Sun Sentinel | Should Florida teachers get big hike in pay?

Rae Ann McNeilly, Executive Director of Taxpayers United for America, was quoted in the Sun Sentinel on a proposed pay hike for Florida teachers.
sunsentinelAfter years of frozen wages, pension reforms that ate into their pay and a new accountability system that will base pay on performance, the subject of teacher salaries in Florida is gaining new political attention.
State Rep. Kevin Rader, D-Delray Beach, and state Sen. Joe Abruzzo, D-Wellington, have filed twin bills in the Legislature to give teachers an average $10,000 pay increase, which they say would make them level with their national counterparts.
Gov. Rick Scott, in a separate plan, wants to give all teachers a $2,500 pay raise.
But some taxpayer groups and human resource consultants question the need for the latest proposals.
“[Teachers] are paid real well,” said Rae Ann McNeilly, executive director of Taxpayers of America. “Florida’s been hit harder than many of the states. I can’t see how it would be reasonable to raise anybody’s wages until Florida has more of a recovery.”
Local teachers unions, however, said after several years of cuts to education funding, it’s about time the state prioritizes teacher pay.
“We’ve lost more than salaries in this whole situation; we’ve lost respect for our profession,” said Debra Wilhelm, president of the Classroom Teachers Association in Palm Beach County, which represents more than 12,000 teachers. “They’re working two jobs; some of them are even on food stamps.”
Florida currently ranks 45th in average teacher salary when compared to other states. The estimated average salary last year was $46,232; nationally it was $56,643, according to U.S. Department of Education.
In Palm Beach County, teacher salaries range from $38,000 to $71,000; in Broward it’s $39,180 to $71,250. The pay scale generally assumes a teacher works 37.5 hours a week for 196 days, with summers and holidays off. But the National Education Association found they actually an average 50 hours a week.
According to the Bureau of Labor Statistics, on average, firefighters, police officers and nurses in the Miami metropolitan area who work year-round make more than teachers, averaging in the high $60,000 range. Social workers and retail supervisors, on average, make less — between $42,000 and $44,000 a year.
“I’m not sure that [teachers] are worse off than anybody else,” said Sara McAuley, board member of WorldatWork, a nonprofit human resource association. “Everybody is taking a hit right now.”
Dominic Calabro, president and CEO of Florida TaxWatch, however, said teachers deserve more compensation.
“We need to pay them to the point where they are esteemed again,” he said. He cautioned, though, that additional money should be tied to classroom impact and student achievement, not just longevity.
Teacher salary scales are based on experience, but Broward froze its wages for four years, Palm Beach County for five.
This year, both the Broward and Palm Beach county districts gave raises. In Palm Beach County, they averaged about a 3 percent raise; in Broward, it was slightly less than 2 percent.
Toni Freeborn, 51, a teacher at Coral Glades High School in Coral Springs, makes $39,000 a year, just $300 more than when she started six years ago.
Every day, she teaches seven classes, with a half-hour lunch break. She arrives 10 minutes before 7 a.m. but usually doesn’t leave until after 5 p.m. — often dragging home assignments to grade.
“We don’t get paid for the extra hours that we work,” Wilhelm said. “You have professions where you stay longer and you get paid overtime. Teachers don’t get overtime.”
Instead, many take second jobs.
Nicole Di Dio, 33, has been teaching at Westpine Middle School in Sunrise for three years. She works an additional 20 hours as an assistant manager at a massage therapy office to help pay off student loans.
“It’s hard to keep up with rent and car payments,” she said.
Gary Itzkowitz, of the 14,000-member Broward Teachers Union, said at least half his members have two jobs, “particularly some of our younger teachers that have been stuck on the lower range.”
McAuley said teachers make less than others with comparable college degrees. “Teachers start off with a lower base than someone in human resources or marketing,” she said.
But McNeilly claims that when you factor in pensions, health benefits and tenure, teacher compensation exceeds other jobs.
While the Florida Supreme Court ruled last month that public employees must pay 3 percent of their salaries toward their pension, McNeilly said those in the private sector pay about 7.5 percent toward Social Security.
“They’re one of the best-paid professions with the greatest job security … they’re guaranteed full coverage on their health care, guaranteed retirement benefits,” she said.
But better benefits doesn’t justify lower pay, McAuley said. “It’s just a slight offset.”
Rader, the state House member, said it was time teachers in Florida get a fair wage and respect for their work — in the form of a $10,000 raise.

He said teachers often deal with issues that extend beyond the classroom — such as the social, mental and economic problems of students — and don’t get compensated for it.
“In reality, when you go through all the facts, with the time they put in during the year, and the money they make, it’s not nearly as much time off in the summer that people think,” he said. “Our teachers severely have been making under the national average for many, many years.
“I realize it’s a substantial amount of money,” he said. But he remained hopeful the governor was starting to shift his focus toward education.
“The Legislature, when it makes priorities, it always finds the resources,” Rader said. “I would say let’s cut back in FCAT testing.”
Scott, meanwhile, said there was “no better investment” than giving teachers a $2,500 pay hike. He called teachers the “heart of our success” as schools have continued to perform well on standardized tests despite recent cuts. The $480 million salary increase for teachers is part of his latest pitch to boost education funding by $1.25 billion next year.
Freeborn says until teachers get good news from Tallahassee, she will continue to bring a brown-bag lunch to school every day.
“I don’t go out,” she said. “There’s no extra money.”

