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 Rampant Union Greed in Chicago

The Windy City’s teachers union is on the verge of yet another strike. 

In 2012, Troy Senik wrote “The Worst Union in America,” a title he bestowed on the California Teachers Association. As a former member and longtime critic of that union, I certainly had no quibble with his selection. But now, CTA is facing serious competition from the Chicago Teachers Union.

As reported in last week’s post, CTU, an affiliate of the American Federation of Teachers, is gearing up for a strike. It would be the union’s second in four years, despite the fact that the median salary for a teacher in Chicago is $78,169. When you add another $27,564 for various benefits, the total compensation for a teacher – good, bad or middling – becomes almost $106K per annum. (Please keep in mind teachers work 180 days a year, while employees in other professions typically work for 240 to 250 days.) In retirement, the average Chicago teacher receives a hefty $50,000 a year.

The main sticking point for the union and the Chicago Public School system (CPS) is the so-called pension pick-up. Teachers there (and elsewhere) have what’s called a “defined benefit plan,” whereby in retirement – come hell, high water or recession – a teacher’s pension is not affected. In most places, teachers and the school district share the contributions equally, but not in Chicago and some other municipalities in Illinois. Teachers there are supposed to chip in 9 percent of their salary to fund their own pension. But as things stand now, teachers contribute just 2 percent, with the school district (read: taxpayer) picking up the remaining seven. The city, which is in dire fiscal straits, is asking teachers to pay the full 9 percent. But lest the poor teachers need to reach for the smelling salts because they are being asked to kick in more for their own retirement years, Chicago is offering them an 8.7 percent salary increase over four years to help offset the teachers’ pension payment.

So, as the union demands more and more money, the schools end up with less and less. As reported by the Chicago Tribune, CPS still needs to come up with at least $300 million to balance its fiscal 2017 budget. “The school system still faces huge, $700 million-ish teachers pension payments this year and annually into the future. It still has too much real estate to serve its dwindling number of students. And its credit is maxing out.” As a result, Moody’s has just downgraded CPS further into junk status.

As if the union’s insistence on yet more money is not deplorable enough, there is a new addition to their basket. When CTU held its strike vote last week, it didn’t do it the traditional way – by secret ballot. Nope, the union had its teachers authorize a strike via “petitions” circulated at schools, meaning that everyone knew how everyone else voted. Think there may have been an intimidation factor at work here? And why on earth would they need to resort to such strong-arm tactics? The teachers voted by a 7 to 1 margin to strike in 2012 – when voting was done in private. As it turns out, the margin this year was 86 percent affirmative, just about what it was in 2012.

If the method of voting sounds dictatorial and totalitarian, it fits right in with the union’s leadership. CTU president Karen Lewis, who revels in her inflammatory style, makes Donald Trump look downright demure. Just a few of her egregious comments:

  • At the City Club of Chicago in 2013, she blamed the city’s education woes on rich white people. “When will we address the fact that rich, white people think they know what’s in the best interest of children of African Americans and Latinos—no matter what the parent’s income or education level.”
  • After the tragic Sandy Hook school shootings, Lewis blamed Teach for America, the organization that successfully enlists high-achieving college graduates to teach at hard to staff schools. Referring to TFA vice-president David Rosenberg, Lewis said “… policies his colleagues support kill and disenfranchise children from schools across this nation.”
  • Earlier this year, Lewis compared the Illinois governor to ISIS: “Rauner is the new ISIS recruit. Yes, I said it, and I’ll say it again. Bruce Rauner is a liar. And, you know, I’ve been reading in the news lately all about these ISIS recruits popping up all over the place — has Homeland Security checked this man out yet? Because the things he’s doing look like acts of terror on poor and working-class people.”
  • Then there is the typical union boss hypocrisy: She rails against corporate “fat cats,” all the while pulling in over $200,000 a year, owning three homes, including one in Hawaii. (Second-in-command at CTU, Comrade Jesse Sharkey, a leading member of the revolutionary International Socialist Organization, makes well over $100,000 in total compensation.)

The teachers could strike as soon as October 11th. It’s up to Chicago mayor Rahm Emanuel and Governor Rauner to stand up to the CTU leadership and their outrageous demands and put a halt to the mugging. Enough taxpayer money has been extorted by the union without the mayor and governor kicking in another penny. And the union can’t claim that its teachers are doing a bang-up job: Just 30 percent of 4th grade CPS students are proficient in math and by 8th grade that number sinks to 25 percent. In reading, 27 percent of 4th graders are proficient as are 24 percent of 8th graders. Taxpayers should not be expected to sink any more of their money into an ineffective school system.

As of now, the hard working people of Chicago – already the highest taxed in Illinois – are getting overpaid teachers, failing kids and a union that wears its greed proudly on its sleeve. CTA, you have some serious competition.

Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers and the general public with reliable and balanced information about professional affiliations and positions on educational issues. The views presented here are strictly his own.

The Myth of the Underpaid Teacher Lives On

 Yet another “study” showing how poorly teachers are paid has surfaced.

Well, it’s a new school year and there is much tumult in the world of public education. Common Core battles, testing opt-outs, and litigation about school choice and teacher work rules dot the landscape. But with all the uncertainty, it’s comforting to know that there is one thing we can count on in late summer: a new bogus study showing that public school teachers are woefully underpaid.

This year’s entry doesn’t disappoint. “The teacher pay gap is wider than ever,” subtitled “Teachers’ pay continues to fall further behind pay of comparable workers” is a 29-page report released by the Economic Policy Institute, whose mission is “to inform and empower individuals to seek solutions that ensure broadly shared prosperity and opportunity.” If this were an honest statement, the word “opportunity” would be followed by “as long as the solutions are in sync with the union party line.” You see, EPI is nothing more than a union front group whose board includes a rogue’s gallery of Big Labor honchos: AFL-CIO’s Richard Trumka, SEIU’s Mary Kay Henry, American Federation of Teachers’ Randi Weingarten, National Education Association’s Lily Eskelsen-García, et al.

And not only do the teachers unions have strong board representation, they donate heavily to EPI. According to the latest labor department reports, 2015 saw NEA present a $250,000 gift to EPI, only to be outdone by the smaller AFT, which kicked in $300,000 to the organization.

The study itself is just what you would expect: loads of numbers that are supposed to make people think that teachers are essentially little more than impoverished serfs, valiantly slaving away for pennies. Among the report’s claims:

  • Teachers’ weekly wages are 23 percent lower than those of other college graduates.
  • For public-sector teachers, the relative wage gap (regression adjusted for education, experience, and other factors) has grown substantially since the mid-1990s: It was ‑8 percent in 1994 and grew to a record ‑17.0 percent in 2015.
  • Regardless of experience, teacher wage gap expanded for female teachers.

Needless to say, the unions solemnly wrote about the report as if it were “news,” with NEA blogger Tim Walker suggesting that all teachers get a raise. And as day follows night, the media jumped on board. The relentless and reliably-unreliable Washington Post education blogger Valerie Strauss dutifully posted the whole report with the title, “Think teachers aren’t paid enough? It’s worse than you think.The Fiscal Times sounded alarm bells with “Teacher Pay Hits Record—but Not a Good One.”

But like most similar studies, EPI’s doesn’t do an apples-to-apples comparison. It omits a few things like the simple fact that teachers work 6-7 hour days and 180 days a year, whereas the study’s “comparable workers” put in an 8-9 hour a day and work 240-250 days a year. (Yes, yes, I know teachers take work home, but so do many other professionals who don’t get summers off.) Also, unlike private-sector workers, most teachers have extensive health benefits for which they typically pay very little, if anything. Furthermore, as University of Missouri professor Michael Podgursky points out, the pension benefits for teachers, which they only pay a tiny portion of – the taxpayer getting hosed for the rest – add greatly to a teacher’s total compensation. (The EPI report actually alludes to this, but buries it on page 14; more on this in a bit.)

Perhaps the most honest and well-researched study done on teacher pay, including the time-on-the-job and benefits factors, was done in 2011 by Andrew Biggs, a resident scholar at the American Enterprise Institute, and Jason Richwine, a senior policy analyst at the Heritage Foundation. In their report, they destroy the teacher union-perpetuated myth of the under-compensated teacher. Their study, in fact, found that teachers are actually paid more than private-sector workers.

They make the case that workers who switch from non-teaching jobs to teaching jobs “receive a wage increase of roughly 9 percent, while teachers who change to non-teaching jobs see their wages decrease by approximately 3 percent.” Additionally, when retiree health coverage for teachers is included, “it is worth roughly an additional 10 percent of wages, whereas private-sector employees often do not receive this benefit at all.”

Biggs and Richwine conclude that after taking everything into account, “teachers actually receive salary and benefits that are 52 percent greater than fair market levels, equivalent to more than $120 billion overcharged to taxpayers each year.”

Back to the EPI study. On page 14 of the report, it acknowledges,

Our analysis of relative teacher pay thus far has focused entirely on the wages of teachers compared to other workers. Yet benefits such as pensions and health insurance are an increasingly important component of the total compensation package. Teachers do enjoy more attractive benefit packages than other professionals; thus, our measure of relative teacher wages overstates the teacher disadvantage in total compensation. The different natures of wages and benefits should be kept in mind, as it is only wages that may be spent or saved. Thus, the growing wage penalty is always of importance.

