1. North Carolina Teacher Salaries State Board of Education March 2013 Alexis Schauss, Director of School Business

2. Educator Salaries and Benefits 2011-12 Expenditures from fiscal year 2011-12 Division of School Business NC Department of Public Instruction

3. State Public School Fund Salary and Benefits by Type 2011-12 Division of School Business NC Department of Public Instruction

4. Educator Salary Schedules  The salary schedules are determined annually by legislation.  “Step and Lane” schedules where by  the “Steps” are years of experience 0 to 35+  the “Lanes” are education (Bachelors, Masters and National Board Certification (NBPTS)  Movement to the next step increase is not automatic and must be authorized by the General Assembly.  All schedules are derived from the Bachelor schedule.  Additional compensation may apply including local salary supplement, longevity, mentor pay and performance bonus. Division of School Business NC Department of Public Instruction

5. Personnel Paid from the Teacher Salary Schedule  Classroom Teachers  Media Coordinators  Guidance Counselors  Social Workers  Certified nurses Division of School Business NC Department of Public Instruction

6. Personnel Paid from a Derivative of the Teacher Salary Schedule Masters schedule + 5 steps Psychologists, audiologists and speech language pathologists Masters Schedule + 1% Assistant Principals 8 Graduated Schedules from Asst Princ Principals. Schedule determined by school size not years of experience Division of School Business NC Department of Public Instruction

8. Salary Schedule 2012-13 $1,260 annual for Advanced degree $2,530 annual for an Advanced and Doctorate degree Division of School Business NC Department of Public Instruction

9. What is the impact of no pay change ?  14,550 (18%) state funded teachers are paid at the bottom step.  11,444 (14%) of those are paid at the lowest base pay of $30,800.  The big steps that were retention tools from the 4 th to 8 th step are now at the 7 th to 11 th step.  35 years to get to the top of the earning scale. Division of School Business NC Department of Public Instruction

10.  It takes 15 years for a teacher with a Bachelors degree to make $40,000.  In 2008-09, a 5 year teacher had a base pay of $35,380. In 2012-13, a 5 year teacher has a base pay of $31,220. A decrease of $4,160, (close to a $6,400 drop in purchasing power).  Affected the population of the classroom teachers. Division of School Business NC Department of Public Instruction

11. Change in Classroom Teacher Population State Funded 2008-09 to 2012-13 Change in FTE 4,644 less FTE of state funded classroom teachers in 2013 than in 2009 Division of School Business NC Department of Public Instruction

12. What is the Goal of a Pay Structure? 1.Attract high quality individuals into the profession 2.To incentivize the individual to excel 3.To retain individuals who are highly effective Division of School Business NC Department of Public Instruction

13. 1.Level of Pay 2.The Structure of the Pay NC Teacher Compensation Issues Division of School Business NC Department of Public Instruction

14. Source: NEA Ranking and Estimates December NC 2011-12 updated for final, 2012-13 estimate NC Average Teacher Compensation vs. National Average Division of School Business NC Department of Public Instruction

15. NC Average Compensation Southeast States Division of School Business NC Department of Public Instruction

16. Percentage Change in Average Salary NC is ranked last in the 10 year percent change in average salary from 2001-02 to 2011-12 at only 7.7%. This is -15.7% in constant dollars. If NC had increased average salary at the national average (24%) the average salary would be $52,923, which is $7,000 more than the current average salary and within $2,500 of the national average Source: NEA Rankings and Estimates December 2012 Division of School Business NC Department of Public Instruction

17. Materiality  There are approx. 82,000 state funded teachers and an additional 13,000 paid from other sources.  A step increase is 1.76% or $83.4m for licensed personnel.  It would take approximately $420m to place all teachers & Instructional support on the step they would have been on. Division of School Business NC Department of Public Instruction

18. Pay for Excellence Session Law 2011-142 Allows LEAs to develop a plan of performance pay for all licensed personnel. Criteria for award of bonuses or adjustments to base pay should include, but are not limited to, the following factors: 1.Annual growth of a students assigned to a teacher 2.Annual growth of students assigned to a school 3.Assignment of additional instructional responsibilities 4.Assignment to a hard to staff school 5.Assignment to a hard to staff subject area. Division of School Business NC Department of Public Instruction

19. Alternate Salary Structures Division of School Business NC Department of Public Instruction

20. Dollar allotment The General Assembly appropriates funds for teacher pay and an allocation is made to the LEAs. The LEAs determine how to pay their teachers. Division of School Business NC Department of Public Instruction

21. Dollar allotment Advantages  Local control to meet the local needs Disadvantages  Eliminates position allotments  Discourages LEAs to employ experienced teachers due to the higher cost  Penalizes LEAs with low turnover Division of School Business NC Department of Public Instruction

22. Shortened Schedule Reduce the State Salary schedules, thereby providing an accelerated route for teachers to reach the maximum compensation. A 15 to 20 year salary schedule with or without differentiation for Masters, NBPTS Division of School Business NC Department of Public Instruction

23. Shortened Salary Schedule Advantages  Reduces the time to reach the maximum compensation  Doubles the percentage increase for each step for experience  Relatively easy to transition  Position Allotments remain Disadvantages  Still pays teachers based on experience and education  Compensation does not help recruit and retain at the hardest schools and subject areas Division of School Business NC Department of Public Instruction

24. Promotional Teacher positions are classified in to different levels depending on criteria. Each level has a range. The LEA determines the pay for each teacher within the appropriate range. For instance: Beginning $31,000 to $35,000 Developing $35,000 to $45,000 Advanced$45,000 to $60,000 Master$60,000 to $68,000 Division of School Business NC Department of Public Instruction

25. Promotional Advantages  Provides some flexibility to LEAs  Provides a career path for teachers, earning promotion for performance accomplishments, additional instructional responsibilities Disadvantages  If position allotments were used, complexity in budgeting. Division of School Business NC Department of Public Instruction

26. Hybrid  One State Salary Schedule serves as a minimum base pay for all teachers in the state based on their years of experience.  The LEAs receive an allotment to differentiate pay based on criteria in the Pay for Excellence provision. Division of School Business NC Department of Public Instruction

27. Hybrid Advantages  Mixes state and local control  All teachers are paid at a minimum  LEAs use the additional allocation to differentiate to meet their local challenges Disadvantages  Without additional funding it would difficult to implement  Monitoring labor intensive Division of School Business NC Department of Public Instruction

28. Restructure the Pay Things to Consider  Funding  State vs Local Control  Support from Stakeholders  Other support Division of School Business NC Department of Public Instruction

29. Minimum & Maximum Salary for Classroom Teachers Fiscal Year 2012-13 (1) Amount included for maximum is 15% of certified salary. Local Supplements range from 0% to 25% depending on the LEA and the years of experience (2) 16 th teaching year – 15 years experience Appendix