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SCHOOL FINANCE


KEY CALIFORNIA LEGISLATOR PROPOSES RAISING TEACHER PAY BY 50% OVER 7 YEARS, PAID
FOR BY STATE FUNDING


THOUGH NOT A STATE MANDATE, DISTRICTS WOULD FEEL PRESSURE TO FOLLOW SUIT


SCHOOL FINANCE

APRIL 19, 2023

JOHN FENSTERWALD

18 COMMENTS

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Credit: Office of Assemblymember Al Muratsuchi
Assemblymember Al Muratsuchi
Credit: Office of Assemblymember Al Muratsuchi
Assemblymember Al Muratsuchi

JOHN FENSTERWALD

APRIL 19, 2023

18 COMMENTS

Republish

Al Muratsuchi, the new chairman of the Assembly Education Committee, is seeking
to raise pay statewide for teachers and other school workers by 50% over the
next seven years. To pay for it, he’s proposing to increase base funding under
the Local Control Funding Formula, also by 50%, in legislation he introduced
last week.

The California Federation of Teachers, the smaller of the two unions that
represents teachers, is the sole sponsor of the bill. “We went to him
(Muratsuchi) with the idea to address the staffing crisis, and he agreed,” said
Jeff Freitas, CFT president.

“We’re all aware of the crisis,” said Muratsuchi, a Democrat from Torrance.
“Numerous studies have found that young people don’t become teachers because of
pay.”

Muratsuchi has authored other bills over the past five years calling for big
increases in per student funding to align California with the top 10 funded
states. Although they haven’t passed, Gov. Gavin Newsom and lawmakers have
capitalized on rising state revenues to approve record increases to the funding
formula. Assembly Bill 938, however, would take a very different tack, by making
higher employee pay the explicit driver of multiyear increases in TK-12 funding.

The bill assumes that school districts and charter schools would agree with the
explicitly stated purpose of AB 938 and would commit the bulk of their yearly
base funding increases to higher pay for employees.

But the bill would state an intention, not impose a mandate. Only future
Legislatures can decide how much to spend annually on the funding formula and
how to spend it. They could have a different strategy for recruiting teachers,
or they may be faced with a recession and suspend a cost-of-living adjustment,
or COLA.

The bill also would not dictate the size of annual raises for employees in every
district; that would remain subject to local bargaining and school board
approval. But AB 938 would give employee unions leverage in their negotiations,
as it should, said Freitas. Unions that reached an impasse and turned to a fact
finder could refer to the Legislature’s intent to justify a larger raise, for
example.

“If districts ignore what is provided by the state for employees, what is left
is to go out on strike,” he said. “We’ll be working with our unions to move
forward together.”


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Claudia Briggs, a spokesperson for the California Teachers Association, which
supports the bill, said, “We would hope that districts would act in the best
interest of students and follow the intent of the law.”

Along with the CFT and CTA, Muratsuchi can expect unions serving classified
workers, like the Service Employees International Union, will be four-square
behind AB 938.

Following a three-day strike last month, SEIU 99, representing hourly employees
in Los Angeles Unified, ratified a contract giving members a phased-in 30% pay
increase — already more than half-way toward the 50% target raise under the
bill.

A hearing on the bill before the Assembly Education Committee is scheduled for
April 26, when the CFT plans to launch its campaign for the bill, with dozens of
school employees from across the state rallying at the Capitol and testifying at
the hearing.


SOME SKEPTICISM, CONCERNS

Muratsuchi said the bill underscores the need to address a growing “teacher wage
penalty” that discourages young people from going into teaching. The preamble of
the bill cites a 2022 study by the Economic Policy Institute that found that the
gap between wages of teachers and other professions with similar education and
certification requirements has grown to 17.6% in California and 23.5% nationwide
in 2021.

Muratsuchi said the strike in Los Angeles Unified highlighted that cafeteria
workers were not getting paid a living wage. “The pay wasn’t enough to fill
these and other positions,” he said.

However, Muratsuchi may face opposition from school district management
organizations, which were not consulted in drafting the bills. The California
School Boards Association and the Association of California School
Administrators are withholding public comment, for now.

