Filling the Wage Gap

Yesterday, I reported on the national wage gap between teachers and other professionals and dug into the data to look at the impact on Tennessee.

It’s pretty disappointing nationally, but the Tennessee numbers are especially disturbing: Below the national average and even about 3 points below the Southeastern average.

We can do better.

Here’s the good news: The Department of Finance and Administration recently released revenue numbers for the fiscal year that ended June 30th. Turns out, we have LOTS of extra money.

Specifically:

Year-to-date revenues for 12 months were $925.0 million more than the budgeted estimate. The general fund recorded revenues in the amount of $852.4 million more than the budgeted estimate, and the four other funds $72.6 million more than the budgeted estimate.

Yes, that’s right, $925 million MORE than we planned on having.

To fully close the wage gap for teachers, we’d need around $500 million which would result in a raise of about $10,000 per teacher.

With this available surplus, Tennessee could become the first state in the nation to close the wage gap completely. And we could do it with $425 million to spare. That’s pretty conservative. Oh, and we could do it without raising a single tax.

An even more conservative approach would be to phase-in wage gap closure over two to three years to ensure revenue is keeping up. That could mean an average raise of about $5000 per teacher in the first year and slightly smaller, but significant raises in successive years.

A move like that would grab national attention. Suddenly, our neighbors in Kentucky and Alabama could no longer say they offer a better value proposition for their teachers.

We would not only deliver on becoming the fastest-improving state in teacher salaries, we’d be doing it in a fiscally responsible, conservative way.

If you’re in college and want to be a teacher, wouldn’t you want to go where you could make just as much as your professional peers? In Tennessee, you’re making 30% less at current numbers. But the budget situation in our state means it doesn’t have to be that way.

The first state in the nation to close the teacher wage gap. It could be Tennessee.

For more on education politics and policy in Tennessee, follow @TNEdReport


 

 

Teachers! Deep Discounts! 30% off in TN!

A new study of teacher pay relative to pay received by other, similarly-educated workers reveals a growing gap. Not surprisingly, teachers are on the losing end, earning roughly 23% less than their peers in other professions. Here in Tennessee, teachers earn 29.3% less than similarly-prepared professionals.

Tennessee’s wage gap for teachers is among the worst in the Southeast, in fact. The average of 11 southern states is a 26.5% gap, leaving Tennessee nearly three points behind.

Here are the numbers (showing what percentage teachers earn relative to their peers) for states in our region:

Louisiana                              80.5%

South Carolina                    79.2%

Kentucky                              78.8%

Mississippi                           74.8%

Arkansas                               74.8%

Florida                                   74.6%

West Virginia                       74.6%

Alabama                                71.8%

Tennessee                             70.7%

Georgia                                  69.3%

Virginia                                  66.9%

North Carolina                     65.4%

The study also addresses what it calls the “benefits-bias.” This is the fact that teachers and other public employees tend to receive more generous healthcare and retirement benefits than their private sector peers. Currently, that number stands at around 6% nationally in favor of teachers. Tennessee doesn’t have the most generous pension or benefits plan, but it’s likely similar to states in our region. Even if you assume the full 6% for Tennessee teachers, though, our teachers are still paid 23.3% less than their professional peers.

The weighted average teacher salary in Tennessee according to the BEP Review Committee is just under $44,000 a year. To fully close the gap, Tennessee teachers would need an average raise of about $10,000 a year.

While the state legislature has passed four percent BEP salary increases in the past two legislative sessions, those funds don’t always make it into teachers’ paychecks due to the Huffman pay plan and action by the State Board of Education.  

The bottom line: Teacher pay matters. It may not be the only factor impacting who chooses teaching and who stays in teaching, but it certainly is an important one. This report notes the disturbing fact that the pay gap between teaching and other professions is widening. That makes it difficult to encourage college students to consider teaching and it also makes it challenging to keep experienced teachers in the profession. A gap of 5-10% can be offset by the benefits earned by teachers. A nearly 30% gap such as exists in Tennessee is unacceptable. Closing this gap will require a sustained commitment to fund teacher pay at the state level. Alternatively, the value proposition for teachers in Tennessee will continue to lag behind that of our neighboring states, not to mention other professionals.

For now, school systems and the state can continue to hire teachers at deep discounts — nearly 30% off! While that may seem like a good deal, it’s one that will exacerbate teacher shortages and shortchange our students. We must do better.

 

For more on education politics and policy in Tennessee, follow @TNEdReport


 

 

 

 

Teacher Shortage Hits Tennessee Cities

Chalkbeat reports on the state’s big cities missing a significant number of teachers at the start of the school year:

About 100 Shelby County Schools classrooms still lack full-time teachers, Superintendent Dorsey Hopson said Monday, the first day of school, after a tour at Bruce Elementary.