So in essence, the authors of the study come clean in this paragraph and admit that their stress on wages alone overstates the real disparity in pay. The “spent or saved” comment is especially ridiculous. Pension earnings are indeed “saved” for the future. Whatever. It’s obvious that this report is meant to tug at the heartstrings, build righteous indignation and provide local teachers unions with ammo for collective bargaining battles with school boards.

For an honest assessment of teacher pay, stick with the Biggs-Richwine study. But if one is looking for skewed and incomplete data as fodder for a splashy headline or an emotional plea, the dishonest and self-serving union-sponsored EPI report fills the bill beautifully.

Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers and the general public with reliable and balanced information about professional affiliations and positions on educational issues. The views presented here are strictly his own.

LA Teachers Union: Striking Out?

UTLA is planning to walk out over a mess that it helped to create.

The case is being built for a teachers’ strike in Los Angeles. The next step in the contract negotiation process is mediation, whereby a state-appointed mediator will try to get the Los Angeles Unified School District (LAUSD) and the United Teachers of Los Angeles (UTLA) to reconcile their differences. If no progress is made during those sessions, scheduled for March 26th, April 6th and April 15th, the fact-finding stage is next. Anything that comes out of this part of the process is not binding, but could be influential in the last step in which the district makes its final offer. At that point, the union can accept the deal, or reject it and call for a strike vote.

There are a number of issues on the table, but the main sticking points are as follows:

UTLA wants a bigger raise than LAUSD is offering. The district’s offer is 5 percent, but the union, after originally asking for 17.5, has lowered its demand to 8.5 percent, retroactive to July 2014.

The union wants smaller classes. Due to budgetary constraints, the district wants latitude in determining the number of teachers on the payroll. The union wants the district to commit to a hard and fast teacher-student ratio. Fewer teachers, of course, translate to larger classes.

The union does not want an imposed teacher-evaluation system. In light of a lawsuit settled in 2012 that mandated substantive teacher evaluations, the district came up with a simple four-level teacher-evaluation plan which it instituted in 2013. But the union pushed back successfully, claiming the district single-handedly imposed the process, prompting an administrative law judge to rule that LAUSD had to repeal it. The decision came in response to an unfair labor practices charge that UTLA filed three months later. The union is demanding to be a part of any new evaluation system for its teachers.

Moving away from the bargaining table, the leaders of the two warring factions have gone public with their case. In January, LA Unified Superintendent Ramon Cortines called the union’s latest demands “entirely unrealistic” and asserted that they raise “serious ethical and equity issues” for the district. He pointed out that

… all the district’s other unions have agreed to new contracts within the current economic landscape, he chided UTLA for its bargaining stance over 16 negotiating sessions, saying, ‘It is regrettable that the current UTLA leadership has gone in an entirely different direction.’

UTLA president Alex Caputo-Pearl has been mouthing off to the press all along, lambasting the district and everything else he can think of. At a rally in downtown LA last week, throwing in everything but the kitchen sink, he bloviated,

The recession, the cuts to the bone at schools, the attacks on public service, the increasingly savage racism and economic inequality that our students face, John Deasy for three years, all of them have set us back. And we are not going to take it anymore.

Okay, now here is the reality: LAUSD is mired in fiscal purgatory. Dealing with a $160 million deficit, Cortines said just 11 days ago that he has already begun cutting programs for next year, and layoffs are next with the first round of pink slips due to go out March 15th. (Worth noting: $160 million is almost the exact figure LAUSD is paying to the victims of one teacher – sexual predator Mark Berndt, whose wretched legacy owes a nod to the teachers union which traditionally has insisted on laws that make it practically impossible to get rid of incompetent and debauched educators.) When asked what’s most likely to be cut, Cortines said, “Everything.” LAUSD officials added that giving the union everything it is asking for would pile another $800 million of debt on the district.

If layoffs become necessary, Cortines will be painted as the goat, but it is the union that bears the majority of the responsibility. In good economic times, UTLA – and most teachers unions – demand that school districts use up all available resources to hire more educators. Then, when the inevitable economic downturn hits, layoffs become necessary. Also, it’s not just teachers who are hired when the economy is robust; more support personnel are invariably a part of the package.

The fiscal situation is even bleaker for the district than the $160 million deficit and additional $800 million the union is demanding the district spend. Due to recent legislation, school districts in California now have to come up with a greater proportion of retired teachers’ pensions. This will cost the district an additional $1.1 billion over the next seven years. The annual salary for LAUSD teachers who have taken some professional development classes and taught for 10 years is $75,592, which the union says isn’t enough. But while union leaders whine over what they deem to be paltry salaries, they never mention the additional perks a teacher gets like a comprehensive healthcare package and a defined-benefit pension. When those costs are added in, that ten-year teacher’s total compensation is more like $90,000. Not bad for 180 days work.

