Budget plan

Haslam proposes teacher pay hike for third straight year in Tennessee

PHOTO: TN.gov
Gov. Bill Haslam prepares to deliver his 2018 State of the State address Monday evening during a joint session of the Tennessee General Assembly in Nashville. It was Haslam's final address to lawmakers and kicked off his last year as governor.

Tennessee public schools would get an additional $212 million, including funding for increasing teacher pay for the third straight year, under Gov. Bill Haslam’s final proposed budget released on Monday.  

Of the increase proposed for K-12 education, Haslam wants $55 million to go to teacher pay hikes. If approved, it would bring the total increased funding for teachers salaries to $500 million during his eight-year administration.

He also proposed to help districts pay for a state-mandated but unfunded intervention program for struggling students, as well as smaller amounts for programs to promote literacy and develop school principals.

The outgoing Republican governor announced the investments in his last State of the State address as he touted the growth of Tennessee students in math, English, and science on national tests, as well as a record-high graduation rate for high-schoolers. He implored the state to continue accountability-based education reforms of the last decade that he credited for the improvements.

“Together we have made the right calls, the tough calls, on the policies we’ve pursued,” Haslam said of raising academic standards, developing a test to measure those standards, and tying teacher evaluations to test results.

“… We have not compromised. And I’m asking you to stand with me to ensure that we don’t back up now. Not now. Not this year. Not next year. Not ever.”

The $37.5 billion overall budget plan was conservative but friendly to K-12 education considering that it anticipates only slightly higher revenues than last year. Haslam said his work this year will be grounded in three priorities: education, jobs, and government efficiency. 

Higher education initiatives would receive almost $100 million in additional money. To help students complete college on time, Haslam also wants to restructure the Tennessee Promise scholarship for community college and the lottery-funded HOPE scholarship, which is merit-based.

For K-12, Haslam asked for $13.3 million annually to help school districts pay for the state’s required intervention program aimed at keeping struggling students from falling through the cracks. Known as Response to Instruction and Intervention, or RTI, the program is in its fourth year but has never had state money to prop it up.

Haslam wants another $10 million for school improvement grants for “priority schools” in the state’s bottom 5 percent in academic performance, $6 million to help charter schools pay for facilities for a second year in a row, $4.5 million for the state’s reading initiative in its third year, and  $1.75 million to help build and strengthen the state’s principal pipeline.

In a statement later, Education Commissioner Candice McQueen noted that K-12 education would receive the lion’s share of new funding under Haslam’s proposal.

PHOTO: TN.gov

The governor’s budget builds on our priority areas and what we know works, particularly in helping our youngest students learn to read, in ensuring every school is led by an excellent principal, and in funding for grants for our highest need schools,” McQueen said.

Now the budget goes to lawmakers for revisions and approval before the legislative session ends this spring. If Haslam’s K-12 proposal stands, education spending will have increased by $1.5 billion during his administration.

The proposed pay boost for teachers was welcome news for educators, but not all of the money would likely reach their paychecks. That’s because local districts have discretion on how to invest state funding in instructional needs if they already pay their teachers the state’s average weighted salary of $45,038.

Editor’s note: This story has been updated to include the state’s average weighted salary for teachers.

School Finance

Why some IPS schools are facing big budget cuts, and others are mostly spared from the pain

PHOTO: Dylan Peers McCoy
School 107 is expected to lose about $230,000 next year, one of the larger cuts in the district.

At campuses across Indianapolis Public Schools, principals are grappling with a painful prospect: cutting hundreds of thousands of dollars from their school budgets. And that may be just the beginning.

The district is looking to cut about $21 million from its $269 million general fund budget for 2018-19, including about $8.9 million that will come from budgets for schools and certified staff such as teachers, according to a preliminary budget document. Officials declined to give school-by-school breakdowns until they are finalized later this summer.

The district initially planned to fill its budget gap by asking voters for nearly $1 billion in extra funding in May, but after the proposal received little support, the board first shrunk and then delayed the request. The cuts that begin next year could continue if the state’s largest district isn’t able to find other savings or win voter support for a referendum to increase taxes and school funding in November.

“We have the hope of a referendum,” said Weston Young, the district’s chief financial manager.

Chalkbeat has the details on what types of schools are expected to lose the most, what schools might cut, and what this means for the future of the district.

Big schools — including high schools — are taking the brunt of the cuts.

When it comes to cutting spending, large schools are carrying more of the burden, according to the preliminary documents. That includes middle and high schools, as well as some elementary schools. At some of the district’s smallest campuses, however, officials say budgets are already too lean for significant cuts.

Indianapolis Public Schools sends money to schools using a formula known as student-based allocation, which gives them funding based on how many students they enroll and student needs. But every school also has a baseline amount of money district officials believe they need to operate.

Small schools that serve wide grade spans, which might only have one class at each grade level, often get extra money to be sure they reach the minimum. In contrast, large campuses typically get enough from the per student formula to be above baseline. On a basic level, the district budget is based around the idea that it costs less per child to educate students in large, efficient schools.