And the problem wasn’t limited to Shelby County:

And it’s not the only district with vacancies left open. Metro Nashville, a slightly smaller district, lists nearly 80 open teaching jobs, and the third-largest district in the state, Knox County, needs more than forty. Across the board, districts are most hurting for special education teachers, though there are vacancies in nearly every subject.

The shortage noted in the big districts tracks information reported at TNEdReport back in 2014:

Since 2009, Tennessee has identified shortages in the overall numbers of K-12 teachers needed for public schools as well as teachers for specific subjects. There is a critical need in the state for STEM teachers, as well as shortages in high school English, social studies, world languages, Pre-K through high school special education, and English as a second language.

While there are many reasons for the shortfall, it’s worth noting that the first days of school set the tone for the entire year. So much so that incoming MNPS Director of Schools Shawn Joseph has said it’s critical that every classroom have a full-time teacher on day one.

UPDATE: MNPS reports that the actual number of unfilled vacancies on Day 1 was 34.5, a better number than they’ve had in recent years.

For more on education politics and policy in Tennessee, follow @TNEdReport


 

 

 

MNPS Unveils New Pay Scale

WSMV reports that MNPS has unveiled its new teacher pay scale:

Metro Schools has unveiled a new pay scale for teachers, which will show as soon as their next paycheck.
The school district says the pay scale will deliver a “significant pay increase” for many teachers.

According to the old scale, teachers with eight years or less of experience were paid $42,082 and teachers with 10 years of experience were paid $44,536.

With the new pay scale, salaries will range between $42,100 and $44,750 for teachers with under 10 years of experience. Teachers with 10 years of experience will earn $47,000.

Here’s a link to the complete pay scale for certified teachers.

A previous analysis found that MNPS lags behind several similar districts in terms of teacher pay.

The upgraded scale shows that teachers with 10 years of experience are now closer to their peers in similar urban districts. However, teachers at the top end of the scale still lag behind their peers in similar districts. Still, the move marks progress and an important investment in the teachers of MNPS.

More on Teacher Pay:

The Importance of Teacher Pay

The Value Proposition for Teachers

You Can’t Buy Groceries with Gratitude

For more on education politics and policy in Tennessee, follow @TNEdReport


 

 

Now 4=3

Readers may remember that last year, after Governor Bill Haslam and the Tennessee General Assembly provided funds equivalent to a four percent increase in the BEP salary allocation, the State Board of Education accepted Commissioner Candice McQueen’s recommendation to increase the state’s salary schedule by two percent.

As McQueen wrote at the time:

We believe this proposal strikes the right balance between maximum flexibility for school districts and the recognized need to improve minimum salaries in the state. For the large majority of districts, the proposal does not result in any mandatory impact as most local salary schedules already exceed the proposed minimums. For these districts, the salary funds must still be used for compensation but no mandatory adjustments to local schedules exist.

This year, Governor Haslam and the General Assembly commendably added another four percent increase to BEP salary funds. The adjustment to the state’s minimum salary schedule, however, is up to the State Board of Education upon recommendation of the Commissioner of Education.

This year’s recommendation was a three percent increase. Today, the State Board of Education adopted that recommendation, making $32,445 the new base salary for Tennessee teachers, effectively the minimum a teacher in the state can earn.

As the State Board of Education notes:

An estimated total of 29  school districts will be required to make
increases to at least one level of their local salary schedule resulting in a specific and earmarked salary expenses.

Admittedly, this year’s increase in funding and the State Board action represent progress.

Last year, I made the following recommendations representing a way to truly improve teacher compensation in our state while supporting local districts:

  • Set the minimum salary for a first-year teacher at $40,000 and create a pay scale with significant raises at 5 years (first year a TN teacher is tenure eligible), 10 years, and 20 years along with reasonable step increases in between
  • Fund the BEP salary component at 75%
  • Adjust the BEP to more accurately account for the number of teachers a district needs
  • Fully fund RTI2 including adding a BEP component for Intervention Specialists
  • Adopt the BEP Review Committee’s recommendations on professional development and mentoring so teachers get the early support and ongoing growth they need

While the General Assembly did pass some BEP reforms this year, more should be done. For example, the new BEP formula freezes funding for the BEP salary component at 70%. Also, an adjustment in the calculation for number of teachers is still needed.

Again, however, this year’s legislative action and today’s State Board of Education action represent measurable progress.

