100% for Charters, 4% for Teachers

Last year, Governor Bill Lee doubled the charter school slush fund while only offering a pittance to public school teachers. This year, he’s pulling a similar trick, again doubling the charter school slush fund — from $12 million to $24 million — while offering teachers a paltry 4% increase in the BEP salary number (which means an actual raise of about 2%).

Lee’s 2020-21 budget includes $24 million in funding for charter school facilities. This is a 100% improvement over the 2019-2020 budget. Simultaneously, Lee is touting a 4% increase in BEP funding for teacher salaries. This means an actual raise of less than 2% for most teachers. Even if you assume a net gain of 4%, you get a 70 cent an hour raise.

Let’s be clear: Governor Lee prioritizes charter schools over Tennessee’s public school teachers. His last two budgets make that plain.

It’s also worth noting that Lee has made NO effort to improve BEP funding even as the state’s own Department of Education indicates we are 9000 teachers short of proper funding:


In Tennessee, classroom size requirements have forced districts to hire more than 9,000 teachers beyond what the BEP provides to pay for their salaries, according to a statewide analysis presented by the Department of Education in December to the BEP Review Committee.

So, we’re at a minimum of $500 million short of properly funding our schools and Lee’s proposal is to give the teachers we have a 2% raise. No word on improving the BEP. No word on a significant salary boost for existing teachers. Just 2% for teachers (4% in BEP funds), and another 100% increase for charter schools.

Could Gov. Lee’s priorities be more clear?

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Faison Pushing for Teacher Pay Raise

House Republican Caucus Chair Jeremy Faison of Cosby has indicated he’ll be pushing for a significant pay raise for Tennessee teachers when the legislature reconvenes in 2020. WJHL has more:


“Our teachers are some of the hardest-worked people in Tennessee and I definitely see a raise coming in,” says House Republican Caucus Chair Jeremy Faison who was voted into the leadership position this past August.


Few doubt the K-12 teachers’ low pay compared to other states, but Representative Faison says the issue is especially acute in those districts away from urban areas.


“Our teachers in rural Tennessee are struggling,” said Faison in a recent interview. “If you are a single parent and you are a teacher and you have two kids, that’s like poverty wages.”

A recent analysis indicates that over the last 10 years, Tennessee has seen inflation-adjusted revenue growth of 7%. Over that same time period, teacher pay is down by 2.6%. That’s not surprising, given that Tennessee receives an “F” on a rating of funding effort for schools according to the Education Law Center.

In fact, Think Tennessee highlighted two important numbers relative to school funding in our state:

So, we’ve got some work to do — both in teacher pay and in overall investment in schools.

Back in 2014, I wrote about the state’s broken school funding formula, the BEP. The fact is, it’s still broken today. The solution propose then would also work now:


There’s an easy fix to this and it has been contemplated by at least one large school system in the state. That fix? Moving the BEP instructional component to the state average. Doing so would cost just over $500 million. So, it’s actually NOT that easy. Another goal of those seeking greater equity is moving the BEP instructional match from 70% to 75%, essentially fulfilling the promise of BEP 2.0. Doing so would cost at least $150 million.

The state should absolutely make a significant investment in teacher pay in 2020. We can afford it, with billions of dollars in surpluses coming in over the last five years. Frankly, we can’t afford NOT to do it. Ignoring the problem will just further exacerbate a growing teacher shortage.


For the past five years Tennessee has been running huge revenue surpluses as education needs go unmet. Over this five-year span the state collected nearly $3 billion more in general fund revenue than it anticipated. Last year alone the state general fund had a $580 million surplus. These are millions that could have gone to classrooms. 

Combining an improvement in teacher pay at a level of 5% or more with a move toward full funding of BEP 2.0 (a cost of some $500 million) would go a long way toward giving Tennessee teachers both the pay and resources they need. We have the money. The only question is will lawmakers like Faison find the collective political will to make the investment.

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Buildings Matter

While Governor Bill Lee’s administration distributes money to charter schools by way of a capital slush fund, schools in Shelby County and across the state are struggling to maintain infrastructure. More on the current challenges in Shelby County from Chalkbeat:

This week, when temperatures in Memphis dipped to an unseasonably chilly 20 degrees, his first two classes had no heat. The problem was partially caused by a gas leak that led to an early dismissal Tuesday, but Scott said cold classrooms are common. Walking into a classroom with no heat, “I could feel this fresh coldness like a window had been opened.”

