Part I Teacher Wages Out of control?
Take Home Points Teacher salaries have actually declined with respect to non-teacher wages over time in NJ, even when comparing wages for the same number of hours and weeks worked, and at same degree level and age. Despite a mythology that all non-teachers work every day of every week of the year and that teachers work about half the year, non-teachers actually report working about 48 weeks per year compared to teachers 42 weeks. Teachers worked about 87% of the weeks worked by other non-teacher workers in NJ. Comparing different data sources (something I prefer not to do), teachers at specific experience and degree levels appear to earn an annual wage about 67% of that of their non-teaching peers annually. Okay, but they don t work as many weeks. So, they earned 67% of the wage for working 87% of the time. Still a significant disparity. Teachers annual income return to experience (or age) is well less than that of non-teachers over much of their careers. Assuming teachers and non-teachers start at a similar wage at age 23 with a masters degree (around $50k), by age 40, the average non-teacher will be earning over $100k, while the average teacher will be approaching $80k. New Jersey teacher wages for teachers in the New York metro area lag well behind New York teacher wages in Westchester, Rockland, Nassau and Suffolk counties and have grown more slowly over time. Certified staffing salaries for public schools, as a percent of total state and local expense, have declined over time!
Hourly Wage $35 $30 $25 $20 $15 Wages of Selected Occupations (National) Integrated Public Use Microdata System (IPUMS) Census 5% Samples 1980, 1990 & 2000 and American Community Survey of 2005 k12 Teachers Postsecondary Math/Computer Architects/Engineers Life Science Social Science (incl. Econ.) Healthcare (non-physicians) All with BA or MA $10 $5 1980 1985 1990 1995 2000 2005 Notes: Individuals age 25 to 40. Excludes managerial positions. Hourly wages computed from income from wages divided by estimated annual hours worked (usual hours per week times weeks worked last year).
Hourly Wage $50 $45 $40 $35 $30 $25 $20 $15 Wages of Selected Occupations in New Jersey Integrated Public Use Microdata System (IPUMS) Census 5% Samples 1980, 1990 & 2000 and American Community Survey of 2005 k12 Teachers Postsecondary Math/Computer Architects/Engineers Life Science Social Science (incl. Econ.) Healthcare (non-physicians) All with BA or MA $10 $5 1980 1985 1990 1995 2000 2005 Notes: Individuals age 25 to 40. Excludes managerial positions. Hourly wages computed from income from wages divided by estimated annual hours worked (usual hours per week times weeks worked last year).
100% Teacher Hourly Wage as % of Non-Teacher Hourly Statewide 95% Relative Hourly Wage 90% 85% 80% 75% Bachelors Degree Masters Degree All Degree Levels 70% 1990 2000 2005 2006 2007 Data Source: US Census 1990 & 2000, American Community Survey 2005-2007
Regression Model Estimates of Teacher & Non-teacher Wages $80,000 Predicted Wage $70,000 $60,000 $50,000 $40,000 Teacher with BA Non-Teacher with BA Teacher with MA Non-Teacher with MA $30,000 $20,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 Data Source: US Census 1990 & 2000, American Community Survey 2005-2007 Based on Statewide Model for worker 40yrs old, 40hrs for 40 wks
Hours Worked Last Non-Teachers Teachers Share 1990 47.82 41.74 87% 2000 48.33 42.21 87% 2005 48.50 42.92 88% 2006 48.84 42.87 88% 2007 48.78 42.60 87% Data Source: US Census 1990 & 2000, American Community Survey 2005-2007
