Teacher Benefits Still Eating Away at District Spending
The table below uses 20 years of data (all years that are available online) to show total current expenditures (i.e. it excludes capital costs and debt), expenditures on base salaries and wages, and expenditures on benefits like retirement coverage, health insurance, tuition reimbursements, and unemployment compensation. Although it would be interesting to sort out which of these benefits have increased the most, the data don’t allow us to draw those granular conclusions. But they do tell us that teachers and district employees are forgoing wage increases on behalf of benefit enhancements.
From 2001 to 2012 alone, public education spending increased 49 percent, but, while salaries and wages increased 36 percent, employee benefits increased 96 percent. Twenty years ago, districts spent more than four dollars in wages to every one dollar they spent on benefits. Now that ratio has dropped under three-to-one. Benefits now eat up more than 20 percent of district budgets, or $2,363 per student, and those numbers are climbing.
This is not a good trend. Instead of hiring more teachers or paying them more money, districts are devoting an increasing share of finite resources to employee benefits.
This first appeared on teacherpensions.org
Sign Up To Receive Notification
when the latest issue of Education Next is posted
In the meantime check the site regularly for new articles, blog postings, and reader comments