But other observers, while agreeing with the bill’s revenue aspirations, are
expressing reservations about its solutions.

“Raising LCFF rates by 50% is admirable, and all education advocates, including
me, support this aspirational goal. Achieving this goal, however, is not
realistic given plummeting state revenues and consensus economic forecasts,”
said Eric Premack, executive director of the Charter Schools Development Center,
which provides leadership development, advocacy and technical assistance on
charter school issues.

Todd Maddison, director of research for Transparent California, a project that
compiles and makes publicly available government pay and pension data in
California, questions the Economic Policy Institute’s data. His analysis of
2021-22 compensation determined the median California teacher salary was $96,323
– $8,000 more than a comparably educated worker outside of education.

Added Premack, ”When combined with a very strong retirement system, the typical
substantial health and welfare benefits, and typical work year of 185 days, and
unparalleled job security, this is very sound compensation.”

Employee compensation consumes 85% to 90% of all district expenditures; the
remaining 10-15% must absorb rising costs of employee pension obligations and
health-care contributions, putting a squeeze on other initiatives to raise
student achievement.

The bill would encroach on school boards’ discretion under local control, said
Mike Fine, CEO of the Fiscal Crisis and Management Assistance Team, or FCMAT, a
school finance agency charged with helping school districts in financial
trouble. Restricting the Local Control Funding Formula’s unrestricted funding is
at odds with the law’s principles, he said. ‘At some point the “L” won’t be
‘local’ but ‘legislative’.”

Fine, too, credits Muratsuchi pointing out the need for addressing compensation.
“Without adequate year-over-year increases that align with inflation, the
purchasing power of school employees declines,” as the Economic Policy Institute
report indicates, he said.

But some districts have lower compensation levels to offset lower class sizes or
other classroom supports, Fine said. “The value of local collective bargaining
is that it considers local conditions based on the welfare of the students and
community. Why should their local decision be penalized?”

Premack said awarding the same across-the-board increases for all teachers is an
inefficient approach. “It’s an extremely expensive way to address teacher
shortage/retention issues, especially when we know that the shortage is most
problematic in specific areas,” he said, such as math, science and special
education.

The funding formula’s base funding, making up 82% of the total, covers
districts’ basic expenditures, from textbooks to electricity to employee
compensation. The remaining 18% is dedicated to raising student achievement of
underserved students and is distributed through “supplemental” and
“concentration” grants to districts based on the numbers of English learners and
low-income, homeless and foster students who attend.

All districts receive the same base funding per student. The funding varies by
grade span, recognizing that it costs more to educate high school students than
elementary and middle school students. AB 938 would set new funding targets for
grade spans for 2030-31, from $13,749 per student for kindergarten through third
grade to $16,653 per student grades 9 to 12. That is 50% more than the $9,166 to
$11,102 respectively that districts are receiving this year for those grades.

Using the state’s latest projections for annual cost-of-living adjustments for
the next four years and smaller COLA estimates for the remaining years, assuming
inflation will be tamed by then, the school consultancy firm School Services of
California estimates that COLAs will cover most, but not the full 50% pay raise
in the bill. The state would have to meet the 11% estimated shortfall by funding
a “super COLA” over the next seven years or raise more revenue for education —
an option the bill does not cover.

In his January budget proposal, Newsom included an 8% COLA for 2023-24, but
projections will undoubtedly change with economic conditions, and calculating
how much they are contributing annually to meet the 50% raises will likely be
complex.

The bill calls for using the teacher salary schedules that FCMAT and unions
annually collect for the state, called the Form J-90. Filing is currently
voluntary, with about 80% of districts enrolling 95.6% of students
participating; it would become mandatory, starting in 2023-24. But districts
have not reported salaries for classified workers, and unlike certificated
employees, who have several salary schedules, classified bargaining units
usually have 40 to 50 salary schedules tied to various jobs, from bus drivers to
classroom aides, Fine said, so the structure of the reporting and the volume of
data will be complicated and increase significantly.

“There needs to be a thoughtful discussion about the proposal to identify the
opportunities and challenges it presents,” Fine said.

To get more reports like this one, click here to sign up for EdSource’s no-cost
daily email on latest developments in education.