Annual Teacher Wages and Non-Teacher Wages at Fixed Age/ Experience, Location and Degree Level TEACHERS (NJDOE Data) Masters Degree with 10 yrs. (Nwk CBSA) Masters Degree with 10 yrs. (Nwk CBSA) Non-Teachers (Census Data) Masters Degree, 35 yr. Old, (Nwk Metro) Masters Degree, 35 yr. Old, (Nwk Metro) Teacher % of Non-Teacher Exper. Const. Exper Growth Exper. Const. Exper Growth 2000 $ 70,732 $ 70,732 2001 2002 $ 50,542 $ 50,542 2003 $ 52,057 $ 53,852 2004 2005 2006 2007 2008 $ 53,865 $ 55,682 $ 57,563 $ 59,373 $ 61,189 $ 58,014 $ 62,489 $ 66,590 $ 70,437 $ 74,139 $ 85,404 $ 85,279 $ 89,064 $ 90,708 $ 92,744 $ 93,258 $ 95,595 $ 98,654 Data Sources: Non-Teacher Wages from US Census 2000, American Community Survey 2005-2008 based on regression model of wages controlling for age, location, degree level and year. Teacher wages based on NJDOE Personnel Files also using regression model controlling for experience, degree level, location, position type and year. 65% 67% 67% 67%
New Jersey Elementary and Secondary Certified Staffing Wages as a Percent of State and Local Expenditures State Department of Education Certified Staffing Files Census & Tax Policy Center State & Local Rev/Expend Mean Wage Wage Earners Total Wages ('000s) (E001) Total Expenditure ('000s) (E004) Total Current Expend ('000s) Cert Staff Wages as % of Total State & Local Expend Cert Staff Wages as % of Current State & Local Expend 1997 $51,217 110,958 $5,682,939 $47,897,521 $43,359,183 12% 13% 1998 $52,022 113,210 $5,889,465 $50,915,658 $45,714,119 12% 13% 1999 $52,878 116,535 $6,162,190 $51,264,737 $46,447,220 12% 13% 2000 $53,533 120,724 $6,462,689 $54,590,246 $49,638,211 12% 13% 2001 $54,142 125,152 $6,776,035 2002 $55,422 130,572 $7,236,526 $64,289,465 $57,609,960 11% 13% 2003 $56,541 133,765 $7,563,223 2004 $58,132 136,279 $7,922,223 $74,335,925 $66,861,901 11% 12% 2005 $59,698 138,986 $8,297,204 $79,845,099 $71,944,445 10% 12% 2006 $61,443 140,651 $8,642,062 $82,928,181 $74,854,461 10% 12% 2007 $63,072 141,337 $8,914,472 $87,091,981 $78,594,281 10% 11% Data Sources: A) NJDOE Certified Staffing files B) State & Local Government Finance Data Query System. http://www.taxpolicycenter.org/slf-dqs/pages.cfm. The Urban Institute-Brookings Institution Tax Policy Center. Data from U.S. Census Bureau, Annual Survey of State and Local Government Finances, Government Finances, Volume 4, and Census of Governments (s). Date of Access: (22-Mar- 10 09:55 AM)
Returns to Experience/Age for Teachers and Non- Teachers (at fixed degree level, location) $120,000 $110,000 Income from Wage (Salary) $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 Public School Increase Non-teacher Increase $40,000 23 28 33 38 43 48 53 58 Age/Experience (23 = 1) Data Sources: Non-Teacher Wages from US Census 2000, American Community Survey 2005-2008 based on regression model of wages controlling for age, location, degree level and year. Teacher wages based on NJDOE Personnel Files also using regression model controlling for experience, degree level, location, position type and year.
Teacher Salaries in NY and NJ Counties in NY Metro Area (BA Degree with 10 s) $70,000 $65,000 Nassau Westchester Westchester Nassau Salary $60,000 $55,000 $50,000 Nassau Westchester Suffolk Essex Rockland Bergen Union Hudson Passaic Suffolk Essex Rockland Bergen Union Hudson Passaic Suffolk Rockland Essex Bergen Hudson Passaic Union $45,000 2005 2006 2007 Data sources: Based on statistical model of individual teacher level salaries from NJDOE and NYSED certified staffing (personnel master) files. Model includes salary as a function of year, total experience and degree level.
Teacher Salaries in NY and NJ Counties in NY Metro Area (MA Degree with 10 s) Salary $75,000 $73,000 $71,000 $69,000 $67,000 $65,000 $63,000 $61,000 $59,000 $57,000 $55,000 NY-Westchester NY-Nassau NY-Suffolk NJ-Essex NY-Rockland NJ-Bergen NJ-Union NJ-Passaic NJ-Hudson NY-Nassau NY-Westchester NJ-Essex NY-Rockland NY-Suffolk NJ-Bergen NJ-Passaic NJ-Hudson NJ-Union NY-Westchester NY-Nassau NY-Rockland NY-Suffolk NJ-Essex NJ-Bergen NJ-Hudson NJ-Passaic NJ-Union 2005 2006 2007 Data sources: Based on statistical model of individual teacher level salaries from NJDOE and NYSED certified staffing (personnel master) files. Model includes salary as a function of year, total experience and degree level.