Also, teachers – the good ones, that is – could be making considerably more if not for the industrial-style step-and-column way that unions insist its teachers get paid. With no nod to quality, mediocre and worse teachers are paid the same as the good and great ones

Regarding the smaller class-size demand – LA has about 640,000 students and 31,000 teachers, which means about 20 kids per teacher, not exactly an overbearing number. If some teachers’ classes are too large, then rebalancing becomes the issue. While it’s true that there are instances where some kids benefit from more individual attention, it is by no means universal. The most extensive study on the subject was done by Hoover Institution senior fellow and economist Eric Hanushek in 1998. He examined 277 different studies on the effect of teacher-pupil ratios and class-size averages on student achievement, and found that only 15 percent of the studies indicated an improvement in achievement, while 72 percent showed no effect at all. Worse, 13 percent found that reducing class-size actually had a negative effect on achievement.

But class size and teacher pay are related. If you lopped off the bottom 10 percent lowest performers from the district, the remaining (better) teachers could get a hefty raise with just a few more kids in each class and no additional outlay from the district.

It’s important to note that the entire collective bargaining process is not beneficial for many teachers and their students. Thomas F. Fordham Institute’s Mike Petrilli finds that, “Teachers in non-collective bargaining districts actually earn more than their union-protected peers—$64,500 on average versus $57,500.” Petrilli adds that “there is some evidence … that non-collective bargaining districts drive a harder bargain when it comes to health care.” He also points out that collective-bargaining districts focus on seniority, protecting various benefits associated with longevity rather than pushing for higher pay. These tenure and seniority “benefits,” which clearly are unfair to good teachers and their students, are what Judge Rolf Treu was referring to in his recent Vergara ruling when he said. “The evidence is compelling. Indeed, it shocks the conscience.”

In 2012, Chicago teachers – already the highest paid teachers in the country while working the fewest hours of any other big-city school district – went on strike. Stanford’s Terry Moe wrote at the time,

Collective bargaining is not fundamentally about children. It is about the power and special interests of adults. In Chicago and elsewhere, the teachers unions are in the business of winning better salaries and benefits, protecting job security, pressuring for restrictive work rules and in other ways advancing the occupational interests of their members. These interests are simply not the same as the interests of children.

Not to say that school districts are perfect. Far from it. But ideally, their mission is to promote the interests of children, while unions are there to serve their rank-and-file – the good and the bad, it’s all the same to them. The teachers unions may blather about the children, but ultimately they are there to serve the adults. And that’s causing big problems in Los Angeles and everywhere else these unions have power.

Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers and the general public with reliable and balanced information about professional affiliations and positions on educational issues. The views presented here are strictly his own.

The Poor Teacher Canard Redux – Part II

The unions’ effect on teacher pay? Not what you think.

Last week, I wrote about the fallacy of the underpaid teacher. When compared to other professions, teachers actually do considerably better when taking into account the various perks they get – generous healthcare and pension packages, etc.

But, uninterested in facts, the unions continue to bang on the table. NEA/AFT and their state and local affiliates continuously hyperventilate about how teachers need to be paid a “living wage.” And of course these unions try to position themselves as saviors, doing their best to convince teachers that any salary enhancement is dependent on organized labor.

But just what is the effect of unionism on teacher pay?

At the behest of the unions, collective bargaining (CB), a socialist contrivance, is the norm throughout much of the country. But does it work favorably for teachers?

The Fordham Institute’s Mike Petrilli doesn’t think so. In 2011, he compared teachers’ salaries in school districts across the country which allow CB with those that don’t. Using data collected by the National Council on Teacher Quality, he looked at 100 of the largest districts from each of the 50 states and found that teachers who worked in districts where the union was not involved actually made more than those who were in CB districts. According to Petrilli, “Teachers in non-collective bargaining districts actually earn more than their union-protected peers – $64,500 on average versus $57,500.” He adds that the unions are really about “… protecting benefits and seniority – not pushing for higher pay. If you’re a young teacher earning a lousy salary and paying union dues, that’s something to be very angry about.” (Emphasis added.)

While Petrilli’s analysis was limited to large districts, it does jibe with other studies that find the unions are not instrumental in securing higher salaries for teachers.

In an elaborately detailed 2009 study, “The Effect of Teachers’ Unions on Education Production: Evidence from Union Election Certifications in Three Midwestern States,” Stanford Professor Michael Lovenheim concluded, “I find unions have no effect on teacher pay.”

While Lovenheim’s study used data from just three states, Cato Institute’s Andrew Coulson, using national data, came to the same conclusion.

So, according to Petrilli, Lovenheim and Coulson, the teachers unions are at best inconsequential, and at worst actually damage a teacher’s bottom line.

But a new study leaves no doubt. In the Fordham Institute’sThe Hidden Half: School Employees Who Don’t Teach,” we see how teachers’ and other educational staff unions most definitely have a negative effect on teacher pay. Masters of featherbedding, the unions – taking advantage of an endless procession of government mandates – have managed to find places for workers where none are really needed.

