The Teacher Wage Gap Persists

Economic Policy Institute is out with a survey of teacher compensation relative to other, similarly educated professionals. The news continues to be bad for teachers nationally. Teachers earn roughly 20% less than comparably educated professionals on average. In Tennessee, that number is 21.4%.

Notes: Figure reports state-specific regression-adjusted teacher weekly wage penalties: how much less, in percentage terms, elementary, middle, and secondary public school teachers earn in weekly wages than their college-educated, nonteaching peers.
See Allegretto and Mishel 2019, especially Appendix A, for more details.
Source: Authors’ analysis of pooled 2014–2019 Current Population Survey Outgoing Rotation Group data accessed via EPI Current Population Survey Extracts, Version 1.0.2 (EPI 2020).

That’s not good news. Especially in light of a worsening teacher shortage crisis.

It’s especially bad news in light of TISA – Gov. Bill Lee’s new school funding formula. While Lee and his allies would have you believe otherwise, TISA does nothing to significantly invest in teachers. There’s no significant adjustment to teacher minimum salaries and nothing in TISA directly results in hiring more teachers. This is disappointing since a state review suggests districts hire a total of 7000+ more teachers than the state funds.

Here’s more on the TISA reality:

Here’s more from EPI on what the teacher wage gap means in states across the country:

The teacher wage penalty has grown substantially since the mid-1990s. The teacher wage penalty is how much less, in percentage terms, public school teachers are paid in weekly wages relative to other college-educated workers (after accounting for factors known to affect earnings such as education, experience, and state residence). The regression-adjusted teaching wage penalty was 6.0% in 1996. In 2019, the penalty was 19.2%, reflecting a 2.8 percentage-point improvement compared with a penalty of 22.0% a year earlier.

The wage premium that women teachers experienced in the 1960s and 1970s has been replaced by a significant wage penalty. As noted in our previous research, women teachers enjoyed a 14.7% wage premium in 1960, meaning they were paid 14.7% more than comparably educated and experienced women in other occupations. In 2019, women teachers were earning 13.2% less in weekly wages than their nonteaching counterparts were—a 27.9 percentage-point swing over the last six decades.

The benefits advantage of teachers has not been enough to offset the growing wage penalty. The teacher total compensation penalty was 10.2% in 2019 (composed of a 19.2% wage penalty offset by a 9.0% benefits advantage). The bottom line is that the teacher total compensation penalty grew by 7.5 percentage points from 1993 to 2019.

It’s interesting that this problem is not getting significantly better, even as districts across Tennessee and around the country are dealing with both a teacher exodus and a lack of candidates to replace them.

It’s also interesting that even with a relatively stable, secure benefits package, the teacher wage gap continues to expand over time. It should be noted that in Tennessee, teacher pensions were “reformed” in 2014 and teachers hired since then now have a significantly smaller retirement package.

It’s also worth noting here that Tennessee teachers have the lowest pension benefit of any of our neighboring states.

As the study by SREB notes, Tennessee teachers earn about $10,000 less per year in retirement than their neighbors in other Southern states.

TISA could have been a way to change all of that – to vastly improve teacher compensation and make Tennessee a national leader in both pay and support for teachers.

Instead, the one-time raise offered by the plan will amount to about a 2.5% increase this year. Teacher pay in Tennessee will continue to lag behind other states in our region. Teachers here will continue to earn 21% less than their comparably educated peers.

Year after year, policymakers look at a growing problem and then just look away. Even in a year with a massive budget surplus, Tennessee leaders have made a clear statement that investing in teachers is not a priority.

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The South is Low – TN is Lower

The Southern Regional Education Board (SREB) is out with a report on teacher compensation across the region. Not surprisingly, teacher compensation in the South is about 16% below the national average. Of course, Tennessee teacher compensation lags behind even the average in our region. We are low in a region that is low.

Not only is Tennessee behind other states when it comes to compensation, but Tennessee also has the lowest annual pension benefit for retired teachers. So, we pay teachers at a rate that is somewhat below average and in retirement, our teachers earn less than all their counterparts in our neighboring states.