Teacher Salaries in NY and NJ Counties in NY Metro Area (MA Degree over First 30 s, in 2007) $100,000 Salary $90,000 $80,000 $70,000 $60,000 Bergen Essex Passaic Hudson Union Westchester Rockland Nassau Suffolk $50,000 1 3 5 7 9 11 13 15 17 19 Total s Data sources: Based on statistical model of individual teacher level salaries from NJDOE and NYSED certified staffing (personnel master) files. Model includes salary as a function of year, total experience and degree level. 21 23 25 27 29
Teacher Salaries in NY and NJ Counties in NY Metro Area (MA Degree over First 10 s, in 2007) $80,000 Salary $75,000 $70,000 $65,000 $60,000 $55,000 Bergen Essex Passaic Hudson Union Westchester Rockland Nassau Suffolk $50,000 1 3 5 Total s Data sources: Based on statistical model of individual teacher level salaries from NJDOE and NYSED certified staffing (personnel master) files. Model includes salary as a function of year, total experience and degree level. 7 9
Note regarding benefits & bias Corcoran and Mishel point out here: http://epi.3cdn.net/05447667bb274f359e_zam6br3st.pdf that overall K-12 teacher compensation was 27.5% greater than teacher wages alone, while overall professional compensation was 23.5% greater than professional wages. These differences in benefit shares translate into a benefits bias of 2.8 percentage points in 2006. That is, benefits would close little of the overall gap in wages, even if the bias is somewhat larger in NJ. Costrell and Podgursky show about a 5% (slightly less) differential (10% non-teachers, 15% teachers) in the value of pensions, a portion of benefits. This too would close only part of the teacher to non-teacher wage gap in New Jersey, even if we assume New Jersey benefits for teachers to be much greater than other employee benefits.
Part II District Resources and the Growing Administrative Blob
Take Home Points Classroom instructional spending as a share of budgets has remained relatively constant over time, and poor urban districts are in line with other NJ districts in this regard. Total administrative expenses as a share of school district budgets have remained relatively constant for nearly 15 years and large poor urban and Abbott district administrative expenses are in line with (and lower than) other districts. School level administrators are a relatively small share of school personnel. Not shown here, but also relevant is the fact that school level administrative salaries are only marginally higher than senior teacher salaries. As such, it is highly unlikely that one can cut substantially close budget gaps by cutting administrative fat alone. District and school level administrative salaries in New Jersey have been flat for a decade. They are not increasing dramatically. Private independent school headmaster compensation tends to be much higher than a) superintendent salaries of the district where the private school is located and b) large city superintendent salaries.
Percent of District Budgets Allocated to Classroom Instruction over Time 60% 58% 56% % of Operating Expense 54% 52% 50% 48% 46% 44% 42% 40% 1995 1997 1999 2001 2003 2005 Abbott DFG_CtoH DFG_IJ Non-Abbott A Non-Abbott B Average Data Sources: Comparative Spending Guide reconciled with Annual Financial Report detail for NJ School Districts 1995 to 2006.
Percent of District Budgets Allocated to Classroom Salaries for Instruction over Time % of Operating Expense 60% 58% 56% 54% 52% 50% 48% 46% 44% 42% Abbott DFG_CtoH DFG_IJ Non-Abbot A Non-Abbot B Average 40% 1995 1997 1999 2001 2003 2005 Data Sources: Comparative Spending Guide reconciled with Annual Financial Report detail for NJ School Districts 1995 to 2006.
Percent of District Budgets Allocated to Total Administrative (District and School Level) Expense % of Operating Expense 15% 14% 13% 12% 11% A B CD DE FG GH I J 10% 9% 1998 1999 2000 2001 2002 2003 2004 2005 2006 Data Sources: Comparative Spending Guide reconciled with Annual Financial Report detail for NJ School Districts 1998 to 2006.
