Haslam Really Wants to Raise Teacher Pay

But he probably won’t.

Not in 2015, anyway.

Just yesterday, the Tennessee Education Association called on Haslam to deliver on his teacher pay promise.

But Haslam says the state is out of money and can’t possibly be raising anyone’s pay.

Back in October, Haslam said paying teachers more, “might be a good idea.”

But again, the issue comes back to where to find the money.

Why isn’t there any money?

Here’s an excerpt from an article I wrote back in April:

Where’d the Money Go? Governor Haslam blames the $160 million hole in the budget on lower than expected corporate taxes.  However, no mention is made of the $46 million in lost revenue from a 1/2 cent decrease in the state portion of the sales tax on food.  While removing or reducing the sales tax on food is a laudable goal, doing so without finding revenue to replace it is irresponsible.  The sales tax on food is the most reliable portion of state revenue. Additional revenue is lost by the gradual phase out of Tennessee’s estate tax, previously impacting estates over $1 million.  The plan is to phase that out entirely by 2016, with an estimated revenue loss of around $30 million this year and around $97 million in 2016-17′s budget. So, that’s roughly $76 million, or close to half of the projected shortfall for the upcoming budget cycle. To his credit, Haslam says he wants to hold off on efforts to repeal the Hall tax on investment income – a tax paid by a small number of wealthy Tennesseans with investment income.  However, he has also said reducing or eliminating the Hall tax is a goal. Phasing out the tax, as proposed in legislation under consideration this year at the General Assembly, would mean a loss of $20 million in the 2015-16 budget year and an ultimate loss in state funds of $160 million a year and in local revenue of $86 million a year.

The interesting thing is, overall revenue collection is UP in Tennessee for the first three months of FY2015.

Yes, collections for certain corporate taxes contiue to fall, but despite this, overall revenue keeps going up.

Here’s the breakdown based on reports from the Department of Revenue:

Month          Overall Increase               Sales Tax Increase

July                 2.4%                                          3.1%

August         3.7%                                            6.7%

Sept.            7.4%                                            5.3%

Oct.              5.7%                                           7.3%

 

So, net revenue is up before any tax loopholes that are allowing business tax revenue to escape are closed.

If that trend continues, it would seem difficult for Haslam to keep making the argument that there’s just no money available to invest in schools.

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

 

 

Shelby County Schools Seek More State Funding

The Commercial Appeal reports that the Shelby County School Board has passed a resolution asking the state to properly fund public schools through the state’s BEP funding formula.

The board is asking the state to pay $10,000 more toward teacher salaries and fund 12 months of insurance premiums for district staff, instead of 10. The requests are also the top recommendations from the state Basic Education review committee from last year.

If the two requests were funded, SCS would receive $99.5 million in state funding, enough to give teachers the biggest raise they’ve had in years, while also offsetting the cost of monthly insurance premiums. The cost for the year now is spread over 10 months.

For more than two decades, the state has paid health insurance on a 10-month basis. Last year, the cost to cover 12 months was estimated at $60.4 million. This year’s estimate is $64 million.

In 2007, the state attempted to address the BEP funding shortfall by passing BEP 2.0, but that program has never been fully-funded.

Tennessee consistently ranks at or near the bottom of the country in terms of per pupil spending. Additionally, Tennessee’s teacher salaries consistently grow at a pace below the national average.

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

 

Haslam: Paying Teachers More “Might Be a Good Idea”

Roughly a year after Governor Bill Haslam promised to make Tennessee the fastest-improving state in teacher pay, he now seems uncertain about the idea. In a recent story in the Tennessean about a conflict between legislative Democrats and Haslam on Pre-K expansion, Haslam said:

“The key is like everything else: ‘Should we do Pre-k?’ ‘It might be a good idea.’ ‘Should we pay teachers more?’ ‘It might be a good idea.’ I could keep going with that list. It’s more a question of, given the reality of a limited budget that we have and are always going to have, should that be a priority for funding?”

This certainly doesn’t sound like a leader who is planning to move forward on improving teacher pay anytime soon. This in spite of early indicators that doing so may well be fiscally viable.

 

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

MNPS Defers Plan to Pay Teachers Based on Test Scores

Joey Garrison has the story on MNPS deferring previously stated plans to base future pay raises for teachers on test scores and the TEAM evaluation model.

District officials suggest they need more time to determine how best to incorporate the TEAM evaluations into a pay plan for teachers.  TEAM includes both TVAAS scores and teacher observations to create a 1-5 ranking for teachers (1 being the lowest ranking, 5 the highest).

Some have suggested teacher resistance to the proposal played a role in the delay, but MNPS says they simply want to take the time needed to develop the best plan.

MNPS also offered no timeline for revisiting the TEAM-based portion of the pay plan.

For now, there’s more work to be done to devise a pay plan that meets new state requirements.

The MNPS decision may foreshadow similar action by other districts as teachers express concerns about pay being tied to student test scores, especially TVAAS data.