The average pension in Tennessee is $29,000 while in the region it is $39,000.

SREB actually recommends an overhaul of retirement systems to support a more portable retirement plan. That said, it’s not exactly encouraging to teachers when they see both low pay and relatively low benefits.

As SREB notes:

Higher salaries alone can’t address teacher shortages
— but they can help. Many SREB states have work to do to catch
up with regional and national averages.

And as it relates to retirement:

Retirement should pay better. Most professionals don’t stay in one career anymore.
States can save money and help teachers build more retirement savings through optional portable investment plans. States should bring teachers to the table to build new options.

Of course, this news is important as our state faces a growing teacher shortage crisis.

If only our state had a huge budget surplus AND a pending redesign of the school funding formula. It would seem a perfect opportunity to hire more teachers, provide them with excellent compensation, and give them the tools for a secure retirement.

Unfortunately, Gov. Bill Lee’s TISA plan does none of those things.

Here’s how we know this plan won’t boost student achievement. First, it does nothing to shore up the shortage of teachers needed to adequately support students now. That is, according to both TACIR and the Comptroller, Tennessee districts hire MORE teachers (11,000 more, to be exact) than the current formula funds. Guess what? TISA does nothing to change that. There is no indication that the weights will mean more teachers hired and supported by state funding.

Next, TISA does nothing to boost overall teacher pay. Sure, TISA “allows” lawmakers to earmark certain funds to give raises to “existing” teachers, but that doesn’t mean they will. Nor does it mean those raises will be significant. This year’s $125 million set aside for teacher compensation will mean what is effectively a 2-3% raise for most teachers. Based on current inflation rates and rising insurance premiums, this essentially amounts to a pay cut.

When it is time for evaluating organizations to release reports on school funding and teacher compensation, it’s best to start at the bottom of the list if you want to find Tennessee.

Bill Lee has done nothing to change that so far as Governor and his new funding plan continues to leave us as among the lowest of the low.

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1000 Cuts

A Williamson County teacher explains what it is like to be a teacher in Tennessee right now:

https://twitter.com/TheTNHoller/status/1494768171294863362?s=20&t=HdIBTWSPVC6Z8btGFt1UlA

Of course, the legislature is responding in the only way they know how:

This type of attack has been going on for more than a decade now:

Make no mistake. These cuts are intentional. The forces of privatization are using all the tools to erode the teaching profession and set public schools up to fail. The nail in the coffin will likely be a new state funding formula that paves a path for a voucher scheme.

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A Feature, Not a Bug

In his State of the State Address, Gov. Bill Lee had this to say about funds he’s dedicating to teacher compensation:

We should raise teacher pay this year by $125 million, which is a well-deserved increase into the teacher salary pool.

Historically, funds put in the salary pool don’t always make it to deserving teachers. When we say teachers are getting a raise, there should be no bureaucratic workaround to prevent that.

This statement implies that there is some sort of trickery going on at the local level to divert state dollars intended for teacher pay. It’s deflection and blame-shifting. The reality is that the state underfunds teaching positions. By a lot.

In fact, as Lee surely knows, the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) issued a report suggesting the state underfunds schools by $1.7 billion.

That report noted:

 “In fiscal year 2018-19, the BEP funding formula generated a total of 62,888 licensed instructional positions, but school systems employed a total of 69,633 with state and local revenue.”

“Although the changes made in 1992 and since have resulted in substantial increases in funding to support the BEP, meeting local needs and the requirements imposed by the state and federal governments often requires more resources than the BEP funding formula alone provides. Consequently, state and local funding in fiscal year 2017-18 totaled $2.1 billion over and above what was required by the BEP formula, including a total of $1.7 billion in local revenue.”

In other words, Lee knows that adding $125 million to teacher compensation WITHOUT also increasing the total number of positions funded means that money won’t result in a meaningful raise for current teachers. Instead, districts will use the teacher compensation money to fund positions NOT contemplated by the current formula.

