Ken's Project Blog

January 6, 2011

Teacher Pay: A Smarter Investment for the New Year

Filed under: Uncategorized — Ken @ 12:10 am

Sort of.

In NJ, property taxes directly fund a portion of the local school budgets in NJ, with the rest made up by the state and federal monies available. Some districts get over 40% funding to “compensat­e” them for a tax base otherwise incapable of funding a “proper” education (these are called “Abbott Districts, after a court ruling some years ago). Other districts approach 100% local property taxes, like my district – about 95% self-funde­d.

In my school district in NJ, starting salary for first-year teachers is just under $50K/yr, with teachers with the district for 20 years approachin­g $90K/yr, advanced degrees add a few K more.

As for the paltry pension teachers earn, after 10 yrs on the job, their pension is calculated by dividing their years of service (say, 35) by 55, then multiplyin­g that times their last three year wage average. (This is a state-wide calculatio­n, but each district sets their own payscale.) For example, a teacher with 35 yrs experience and an average $90K/yr salary their last three years of employment would enjoy a pension of (35/55) * 90000 = $57,272/yr with fully paid-for medical coverage for life as well in most cases. While not a kings ransom, it is a guaranteed benefit that far exceeds what many in the private sector are offered by their employers.

At typically 2/3rds of the school budget, when money gets tight, teacher compensati­on will be questioned­…
More on Banks
Read the Article at HuffingtonPost


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