You know, we spend too much time thinking about public policy in buckets. I live in the education bucket, while others live in the finance bucket or the energy bucket or the transportation bucket or… well, you get the point. But the world doesn’t really work that way, does it? Public policy in one area often deeply affects policy in another. Pull the wrong string over here and you may inadvertently spark a crisis over there.
To underscore that point, I’d like to call your attention to Exhibit A: South Routt School District (SOROCO to the locals) and the unintended consequences of the War on Coal on education in Colorado.
South Routt is a tiny school district of about 350 PK-12 students near Steamboat. I’ll forgive you if you haven’t heard of it before. Like many rural school districts in Colorado, SOROCO lives on a budgetary razor’s edge where any large swing is likely to be felt very keenly.
You can imagine the district’s panic, then, when Peabody Energy, the country’s largest coal-mining company, filed for Chapter 11 bankruptcy protection in April 2016. Why would a national coal company’s bankruptcy matter to South Routt? Because it turns out that bankrupt corporations aren’t great at paying their taxes. Continue Reading »