Building conditions impact student outcomes

Studies have shown that conditions such as cold classrooms can affect student learning. One study found that poor building conditions can lead to higher rates of frequent student absences. Another found that students in deteriorating buildings score 5 to 17 points lower on standardized tests than students in newer facilities. Several studies, including two in Tennessee, show that students learn more when they are in newer facilities.

The report on infrastructure challenges in Shelby County comes on the heels of another report about lead in water at schools across Tennessee.

It’s absolutely clear that the State of Tennessee needs to make significant investments in our schools. It’s also clear that legislative leaders and Governor Lee have shown zero interest in making that happen. Instead, the Plaid Privatizer seems content to push an agenda of disruption while promoting charter schools and voucher schemes.

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Charter Schools, William Lamberth, and Math

I’ve written recently about Governor Bill Lee’s Charter School Slush Fund and how the funds are beginning to be distributed across the state. This money is dedicated to capital improvements and is available exclusively to charter schools, many of which not only receive BEP funds from local districts but also benefit from support from private funders.

Interestingly, House Majority Leader William Lamberth has been a proponent of capital investment funds for fast-growing districts like Sumner County, where he lives. He’s even sponsored legislation that would provide a mechanism for these districts to access funds. The legislation has failed to advance because of a price tag of just over $18 million.

So, if Lamberth is really focused on securing state funds for capital investment in the district he represents, he COULD suggest that Sumner County convert all of its schools to charter schools. That way, they could access the Charter School Slush Fund.

Based on current enrollment numbers, the Charter School Slush Fund provides roughly $285 per student for charter schools. If every single school in Sumner County became a charter school, the district could access over $8 million in capital funding from the state.

State law specifically authorizes local districts to convert existing schools to charters. TCA 49-13-106 provides:

(g)  A public charter school may be formed by creating a new school or converting a school to charter status pursuant to this chapter.


(3)  An existing public school may convert to a public charter school pursuant to this chapter if the parents of at least sixty percent (60%) of the children enrolled in the school, or at least sixty percent (60%) of the teachers assigned to the school, support the conversion and demonstrate such support by signing a petition seeking conversion, and if the LEA approves the application for conversion. The percentage of parents signing a petition must be calculated on the basis of one (1) vote for each child enrolled in the school.

So, instead of Lamberth running his capital improvement bill next session, he could simply ask the Sumner County School Board to convert their schools to charters. That way, they’d be sure to be on Governor Bill Lee’s radar AND they could access monies from the Charter School Slush Fund.

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Revenue Up, Teacher Pay Down

Economic analysts are predicting a slowing of the growth that has driven the Tennessee economy in recent years, according to an article in the Tennessean. Those same analysts indicate tax revenue growth in the state over the past 10 years has been 7% when adjusted for inflation. Here’s more:

Most of Tennessee’s cities have reaped the benefits during this longest economic boom in history with double-digit jumps in employment and gross domestic product. 

However, Tennessee tax collections have only increased 7% in the past decade, when adjusted for inflation. 

“That’s not a lot of growth,” said William Fox, director of the Boyd Center for Business and Economic Research at the University of Tennessee, Knoxville. “Revenue growth would have been stronger, but we had a number of policy decisions to reduce revenues.”

An analysis provided by the Tennessee Education Association (TEA) indicates that average teacher pay in the state is actually down by 2.6% over the same time period when adjusted for inflation.

TEA also notes:

For the past five years Tennessee has been running huge revenue surpluses as education needs go unmet. Over this five-year span the state collected nearly $3 billion more in general fund revenue than it anticipated. Last year alone the state general fund had a $580 million surplus. These are millions that could have gone to classrooms. 

Not only is Tennessee bringing in more revenue than anticipated but also, as Fox notes, the state has used that good fortune to reduce future revenue. In fact, the state of Tennessee phased-out the inheritance tax (previously paid on estates worth $5 million or more) and is phasing out the Hall Income Tax on investment income. Here’s more on that from the Department of Revenue:

The Hall income tax is being phased out through December 31, 2020.  The tax is fully repealed beginning January 1, 2021.  See important notice 17-09 for more information.

