How Much for Schools?

Tennessee continues to experience revenue growth beyond budgeted estimates. The latest numbers indicate the state took in $112 million more than was budgeted for June. That brings the amount collected over budgeted estimates to $789 million with one more month left to calculate for the fiscal year.

Meanwhile, in spite of recent increases in allocation to teacher compensation, school systems still aren’t seeing adequate BEP funding. Every district in the state hires more teachers than allocated by the BEP formula. The state doesn’t provide any funding for the mandate of providing Response to Intervention. The state’s BEP Review Committee indicates providing funding for RTI positions would cost about $28 million. That’s about 25% of this month’s surplus. YES, for the cost of 1/4 of one month’s surplus revenue, we can begin providing funding for RTI positions. Districts should be demanding this money. The state can afford it.

As for teacher compensation, the state pays 70% of the BEP calculated rate — which is now $46,225. The good news: That calculated rate has been increasing in recent years. The bad news: That rate is still $7000 LESS than the average teacher compensation paid by districts in the state.

What does this mean? It means districts have to make up a big difference in order to maintain their level of pay. As one example, Nashville is struggling to pay teachers on par with similar cities nationally. Based on current BEP formula allocations, funding teaching positions at the actual average rate would mean MNPS would receive an additional $21 million for teacher compensation. Those funds would certainly help close the pay gap that plagues the system.

It’s worth noting that Tennessee has one of the largest gaps between teacher salaries and salaries of similarly-educated professions. Add to that the low reimbursement rate for teaching positions, and it’s not difficult to see why our teacher pay lags behind other cities and states.

To recap: Tennessee pays 70% of a pay rate that is $7000 below the actual cost of hiring a teacher. Fixing that by funding teaching positions at the actual cost would mean spending $343 million more per year. Or, about three months worth of surpluses. For another $28 million, we could also fund RTI positions.

Tennessee is on sound financial footing. We have month after month of budget surpluses. We also have a clearly identified policy need that would consume less than 40% of those surplus dollars. That leaves plenty of money for savings, other investments, or new projects.

I write this story year after year after year.

Policymakers can choose to address the serious funding challenges facing our schools. They can do it without raising taxes. They can do it while still saving more than $600 million.

This should be easy.

If providing excellent public schools is a top priority, the state will move to fund teaching positions at a rate that matches the actual cost of hiring a teacher.

Every candidate for governor should be asked if they support making this investment. Their answer will say a lot about the priority they place on public education.

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