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JOHN FENSTERWALD WRITES ABOUT EDUCATION POLICY AND ITS IMPACT IN CALIFORNIA.


EXPLORE:

School FinanceAl MuratsuchiCalifornia Federation of TeachersEric PremackMichael
Fine


COMMENTS (18)


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 1.  FOODLE 3 WEEKS AGO3 WEEKS AGO
     
      * 
     
     They should also raise the pay for office staff, health techs, aides,
     custodial, cafeteria, and Licensed Vocational Nurses, they work just as
     hard as teachers do.

     


 2.  SC 2 MONTHS AGO2 MONTHS AGO
     
      * 
     
     As a 5th year high school teacher, I have seen different reasons for
     leaving the profession than pay. Our pay is fine, benefits are great. What
     is really pushing us out of the classroom is huge classes, the lack of
     disciplinary follow through, daily disrespect from kids and parents, having
     to push every kid through with passing grades they didn't earn, and a lack
     of respect for our expertise. It's also on us to be … Read More
     
     As a 5th year high school teacher, I have seen different reasons for
     leaving the profession than pay. Our pay is fine, benefits are great. What
     is really pushing us out of the classroom is huge classes, the lack of
     disciplinary follow through, daily disrespect from kids and parents, having
     to push every kid through with passing grades they didn’t earn, and a lack
     of respect for our expertise. It’s also on us to be nurses, social workers,
     intervention teachers, to solve systemic poverty, etc…
     
     Teachers see the declining test scores. We know what needs to be done.
     Unfortunately when I have 38 kids in a classroom anywhere from a 1st grade
     to college reading level because everyone gets moved along no matter what,
     how do I provide appropriate texts that don’t make anyone feel singled out?
     When I have a kid who is violently disruptive and interrupts the indication
     of their peers every period of every day, and sending them to admin gets a
     finger wag and a treat, how am I supposed to maintain a calm and controlled
     classroom where learning can happen? How can I do small group intervention
     when the other kids bust out their phones the second I’m focusing on the
     smaller group? When we can’t use pedagogical best strategies in favor of
     the flavor of the month consultant and their “guaranteed methods,” how can
     I build consistency and routine?
     
     Teachers in CA aren’t leaving because of pay. We are leaving because we are
     not being allowed to do the jobs we were hired to do.
     
     Replies
     
     
     * JOHN 2 MONTHS AGO2 MONTHS AGO
       
        * 
       
       SC, you nailed it. I’m a 17 year vet. I’d love to be paid more but that
       is nowhere near my chief complaint. Your comment is spot on.
     
       
     


 3.  MARIA 2 MONTHS AGO2 MONTHS AGO
     
      * 
     
     About time!! My respects to all teachers, specially now a days. They
     deserve even more they have such a major role in our future generations.
     Finally

     


 4.  PAUL MUENCH 2 MONTHS AGO2 MONTHS AGO
     
      * 
     
     I’m not sure this proposal will pay teachers enough, but if you want to
     change the nature of who works in our education system something like this
     will be required. If California can stick to this strategy in the long term
     maybe it can succeed at what Michelle Rhee never was able to finish.
     
     Replies
     
     
     * TODD MADDISON 2 MONTHS AGO2 MONTHS AGO
       
        * 
       
       Perhaps you could define “enough”? Is a median total compensation of
       $125k not “enough”? And if not, what would you say is?
       
       https://edsource.org/2022/respect-for-teachers-means-more-than-a-pay-raise/682741
     
       
     


 5.  DR. BILL CONRAD 2 MONTHS AGO2 MONTHS AGO
     
      * 
     
     With fewer than 1/2 of students literate in reading and only about 1/3 math
     literate (Much lower for children of color!), one might think it prudent to
     include a smidgen of accountability with a pay raise. Highly qualified
     young people eschew teaching because of the utter lack of professionalism
     within the system. Until the colleges of education are transformed into
     institutions capable of attracting the highest quality candidates and
     training them well in curricula, pedagogy, and … Read More
     
     With fewer than 1/2 of students literate in reading and only about 1/3 math
     literate (Much lower for children of color!), one might think it prudent to
     include a smidgen of accountability with a pay raise.
     