The number of non-teaching staff in the United States (those employed by school systems but not serving as classroom teachers) has grown by 130 percent since 1970. Non-teachers, more than three million strong, now comprise half of the public school workforce. Their salaries and benefits absorb one-quarter of current education expenditures. But is this growth necessary—or even sustainable? (Emphasis added.)

It’s important to note that the countries which regularly kick our butts in achievement haven’t experienced the non-teacher employee hiring explosion that we have. Switzerland spends 70 percent of its compensation dollars on teachers and just 14 percent on other staff. In Finland those numbers are 51:11 and Slovakia 54:14. But in the U.S., we spend 54 percent on teachers and a whopping 27 percent on non-teaching staff.

In another study, The Friedman Foundation – using U.S. Department of Education’s National Center for Education Statistics data – found that between fiscal years 1950 and 2009,

… the number of K-12 public school students in the United States increased by 96 percent while the number of full-time equivalent (FTE) school employees grew 386 percent. Public schools grew staffing at a rate four times faster than the increase in students over that time period. Of those personnel, teachers’ numbers increased 252 percent while administrators and other staff experienced growth of 702 percent, more than seven times the increase in students. (Emphasis added.)

While some of those additional jobs may be important and necessary, most are not. As a middle school teacher during the 90s and aughts, I saw this first hand; my middle school experienced a steady uptick in the number of deans, counselors, psychologists, coordinators, coaches, teaching assistants, etc., but we fared no better academically with all the extra personnel.

In reality, with public employee unions leading the charge, public education has turned into one behemoth jobs program. And without the addition of needless jobs, there would be considerably more education dollars available for teachers.

At the beginning of the new school year, the United Teachers of Los Angeles and other teachers unions across the country are threatening to strike if their wage demands aren’t met. Too bad the teachers involved can’t fire their unions and negotiate for themselves. On their own, they couldn’t possibly do a worse job than the union they are forced to pay for that service.

Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers and the general public with reliable and balanced information about professional affiliations and positions on educational issues.

“Hey, Deasy, baby, I want my money.”

Los Angeles teachers demand a raise, but their appeal to the public is embarrassing and more importantly, misses the big picture.

Claiming that teachers have not received a raise since 2007, the United Teachers of Los Angeles held a protest rally last Wednesday. As reported by Ryan White in LA School Report,

“Hey, Deasy, baby, I want my money,” the red-shirted crowd sang in a hip-hop inspired chorus at a rally organized by UTLA in its ongoing bid to win salary increases from the district. Their target: Superintendent John Deasy.

With teachers’ last pay raise dating back to early 2007, the union says a salary hike is long overdue, especially since last fall’s voter-approved Prop. 30 increased the per-student funds the district receives from the state. The argument that teachers are now owed their financial due after years of sacrifice was the rally’s dominant refrain.

While the chant was thoroughly obnoxious, the teachers’ plea seems reasonable … on the surface. But a look under the microscope reveals things not apparent to the naked eye.

First, while it is true that teachers in Los Angeles have not received an across-the-board raise in almost seven years, they get yearly raises throughout most of their careers. Due to the step-and-column way we pay our teachers, most get a bump for simply not dying over the summer. Then they get more raises for taking “professional development” classes and workshops, despite conclusive research over the last 25 years by Stanford-based economist Eric Hanushek showing that these classes have no effect on student learning. In LA, the set-up is particularly egregious, resulting in a huge and unnecessary burden to the taxpayer.

According to the district contract with the United Teachers of Los Angeles, coursework, to qualify as professional development, must be “directly related to subjects commonly taught in the District.” So a kindergarten teacher can take “Northern and Southern Economies on the Eve of the Civil War,” say, and receive what is euphemistically called “salary-point credit” for it. Or an American history teacher could take a class in identifying different kinds of plankton and also get a bump in pay. Taxpayers pay out a whopping $519 million a year in extra salary payments to teachers who take such courses. (Emphasis added.)

In Los Angeles, a starting teacher makes $45,637 and a veteran can make up to $98,567. But it’s important to note that the average teacher works between 6 and 8 hours a day, 180 days per year – compared to the average college-educated worker, most of whom work over 8 hours a day and 240-250 days a year. The teacher union-perpetuated myth of the undercompensated teacher was blown up in 2011 by Andrew Biggs, a researcher at the American Enterprise Institute and Jason Richwine, a senior policy analyst at the Heritage Foundation. Their study, in fact, found that teachers are overpaid. Typically, teachers have perks like excellent healthcare and pension packages which aren’t counted as “income.” Armed with facts, charts and a bevy of footnotes, the authors make a very good case for their thesis. For example, they claim,

Workers who switch from non-teaching jobs to teaching jobs receive a wage increase of roughly 9 percent, while teachers who change to non-teaching jobs see their wages decrease by approximately 3 percent.

