Budget boosts teacher merit pay possibilities
Blog: Between The Lines
All of the Board of Elementary and Secondary
Education, the Republican Gov. Jeff Landry
Administration, and the Louisiana House of Representatives not only have acted
prudently with education spending this year, but they also laid the foundation
for improved educational delivery.
HB 1 by GOP
state Rep. Jack
McFarland, the operating budget, passed unanimously. It actually didn't change
much from last year's, with marginal changes in a few areas of policy where few
expenditures changes proportionally more than trivially from the previous year,
and with almost every exception being relatively small absolute amounts. That
was good in that next year a temporary 0.45 percent sales tax, on the books
since 2016, finally will disappear, meaning now was not the time for significantly
greater spending.
The area with the biggest change was elementary
and secondary education, which will see an overall decrease in spending, but
that is due to vanishing federal pandemic-related funds as well as (for the
moment) reduced Recovery School District demands. Those aside, the actual amount
falls about $25 million from last year, even though the Minimum Foundation
Program goes $71 million higher. That happens because while the student count
is about a half percent lower and the base $4,015 per pupil amount remains the
same, the per pupil amount for mandated costs, or an inflationary factor for insurance,
fuel, and pensions, jumped from $100 (last set in 2009) to $122, and supplemental
additions in attracting and retaining teachers and class offerings also moved
higher. The three single areas moving the highest were accelerated tutoring ($30
million), differential compensation ($25 million), and mandated costs ($14.3
million).
The MFP formula, constitutionally, comes from BESE
and must be passed or rejected by the Legislature without change. If rejected, as
occurred last year, the formula used reverts to that use in the previous year (which
itself may be a formula from a previous year, depending upon the last time the
Legislature adopted it).
Last year's carried a $2,000 pay raise for educators
and $1,000 for other employees as well as $25 million in differential pay. But ultimately
the Legislature failed to act on that in favor of a separate line item that
technically made all of this good just for this fiscal year. Ironically, given
what was to come, the rejection of the 2023 MFP came in part as a result of
opposition to the differential pay increase as a permanent feature, as well as disgruntlement
over rejection of a financing mechanism that would pay down pension liabilities
while allowing for pay raises that would not have been uniform but dependent on
local education agency decisions.
Because that rejection was a blessing in disguise
that didn't lock in the $198 million in raises plus the $25 million for future
formulas. Instead, recognizing then that revenue roll-off to come demanded increasing
budgetary flexibility, BESE – the composition of which changed dramatically as
a result of fall elections – this year produced a formula that included the
differential pay but not the raises. Landry responded by offering $127 million more
outside the formula in his budget submission and the House upped the ante to
$166 million more (although that left a $24 million hole to be dealt with as
the process plays out). This means instructional spending in essence advances $110
million, after backfilling the original $127 million from the general fund.
It would mean, if given across the board, for
teachers a stipend of around $1,675 each for next year. Except the House
included language that would allow local education agencies to treat the extra
as differential compensation that allows districts to determine its distribution.
The formula specifies four ways in which this may work, three of which don't
kick up controversy typically have been where much of differential compensation
funds have gone, such as attracting teachers in high need environments.
It's the other use where the bulk of the that has politics-as-usual
unions, leftist politicians, and their lickspittles in the media and interest
groups in an uproar: Stipends for Highly Effective Teachers. In other words,
districts now have considerable sums by which to introduce or expand merit pay,
if they so choose. They could choose to spend no money this way and some or all
on other differential pay options, or to give, as established interests want,
it out on as raises on an equal basis.
Pay for performance, however, would be an option
and one deservedly available for the first time in bulk for far-sighted districts.
The question of merit pay researchers have poured over for decades with the bulk
of research converging on it has a positive
impact on outcomes if teamed with other structural reforms best
implemented at the district level. The current HB 1 language does precisely
this, combined with the MFP formula HCR 21 that
also has passed the House.
This potential boost for merit pay as a significant
feature in at least some Louisiana districts – presuming this stays in the
budget all the way through crossing Landry's desk – should encourage BESE at
the least to hold off any permanent pay raises for at least a couple of years
and the Legislature to keep the annual stipend, which would make for good sense
as well with budget uncertainties ahead. This could act as a pilot study that
could guide incorporating this into the MFP after some years down the road.
It's an exciting possibility to help improve
Louisiana's woeful, if improving, educational outcomes, and if things remain
the same throughout the legislative process finally made available with state
dollars for significant application.