So, here’s the real question: Will Lee’s proposed new formula result in the addition of 7,000-10,000 MORE teachers?

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Is it Anything?

Last night, Gov. Bill Lee delivered his State of the State Address and revealed at least some details related to school funding formula reform. Of note is the promise to increase state investment in public schools by $1 billion effective in the 2024 fiscal year and contingent on a new funding formula. This year, teachers will see $125 million in new money for salaries, which equates to a roughly 5% pay raise – or, at least a 5% increase in what is provided to local government for teacher compensation. Effectively, this will result in a salary increase of 2-3%.

$1 billion in new money is long overdue. It’s also about half of what the state needs to adequately fund public schools. Depending on how it is distributed in any new formula, it could amount to little in terms of significant improvement. Then again, it very well could be the start of something positive. Those who watch Tennessee education policy over time (like me) are likely skeptical. As always, the devil is in the details.

In fact, Tennessee Education Association President Beth Brown issued a statement on the proposal:

“Any increase in K12 spending is a step in the right direction. TEA is eager to see more details on the $1 billion in new recurring spending on public education Gov. Lee announced in his State of the State address.  It is a needed and warranted increase, but we do not yet see that reflected in the budget document released today.

Our students and educators are struggling right now because of a lack of resources. State leaders must stop stuffing cash into mattresses while students go without materials and programs they need for a quality education and underpaid educators are asked to do the job of six people while also buying their own classroom supplies.  

It does not have to be this way and we are hopeful the governor’s remarks tonight indicate a shift from the chronic underfunding that has plagued public education in our state. Tennessee can afford a significant increase in recurring investment in our students, educators and public schools immediately, without raising taxes.” 

If the $1 billion does materialize, it should be noted that not only is it significantly less than what is needed, but also that our state has the funds ($3 billion+ surplus) to fully close the funding gap. That Lee is not proposing $2 billion in more in funding when that money is absolutely available may well indicate that our state will continue its historic pattern of underfunded public schools.

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Williamson County Schools Approves Mid-Year Pay Increase

Last night, the Williamson County School Board unanimously approved a mid-year pay raise for teachers and staff. If approved by the County Commission, teachers will receive a 3% raise and hourly staff will see a $1/hour pay increase, effective January 31st. The unusual move of raising pay for teachers and staff mid-year is happening because of severe teacher and staff shortages. The district currently has 71 teaching openings.

Williamson Strong live-tweeted the meeting and provided the key stats:

The move in Williamson County comes as districts across the state struggle with teacher retention issues exacerbated by the pandemic.

The move is also happening while Gov. Bill Lee and state policymakers examine Tennessee’s school funding formula. So far, that has not resulted in a serious discussion about dramatically raising teacher pay. In fact, this story highlights the level of priority placed on teacher pay in the state:

The current state minimum salary schedule for teachers sets the minimum salary for a Tennessee teacher at $38,000.

A Tennessee teacher with a bachelor’s degree would need to work for 10 years in order to achieve a mandated minimum salary above $44,000.

Now, however, brand new correctional officers will earn more than teachers with 10 years of experience. Yes, corrections officers deserve a raise.

It will be interesting to see what districts across the state do in 2022-23 and beyond to improve salary and working conditions for teachers and if the state’s new funding formula provides any help in this arena.

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Throw Some Damn Money at the Problem

While Tennessee lawmakers are expressing concern over investing too much money in schools, one educator is practically begging Gov. Bill Lee to just throw wads of cash at teachers.

Former teacher Gabe Hart has a column in Tennessee Lookout that expresses his frustration at the current situation as it relates to teacher pay in Tennessee.

Here’s a bit of what he has to say relative to teacher salaries:

In December, in an attempt to recruit more corrections officers, Lee gave new officers a 37% raise which put the starting salary for a TDOC officer at $44,500.  First year teachers in Metro Nashville Public Schools will make $46,000 during their first year, and MNPS is one of the highest paying districts in the state.  First year teachers in Madison County make $38,000. The average first year teacher makes around $40,000 — almost $5,000 less than a first year corrections officer.  

