Money changes everything
Posted by Sean at 11:27, October 31st, 2004There’s this plan for three-pronged economic reform, the overall aim of which is to put more tax revenue directly in the hands of the local governments that ultimately use it. In the existing system, much of the money only gets back to them after going through federal ministries and their attendant agencies, public corporations, semi-public corporations, and various hangers-on. The reforms would change that by giving local governments the rights to collect more of the tax money and use it as they see fit.
This means a significant loss of control and influence for the federal-level ministries, so they’ve come up with their own three-pronged resistance.
Some are hoping that, if they loudly proclaim what a good idea they think the subsidy cuts are, no one will notice if they quietly work to keep a few key ones unchanged:
Only the Cabinet Office and the Internal Affairs and Communications Ministry wholeheartedly supported the subsidy-cut plan put forward by the six organizations. But even within the Cabinet Office, rumblings were evident, with its demand that special consideration be given to the 33.9 billion yen in subsidies Okinawa Prefecture receives from the central government.
Others are brazenly refusing to play along–not out of self-interest, but rather because (never heard this one before, huh?) it would be irresponsible to the children:
The six organizations’ proposal called for a cut in state subsidies for services provided by local governments under the compulsory education system by 1.13 trillion yen, but the education ministry flatly refused to play ball. “The subsidies are essential from the standpoint of preserving the equal opportunities for and standards of education, as guaranteed by the Constitution,” the ministry said.
For anyone reading from the US, bear in mind that this is not quite as bad as hearing the same thing at home would be. The Japanese public education system has plenty of flaws, but it is working better overall than its American counterpart. Still, you have to wonder whether the Monbusho has been studying the NEA playbook.
Sadly, not all the other ministries have an obvious it’s-for-the-children angle to work, so they’re forced to get craftier. They’ll agree to the cut subsidies, all right, but somehow the money thus “freed” will end up being even more firmly under their control. This, too, could have been modeled on some NEA or AFT proposal, whereby competency standards for schools somehow ultimately mean that we’re paying the non-performers more in funding:
Although the construction ministry came up with a plan to reduce subsidies for repairing and improving rivers by 7.4 billion yen, and the agriculture ministry proposed slashing donations to agricultural committees by 2.8 billion yen, the savings will fall outside tax revenue to be transferred to local governments under the reform plan.
Instead, the two ministries want the bulk of the proposed savings to be transformed into grants that can be spent at their discretion for any purpose deemed suitable.
Don’t you just love it?