 

For more on education politics and policy in Tennessee, follow @TNEdReport

The Biggest Losers

Grace Tatter over at Chalkbeat has a breakdown of Governor Haslam’s BEP changes. While this year’s budget includes an influx of dollars, it also freezes BEP 2.0.

Tatter explains:

Though the governor’s plan nixes BEP 2.0, it permanently increases the state’s spending on English language learners (funding ELL teachers at a 1:20 student ratio and translators at a 1:200 student ratio), and special education students, technology and teacher pay, especially when it comes to teachers insurance. For years, the state only paid for teachers to have 10 months of health insurance. Last year, the General Assembly mandated that the state provide for 11 months of insurance. Haslam’s proposal this year finally gives teachers’ year-round insurance.

It’s important to note here that districts are already paying for year-round insurance for teachers, now they will receive some funding for it. The state funds teacher insurance at 45% of the projected cost for a district’s BEP-generated teaching positions. Until last year, it funded 45% of this cost for only 10 months, now it will shift to 12 months. It’s also worth noting that every single district in the state hires teachers beyond the BEP-generated number. Typically, around 12-15% more than what the BEP formula generates. Districts cover the full cost of salary and insurance for all teachers hired beyond the BEP number.

If districts only hired the BEP number of teachers, they could reduce local costs, but they’d also likely have some pretty unhappy parents on their hands. So, yes, the Governor’s proposed changes do direct additional funds to districts. But the changes do not address the underlying problem with the BEP. Doing so would cost another $250 to $300 million. That would be the cost of adjusting the ratios by 10-15% for teachers. That’s not to mention nurses, counselors, and other positions. And it doesn’t include capital funding.

The BEP Review Committee has been highlighting these deficiencies for years to no avail.

Additionally, Tatter mentions:

Another carryover from BEP 2.0 is the eventual elimination of a “cost differential factor,” known as CDF, that 16 districts in five counties receive to address a higher cost of living. Reducing the CDF would cut state spending by about $34.7 million. Almost half of that money would have gone to Shelby County Schools and the municipal districts in Shelby County. Other counties that would be impacted are Davidson, Anderson, Williamson and Sullivan.

While BEP 2.0 envisioned elimination of the CDF, it also envisioned the state covering 75% of teacher salaries for BEP-generated teachers. The Haslam changes makes the current 70% permanent.

Here are the districts losing money under the CDF elimination. The CDF is cut in half for the upcoming year and then completely eliminated in 2017-18.

Shelby
             30,873,136
Davidson
             17,570,727
Williamson
             11,073,924
Bartlett
                2,111,966
Collierville
                2,007,525
Germantown
                1,411,972
Franklin SSD
                1,260,978
Arlington
                1,169,503
Millington
                   672,030
Anderson
                   473,867
Oak Ridge
                   320,368
Lakeland
                   243,331
Sullivan
                      78,161
Clinton City
                      72,903
Kingsport
                      54,638
Bristol City
                      30,682
Total
69,425,713

It’s not clear whether these changes will impact the current lawsuits regarding funding adequacy. And the additional funds still don’t address the unfunded RTI mandate.

The ultimate impact of the changes will take a few years to determine. However, without significant structural changes, it is difficult to see this “new BEP” adequately meeting the needs of Tennessee’s schools.

More on the BEP:

Bill Dunn Wrong

They Noticed

Clay County and the Broken BEP

Why is TN 40th?

About BEP 2.0

For more on education politics and policy in Tennessee, follow @TNEdReport

MNPS Budget Invests in Salary, Literacy, and EL.

MNPS recently released their proposed budget for the next school year. The budget shows that MNPS is investing in some very important areas, including teaching pay.

Teacher Salary: All teachers will receive a pay raise, but it will not be the same across the board. The pay raises will be dependent on years of experience. This shows that MNPS is prioritizing experienced teachers in the system. We need to retain our experienced teachers.

The vast majority of funding for employee pay raises will go toward changes in the certificated salary schedule. It is being completely rewritten to correct issues where our teacher pay is below market levels, particularly for teachers with 5-10 years of experience.

All teachers will receive a pay increase, though amounts will not be the same across the board as they have been in years past. The pay increase teachers can expect will depend on their years of experience.

While we are competitive in starting teacher salaries, market data shows we’re not increasing teacher pay quickly enough during the first half of a teacher’s career to be competitive with how similar cities in our region pay more experienced teachers.

The revised certificated salary schedule has not been finalized. We’re in the process of seeking input from various stakeholders, including MNEA.