When retiree health coverage for teachers is included, it is worth roughly an additional 10 percent of wages, whereas private sector employees often do not receive this benefit at all.

Teachers benefit strongly from job security benefits, which are worth about an extra 1 percent of wages, rising to 8.6 percent when considering that extra job security protects a premium paid in terms of salaries and benefits.

Taking all of this into account, teachers actually receive salary and benefits that are 52 percent greater than fair market levels.” (Emphasis added.)

Another pay issue worth examining is the set-in-stone collective bargaining contract which makes no allowance for teacher quality. While many in the “Hey, Deasy, baby” crowd undoubtedly support collective bargaining, is it fetching them more money? Not according to data collected by the National Council on Teacher Quality. As Fordham Institute’s Mike Petrilli reports, “Teachers in non-collective bargaining districts actually earn more than their union-protected peers – $64,500 on average versus $57,500.” He does add that

… there is some evidence from the NCTQ data that non-collective bargaining districts drive a harder bargain when it comes to health care….

All of this sheds a light on what the unions are really about: protecting benefits and seniority–not pushing for higher pay. If you’re a young teacher earning a lousy salary and paying union dues, that’s something to be very angry about.

An additional problem with collective bargaining is that it hurts good teachers because of  “wage compression,” which occurs when the salaries of lower paid teachers are raised above the market rate, with the increase offset by reducing pay of the most productive ones. As Cato Institute’s Andrew Coulson wrote in 2010,

The impact of this wage compression is significant. Using an instrumental variables model, and taking into account alternative explanations, Hoxby and Leigh (2004: 239) conclude that between 1963 and 2000, “Pay compression increased the share of the lowest-aptitude female college graduates who became teachers by about 9 percentage points and decreased the share of the highest-aptitude female college graduates who become teachers by about 12 percentage points.” (Emphasis added.) To this, Neal (2002: 34) adds that, “The rigid wage structures among public schools also raise questions about teacher retention.” In particular, he points to studies by Murnane and Olsen (1989, 1990) and Stinebrickner (2001), which examine separation rates for public school teachers, and concludes that “teachers with higher test scores and better college records leave their jobs at higher rates.”

After reviewing all the data, what leaps out is that teachers as a whole don’t fare badly at all when it comes to salary and benefits. But it is shameful that school districts and teachers unions in California have colluded to treat teachers as interchangeable widgets with no acknowledgment of teacher quality. That a great teacher and a mediocre teacher – both of whom have taught for the same period of time – make exactly the same amount of money is disgraceful. Good teachers are a treasure and should be compensated accordingly. At the end of the day, protesting teachers may demand “their money,” but after examining the facts, only the best ones deserve it.

Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers with reliable and balanced information about professional affiliations and positions on educational issues.

More Money for Business as Usual

Throwing ever more funds at education without making substantive changes to the system is a horrible waste of money, not to mention children’s lives.

California Democrat Congressman Mike Honda and National Education Association President Dennis Van Roekel recently collaborated on an op-ed that played up just about every bit of feel good, cliché-riddled drivel ever written about education. If this piece was a drug, the FDA would have banned it years ago. A few examples:

Lamenting the fact that many teachers leave the classroom within the first few years, they say,

According to research estimates, one in four beginning teachers will leave the profession within their first three years in the classroom, and in urban areas, close to 50 percent will leave within five years.

This is totally misleading. The implication here is that teachers are leaving the profession in droves because they are overworked, underappreciated, overwhelmed and underpaid. But the reality is that they leave for a wide variety of reasons, including taking an administrative position, personal or family reasons, pregnancy, health, change of residence, etc. A survey from North Carolina, for instance, reveals that only 2.24 percent said they were leaving the profession due to dissatisfaction with teaching.

Another fiction the authors use to sway the unknowing public is the “competitive teacher salary myth.”

…the lack of competitive salaries for classroom teachers compared to other professions diminishes the consideration of teaching as a viable long-term career option. All of these issues rob children of the diverse, committed, capable teachers they need and deserve.

Before reaching for the Kleenex, please consider the following: Andrew Biggs, a researcher at the American Enterprise Institute and Jason Richwine, a senior policy analyst at the Heritage Foundation, conducted a study on teacher pay, the results of which were released just a year ago. They found that when perks like healthcare and pension packages are taken into consideration, teachers are in fact overpaid. Armed with facts, charts and a bevy of footnotes, the authors make a very good case for their thesis. For example, they claim,

Workers who switch from non-teaching jobs to teaching jobs receive a wage increase of roughly 9 percent, while teachers who change to non-teaching jobs see their wages decrease by approximately 3 percent.

