Tuesday, July 5, 2011

School Funding Crisis




Almost every day there is a story in the media about the government taking some punative action against some government workers union. The shit first hit the fan months ago when the Republican governor of Wisconsin took action against his state workers unions. The result was the disappearance of the Democratic state senators so a vote could not be taken along with statewide demonstrations that could easily have become riots. Things have seemed to calm down for now, but the public is tense and things could explode again. The action by Wisconsin was followed by similar actions by several other states; leaving many state workers feeling like they were under siege, with most of the public animosity directed towards the teachers unions.

In my state, Illinois, the mayor of Chicago--by way of the school board-- canceled the teachers scheduled 4% pay raise resulting in the Chicago Teachers Union president comparing the rank and file to slaves. (Can anyone say hyperbole?) Had the mayor and governor been Republicans the city would have been burned to the ground the next day, but since they are Democrats nothing of consequence will occur. I feel it’s doubtful that the union will strike, and for the sake of the students I hope I'm correct. With 70% of the school budget going to salaries this is probably only the beginning of the government attack on the teachers union. With a +$700 deficit to close more cuts are certain.

Two weeks ago I was at a gathering of family and friends where the topic of the teachers pay raise came up. The group included tea party members, ultra-liberals, and everything in-between. I was shocked to find that all but one individual were soundly against the teachers. Even the unabashed progressives agreed that the teachers were paid too much and the unions had gone too far. The sole person in favor of the teachers’ position was herself, a public school teacher. The consensus was clear—unions were once necessary to insure workers rights, but were now out of control and had to be reined in.

The public school teacher argued that teacher pensions were not out of control because people didn’t think of them correctly. She proposed that the teachers’ pension debt was like a mortgage—it may seem large but does not have to be paid today, but in small installments over time. You could tell that she was instructed what to say, probably by her union, and really didn’t understand her own analogy. As I pointed out, your mortgage doesn’t increase by 3% every year along with medical payments. The pension situation is unsustainable and has to be changed. Unfortunately, teachers will probably never get what was promised to them.

This leads me to the three things that are to blame for the present education funding crisis; (1) unions that over the years pushed for higher salaries and more benefits without regard for how the state would pay for them, (2) an educational system that pays teachers based on how many years of experience they have rather than the quality of their work, and (3) the misguided attitude that more funding is always the answer to why students don’t achieve. Teachers will argue that a small increase in taxes could set everything right.

Using the most recent demographic information the +$700 million school deficit for the next school year corresponds to approximately $320 per person in the city—approximately $1300 per family of four. The median city income being approximately $75,000 and assuming an overall tax rate of 40% each family of 4 would have to pay 3%of their take-home pay just of close the school deficit. How many people would be willing to take a 3% pay cut so teachers could have their 4% pay raise? Try selling that one to the general public.