Friday, June 1, 2018

The Cost of Better Schools - and the Benefits




More school hours, days, and years are all going to cost more money. I will look at teacher pay, where the money comes from, and how it might be distributed.

Teacher pay:

The average teacher salary for 2016 – 2017 was $60,000 with a range by state from $40,000 to $80,000. Recent teacher strikes in West Virginia ($45K Rank 48), Oklahoma ($45K Rank 49) and Arizona ($47K Rank 43) have highlighted what is perceived to be the plight of underpaid teachers.[1]

On the other hand critics of the argument for higher teacher salaries site the fact that teachers have a 6 hour work day, work fewer days per year, have generous defined pension benefits, and have a kind of job security that is not commonly found in the private sector.[2],[3]

For the purpose of this post lets divide the issue into salary and benefits.

To begin with teachers who are making 25% less than the mean teacher salary probably have a case that they are underpaid. Second the six hour day doesn’t include lesson planning, test and work correction, and after hours parent and student counseling. Finally in the new world order teachers would have more scheduled work hours and days. Another reason teachers in this system should get paid more is because in this system they are very good teachers and should be paid accordingly. Teaching is hard and important work.  As long as they are delivering at the expectations of this new system they should have the pay and respect commensurate with the quality of that work. Therefore, increases in pay would be in order.

With respect to benefits, first I think all public service retirement plans should be transformed from a defined benefit to a defined contribution.  The costs then would be known up front and more clearly negotiable. Politicians would not be in the position of making promises and then underfunding them for their short-term gain.

The problem of health care expenses for both employees and retirees would be solved with the passage of the GHE.[4] Health care costs would either be known and fixed or shifted to another sector of the economy.

With respect to job security, people should be hired, fired, promoted, or disciplined based on the quality of their work no matter what profession they are in. Inevitably, some people are employed in a profession they either never were or no longer are capable of doing competently.  Therefore employment should not be based on tenure, seniority, longevity, or union status.  Nor should it be based on budget constraints or the capricious judgments of administrators and public officials. The ongoing mentoring and team building through the use of cameras in the classroom could also be a means of monitoring teacher proficiency and making sure that teachers are performing at whatever level of competence we expect them to achieve and maintain.

Paying teachers more by acknowledging their extracurricular efforts, longer hours, and more days along with a switch to defined contribution retirement plan and employment based on measurable performance would be an appropriate approach to changing teacher pay. In addition to whatever the increase cost of teacher pay, there is the additional cost of 2 years of all day pre-K. If that is the case, where will the extra money come from?

I am not sure how much this would cost but I have a pretty good guess – about $180 billion per year. There are 3.2 million public school teachers. If their salaries increased by $40,000 per year that would cost $128 billion. In addition there would need to be 500,000 preschool teachers at an average annual cost of $100,000 per year for another $50 billion.

I would propose we could get that money from healthcare and I would do that by amending my Guaranteed Healthcare Entitlement (GHE). I proposed that the $3.3 Trillion we spend on health care be fixed until, as a result of medical inflation in other countries, our per capita medical costs matches the per capita expenses of other OECD countries. I would suggest amending that formula by saying we decrease that spending by an additional 1% for each of the first six years so that we get to that OECD mean faster and we could use that money to fund the added expense of our education system.  I don’t think this would stress the medical profession (any more than the GHE would). In the first year there would be $33 billion dollars that would grow to $198 billion by year six. It will take a while to reconfigure the system and train literally an army of pre K teachers so we don’t have to come up with the money in the first year. That said that is a lot of money coming from the federal government so how would it be distributed?

With respect to this I have a few very generic suggestions. I would say money should be distributed to states in the form of block grants. Perhaps universal all day pre-K should be a priority. Expanding school hours and days are measurable changes that could be compensated through these grants. However, I feel mandated curricula standards from Washington would be counterproductive. Recommendations on how to foster emotional intelligence and character along with intellectual intelligence would be helpful but states and local school districts should be left to determine how to implement such instruction.

