- Discussions over teacher pay often overlook an important factor
- Rising benefit costs have been crowding out funds for salary increases
- Total compensation has been rising faster than just salary figures
The debate over teacher pay in North Carolina seems endless. It’s important to realize that none of these discussions occur in a vacuum. Like all expenditures, the dollars available to pay teachers are dependent on such things as the state of the economy, the tax burden and other competing priorities for funding. One of those priorities frequently left out of these discussions is the rising cost of employee benefits.
Employee benefits for North Carolina teachers include health insurance, retirement and social security. Table I shows changes in the rate or cost of employee benefits from 2010 -2017. As you can see, the percentage allotted for Social Security benefits remained unchanged (7.65 percent of an employee’s salary) over that period. The cost of health insurance and retirement benefits however, both experienced significant increases. The cost the state paid for individual employee health insurance increased from $4,527 (2010) to $5,754 (2017), an increase of 27 percent over seven years. However, the percentage charged for retirement benefits saw even larger increases, expanding from 8.75 percent in 2010 to 16.54 percent in 2017, an increase of 89 percent (All data from Highlights of the North Carolina Public School Budget for appropriate years and Statistical Profile Public Schools of North Carolina, financial tables.)
These changes translate into real numbers for employees. In 2010 the value of employee benefits totaled $11,550. By 2017, the same total had surged to $16,903, an increase of 46 percent. With an average teacher salary of $45,970 and $16,903 in benefits, total average compensation for North Carolina teachers is $62,873. It is also important to note this total does not include local pay supplements (in 2017 average local supplement was $4,200) or other forms of pay such as longevity pay, or mentor pay. If you only include the average local pay supplement, total average teacher compensation in 2017 totals more than $67,000.
According to data from the North Carolina Department of Public Instruction, in 2010 North Carolina spent approximately $2 billion on employee benefits. By 2017 that figure had increased to about $2.8 billion. How did that change impact per student expenditures? In 2010, North Carolina spent $1,467 on employee benefit per student. By 2017, the figure had increased to almost $2,000 ($1,970) per student. The percentage of all expenditures dedicated to employee benefits rose from 17.4 percent to 21.5 percent over the time period.
The rising cost of employee benefits is an important factor in determining how teachers are paid. We’d do well to do all we can to contain their costs and include employee benefits in future discussions on teacher pay.
I’m reminded of a quote by Howard Zinn. He said, “between War and Pacifism, there are a thousand options.”
Bob Luebke lives inside a Box where only two choices exist. Bob, like his masters, have no imagination or reasoning mind to solve problems. In fact, they don’t want to. They are Marketers posing as Academics.
There are a thousand options to fund Education and pay teachers Bob.
Let’s play with figures!
Based on 2010 numbers….
CPI inflation calculator shows that the increase in salaries is well below inflation.
CPI inflation calculator shows that total compensation is running slightly above inflation.
We can all bend the numbers, but it is sort of insulting when numbers are manipulated to sway public opinion against raises for teachers.
More fun with numbers – the purchasing power of the salary a veteran teacher is $10,000 less than it was in 2008.
There is logic to not cutting taxes when the economy is strong!
Okay I will bite….Scott, if you know 1000 ways to fund teacher pay, please do not keep it to yourself. Give us your best ten examples.
Betsy
I would note that the buying power of the US worker has remained flat over the past 40 years (according to your Pew Center, Scott). What growth that did occur was enjoyed by the upper wage earners. State employees here in NC has declined up even more than our teachers.
Betsy,I’am with you,only we already know who will fund education.That would be the taxpayer.And to Richard I would say the private sector hasn’t done so well either.When you have a community organizer for 8 years you can’t expect much.To George,he and his Gimmedat Party have been telling us for the last 8 years there is no inflation.Now George says his pay hasn’t kept up with inflation.According to you and your comrades there is no inflation.