A study by an ASU think tank funded by anti-tax billionaire Charles Koch says it makes more sense to spend land trust dollars on current education expenses than to hoard the money for future generations.
The study, being released Wednesday morning by the Center for the Study of Economic Liberty is based on the theory that dollars are worth more now than they likely will be in the future, according to center Director Scott Beaulier.
“If you expect inflation, have inflation expectations, you should probably be a little bit more biased towards the present as well,” he said.
Beaulier said that supports the proposal by Governor Doug Ducey, to sharply increase the funds being taken from the $5.1 billion trust fund, to support K-12 education now. He said the state can generate $3 billion while not reducing the fund’s principal.
State Treasurer Jeff DeWitt, who opposes the governor’s plan, says that assumes a questionable growth rate of nearly 7 percent. And, he said any growth has to be discounted for inflation, making what’s in the fund a decade from now, worth less, when the state will likely have more students needing the money.
Beaulier denied the report is slanted because of the think tank’s funding source, saying academic freedom allows the center to come to its own conclusions, even though its funding is from the right-leaning Koch.