At the state level I would suggest implementing a Guaranteed Student Entitlement which I briefly mentioned in my January 31 blog entry. To remind you, in 1992 the then commissioner of education for Rhode Island Peter McWalter proposed what he called the Guaranteed Student Entitlement (GSE).  In the program the cost of a solid education for each student would be determined.  This would cover basic subjects, electives, arts, and physical education.  The state would guarantee that each student would have this amount spent on him or her throughout the state.  Recognizing that there are students with special need, these students would get an additional stipend above the initial base stipend.  At the time the base stipend was approximately $7000 and additional funding of $1500 went to students who were either low income or had English as a second language.  They would get $3000 if they were identified with a learning disability. 

This system didn’t fly and I think one reason was that it would require local school districts to cede funding to the state. However, if additional federal funding were available through the state then this could go to pay for extra school hours and days in all school districts and the additional funds for educating disadvantaged students.  This would keep most of school funding local and provide the financial support for both parts of this program.  This would address one issue brought up in more than one comment by former teachers about charter schools – the fact that they were selective and didn’t have to take difficult students or can dismiss them back to public schools. In this system whatever school ends up with them would get higher pay per student for dealing with these types of students.

Ever since the publication of a Nation at Risk[5] the quality of our educational system has been called into question and after 35 years we have very little to show in the way of improvement. This is my proposal for a way forward. I would also add that in addition to improving our educational system this is an anti-poverty program with attendant saving in welfare costs, gun violence cost, out of wedlock births and abortions that go with poverty. It is also hopefully an inoculum against mental health issues for the next generation. Finally if we do, through education, raise most of the next generation out of poverty the cost of this kind of program should go down.

This is my two cents on the cost of education in this country. I would love to hear yours.[6]











[1] http://blogs.edweek.org/edweek/teacherbeat/2018/04/teacher_pay_2017.html
[2] https://www.forbes.com/sites/jeffreydorfman/2014/08/07/low-teacher-pay-and-high-teacher-pay-are-both-myths/#4ef2eeb031af
[3] https://www.usnews.com/debate-club/are-teachers-overpaid/average-public-school-teacher-is-paid-too-much

[4] See Fixing Healthcare Part 3C: Odds and Ends http://geoffhberg.blogspot.com/2018/03/fixing-healthcare-part-3c-odds-and-ends.html


[5] https://www2.ed.gov/pubs/NatAtRisk/risk.html
[6] Any comments you leave in the comment section come directly to me and also can be seen by other readers.

1 comment:

  1. Nice, Geoff. Well considered and presented.

    I might add one thing. It seems to me that you are making an implicit argument here:
    a) that the public sector actually does provide vital public services, as vital as police, fire and defense to our civilization;
    b) that among those public services is public education; and
    c) that due to their existential nature, these services require adequate resources based on the actual need, not some arbitrary measure of size.
    I think this implicit argument needs to be made explicit, literally every time we discuss matters of governance and public policy.

    Ironically, in 21st Century America, both liberals and conservatives alike tend to frame the public education question as what's right for THEIR OWN children -- a personal choice -- and not what kind of education we expect as a BASELINE for our NEIGHBORS. In thinking about ourselves and what services we get for our own tax dollars, we've forgotten that this is about what kind of community we want to live in. It shouldn't limit the education we seek for our own children but it should enable basic numeracy, literacy and critical thinking skills that EVERYONE needs to participate in our Republic.

    This is NOT just an example of an argument for "large government" in opposition to "small government" Libertarian Fundamentalism. This is an argument for necessary government. Consider this: we don't expect the CBO to produce an analysis of our missile defense or drone programs in terms of an ROI. Of course not. That would be silly because the systems are response to an existential threat. How big are these systems? Big enough to get the job done. THAT's how we need to think about SOME other government services too, not the least of which is public education.

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