Percent of District Budgets Allocated to Total Administrative (District and School Level) Expense % of Operating Expense 15% 14% 13% 12% 11% Abbott DFG_CtoH DFG_IJ Non-Abbot Non-Abbot Total 10% 9% 1998 1999 2000 2001 2002 2003 2004 2005 Data Sources: Comparative Spending Guide reconciled with Annual Financial Report detail for NJ School Districts 1995 to 2005. (not weighted for district enrollment)
Elementary School Staff per 100 Pupils 8 7 6 5 4 3 2 1 Administrator Core Academic Extra Help Specialist Student Support Staff per 100 Pupils (2006-07) 0 Abbott Abbott Charter DFG C to H DFG IJ Non-Abbott A Non-Abbott B Other Other Charter District Group Data Source: NJDOE Staffing Files 2006-07
Middle School Staff per 100 Pupils 7 Staff per 100 Pupils (2006-07) 6 5 4 3 2 1 Administrator Core Academic Extra Help Specialist Student Support 0 Abbott DFG C to H DFG IJ Non- Abbott A District Group Data Source: NJDOE Staffing Files 2006-07 Non- Abbott B Other
High School Staff per 100 Pupils 6 5 4 3 2 1 Staff per 100 Pupils (2006-07) 0 Abbott Abbott Charter DFG C to H DFG IJ Non-Abbott A Non-Abbott B Other District Group Data Source: NJDOE Staffing Files 2006-07 Administrator Core Academic Extra Help Specialist Student Support
District Level Administrative Salaries in New Jersey Salary $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 Superintendent Admin. Assistant Business Administrator Asst. Sup. Non-Business Asst. Sup. Business 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Data source: NJDOE Staffing Files. Includes cumulative salaries of individuals by job code because some district level administrators hold positions across multiple districts, collecting more than one salary.
$110,000 $100,000 $90,000 District Level Administrative Salaries in New Jersey ECWI Adjusted ($1997 constant) Salary $80,000 $70,000 $60,000 $50,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Superintendent Admin. Assistant Business Administrator Asst. Sup. Non-Business Asst. Sup. Business Data source: NJDOE Staffing Files & NCES State ECWI (http://nces.ed.gov/edfin/adjustments.asp) 2006 to 2008 ECWI not available. Assumed at average rate of change from 1997 to 2005. Includes cumulative salaries of individuals by job code because some district level administrators hold positions across multiple districts, collecting more than one salary.
Salary $210,000 $190,000 $170,000 $150,000 $130,000 $110,000 Top 100 Superintendent Salaries in New Jersey & ECWI Adjusted Salaries ($1997 constant) $90,000 $70,000 Top 100 Superintendents Adjusted $50,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Data source: NJDOE Staffing Files & NCES State ECWI (http://nces.ed.gov/edfin/adjustments.asp) 2006 to 2008 ECWI not available. Assumed at average rate of change from 1997 to 2005. Includes cumulative salaries of individuals by job code because some district level administrators hold positions across multiple districts, collecting more than one salary.
