HD4 - Public School Teacher Compensation


Executive Summary:
In 1986, the General Assembly established the goal of compensating public school teachers at a rate that is competitive in order to attract and keep competent teachers. The General Assembly also mandated a biennial review of the compensation of teachers and other occupations requiring similar education and training. In legislative discussions and the deliberations of the Governor's Commission on excellence in Education attracting talented individuals to the teaching profession and keeping them there once they were teaching were often mentioned.

In order to accomplish this objective, salaries must be sufficient to attract men and women to the teaching profession who could go to the private sector or other public sector positions. The comparison of teachers' salaries with salaries of similar occupations is essential to judge how competitive the teaching profession is likely to be. In addition, the rate of salary based turnover and the ease of recruitment need to be considered in measuring competitiveness.

Note: The 1988-89 average salaries for teachers in Virginia and other states reported by the Department of Education and the National Education Association are based on estimates, currently being updated, provided by each state's education department.

Data collection and analysis of a variety of salary related issues result in the following findings and conclusion:

• The 1988-89 Virginia public school teacher average entry level salary for a bachelor's degree teacher with no experience is $19,626.

• The weighted average entry level salary of jobs in the private and other government sectors which require similar education and experience as that of teachers is $20,829. this average is obtained through weighting the survey data by the number of teachers in different subject areas such as math, accounting, history, biology, English, and elementary education. This figure is 6.1% above the entry level salary average of bachelor's degree teachers in Virginia ($19,626).

The average entry level salary of classified state employees who are in positions requiring similar education and training as a bachelor's degree teacher is $19,088. The average entry level salary of bachelor's degree teachers in Virginia ($19,626) is 2.8% above the state employee average.

Private and other government sector salary data and classified state employee salary data are based on the salaries of employees working approximately 234 days a year whereas teacher salaries represent approximately 200 work days. Therefore, for comparison purposes, the private and state employee salary averages could be adjusted according to this ratio.

Alternately, teachers are not in the position of setting the school year. Individuals deciding between teaching and other occupations may be attracted to the shorter work year, yet also by income potential.

• The 1988-89 average entry level salary of bachelor's degree teachers in the southeastern states in $17,842 which is 9.1% less than the average entry level salary of Virginia's school teachers ($19,626).

• The 1988-89 average salary of all Virginia public school teachers, as reported by the Department of Education, is $29,056.

• Average salary for the southeastern states is $25,161 which is 13.4% behind Virginia's average salary.

• The average salary for teachers in the Northern Virginia localities where the state recognizes a more competitive labor market is $36,228. This is 24% higher than the state average. Salary differentials for state employees working in the Northern Virginia area range from 9.1% to approximately 23.0% depending upon the type of occupation.

• In the 1985-86 school year Virginia was ranked 26th nationally in average salary for teachers. For 1988-89 Virginia is ranked 21st in the nation.

• Average salary for Virginia teachers increased approximately 8.6% each year from the 1985-86 to 1988-89 school year (6th highest percentage increase nationally). The average salary increased by $5,963 during the same period (8th highest dollar increase nationally).

According to the Executive Compensation Services survey on Professional and Scientific Personnel, market movement for private sector salaries form 85-86 to 88-89 was approximately 5.4% each year.

• The projected 1989-90 average entry level salary for teachers in Virginia is $21,058. This figure is obtained by applying an increase factor of 7.3% to the 1988-89 average. The 7.3% increase is used since it is the intent of the General Assembly that the average classroom teacher salary increase by this amount for the 1988-89 and 1989-90 school years.

The projected 1989-90 weighted average entry level salary of comparable occupations in the private and other government sectors is $21,898. This figure is obtained by applying an increase factor of 5.1% to the 1988-89 average. The 5.1% increase is the projected movement of total salary as reported by the Executive Compensation Services, is $21,898.

• The 1987-88 report "Survey of Teacher Contract Terminations" prepared annually by the Department of Education indicates a gross turnover rate of 2.5%. For 1986-87, a 3.2% turnover rate was reported.

• A teacher shortage survey report by the Department of Education in September, 1987 indicates the most frequently given reason by teachers in Virginia for leaving is "to accept another teaching position". The next most common reasons are retirement and spousal transfer. "Job offers other than teaching" is the fourth most common reason.

CONCLUSIONS

Substantial progress has been made in raising teachers' salaries since 1985. Judgements about the sufficiency of progress and status of teachers' salaries in 1989 depend on policy objectives and the measuring stick used. Entry level teachers' salaries trailed comparable jobs outside teaching by 6.1%, but exceeded the entry level salaries of Virginia state employees by 2.8%. Salaries paid to teachers outside Virginia have long been used as a measuring stick for Virginia's teacher salaries. While the average salary paid to teachers in Virginia is still below the national median, but only by 1.8%, it is 13.4% higher than the southeastern states' average.

It is difficult to apply a single measure of competitiveness across a state as diversified as Virginia. Teachers' salaries are determined by individual school divisions based on local circumstances. In Northern Virginia, for example, the labor market is much more competitive than in other parts of the state. Because of this, the salaries paid in Northern Virginia localities exceed the statewide average by approximately 24 percent. Therefore, the results of the review of teachers' salaries in Virginia, which considers the state as a whole, may not represent the specific condition in any individual locality.