     Highly qualified young people eschew teaching because of the utter lack of
     professionalism within the system. Until the colleges of education are
     transformed into institutions capable of attracting the highest quality
     candidates and training them well in curricula, pedagogy, and assessments,
     young people will naturally elect to join serious professions!
     
     The lack of career ladders in K-12 also are unattractive to highly
     qualified candidates as they really don’t want the most challenging
     teaching assignments as novice teachers!
     
     More money without K-12 transformation and accountability will ensure a
     more expensive status quo – the definition of insanity!
     
     No?
     
     Replies
     
     
     * SD PARENT 2 MONTHS AGO2 MONTHS AGO
       
        * 
       
       I agree. History indicates that if the state wants to improve student
       outcomes by investing more in education, then it also needs to hold
       school districts and their employees accountable for student outcomes in
       some manner or just get more of the same, mediocre results. If higher pay
       were the solution, then student outcomes should have improved
       significantly over the past decade – but they haven't. The state's annual
       financial contribution to school districts … Read More
       
       I agree. History indicates that if the state wants to improve student
       outcomes by investing more in education, then it also needs to hold
       school districts and their employees accountable for student outcomes in
       some manner or just get more of the same, mediocre results.
       
       If higher pay were the solution, then student outcomes should have
       improved significantly over the past decade – but they haven’t. The
       state’s annual financial contribution to school districts has increased
       more than 50% since 2016-17, and employee compensation has increased as
       well (although take-home pay was partially muted by the rise in school
       districts’ required pension contributions). But that increased investment
       in education hasn’t resulted in better outcomes for students, with
       overall student proficiency stagnating (never rising above 51% meeting
       standards in ELA and 40% meeting standards in Math, even prior to the
       pandemic–and sliding lower post-pandemic) and achievement gaps persisting
       and widening (post-pandemic).
       
       Everyone is quick to point out how educators are underpaid compared to
       other “comparable” professions. At the same time, educators are not held
       to the same standards as these other professions, where one is held
       accountable for their work product.
       
       
       * TODD MADDISON 2 MONTHS AGO2 MONTHS AGO
         
          * 
         
         Certainly, but just a note. Educators are not underpaid compared to
         other professions, even without considering the huge amounts they get
         in retirement plan compensation that private employees get they still
         make about $8k/year more than they would make in private industry
         (without summers off…)
         
         https://edsource.org/2022/respect-for-teachers-means-more-than-a-pay-raise/682741
       
         
       
     
     
     * JANET GOLDSBURY 1 MONTH AGO1 MONTH AGO
       
        * 
       
       Hello Dr. Bill Conrad. Yes, the rates of proficiency are dismal and only
       appear to be getting worse. You oversimplified the root cause by looking
       at teachers. As a math teacher, I can assure you that my hands are tied.
       The billion dollar testing industry, and bloated, overpaid and
       incompetent administration and district offices full of paper pushers,
       have us all by the **** It's demoralizing to see our kids tested and
       tested and tested … Read More
       
       Hello Dr. Bill Conrad. Yes, the rates of proficiency are dismal and only
       appear to be getting worse. You oversimplified the root cause by looking
       at teachers.
       
       As a math teacher, I can assure you that my hands are tied. The billion
       dollar testing industry, and bloated, overpaid and incompetent
       administration and district offices full of paper pushers, have us all by
       the ****
       
       It’s demoralizing to see our kids tested and tested and tested without
       the opportunity for review the test results with the students, and
       without legitimate interpretation of all the data we collect. The
       excessive testing robs instructional time, demoralizes students who are
       being tested on material that everyone knows we have not covered. We
       haven’t covered the material because we are testing!
       
       The only winners are Pearson and the tech industry. Kids are being
       excessively immersed in the use of computers when the jury is out on the
       appropriate amount of computer use for the appropriate age. IQ scores are
       falling for the first time since we began collecting data. Children are
       unsupervised or under-supervised at home because of the breakdown of the
       nuclear family and because of the increasing income inequality so that
       even in two parent households, both parents must work fulltime and are
       overworked leaving no one to care for the children.
       