School Level Administrative Salaries in New Jersey Salary $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 HS Principal Assist Principal HS Jr HS Principal Assist Principal Jr HS Middle Sch Principal Assist Prin Middle Sch Elemementary Sch Principal Assist Principal Elem Sch $80,000 $70,000 $60,000 1997 1998 1999 2000 Data source: NJDOE Staffing Files 2001 2002 2003 2004 2005 2006 2007 2008
School Level Administrative Salaries in New Jersey ECWI Adjusted ($1997 constant) $95,000 $90,000 $85,000 $80,000 Salary $75,000 $70,000 $65,000 $60,000 $55,000 $50,000 1997 1998 HS Principal Assist Principal HS Jr HS Principal Assist Principal Jr HS Middle Sch Principal Assist Prin Middle Sch Elemementary Sch Principal Assist Principal Elem Sch 1999 2000 2001 2002 Data source: NJDOE Staffing Files & NCES State ECWI (http://nces.ed.gov/edfin/adjustments.asp) 2006 to 2008 ECWI not available. Assumed at average rate of change from 1997 to 2005. 2003 2004 2005 2006 2007 2008
Executive Compensation in Private and Public Schools in New Jersey (2006-07) $300,000 $250,000 Headmaster Comp. Local Supt. Comp. $200,000 $150,000 $100,000 $50,000 $0 Dwight/Englewood FHCDS/Somerset Hills PDS/Princeton Twp. Frisch/Paramus MBS/Morris SRDS/Upper Saddle River Morrow Pingry/Bernards Twp MKA/Montclair Ranney/Tinton Falls RPS/Franklin Twp. Oak Hill/Middletown RCDS/Rumson-FH Peck/Morris GSB/Somerset Hills Newark Acad/Livingston Chapin/Princeton Twp. MFS/Moorestown Wardlaw/Edison Far Brook/Milburn Big City Supts. Headmaster Mean Host Supt. Mean Note: Private school headmaster compensation from Guidestar.org, IRS 990 for 2006. Local Superintendent compensation for district that is geographic home to private school. Supt. Comp based on 2006-07 (1 yr later than Headmaster Comp.). Headmaster and Supt. Comp. include salary and cash-basis benefits (not health-care, retirement contributions, etc.). Big City Supts. Includes Newark, Camden, Jersey City, Paterson and Trenton.
New Jersey Education Spending & New Jersey Education Outcomes
NAEP Math Gr 4 2007 230 240 250 IndianaNorth Dakota Ohio Wisconsin Montana Pennsylvania Virginia Wyoming Iowa Texas Washington Connecticut Florida Maine North Delaware Idaho South Carolina Dakota Colorado Maryland Utah Missouri Alaska Arkansas Nebraska Michigan Oklahoma South Carolina Illinois Oregon West Virginia Rhode Island Kentucky Georgia Tennessee Arizona Louisiana Nevada Alabama Mississippi New Mexico Kansas Minnesota California Massachusetts New New Hampshire Jersey Vermont New York 6000 8000 10000 12000 14000 16000 Pred. Basic State & Local Rev. PP naep_m4_07_all Fitted values
NAEP Math Gr 8 2007 260 270 280 290 300 Minnesota North Dakota Kansas South Dakota New Jersey Montana Virginia Colorado MaineWyoming New Hampshire Texas Iowa Indiana Maryland Pennsylvania Washington Ohio Wisconsin Idaho Oregon North Carolina Nebraska Alaska Delaware Connecticut Utah South Carolina Missouri Illinois Kentucky Florida Michigan Arizona Oklahoma Georgia Rhode Island Tennessee Arkansas Louisiana Nevada West California Virginia New Mexico Alabama Mississippi Massachusetts Vermont New York 6000 8000 10000 12000 14000 16000 Pred. Basic State & Local Rev. PP naep_m8_07_all Fitted values
NAEP Read Gr 4 2007 210 220 230 240 New Jersey New Hampshire Montana Virginia Connecticut North Dakota Pennsylvania Ohio Minnesota IowaKansas Delaware Maine MarylandWyoming Idaho South Florida Washington Dakota Colorado KentuckyNebraska Wisconsin Utah Indiana Missouri Texas Michigan Georgia Illinois Rhode Island North Carolina Oklahoma Arkansas Alabama Tennessee Alaska Oregon West Virginia South Carolina Louisiana New Mexico Nevada Arizona California Mississippi Massachusetts Vermont New York 6000 8000 10000 12000 14000 16000 Pred. Basic State & Local Rev. PP naep_r4_07_all Fitted values
NAEP Read Gr 8 2007 250 255 260 265 270 275 Montana MaineNew New Hampshire Jersey South Dakota Ohio Minnesota North Dakota IowaKansas Pennsylvania Nebraska Connecticut Colorado Virginia Wyoming Oregon Idaho Washington Maryland Indiana WisconsinDelaware Missouri Illinois Utah Kentucky Texas Florida Michigan Oklahoma Tennessee Alaska North Georgia Carolina Arkansas Rhode Island South Carolina Louisiana Arizona West Virginia Alabama Nevada California New Mexico Mississippi Massachusetts Vermont New York 6000 8000 10000 12000 14000 16000 Pred. Basic State & Local Rev. PP naep_r8_07_all Fitted values