I am fully aware that there are far more teachers in the state than corrections officers, and the funding comparison is apples and oranges.  Where I can push back, though, is that Tennessee has always been ranked between 44th-46th in the country when it comes to education funding, and since Lee became governor in 2019, he’s pushed for Educational Savings Accounts — aka vouchers — that would pull even more money from public schools.  

Hart’s piece comes as districts across the state are experiencing a teacher shortage crisis.

So, while community groups are pushing for greater investment in schools and teachers are literally begging to have money thrown at them, lawmakers are out there expressing concern about putting too much money into schools.

First, there’s House Speaker Cameron Sexton, who recently indicated that money was not the problem facing Tennessee schools:

“So I think when you look at the school systems, at the end, it’s not usually about the money. If you’re not successful, money doesn’t solve your problem.

Never mind that Tennessee consistently ranks between 44th-46th in investment in public schools.

Then, there’s state Senator John Stevens, who serves on one of the committees exploring changes to the BEP. He’s worried that local school systems will receive a “windfall” from a new BEP formula:

The Center Square reports that Stevens is concerned about how locals will spend what he calls a “windfall” of new state money.

Stevens, like others, is concerned that local governments pay their portion along with the state, which budgeted to spend $5.6 billion in state funding on K-12 public education this fiscal year.

Stevens suggested the state should give less state sales tax money to local governments that do not properly support education with a funding match.

“I’m not just going to give the locals a windfall by absorbing the costs that they’re supposed to pay for without them having some skin in the game,” Stevens said. “Because all the schools want to do is hire more people.”

Umm, what??

So, at this point, I’m going to again note our state has a surplus in excess of $3 billion.

Tennessee has tried a lot of education experiments in the last couple of decades. One experiment the state hasn’t tried? Actually investing large amounts of money in schools!

Just throw some damn money at the problem.

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A Plea for Teachers

Williamson County school advocacy group Williamson Strong posted a plea for residents to take action to urge policymakers to improve teacher pay.

Here’s what they posted to Facebook relative to the teacher shortage and staffing crisis:

· URGENT: We’re hearing multiple reports of a massive teacher/staff exodus from WCS.

YOU have the power to fix this. If you can’t be loud for this, don’t complain when your kid’s teacher doesn’t show up on Jan. 5th. What did you do to advocate for them? Starbucks and Target gift cards 1-2 times a year aren’t going to cut it.

Do you know your county commissioners’ names? You should. They approve the budget that pays for your children’s school staff salaries. (PS They also get “free” health insurance for a *very* part-time job, which is rich when our teachers have had their benefits cut short.)

If you’re a WCS parent, you know all about the staffing shortages in our schools this year. Many kids don’t have a science teacher, math, foreign language, special ed, etc. – and they can’t find enough subs to cover every day. Cafeteria workers, bus drivers, SACC workers, the things we’ve all gotten numb to hearing about because we think it’s normal to not have them in place.

It is *not normal* to ask parents to work the school lunch lines serving food.

But it’s about to get worse, starting THIS month. WCS teachers & staff are opting for early retirement or moving to other districts for 3 reasons from what we’re hearing:

1. Better pay. WCS is not competitive with Metro, for starters. Yet many of our young teachers live in Nashville (sure can’t afford to live here on those salaries in this housing market!) with tough commutes (especially with our ridiculously early start times in middle/high school) because they want to teach in WCS, despite the lower pay. Our kids are awesome. Everyone says that.

2. Benefits. Our retirement health benefits are not competitive with surrounding districts, and teachers start to figure that out as they have more experience and start thinking about retirement down the road.

3. The parents can be pretty tough here. We’ll leave it at that, but the insane abuse of the last 1.5+ years directed at teachers, staff, and administrators has many at a breaking point. (Stop being mean to school staff. Seriously. Cut it out.)

WHAT CAN WE ALL DO?

The County Commissioners are beginning their budgeting process right now. And they’re the ones holding the purse strings! They all love to say we can’t afford to increase our school budget, 85%+ of which goes towards salaries – because although we may be one of the wealthiest counties in the entire COUNTRY, we can’t find the money for teachers even at the state average, much less the national one. It’s beyond shameful.