Some estimates indicate completely eliminating the Hall Income Tax means foregoing $180 million in state revenue each year. That’s roughly the equivalent of foregoing a 7% raise in teacher pay each year.

So, let’s be clear about a few things: 1) State lawmakers prioritized tax cuts for wealthy Tennesseans over raising pay for teachers and 2) Even with these tax cuts, there is significant money available to fund teacher raises and 3) Now that the economy is slowing a bit, legislators are being encouraged to exercise caution — which likely means less money to invest in teacher pay and other public service needs.

Shorter: Tennessee policymakers have not made investing in teachers a priority.

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F

That’s the grade Tennessee gets from the Education Law Center’s latest report on school funding in the United States. To be clear, Tennessee earned an F in both funding level and funding effort. We earned a C in distribution of the paltry sum our state dedicates to schools.

Here’s how Education Law Center defines those terms:

  • Funding Level – the cost-adjusted, per-pupil revenue from state and local sources
  • Funding Distribution – the extent to which additional funds are distributed to school districts with high levels of student poverty
  • Funding Effort – the level of investment in K-12 public education as a percentage of state wealth (GDP) allocated to maintain and support the state school system

The report notes that Tennessee is 43rd in the nation in overall funding level and 47th in effort. The effort category is of particular interest because it indicates that Tennessee has significant room for improvement in terms of funding level. That is, there are untapped resources Tennessee is NOT using to fund schools.

Shorter: Funding schools is NOT a key policy priority in Tennessee.

Additional evidence for this can be found in graphics shared by Think Tennessee earlier this year:

Tennessee is (and has been) at or near the bottom in school funding and even in funding effort. That’s not changing. Instead, Governor Lee and his policy acolytes are diverting education dollars to voucher schemes and charter schools.

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Briley and MNEA on Teacher Pay

Dueling statements were released today from Mayor David Briley and the Metro Nashville Education Association on a move to boost teacher pay in Nashville.

First, from Mayor Briley:

Mayor David Briley announced today that all MNPS teachers and employees will receive another 3 percent cost-of-living adjustment (COLA) on January 1, 2020, in addition to the 3 percent COLA the Mayor made possible by allocating nearly $30 million in new funding for schools for FY2020. This allocation was six times the allocation in the last budget.

For weeks, the mayor has been working to find ways to get teachers more money this year while avoiding a tax increase. Thanks to MDHA’s help and the work done by the Council’s Tax Increment Financing Study and Formulating Committee, Mayor Briley is able to free up $7.5 million that would have been paid out of the MNPS budget to repay TIF loans. These funds are recurring, so the raise is “paid for” moving forward. This move does not require Council action since it will simply result in a reduced expenditure for MNPS.

This will bring all teachers to a 6% raise on January 1, 2020, which equates to a 4.5% increase over the course of the year. This is .5% higher than the COLA increase in the proposed substitute budgets that would have raised property taxes.

“I have been working on the MNPS budget with Dr. Battle and Dr. Gentry, trying to find the best possible way to get recurring dollars to teachers while not penalizing the 40% of MNPS teachers who are “topped out” and while avoiding a property tax increase this year – something that would have hurt in-county teachers more than the proposed raises would have helped,” Mayor Briley said. “With this increase in place, we will continue our in-depth talks about comprehensive pay plan restructuring for teachers so the more than half of all teachers who are topped out of receiving meaningful increases will get them in future years. There’s work to be done, but this is an important first step.”

This plan has the support of MNPS School Board Chair Dr. Sharon Gentry and MNPS Director Dr. Adrienne Battle.

“Mayor Briley’s investment shows a deep commitment to our teachers and staff members, and we thank him for his leadership and support for public education,” Dr. Battle said. “When Mayor Briley saw an opportunity for supplemental revenue, he ensured that it was dedicated to funding a raise for staff members, which is in addition to the raise they are receiving at the start of the year. We are only as successful as our amazing staff, and the Mayor’s actions show how he values them. Our goal is that these resources also ensure that we are able to maintain funding for other new strategic investments. MNPS is thankful to partner with the Mayor and Metro Council who are dedicated to the success of our students and staff.”

