“This year alone, LAUSD will spend $314 million on [retiree healthcare] benefits, which is the equivalent of more than $500 per pupil or $12,500 per teacher. Those costs are project to rise significantly over time.” –
Consider the graph below, using data from the Census Bureau’s Public Education Finances reports. From 2001 to 2016, LAUSD increased overall spending by 55.5 percent, but its spending on salaries and wages increased just 24.4 percent. Meanwhile, employee benefit costs soared 138 percent.
LAUSD is an extreme example, but this situation is playing out across the country. More and more of our nation’s education spending is going toward benefit costs, due to significant increases in pension and healthcare costs.
Another way to slice the same data is to look at the percentage of our education budgets that are being spent on the salaries and wages of teachers who work in instructional roles. Again, the national trend is not positive, and LAUSD is no exception. In 2001, L.A. devoted 44 percent of its budget to teacher salaries and wages; by 2016, that figure had fallen to 33.5 percent.
On Teacher Compensation (Madison Spent 25% of its budget on benefits in 2014-2015).