       The diet of children is high in sugary and processed foods which has well
       established negative effects on cognitive development. Music and art are
       sidelined. Politicians line their pockets and legislate for their own
       best interests. The American culture is anti-intellectual and
       anti-science. And you post wanting accountability from teachers!
       
       Yes, I have superhuman powers (sarcasm) and I should be held responsible
       to properly educate the children born to the products of this society?
       From my perspective the people who sincerely care the most, are the
       teachers. All those outside the classroom claiming a role in the
       education system are working only to enrich themselves, stroke their
       egos, climb the career ladder, wield power over others, and hear their
       own voices.
       
       It’s a hopeless situation. I have no expectations for things to get
       better. In fact, I believe we are a society in decline and will continue
       to decline. It’s not the teachers’ fault. At all!
     
       
     


 6.  CAROL 2 MONTHS AGO2 MONTHS AGO
     
      * 
     
     They should also raise the pay for office staff, health techs, aides,
     custodial, cafeteria, and Licensed Vocational Nurses, they work just as
     hard as teachers do.

     


 7.  DAN PLONSEY 2 MONTHS AGO2 MONTHS AGO
     
      * 
     
     The argument that this bill "is not realistic given plummeting state
     revenues and consensus economic forecasts," is based on the assumption of
     no change to California tax structure. However, CFT is also proposing a
     bill to tax the wealth of the very wealthiest Californians: "Whereas the
     combined wealth of the richest one percent in California is two trillion
     dollars, approximately thirty percent of all the state's wealth," the
     billionaires having "increas[ed] their wealth by fifty … Read More
     
     The argument that this bill “is not realistic given plummeting state
     revenues and consensus economic forecasts,” is based on the assumption of
     no change to California tax structure. However, CFT is also proposing a
     bill to tax the wealth of the very wealthiest Californians: “Whereas the
     combined wealth of the richest one percent in California is two trillion
     dollars, approximately thirty percent of all the state’s wealth,” the
     billionaires having “increas[ed] their wealth by fifty percent since March
     2020” (from 2023 CFT Convention Resolution 4) — it’s clear that we could
     fund this increase in pay (which, BTW, at 6%/year (compounded, to make 50%)
     is not even as much as recent inflation) without increasing taxes on the
     bottom 99%, while at the same time, reducing CA’s very damaging economic
     inequality, albeit very slightly.
     
     re: Madison’s argument that teachers are not more underpaid than others is
     easily resolved: if teachers are in short supply in a capitalist economy,
     then they are underpaid.
     
     Replies
     
     
     * TOMM 2 MONTHS AGO2 MONTHS AGO
       
        * 
       
       Interesting comments worth expanding upon. CA already has the highest
       income tax rate in the country, and the wealthiest can and do relocate to
       lower tax states! Agree in the principal that teachers need to be paid
       more if the current pay scale is not attracting and retaining teachers.
       However, not with the current union system that lacks performance based
       pay as well as several other union rules including the tenure system …
       Read More
       
       Interesting comments worth expanding upon. CA already has the highest
       income tax rate in the country, and the wealthiest can and do relocate to
       lower tax states! Agree in the principal that teachers need to be paid
       more if the current pay scale is not attracting and retaining teachers.
       However, not with the current union system that lacks performance based
       pay as well as several other union rules including the tenure system that
       protects bad teachers. The monopoly in K-12 education is just too
       dominated by the unions and the politicians that do their bidding in
       exchange for campaign support.
     
       
     
     
     * ERIC PREMACK 2 MONTHS AGO2 MONTHS AGO
       
        * 
       
       Dan: Yes, arguably my quote doesn't address the potential for tax
       increases. I'll note, however, that California already has the nation's
       highest taxes for high-income individuals, including a 12.3 percent rate
       for high-income individuals and an extra 1 percent surcharge for income
       over $1 million. Our sales and property taxes/fees are very high too.
       High-income individuals pay the bulk of the state's income taxes, which,
       in turn, fund K-12 education. … Read More
       