The $7.5 million will come to schools in the form of a reduction in the $11.2 million they would otherwise have paid to MDHA for TIF loan repayments this year. In short, it cuts that bill by $7.5 million, freeing up those funds for raises. MNPS will continue to pay what it is required to pay MDHA each year.

“I am grateful to Dr. Adrienne Battle, the MNPS Board, MDHA and the members of the TIF Study and Formulating Committee, whose hard work and support made this additional COLA possible,” Mayor Briley continued. “I plan to keep at it, and I know we have more great things to come for all students and teachers in our schools.”

A response from MNEA:

Today, the Metropolitan Nashville Board of Education received a sudden offer of $7.5 million in additional funding from Mayor Briley in the form of an adjustment to $11.2 million previously slated to be diverted from Metro Schools to fund tax increment finance (TIF) debt. While teachers and schools welcome additional funding for our cash-strapped public schools, the method by which this “plan” was developed smells of political intrigue, vote buying, and extortion. Briley’s letter to the board of education intentionally leaves ambiguous the question of whether the $7.5 decrease in TIF funding will extend beyond 2019-2020.

Unfortunately, the Briley plan comes with a demand that the board not fund teachers’ step raises but use his approach to adjust salaries. If Mayor Briley truly wanted to help schools, he should have supported the Vercher amendment rather than threaten a veto designed to hamstring the Metro Council. His games unnecessarily exposed certain brave, schoolsupporting council members to unnecessary risk of criticism by voters on the right and forced other council members to betray organized labor and our schools.

At the end of the 2017-2018 fiscal year, MNPS was compelled to transfer $3.5 million dollars to MDHA to meet increased TIF obligations to MDHA based on tax collections in excess of budgeted projections. In the 2018-2019 budget TIF transfers were budgeted to increase, but MNPS was not required to pay the complete amount. Today, Mayor Briley admitted TIF loan obligations have been overstated, and there is no need to extract additional tax revenue from our schools in 2019-2020. Nashville’s chronically-underfunded schools deserve deliberate, honest funding streams that do not rely on selling assets or require refinancing schemes that ultimate cost more money to our tax payers. No one should mistake Briley’s newest shell game as a magnanimous gesture to support teachers or schools. See it as vote grab!

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TEA on State of the State

Tennessee Education Association President Beth Brown offered these remarks in response to Governor Bill Lee’s State of the State:

“The Tennessee Education Association is pleased to hear Gov. Bill Lee intends to build on the substantial investments made in recent years to increase state funding of our great public schools. TEA supports his commitment to increasing career technical education programs, STEM initiatives and teacher salaries.

The teacher salary funding is substantial at $71 million, making it approximately a 2.5 percent increase. The key will be to ensure that money actually ends up in teacher paychecks. Additionally, if the $25 million going to vouchers and the $12 million earmarked for privately owned charter buildings were redirected to teacher salaries, the state could keep up with the cost of inflation and reimburse teachers for the hundreds of dollars they spend on classroom supplies.  

We have concerns about Lee’s proposal to increase funding for charter schools and pave the way for rapid charter school expansion. Charter schools are proven to destabilize public school budgets and damage existing classrooms where there is rapid expansion. Charter schools need to be a local decision, because local taxpayers bear a majority of the costs. The Tennessee Constitution clearly states that we have a responsibility to provide a quality public education for every student in Tennessee. Improving public schools requires more money, not less, to provide a well-rounded education for students.   

TEA also has deep concerns about massive funding for Education Savings Accounts, which are vouchers with less accountability that are more susceptible to fraud and abuse. In a time when teachers across the state have to dig deep into their pockets for needed classroom supplies, it is discouraging to see funding going to something proven to harm students in other states. Let’s support Tennessee students and teachers by directing taxpayer dollars to our public school classrooms, not vouchers that harm student achievement.     

There are many proven ways to improve public schools, such as reducing class sizes so educators can spend more one-on-one time helping students. We should invest in what we know works, including recruiting and retaining qualified and committed educators, creating inviting classrooms, supplying students with modern textbooks, and providing the other resources that can set all students off toward a great future. That’s how taxpayer funds should be spent.  

I believe we have common ground with the governor around the state TNReady assessment. While we welcome his commitment to ensuring students and educators do not experience the system failures of years past, it is important to recognize that even in a year where there are no issues administering the test, standardized test scores of a test like TNReady are not valid measures of student achievement, teacher effectiveness or school performance.