Literacy: Literacy scores have been stagnant across the state. We need more support for literacy intervention in Nashville. MNPS has heard the call for more resources and is proposing just that. The proposed budget includes:

  • 48 more Reading Recovery teachers plus 2 additional teacher leaders to assist with training Reading Recovery teachers.
  • 15 part time reading interventionists that will be trained in the Comprehensive Intervention Model and work with elementary students who are two grade levels behind in reading.
  • Expands the literacy coaching partnership with Lipscomb. This expanded partnership will include 14 more schools and allow 16 EL coaches to participate.
  • 4 more reading clinics.
  • 10 summer school sites to work with struggling readers.

Wow. I am so excited for the investment in literacy intervention by MNPS. This is awesome.

English Language: Those working in MNPS know the importance of our EL teachers. Fifteen percent of MNPS students receive direct EL services. This budget proposal includes:

  • 88 more teachers that will “bring EL teacher-student ratios to 1:35. Lowering ratios would help the district meet state compliance, under the allowed maximum of 1:40.”
  • 12 bilingual tutors will be hired for a new program that will focus on refugee students.
  • 2 registrars and 6 part time assessors to help with registering students.
  • Pay raises for parent outreach translators.
  • The addition of mentor teachers and model classrooms. (This is a great addition. My school will see this in our building, and we are very excited to have a teacher model for other schools while also mentoring teachers within the building.)

The budget proposal also adds more community achieves site locations and stipends for teacher leaders.

As a teacher, this is a very exciting budget proposal. Go here to find more information on the budget proposal. This is far from a done deal, but it’s a great start.

What do you think of the proposed budget?


 

Haslam on K-12 Education

Governor Bill Haslam delivered his annual budget address tonight. Here are his remarks on K-12 education as prepared for delivery:

Right now, the spotlight is on Tennessee. Who would have thought a decade ago that Tennessee would have significant positive attention around education? Strategic investments, increased accountability, and higher standards have changed the game.

We’ve always known that post-secondary education was not just about access. It’s really about success. And we knew that our students couldn’t succeed if they weren’t prepared when they left our high schools. It’s why we’ve worked so hard to improve student outcomes in our K-12 schools. And why it’s important that Tennessee students are still the fastest improving students in the country since 2011.

In Tennessee our public schools have roughly 1 million students. Since 2011, 131,000 more students are on grade-level in math and nearly 60,000 more are on grade-level in science. For the third straight year, Tennessee public high school students improved on their ACT. Our graduation rate has increased for the third year in a row and now stands at 88 percent.

We need to stop and take a moment – not to pat ourselves on the back – but to let all of that sink in.

A lot of you in this chamber remember when this state continually ranked near the bottom in national rankings, and you understand the progress Tennessee has made in just a few short years. Think about the teachers who continually rise to the challenges their students might bring through the door every day. Teachers and students are doing more than ever before, and their achievements must be recognized. We’ve raised our expectations and our standards. Through the process approved by the General Assembly last year we are well on the way to having in place our new Tennessee Standards that we spent so much time discussing over the last two years. Teams of educators have been working to review each standard, and their work is being reviewed by other professional educators with input from thousands of Tennesseans. The new standards should be voted on by the Board of Education this April.

While much of the rest of the country is still arguing about what to do on Common Core standards, Tennessee went to work developing our standards that continue to raise the bar of expectations. This is what we do. We respond to a changing world and make sure our students are prepared for tomorrow.

I personally believe that investing in education is the smartest thing we can do for economic development. But I also believe it’s a smart long-term investment. One of the things I want to make certain that we do with this budget is invest money that will save us money down the road. The facts are clear: a more educated population will spend less money on health care. Less money on incarceration. If we’re going to be about anything, it has to be about opportunity for all Tennessee students.

One of the things I think we should be the most proud of is that Tennessee – working together – has been a national leader in investing in K-12 during this administration. Tennessee is in the top 10 for elementary and secondary state education expenditures in the nation. We are also outpacing the national average increase in teacher salaries, and that’s before this year’s investment.

Hear me now, our commitment to education continues in a big way tonight. This budget proposal includes the largest investment in K-12 education in Tennessee’s history without a tax increase. We’re funding the Basic Education Program (BEP) portion of teacher salaries with $105 million. Between the current fiscal year’s $153 million and this year’s proposed $261 million investment in K-12 education, Tennessee state government will invest more than $414 million new dollars in our schools, more than $200 million of those additional dollars for teacher salaries.

We’re also including nearly $30 million for the 12th month of health insurance so teachers are offered year-round insurance through the state. And we’re doubling the state investment for a total of $30 million in recurring state dollars going to technology needs at our schools.