DEMAND that the Commission fix this. They have the power. Literally! They know how to solve this, don’t let them tell you otherwise. You, the voters, are their constituents. You’re their boss.

Tell them to pay our teaches what they deserve, and if not? We’re all going to elect new County Commissioners who care about teachers come August. Every single one of them is up for re-election in 2022, and they’re going to start campaigning any month now.

And School Board members? Tell them the same. They should be kicking and screaming about this issue (instead of howling over curriculum like some of them are doing, month after month.) Priorities are showing. Half of them are up for election in 2022 as well.

Email them all. Today. Every day. Tell your friends to do the same. If you can’t find time to do this, don’t complain when your child’s teacher quits and leaves….when there’s a new face there in January, or they just have rotating subs every day or week.

Don’t complain if you don’t do your part to fix this. YOU are the constituent. YOUR tax dollars pay for teacher salaries. Tell the people who set the budgets how you want those dollars spent.

It’s a crisis. What we’ve been in national headlines for lately? NOT a crisis. Stop being distracted by the noise and let’s collectively start fighting for our educators.

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Snail’s Pace

The Tennessee State Board of Education has set the state’s minimum teacher salary at $38,000 for the upcoming school year. That’s $49 more than the current average minimum salary, according to a story in Chalkbeat.

While the overall boost in minimum teacher pay is certainly welcome news, what’s interesting is to examine the pace of change in teacher pay over time.

As the Chalkbeat piece notes, the average teacher pay in Tennessee overall is $51,349.

Here’s why that’s so fascinating. Back in 2014, the state’s BEP Review Committee issued a report calling on the state to fund teacher salaries by way of the BEP at a level equivalent to the actual state average salary. That average? $50,116. So, the average now is just a bit over $1200 more than the average in 2014. In other words, teacher pay in Tennessee is creeping up at a snail’s pace. And, of course, teacher pay in our state is still below the Southeastern average (about $2000 below).

As Chalkbeat notes:

The improvement comes as Tennessee lags Southern and national averages for both starting pay and overall salaries. The state is also bracing for a wave of retirements and struggling to secure teachers for hard-to-staff areas such as special education and classes for students learning to speak English.

recent analysis by the Southern Regional Education Board shows Tennessee’s average educator salary in 2018-19 trailed half of the region’s states, including in border states like Georgia, Kentucky, North Carolina, and Virginia.

What’s unfortunate about this situation is this: Tennessee can actually afford to make a huge investment in teachers and schools. We have a $2 billion surplus this year alone!

We could afford to push starting teacher pay above $40,000 for all teachers in the state. We could afford to give every single teacher a significant (10%) or more raise this year. We could dramatically increase the per pupil expenditures.

But, we’re doing none of those things. Gov. Lee’s budget reflects a lack of imagination and a refusal to dream of what is possible. Instead, he’s content to continue the status quo of underfunded schools and underpaid teachers.

As Chalkbeat further notes, it’s not clear how much of this raise will reach teachers:

The $2,000 bump in base pay doesn’t mean all teachers will see a noticeable pop in their paychecks, though.

Districts have flexibility over how to use state funds toward teacher compensation, so it’s uncertain how much of Tennessee’s 4% increase will trickle down to teachers who are paid more than the state minimum.

Because of disagreements on the adequacy of state funding, districts have hired about 10,000 teachers beyond what the state’s formula provides. Any increase could get spread across those salaries too. Districts also could opt to use next year’s increase to hire more staff or improve benefits.

Lee has claimed to support teachers and teacher pay, as Chalkbeat notes:

Early in his administration, Lee vowed to make Tennessee the best state in America to be a teacher, but pandemic-related budget uncertainties and cuts delayed increases planned for the 2020-21 school year.

The reality, though, is that Lee has not invested seriously in schools in spite of a significant state surplus:

“The budget passed by the General Assembly is disappointing when we have a historic opportunity to get Tennessee out of the bottom five in education funding. With a record revenue surplus and hundreds of millions unappropriated, this was the time to stop underfunding our schools.