       Dan: Yes, arguably my quote doesn’t address the potential for tax
       increases. I’ll note, however, that California already has the nation’s
       highest taxes for high-income individuals, including a 12.3 percent rate
       for high-income individuals and an extra 1 percent surcharge for income
       over $1 million. Our sales and property taxes/fees are very high too.
       High-income individuals pay the bulk of the state’s income taxes, which,
       in turn, fund K-12 education. For those of us who are concerned about the
       long-term sustainability of our state-controlled education funding
       system, recent migration data from the Public Policy Institute of
       California indicates a chilling recent uptick in out-migration of
       high-income individuals. Unsurprisingly, most have migrated to states
       with lower taxes. This is especially the case post-Pandemic as many
       high-income individuals figure out that they can telecommute to work from
       low-tax states while still earning high California salaries. We can “go
       to the well” only so many times before it is overdrawn.
     
       
     
     
     * TODD MADDISON 2 MONTHS AGO2 MONTHS AGO
       
        * 
       
       Then given they are not in short supply, you must agree they are not
       underpaid, then? Some actual data linked. An on a smaller scale, my own
       district, Oceanside Unified, released it's annual report a few days ago,
       which showed 17 applicants for every job. Of those, on average five were
       fully qualified. Anyone in a position to hire would tell you getting five
       qualified applicants for every job is the opposite of … Read More
       
       Then given they are not in short supply, you must agree they are not
       underpaid, then?
       
       Some actual data linked. An on a smaller scale, my own district,
       Oceanside Unified, released it’s annual report a few days ago, which
       showed 17 applicants for every job. Of those, on average five were fully
       qualified. Anyone in a position to hire would tell you getting five
       qualified applicants for every job is the opposite of a “shortage”.
       
       Do you have any actual data from your own district (often called the
       “Personnel Report”)? I’d love to see it.
       
       https://www.the74million.org/article/new-data-schools-have-been-adding-teachers-even-as-they-serve-fewer-students/
     
       
     


 8.  TOMM 2 MONTHS AGO2 MONTHS AGO
     
      * 
     
     My blood boils when a government worker group with a lock on an industry
     wants and gets large wage increases (e.g.LAUSD) even though they were
     highly instrumental in keeping our public school kids out of the classroom
     way longer than scientifically necessary and lots of other states. How
     about getting something in return Mr. Muratsuchi? Here’s an idea – school
     choice.

     


 9.  LUIS 2 MONTHS AGO2 MONTHS AGO
     
      * 
     
     And of course, in California there is no accountability! Public education
     was terrible for many subgroups like black, Latino, and SPED kids far
     before the teacher shortages and the pandemic. This is a blind money grab
     and yet CA is at the bottom in literacy! Tear apart the unions, allow for
     competition and watch the educational market correct itself

     


 10. MONICA 2 MONTHS AGO2 MONTHS AGO
     
      * 
     
     I am an instructional tutor in a special needs classroom helping the
     learning and physically disabled. I have my B.A. degree and site supervisor
     permit for preschool. I make just under $26,000 per year with benefits
     (that I pay for). Working 9 months per year this is not much income. I took
     this position in order to help with the caregiving needs I have for my
     elder parents. The pay is very low and not … Read More
     
     I am an instructional tutor in a special needs classroom helping the
     learning and physically disabled. I have my B.A. degree and site supervisor
     permit for preschool. I make just under $26,000 per year with benefits
     (that I pay for). Working 9 months per year this is not much income. I took
     this position in order to help with the caregiving needs I have for my
     elder parents. The pay is very low and not the reason I took the job. I’m
     in my 50’s and it’s not easy to find work that allows me the time off I
     need in order to help with family needs. I believe teachers deserve better
     pay, BUT so do the instructional tutors and assistants who work every bit
     as hard and don’t get paid a living wage for that! Especially those who
     have attended college. My district does not allow for a stipend in having
     my degree because I earned it before I worked for the school district. I
     believe we should get a stipend regardless of whether we earned our degree
     while working with the district or not. Education is education and it NEVER
     goes away. We should be compensated, too!

     

 * 
 * 

EdSource · Schools are counting - and helping - more homeless students

SCHOOLS ARE COUNTING – AND HELPING – MORE HOMELESS STUDENTS

June 15, 2023 - When Ana Franquis' family was evicted, they had nowhere to turn.
They found help with the school district.
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WHAT’S THE LATEST?

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