When retiree health coverage for teachers is included, it is worth roughly an additional 10 percent of wages, whereas private sector employees often do not receive this benefit at all.

Teachers benefit strongly from job security benefits, which are worth about an extra 1 percent of wages, rising to 8.6 percent when considering that extra job security protects a premium paid in terms of salaries and benefits.

Taking all of this into account, teachers actually receive salary and benefits that are 52 percent greater than fair market levels. (Emphasis added.)

Honda/Van Roekel then delve into professional support:

The educational career ladder should entice quality teachers to remain in the classroom by developing positions of teacher leadership.

The book on this subject has already been written by Teach For America, a very successful outfit that recruits high performing college students who exhibit leadership qualities. TFA then gives them a five week intensive teacher training and ongoing professional support. So maybe NEA should hitch a ride with TFA? No. After years of trashing the organization, NEA recently offered TFA a twig-sized olive branch, but even that is rejected by many local unions because an army of bright, young, idealistic teachers poses a threat to the old guard.

On Election Day, Californians sadly bought into the union propaganda and voted to further “invest” in education by passing a controversial ballot initiative. With the passage of Prop. 30, California now has the highest sales tax and top marginal income tax rate in the country.

A nearly $6 billion infusion from Proposition 30 and a Democratic supermajority in the Legislature are a welcome pre-holiday gift to public education from voters, but it also could set the stage for battles between those laboring for education reform and suddenly fortified unions protecting teacher interests.

“Proposition 30 is a bandage on the current system,” said former state Sen. Gloria Romero, an outspoken education reform advocate. “We got no reform for the investment.”

She and others cite the urgent need to raise student achievement, modify the rule of teacher seniority, dismantle the Byzantine school finance system and ensure the teacher pension fund stays solvent.

Romero hits the nail on the head. Continuing to throw money at a failing system will result in nothing more than a more expensive failing system. If you are hungry, spending more money on rancid food won’t solve your nutrition problem.

Stanford Professor Erick Hanushek, who has studied student achievement and education economics, adds,

I’m concerned now that we’ve gotten past the fiscal cliff, we’re going back to business as usual. To improve student performance, he said, schools need an effective teacher evaluation system and need to be able to get rid of the worst teachers and to reward the best ones. But he said there’s no movement toward either of those.

…Everybody in the state would like major changes without really changing…. the cost is that California is at the rock bottom in student performance, and it’s dragging down the nation.

Responding to the reformers, California Teachers Association President Dean Vogel snapped,

We’re not opposed to education reform…. We’re opposed to stupid reform.

…teachers believe before adjusting funding formulas, the state needs to ensure adequate — meaning more — funding for schools….

But as Heritage Foundation policy expert Lindsey Burke reported recently,

Students headed back to school this fall will have historically high levels of dollars spent on them in the public school system. (Bold added.) Nationally, average per-pupil spending exceeds $11,400 this year….

To put this into perspective, just 10 years ago we spent $9,482 per pupil (in constant dollars). Thirty years ago we paid $5,718 and 50 years ago just $2,808 per student! In California, spending has doubled over the last 40 years and what do we have to show for it? Our National Assessment of Education Progress (NAEP) scores speak volumes. For example, on the most recent 4th grade math test, California students came in 45th nationally; in science, the same 4th graders scored higher than only Mississippi.

Internationally, of the world’s 28 major industrial powers, the U.S. is second in spending, slightly behind Switzerland. Yet when it comes to achievement, our performance is middling at best. Education Next recently reported,

A new study of international and U.S. state trends in student achievement growth shows that the United States is squarely in the middle of a group of 49 nations in 4th and 8th grade test score gains in math, reading, and science over the period 1995-2009.

Students in three countries – Latvia, Chile, and Brazil – are improving at a rate of 4 percent of a standard deviation annually, roughly two years’ worth of learning or nearly three times that of the United States. Students in another eight countries – Portugal, Hong Kong, Germany, Poland, Liechtenstein, Slovenia, Colombia, and Lithuania – are making gains at twice the rate of U.S. students.

A fitting coda to this dreary ongoing saga, came from a recent Wall Street Journal editorial,

No reform effort is too small for the teachers union to squash. In this month’s election, the National Education Association descended from Washington to distant Idaho, spending millions to defeat a measure that limited collective bargaining for teachers and pegged a portion of teachers’ salaries to classroom performance. In Alabama, Republican Governor Robert Bentley says he’s giving up on his campaign to bring charter schools to the state after massive resistance from the Alabama Education Association.

Unions fight as hard as they do because they have one priority—preserving their jobs and increasing their pay and benefits. Students are merely their means to that end. Reforming public education is the civil rights issue of our era, and each year that passes without reform sacrifices thousands more children to union politics.

