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


 

 

 

 

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

BEP. BEP 2.0. BEP 1.5?

Following a lawsuit filed by rural schools in Tennessee dubbed Small Schools, the Tennessee Supreme Court ruled the state’s funding of public schools was unconstitutional. They ordered the General Assembly to come up with a more equitable way to distribute education funding. The result was the Basic Education Plan (BEP) which both equalized state funding to schools and injected $1 billion into the state’s schools over six years.

While Rep. Bill Dunn says that money didn’t improve schools, a generation of students in rural schools who experienced expanded educational opportunities likely disagree.

Subsequent lawsuits (Small Schools II and III) resulted in additional changes, including a salary equity fund for rural districts.

Then, in 2007, with bipartisan support, Governor Phil Bredesen secured passage of BEP 2.0 and began with an injection of more than $200 million in new dollars to schools.

2008 brought the Great Recession and prevented further investment in BEP 2.0, but the state’s BEP Review Committee has consistently recommended full funding of the newer formula, which would provide more funds to nearly all districts while leveling the playing field for those educating more “at-risk” students.

Enter Governor Bill Haslam. He appointed his own BEP Task Force independent of the statutorily mandated BEP Review Committee. At the time, I speculated this was because he didn’t like the Review Committee’s recommendations and its insistence that the state was at least $500 million behind where it should be in education funding.

Now, he’s proposing a “BEP Enhancement Act.” This so-called enhancement is sailing through the General Assembly. It is seen as the most likely vehicle to get money to rural districts and in a year when education funds are increasing, why sweat the details?

As I’ve written before, a few districts lose significantly in the move because it eliminates the Cost Differential Factor (CDF).

It also freezes BEP 2.o. Gone are the dreams of full funding of this formula. The law makes permanent the 70% state funding of BEP-generated teaching positions and funds teacher salaries at a rate well below the state average salary.

Back in 2014, I wrote about the broken BEP and the need to improve it and noted:

First, nearly every district in the state hires more teachers than the BEP formula generates. This is because students don’t arrive in neatly packaged groups of 20 or 25, and because districts choose to enhance their curriculum with AP courses, foreign language, physical education, and other programs. This add-ons are not fully contemplated by the BEP.

Next, the state sets the instructional component for teacher salary at $40,447. The average salary actually paid to Tennessee teachers is $50,355.  That’s slightly below the Southeastern average and lower than six of the eight states bordering Tennessee. In short, an average salary any lower would not even approach competitiveness with our neighbors.

But, this gets to the reason why salary disparity is growing among districts. The state funds 70% of the BEP instructional component. That means the state sends districts $28,333.90 per BEP-generated teacher. But districts pay an average of $50,355 per teacher they employ. That’s a $22,000 disparity. In other words, instead of paying 70% of a district’s basic instructional costs, the state is paying 56%.

Even with the upward adjustment of state money for teacher salaries, the state won’t be anywhere close to funding 70% of the actual cost of Tennessee teachers. Don’t even think about reaching the 75% goal imagined by BEP 2.0.

Nashville School Board Member Will Pinkston, who worked for Governor Phil Bredesen during the development of BEP 2.0 had this to say of Haslam’s proposed changes:

“With this proposed ‘BEP 1.5,’ Gov. Haslam is taking a huge step backward when it comes to public education funding. In 2007, Gov. Bredesen and the General Assembly made a significant commitment to K-12 schools by proposing and approving a new formula that now is universally recognized for its equitable approach to distributing public education dollars. At the time, Gov. Bredesen cautioned that new revenue generated by a tripling in the tobacco tax would be only a ‘downpayment’ toward fully funding the new formula. Then the Great Recession happened, and then a political transition occurred in the governor’s office. Those of us who care about education funding were hopeful that Gov. Haslam would continue the Bredesen legacy of investing significant new dollars in public education as the economy turned around. Instead, he’s given only lip service to education funding and has, at best, just shifted dollars around to give the appearance of increased funding. The reality is: The legislature, by its own admission, has acknowledged that public education in Tennessee is getting short-shrifted by the state to the tune of at least $500 million. And that means the real number is likely closer to $1 billion or more. By proposing a halt in the implementation of BEP 2.0, the governor is essentially proposing a massive funding cut. If he claims to truly understand the plight of public education funding, he should abandon BEP 1.5 and recommit to fully funding BEP 2.0. To do anything less would be breaking the state’s promise.”

That’s a pretty strong critique. But it’s not difficult to see why education advocates should have concern about the long-term impacts of Haslam’s BEP 1.5 effort.

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