The problem appears to be that cycle of the economy is higher taxes to pay for higher costs. Now before you storm the Bastille, higher taxes appear to be off the table for now. However Freeport just was reported to be looking at a 9% increase in taxes.
This could be coming at you very soon. There is only so much magic going around. Think three-card monte… who’s got the revenue, who’s got the revenue?
Well how do we solve this Gordian knot? What has to give and how did this happen? Well it appears that tax bases have been shrinking and salaries keep going up. Now salaries going up is going to be a given and continuous. Revenue bases shrinking aren’t going away either, that is traditional bases. What has to change, in my humble opinion is how we actually generate revenue.
The biggest generator of revenue today is actually technology. Apple, Inc. generated just 1 billion less than ExxonMobil last year. Instagram was purchased for $1 billion USD. Facebook, Google and LinkedIn just IPOed and have valuations higher than most producers of physical products. The question is should school districts be keeping the same model just refocusing on different revenue streams?
Think about possibly tapping into the world of social commerce. How can this be done? Well just think about it. Students and families are on diverse forms of social media and generating those valuations. How about building a social network that actually funds the schools that create such a network. It is called revenue sharing and it is possible. Take a look at a beta prototype site currently running and see what you think. Can this solve the problem?
Full disclosure here – I built it and own it but it shares revenue with school districts at 70% of revenue after production expenses. There is no cost to schools, it is free - period. I’ll say it again – it is free this is not sold to schools it simply generates revenue that it shares with each school district and can be customized to look like the district – colors and icons.
Would like to hear your opinion. Honorscholar.com