Students and teachers benefit most when tests are used as diagnostic tools to identify where students may be struggling and need extra instruction. The high-stakes TNReady system we have in place does not equip educators to diagnose and teach. TEA wants to see educators involved in the design and implementation of accountability alternatives, including a proper pre-test/post-test system, creative use of benchmark testing, and other accurate gauges to ensure student progress. TEA members statewide are committed to working with Gov. Lee’s administration and the General Assembly to advocate for legislation that is in the best interest of all Tennessee children.”

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PET on State of the State

JC Bowman, executive director of Professional Educators of Tennessee, offered these comments in response to Governor Bill Lee’s State of the State:

Governor Bill Lee gave his first state of the state speech on Monday, March 4, 2019, from our state Capitol in Nashville, Tennessee. A highly anticipated address, it focused heavily on education issues including career and technical education initiatives, increased funding for school safety programs, and expansion of various school choice initiatives.

Since the beginning of his campaign, one of Governor Lee’s biggest priorities has been workforce development through expanding and strengthening career and technical education programs. As expected, he spoke more in-depth about his proposed Governor’s Investment in Vocational Education Initiative (GIVE) and how it fits into his administration’s proposed budget. Governor Lee sees this as an opportunity to help students develop the practical skills that help them perform in project-based environments, learn to work with others, and grow the discipline needed for success in a competitive workplace. It facilitates new partnerships between industry and our schools, and a more concrete connection between labor and education, which is a direction that the federal government has taken the past few years. The state will also expand and improve offerings in STEM, and CTE is a major priority. We applaud those investments in education.

TEACHER COMPENSATION
We are pleased that Governor Lee is fully funding the Basic Education Program and recommending $71 million for a well-deserved 2.5% pay raise for teachers. Compensation is the key to recruitment and retention of our educators. Our teacher compensation model needs to be competitive nationally. There is currently pending legislation from the administration that would require school districts to report to the department of education and the BEP review committee how they have implemented increased funding from the state for instructional wages and salaries, intended by legislators for teacher raises. This is a positive development. Governor Lee is sending a message to educators that he recognizes and appreciates their efforts and will work to see they are fairly compensated for their efforts.

TESTING
Policymakers and stakeholders have been waiting on a message from the governor about how he plans to improve our assessment system, to ensure that our metrics are empowering and informing, not inhibiting quality instruction, while providing accurate feedback for educators, parents, and students. The Governor talked about the frustration around the administration of the state test, and he has charged the Commissioner with the procurement process. Going forward, he stated that his focus will be on executing a testing regimen that is trustworthy, helpful, and on time. However, he did not address other adjustments to testing, like a pilot project that allowed some districts to use the ACT, ACT Aspire, or SAT Suites as a means of assessment or flexibility in high performing districts to use alternative evaluations.

SCHOOL SAFETY
School safety is also a high priority for the Governor. The proposed School Safety Grant program includes $40 million aimed at addressing the need for an SRO in every school. This includes an increase in current recurring expenditures and a one-time infusion of an additional $20 million. The program will prioritize the approximately 500 schools that do not currently have an SRO. While there is a local match requirement, schools may include the costs of current safety measures in that calculation. For schools who already have SROs, there will be an application process for them to request grant funds for other safety-related initiatives as outlined in the proposed legislation.

“School safety has been a high priority for Professional Educators of Tennessee,” according to the executive director of the organization JC Bowman. The organization conducted a statewide assessment on safety in 2018. Hamilton County Sheriff Jim Hammond and Bowman also conducted a well-publicized School Safety Town Hall in Hamilton County in 2018.

“One of the highest priorities we can have in American society is the safety and protection of children – and the men and women who teach them,” according to Bowman. He added, “we think this is a very positive step in keeping our schools safe and reducing school violence.”

Helping students with mental health issues is another important component of school safety – especially children who have experienced physical abuse, verbal abuse, sexual abuse, physical neglect, and emotional neglect. Professional Educators of Tennessee has advocated for an increase in school counselors, whose work with students in this area of concern is of equal concern as their work helping student prepare to be college and career ready. The TN Department of Education launched a Trauma-Informed Schools initiative last fall to designate schools that have undergone training on how to create a school environment that both helps students and empowers teachers in their daily interactions with students. The program trains adults in the school to recognize and respond to those who have been affected by traumatic stress and includes training on adverse childhood experiences (ACEs). We must make every school a safer place for all of our children.