Thousands? More like millions. It is a national disgrace. We the people need to wrest control from the teachers’ unions and demand serious reform immediately.

Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers with reliable and balanced information about professional affiliations and positions on educational issues.

Teachers are Overpaid and Underpaid

A new study claims that public school teachers are overpaid. Are they? Depends.

An ongoing whine from teachers unions and their fellow travelers is that public school teachers don’t earn enough money. But according to Andrew Biggs, a researcher at the American Enterprise Institute scholar and Jason Richwine, a senior policy analyst at the Heritage Foundation, it is just not true. In fact, in a recently released study, they find that teachers are overpaid. Typically teachers have many perks like excellent healthcare and pension packages which aren’t counted as “income.” Armed with facts, charts and a bevy of footnotes, the authors make a very good case for their thesis. For example, they claim,

“Workers who switch from non-teaching jobs to teaching jobs receive a wage increase of roughly 9 percent, while teachers who change to non-teaching jobs see their wages decrease by approximately 3 percent.

“When retiree health coverage for teachers is included, it is worth roughly an additional 10 percent of wages, whereas private sector employees often do not receive this benefit at all.

“Teachers benefit strongly from job security benefits, which are worth about an extra 1 percent of wages, rising to 8.6 percent when considering that extra job security protects a premium paid in terms of salaries and benefits.

“Taking all of this into account, teachers actually receive salary and benefits that are 52 percent greater than fair market levels.”

Needless to say, the usual suspects are none too pleased with the report. A teacher-blogger going by New York City Educator calls his piece, “‘That’s Just Mean’: Bullies at the Heritage Foundation.” Okay, whatever.

Education Secretary Arne Duncan claims that

“…public school teachers are ‘desperately underpaid’ and has called for doubling teacher salaries.”

American Federation of Teachers President Randi Weingarten bashed the report, huffing that it’s full of “ridiculous assertions” says,

“The AEI report concludes that America’s public school teachers are overpaid — something that defies common sense — and uses misleading statistics and questionable research to make its case.

“If teachers are so overpaid, then why aren’t more “1 percenters” banging down the doors to enter the teaching profession? Why do 50 percent of teachers leave the profession within three to five years, an attrition rate that costs our school districts $7 billion annually?”

Kim Anderson, advocacy director at the National Education Association, who questions the reliability of the report, chimes in,

“Talented individuals turn away from this rewarding profession because they are forced to choose between making a difference in the lives of students and providing for their families.”

After a quick look at the negative responses, an obvious fix emerges: We should pay teachers by how effective they are in the classroom. By doing this, we would attract a more professional class of teachers. In every other profession in America, people are paid by how competent and productive they are. Good doctors earn more money than their less talented colleagues; good lawyers command higher fees than those who regularly lose their court cases, etc. Why do we make a special case for education – where competency is paramount?

It’s because teachers are positioned in our society like industrial workers, not professionals. Government run schools and the powerful teachers unions have coalesced to make teaching the equivalent of working in a glorified auto plant. Due to the one-size-fits-all nature of collective bargaining, we have an appalling system whereby teachers can make more money simply by logging years on the job and by taking useless professional development classes. Teacher quality throughout almost every school district in the country is a non-factor in teacher compensation.

Hence the real answer to the question, “Are teachers overpaid?” is no and yes. The good ones are most definitely underpaid and the mediocre and worse are most definitely overpaid. Andrew Biggs points this out,

“…across-the-board pay increases are hardly warranted. What is needed is pay flexibility, to reward the best teachers and dismiss the worst.”

In his review of the teacher pay study, AEI’s Rick Hess analyzes the rigidity of the current system,

“In a routine day, a 4th grade teacher who is a terrific English language arts instructor might teach reading for just 90 minutes. This is an extravagant waste of talent, especially when one can stroll down the hallway and see a less adept colleague offering 90 minutes of pedestrian reading instruction.”

On Jay Greene’s blog, Heritage’s Lindsey Burke sums it all up quite well,

“Effective teachers should be handsomely rewarded for the impact they are having on a child’s education. By reforming compensation policies in a way that accounts for the abilities of great teachers to improve student outcomes, we will ensure excellent teachers are richly compensated, and mediocre teachers have a strong incentive to improve.”

Teachers need to demand freedom from the government-teacher union monopoly. Until they escape from this highly unprofessional set-up, join other professionals and are paid according to their ability, they will continue to be treated as interchangeable parts. Yes, if they follow this advice, they may lose some of their union guaranteed perks. But in exchange, they will be treated as professionals with all the respect, esteem and compensation accorded to those in that class.

But in the meantime, we will continue to overpay bad and mediocre teachers and underpay the good ones. And the teachers unions and their allies will keep on bellyaching about yet another lousy state of affairs that they are responsible for.

About the author: Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers with reliable and balanced information about professional affiliations and positions on educational issues.