Because of that approach, campuses that were already at minimum funding levels won’t see significant cuts, Young said. On the flip side, however, bigger campuses are shouldering a larger share of the cuts.

That could be bad news for the four high schools that will remain open in the fall. The schools will be among the largest campuses in the district, and they are expected to face significant cuts.

Last month, Superintendent Lewis Ferebee told Chalkbeat that cuts would not damage the effort to revamp high schools because, in addition to baseline funding, the schools will have donations from private partners such as Salesforce.

“Obviously, we won’t have all the resources that we’d like to have,” he said, “but we will be in a good position come August of 2018.”

Magnet schools and career and technical education get extra money — and extra cuts.

On top of their regular budgets, choice programs, such as Montessori, International Baccalaureate, and career and technical education, receive millions of extra dollars each year. That spending is also on the chopping block as the district cuts costs.

But because the district had already planned spending on those programs and some areas are easier to reduce than others, cuts won’t be spread evenly, said Aisha Humphries, director of budget and strategy for the district. In Montessori schools, for example, instructional assistants are integral to the model, she said. In order to cut that, the district would have to change the school model.

“When you do budget cuts, it may be that we want to cut equally and make everybody feel the pain equally,” Humphries said, “but you may not be able to do that.”

But there are other areas where the district can more easily cut back, Humphries said, such as by reducing the number of foreign languages offered in middle school.

Schools are giving up technology, teachers, and other staff.

As the district cuts budgets, principals ultimately decide what painful trade offs to make. Under the new budgeting approach the district rolled out this year, principals are given a set amount of money, and they have control over how they spend most it. If a principal wants to make class sizes slightly larger to pay for a school social worker, for example, they can. When it comes to budget cuts, the approach is the same.

“They are still in the driver’s seat,” Young said.

When schools got budgets earlier this year, they were built on the assumption that the district would win the May referendum. But principals knew that additional funding might not come through, and some planned for potential cuts when they created their budgets, Young said.

When principal Jeremy Baugh learned School 107 is expected to lose about $230,000 next year, he already had some potential cuts in mind. The school will cut back on new technology, instructional supplies, and professional development. Baugh also won’t go through with his plan to hire two new educators.

School 107, which enrolls just over 600 students, is expected to have one of the larger budget cuts in the district. But in part because the school is growing and will get more money for those new students, he doesn’t expect to cut current staff.

“We didn’t have to make significant cuts that were impacting staff right now,” Baugh said. “So we felt pretty lucky.”

School Finance

How much are Indianapolis teachers paid? Here are the highest and lowest paid districts in the city

PHOTO: Alan Petersime

As teachers across the country rally for more education funding and higher salaries, policymakers and the public are paying renewed attention to how much educators are paid.

Nationwide, stagnant teacher pay coupled with plentiful well-paying openings in other fields means that it’s even harder for principals and administrators to fill open positions. For some teachers, low pay is one reason they leave the classroom altogether, whether to become administrators or find another career.

In Indiana, cash-strapped districts often struggle to pay for raises even for their current staff — making it difficult to retain teachers. Educators in Indianapolis have lots of schools to choose from, and teachers can increase their pay by heading to nearby districts.

Educators in Indiana school districts made an average of about $48,743 last year, according to the Indiana Education Employment Relations Board. Pay is higher in districts in the state’s capitol, but it varies widely, with educators in the lowest paying district earning about $11,000 less on average than teachers in the top paid district. (The board only collects data on districts with teachers unions so it does not include average pay for teachers in charter schools.)

When teachers with particularly high demand skills switch jobs, they can also boost their earning by moving higher on the pay scale.

Average teacher pay in Marion County 2016-17

Source: Indiana Education Employment Relations Board collective bargaining report. (Image by Sam Park)

One reason why average pay might be higher in some districts than others is because the pay scale is higher. Starting pay in Beech Grove Schools, for example, is $38,000 per year. In Speedway Schools, a district with consistently high pay, teachers earn a minimum of $44,252.

Minimum teacher pay in Marion County 2016-17

Source: Indiana Education Employment Relations Board collective bargaining report. (Image by Sam Park)

The gap is even wider for experienced educators. In Indianapolis Public Schools, the pay scale sets the maximum salary at $72,740. That’s almost $14,000 less than the max pay for teachers in Speedway — $86,702. (Some teachers may earn more because they are still paid based on older pay scales with higher caps.)

Maximum teacher pay in Marion County 2016-17

Source: Indiana Education Employment Relations Board collective bargaining report. (Image by Sam Park)

But there’s another reason why some districts have lower average pay than others — they have more inexperienced teachers. Both Beech Grove and Indianapolis Public Schools have higher floors and ceiling for pay then they did in 2013-2014. Nonetheless, the average pay in those districts has declined, likely because they have more inexperienced teachers with lower salaries.

This year, both districts have relatively high numbers of teachers in their first year, according to data from the Indiana Department of Education. In Indianapolis Public Schools, nearly 10 percent of certified educators are new to the classroom. In both Beech Grove and Warren Township Schools, about 7 percent of educators are new.