Editorial

Some Teachers In This District In Line For 17 Percent Pay Hikes

But superintendent says his schools are underfunded

Gov. Rick Snyder presented his annual state budget recommendations to the Legislature on Feb. 7. They include a proposal to increase public school spending by $312 million, or as much as $240 per pupil. Reaction from school officials was mixed.

For example, the Livingston Daily News interviewed Fowlerville Community Schools Superintendent Wayne Roedel, who claimed his district has been underfunded for the past 10 years.

Roedel said Snyder’s recommendation would mean an increase of about $676,800 for 2018-19, based on an expected enrollment of 2,820 students. He added that the district’s current budget is running a deficit of about $200,000.

“We have been underfunded for the past 10 years,” said Roedel. “All employees, school programs and services have struggled. ... Whenever we get an increase in funding we have to decipher what our other costs are going to be so we can see what the net increase is going to be.”

Roedel said in an email to Michigan Capitol Confidential that when looking at funding in context with rising health insurance and retirement costs, underfunded is accurate.

“You are correct when you only look at the base per pupil foundation. Reporters like the positive PR and marketing angle. Headline: 'Public Schools Get More Money Again.' The question is, when we factor in health care increases, retirement cost increases, other operating cost increases like utilities, shifted categorical money and any meager employee wage increase during this time, I ask, was the funding enough to cover our known increases or were we underfunded? I contend underfunded is accurate,” Roedel wrote.

“My guess is that if you look at the percentage of foundation increase year after year it might be <1 to 1.5%. That would be underfunded in my mind since I know our costs have increased by at least twice that amount,” Roedel said. “When the Governor makes a proposal that is a 3% increase, and it's the largest in his tenure, that to me is under funding. When looking at a budget, please consider the expense side of the equation in the same way you consider revenue. Half a story may be misleading and/or a distortion.”

ForTheRecord says: Fowlerville Community Schools has enjoyed an increase in state funding since Snyder became governor in 2011, as have the vast majority of Michigan school districts.

Roedel mentioned state funding from 10 years ago. In 2007-08, the district received $20.9 million from the state (not including local or federal dollars). By 2016-17, this had risen by just $1.6 million, to $22.5 million.

Michigan public school funding is allocated on the basis of enrollment – money follows the student. From 2007-08 to 2016-17, Fowlerville’s enrollment had fallen by 287 students, to a total of 2,877. Fowlerville is getting significantly more, not less, from the state compared to 10 years ago, when funding is measured on a dollars-per-student basis.

Specifically, Fowlerville schools received $6,596 per pupil from the state in 2007-08, or $7,384 per pupil when adjusted for inflation. In 2016-17, Fowlerville received $7,816 per pupil, an increase of $432 per pupil after factoring in inflation.

Teacher salaries at Fowlerville have also risen recently, according to information provided by the state of Michigan and OpenTheBooks.com, a nonprofit that tracks public sector salaries.

One teacher who graduated from Michigan State University in 2014 and started with the district that year at a salary of $35,541 was up to $41,916 in 2016-17. That’s an 18 percent increase over a two-year period.

Fowlerville’s current contract with the teachers union includes seniority-based pay raises called “step increases.” Most step increases are for a raise of 4 to 5 percent, but going from the 10th to the 11th step brings a much larger raise. (A step generally equates to how many years of teaching experience a person has.)

According to the current union contract, a teacher with a bachelor's degree and 11 years of experience in 2017-18 would see a 17 percent increase this year, from $55,001 to $64,372.

Editor's note: This story was updated with Superintendent Roedel’s comments.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

Flint Schools Hanging On After 77 Percent Enrollment Decline Since 2003

In this district, teachers really did take pay cuts

Erroneous reports of Michigan teachers taking pay cuts are not uncommon, but teachers employed by the Flint school district have a legitimate claim of stagnant pay.

The big story at Flint schools, though, has been a 77 percent decline in student enrollment over a 14-year period. The district had 21,007 students in 2003 but was down to just 4,883 students in 2017. That decline in enrollment is bigger than Detroit’s 71 percent drop over the same period, from 157,003 students in 2003 to 45,237 in 2017.

And while Flint schools are usually among Michigan’s best-funded in terms of combined local, state and federal dollars per pupil, the recent exodus of students from the district has meant serious challenges for its annual budget and operations.

One consequence was that for several years, the school district spent more than it took in, hit by a spiraling enrollment decline along with rising pension costs.

The double whammy made Flint schools a rare instance in which individual teacher salaries declined. That’s one finding from information provided by the district as well as OpenTheBooks.com, a nonprofit that tracks public sector salaries.

The salary of one Flint teacher decreased from $64,665 in 2013-14 to $62,676 in 2016-17. Another teacher was paid $63,237 in 2013-14, but only $59,703 in 2016-17. Pay for a third teacher fell from $60,884 in 2013-14 to $59,703 in 2016-17.

It can be difficult to track the salary of a teacher because bonuses and opportunities for extra pay are usually available each year. But the reductions endured by the three teachers appear to represent the declines felt by many of Flint’s 355 teachers.

According to the district’s union contract, salaries start at $32,065 for a first-year teacher and are capped at $66,780 after 13 years. Raises are given every two years, and in 2016-17, the average salary of a Flint teacher was $62,545, according to the Michigan Department of Education.

The large drop in enrollment meant fewer state dollars for the district, because most Michigan school aid is allocated on a per-pupil basis. In 2003, the state gave Flint schools $159.6 million, and by 2017, this was down to $41.2 million.

Despite the reduction of $118.4 million in state funding over that 14 year period, on a per-student basis, the district received roughly the same amount of inflation-adjusted state revenue in 2017 as it did in 2003.

Nevertheless, that epic student exodus caused budget problems because the district couldn’t downsize fast enough to keep up. One result was a $3.7 million deficit in 2011, with deficits in successive years. The annual gaps kept accumulating and by 2014, the deficit had topped-out at $22.0 million. Remarkably, however, within two years the district had wiped out all its red ink.

The enrollment decline was aggravated by skyrocketing pension expenses. In a manner similar to how state school aid is allocated on a per-student payment, the state-run school pension system imposes annual district assessments on the basis of payroll. So while the total pension bill fell, on a per-employee basis, it skyrocketed.

In 2011, Flint Community Schools was required to contribute $10.9 million to the underfunded state pension system. The requirement fell to $7.3 million in 2017 – but that amount was assessed on a much smaller payroll. On a per-employee basis, the district was actually paying much more.

In 2011, it paid $4,450 per full-time employee to the Michigan Public Schools Employees Retirement System. By 2017, the payments had increased 89 percent, to $8,403 per employee. Flint Community Schools had 2,448 full-time staff on its payroll in 2011 and just 874 full-time workers by 2017.

Flint Superintendent Bilal Tawwab didn’t respond to an email seeking comment.

 

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.