and social innovation is based, is still under-estimated in the US GDP. Current GDP still accounts for education costs as "expenditures" rather than as investments in human capital. (To see Hazel Henderson's article on education, Key Investments in the Wealth of Nations go to www.hazelhenderson.com and click on 'Editorials'.) Although educat...
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This document was uploaded on 02/06/2014.

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