CHARTER SCHOOLS
If a charter school is effective, then facility dollars may be a good investment. However, if a charter school fails to deliver on its promise of a quality education then the investment is a waste. Public schools are likely to also want to secure facility funding. We look forward to this debate and likely discussion. The state will eventually need to address facility growth in rapidly growing communities.

ED SAVINGS ACCOUNTS
For the most part, school choice is already available to upper-class families through residential mobility. However, low-income and middle-income parents/guardians have been subjected to limited choices for their children. This proposal by the Governor on Education Savings Accounts (ESAs) will allow parents in the most under-performing school districts to use a portion of state education money in a way that fits with what they believe that their children need. ESAs will most certainly be the most problematic piece for the Governor to pass and enact. The Tennessee Education Savings Account will provide approximately $7,300 to eligible, participating students. Eligibility is limited to low-income students in districts with three or more schools ranked in the bottom 10% of schools. This currently includes Metro-Nashville Public Schools, Hamilton County, Knox County, Jackson-Madison County, Shelby County, and the Achievement School District.

“They will likely pose capacity limitations for low socio-economic parents,” noted Executive Director JC Bowman. “By targeting districts that are lower performing, Governor Lee may be able to pass it through the Tennessee General Assembly. Nevertheless, ESAs do not guarantee improved school effectiveness or outcomes, better parental involvement, and certainly no increased systemic investments in public education. A positive to Lee’s ESA plan is that it will invest at least $25 million new dollars in public schools in the first year to fill the gap when a student transfers to another school. However, we have concerns regarding the implementation of the plan as presented, as well as future expansion.”

CONCLUSION
There was much to like in Governor Lee’s State of the State. The debate over ESAs will likely be the most contentious and draw the most debate. A fully funded Basic Education Program (BEP), recommending $71 million and a 2.5% pay raise for teachers is much needed. We had hoped he would address other issues like school finance and discuss the possibilities of a school funding formula to reflect changing 21st century needs. However, in general, we think most Tennesseans will react positively to the speech by Governor Lee. Those on the right will certainly love the attention to civics and character formation, as well as on curriculum in which he pledged to “root out” the influence of Common Core in our state. Those on the left will like increased funding for school safety programs going to SROs. He laid out a fairly ambitious agenda; it is now the Tennessee General Assembly’s turn to vote their opinion.

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

100% for Charters, 2.5% for Teachers

Tonight, Governor Bill Lee outlined his proposed budget for 2019-2020. Lee’s budget doubles the fund for charter school facilities to $12 million. This amounts to a benefit of $342 per student (there are roughly 35,000 Tennessee students in charter schools).

Meanwhile, he announced a meager improvement to teacher salaries of around 2% – $71 million. This amounts to $71 per student.

So, charter schools — which serve only 3.5% of the state’s students — will see a 100% increase in available facility funding from the state while teachers will see only a 2% increase in pay.

If the two investments were equal and funded at the rate granted to charter schools, there would be a $342 million investment in teacher salaries. That’s roughly a 10% raise. A raise that’s desperately needed as Tennessee leads the nation in percentage of teachers with little to no classroom experience. We also have one of the largest teacher wage gaps in the Southeast.

As one Nashville teacher pointed out, Nashville – and the entire state — have a failed business plan:


I’m starting a business and looking for workers. The work is intense, so the workers should be highly skilled. Experience preferred. Starting salary is 40k with the opportunity to get all the way to 65k after 25 years of staying in the same position. See how dumb that sounds?

Now, those are numbers for Nashville. Some teachers around the state have to teach for 10 years before they even hit $40,000. Still, the point is clear: The value proposition for teachers in our state is not very good. Unfortunately, Governor Lee’s first budget is not doing much to change that. It’s the status quo. A nominal increase that will likely not entirely make it into teacher paychecks.

Tennessee’s numbers when it comes to both investment in schools and educational attainment are disappointing. Continuing along the same path means we’ll keep getting the same results.

The bottom line: Money matters.

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