Our TCAP tests this year showed that we are making great progress in math and English in our high schools and that proficiency in math and science is increasing in all grades. However, those same tests showed that we are not making the kind of progress that we would like to see in third through eighth grade reading. Because of that, we’re investing $9 million to create a network of literacy coaches and regional coordinators supporting literacy efforts all across the state. Our students have shown incredible growth, but reading remains a challenging area that we have to get right.

What’s important in all of this is that we’re not investing in the same old public education system in Tennessee. We’ve raised our standards. We’ve linked teacher evaluations to student performance. And we’ve expanded education options for children. We are showing historic progress, and we can’t back up. We are a system that is committed to the basic premise that all children should have access to a quality public education regardless of zip code, and we are shrinking the achievement gap for historically underserved and low-income students. None of us should want to go back to ranking in the 40’s. This state will continue to do what has brought our students success: investing more in education while raising our standards and making certain that how well students are learning is reflected in teacher evaluations. I’m grateful to no longer be in the 40’s, but I’m not satisfied to be in the 30’s.

For more on education politics and policy in Tennessee, follow @TNEdReport

 

Trade Your Pension for Better Pay?

That’s one proposal made by the Nashville Chamber of Commerce in its Report Card on Metro Nashville Public Schools (MNPS).

The idea is that if new teachers forego their pension, they could take the savings in higher pay. The Chamber believes that higher pay would help the district attract teachers and encourage them to stay in the district once hired.

An analysis of teacher pay across similar districts found Nashville to lag behind its peers in terms of both starting pay and lifetime earnings.

While raising teacher pay certainly has merit in terms of both attracting talent and keeping teachers in the system, it’s important to look at the tradeoff between pensions and salaries.

Under the current pension system (recently revised) Tennessee teachers are eligible to retire with full pension benefits after they reach a combined number of 90 in years of service and age. That means a teacher who starts at 22 would need to teach until they are 56 in order to retire with full pension benefits.

At current salary levels, a teacher would sacrifice a pension benefit of around $25,000 per year. Factoring an average life expectancy, a teacher who decided to give up her pension would lose benefits totaling $625,000.

That means to make up the actual dollar value of the pension benefit, teachers would need to make about $18,000 more per year than they do now. Again, this assumes retirement after 34 years.

At current levels, this would move starting pay in MNPS to around $59,000 per year.

Alternatively, the district could make starting pay a bit lower and build in larger raises later. That may have the benefit of encouraging teachers to stay. To be competitive, starting pay should probably be raised to around $50,000. Again, though, if teachers are foregoing a $625,000 potential benefit, raises should be built-in to ensure they can earn that benefit over the course of their service.

While the Chamber may be correct that younger teachers are not necessarily as concerned with pensions as those in the past, it should be made clear that giving up a pension is a big financial sacrifice in the long-term. If such an idea is pursued, teachers should certainly be compensated at a level that makes up for that sacrifice over time.

For more on education politics and policy in Tennessee, follow @TNEdReport

 

It’s Raining Money, But Not on Schools

Tom Humphrey reports on the most recent budget projections which predict a surplus of between $300-$400 million for the fiscal year ending June 30, 2016.

This money, combined with the $600 million surplus from the fiscal year which ended on June 30, 2015, means the state will have about $1 billion in unanticipated, uncommitted revenue.

On top of that, economists are projecting growth in the $400-$500 million range for the upcoming budget year.

As Humphrey notes, proposals are floating so spend the surplus on road projects or tax cuts or both.

What’s not being mentioned?

Schools.

Despite a pair of lawsuits contending the state’s school funding formula, the BEP, is inadequate, lawmakers and the Governor are not rushing to suggest significant new investments in Tennessee schools.

This in spite of the fact that after a one year bounce on NAEP results, our state is now holding flat. Maybe that’s because Senate Education Committee Chair Dolores Gresham is suggesting our state aspire toward “mediocrity” while holding a forum on disastrous (and expensive) school voucher schemes.

If the state invested half of the available surplus on the BEP formula, that would be a $500 million injection of funds to local schools. That would be a sure way to hold down local property tax increases while also beefing up the resources school systems have to provide an education. The revenue projections for the 2016-17 fiscal year indicate an investment of this magnitude is sustainable. And, by holding a portion of the surplus in reserve, the state could ensure against any unanticipated shortfalls.

All of that would still leave $200-$300 million available to spend on one-time costs like road projects.

Will Tennessee put its foot on the accelerator and invest in schools so our students have the resources they need to compete with the rest of the country? Will Bill Haslam use the surplus and projected new revenue to truly make Tennessee the fastest improving state in the nation in teacher pay?

The General Assembly will have answers to these questions starting in January.

For more on education politics and policy in Tennessee, follow @TNEdReport