There were bills to provide for more nurses, counselors, RTI specialists and social workers that our students need today and moving forward to meet their mental and academic challenges cause by the pandemic and the problems of chronic underfunding. Instead, we saw a trust fund set up that will cover barely a fraction of the needs years down the road.  

Lee’s commitment to putting just about everything ahead of funding schools and paying teachers may remind some of the previous governor, another guy named Bill who just couldn’t see fit to invest deeply in schools despite making a lot of promises.

Gov. Bill Haslam tweeted on October 3, 2013: “Teachers are the key to classroom success and we’re seeing real progress.  We want to be the fastest improving state in teacher salaries.”

Instead, in 2014:

Haslam is balancing the state budget by denying promised raises to teachers and state employees and ditching his proposed increases to higher education.

Tennessee leaders do a lot of talking when it comes to investing in schools. “Fastest-improving” “Best place to be a teacher.” The reality is that teacher pay and overall investment in schools is moving at a snail’s pace. In fact, a recently released analysis shows that Tennessee invests less in public education relative to taxable resources than any other state in the nation.

I will note once again that this year would be the easiest in decades to invest in public schools – a $2 billion surplus is instead being used for tax cuts and to boost the state’s already overflowing savings account.

I would also note that every time the budget situation seems even a little tough, funding for schools is the first on the chopping block. Good times, bad times, more money, less money – it doesn’t matter. The last decade has made abundantly clear that Tennessee’s policymakers are not at all interested in paying for schools or investing in the teachers who make them work.

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Tylor Talks Teaching

Nashville school board member Abigail Tylor talks about the crisis facing public education when it comes to recruiting and retaining teachers in a recent Twitter thread.

Here are her thoughts:

These are all extremely important points. When we apply them specifically to TN, here’s what we can learn (a thread):

1. When you take into account changes in benefits and cost of living increases, teachers in TN make LESS now than they made 10 years ago. 1/

2. TN ranks 36th in the nation for teacher pay & it’s not due to a lower cost of living. TN teachers make 21.4% less than non-teacher college grads in TN. In fact, there’s no state in the entire US where teacher pay is equal to non-teacher college grad pay. 2/

3. Teachers in TN have been promised substantial raises by our last two governors, only to have both walk it back. When our state budget looks tight, teachers are first on the chopping block. If TN valued teachers, they would prioritize them. 3/

4. Although Gov Lee finally followed through on a teacher raise, it amounts to .10 on the dollar. TN has $3.1 billion in our reserves. $2 billion of that could easily be used to increase teacher pay w/out raising taxes 1cent. He’s choosing not to pay our teachers living wages. 4/

5. Fewer college students are choosing to major in education. Research shows that teachers who enter the profession w/out adequate preparation are more likely to quit. When we rely on programs that skip student teaching & necessary coursework, turnover rate is 2 to 3x higher. 5/

6. In TN, 47.51% of inexperienced teachers are in high-minority schools compared to 8.05% in low minority. 11.97% of uncertified teachers are in TN’s high-minority schools compared to .57% in low-minority. Guess which schools are most negatively impacted by high turn overs? 6/6

Originally tweeted by Abigail Tylor (@AbigailTylor) on March 1, 2021.

Tylor is right, of course. Tennessee teachers suffer from a significant wage gap.

Getting to Nashville specifically, teachers in the state’s largest city are severely underpaid.

In 2017, I wrote:

Attracting and retaining teachers will become increasingly more difficult if MNPS doesn’t do more to address the inadequacy of it’s salaries. The system was not paying competitively relative to its peers two years ago, and Nashville’s rapid growth has come with a rising cost of living. Does Nashville value it’s teachers enough to pay them a comfortable salary?

In Nashville, and in Tennessee as a whole, there’s simply not a consistent commitment to investing in teachers. In fact, Gov. Lee’s attempts this year – when the state has a huge surplus – have been underwhelming to put it charitably.

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