Vote No on Golf School Dist. 67 Property Tax Increase Referendum – Again!

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CHICAGO—Taxpayers United of America (TUA) is working with taxpayers in Golf School Dist. 67 to oppose the district’s property-tax-increase referendum that will appear on the district’s February 26, 2013 ballot.
“This is the only property-tax-increase referendum on the February ballot in the entire State of Illinois,” said Jim Tobin, TUA president. “Homeowners in Dist. 67 twice before defeated such a referendum at the ballot box, but these greedy Dist. 67 government teachers and bureaucrats are back for a third try.”
“The average value of a home in Morton Grove is $347,800, so this referendum, if passed, would increase such a home’s annual real estate tax bill by about $327 – every year.”
“It’s amazing that even with the decline in property values, resulting in homeowners losing a significant portion of their assets, the Dist. 67 bureaucrats still want a sizeable increase in property taxes to pad their pocketbooks.”
“Eighty percent of government school revenues go to salaries and benefits of these government employees for their nine-months-a-year employment. An increase in property taxes would not help students, but it would make well-to-do teachers and administrators even more affluent.”
“Jamie Reilly, Dist. 67 administrator, pulls in an annual salary of $183,839. Maria Herzog, librarian, gets an annual salary of $137,861. Can anyone say, with a straight face, that they are underpaid?”
“Former Dist. 67 employee, Linda R. Marks, retired at age 59 and receives an annual pension of $156,115. Over a normal lifetime, her estimated total pension payments would reach an astounding $5,240,914, with her own employee contribution being only 3.9%.”
“Former Dist. 67 employee Harry C. Trumfio retired at age 52. His annual pension is $113,299, and his estimated total pension payout over a normal lifetime is $3,597,627. His employee contribution is 2.1%.”
“Dist. 67 doesn’t need any more money from homeowners to fund the hefty salaries of current teachers and administrators, most of whom, when they retire, will become pension millionaires.”
“Dist. 67 government bureaucrats think they can ram this property-tax-increase through by putting it on the ballot in the primary, when voter turnout is low, then flood the polls with government employees.”
“We urge Dist. 67 homeowners to turn out in force for the Feb. 26 election and vote No on the property-tax-increase referendum.”
Click here to download our ‘Vote No’! flyer and share with friends and neighbors in the district.

Wisconsin Reporter | Are cops robbing Wisconsin taxpayers?

Rae Ann McNeilly, Executive Director of Taxpayers United for America, was quoted in a story in the Wisconsin Reporter on Milwaukee’s police pensions.
Bwireportery M.D. Kittle | Wisconsin Reporter
MADISON – Fewer cops, fatter pensions.
That appears to be the scenario playing out in Milwaukee and cities nationwide, a point Milwaukee Mayor Tom Barrett seemed to acknowledge this week on CNN’s Piers Morgan Tonight.
Perhaps lost in Tuesday night’s verbal gunfight between the ever-acerbic and anti-gun Morgan, Milwaukee County Sheriff David Clarke, and Barrett was the mayor’s contention that the city has to take police off the street in order to help meet a nearly $30 million contribution to their pension fund.
“We have three furlough days so that we can make a pension payment of $29 million for our police and have no layoffs,” Barrett said on Tuesday’s show.
The assertion isn’t quite true, and it’s certainly misleading, according to Barrett’s own budget chief. Mark Nicolini told Wisconsin Reporter the three furlough days for each of some 1,500 police officers, would save the fiscally constricted city of Milwaukee just $1.5 million.
“I don’t know if the mayor would want to link the $1.5 million to the pension contribution as an overall way to deal with” the pension payment, said Nicolini. Milwaukee has done a lot of things to rein in the operating budget, he noted, including tapping into the pension reserve fund.
But Barrett seems to echo the sentiments of mayors in many of 61 key cities buried under nearly $100 billion in unfunded pension liabilities, according to a new analysis by the Pew Center on the States. The report found that combined funding was 26 percent below the minimum needed to pay all pension obligations. That may be just the tip of the avalanche: the study draws on 2009 data.
Tuesday night’s heated debate on Morgan’s show focused on Clarke’s controversial public service announcement in which the sheriff advises Milwaukee County citizens to arm themselves in the event police do not – or cannot – respond quickly.
“You can beg for mercy from a violent criminal, hide under the bed, or you can fight back; but are you prepared? Consider taking a certified safety course in handling a firearm so you can defend yourself until we get there. You have a duty to protect yourself and your family,” Clarke states in the ad.
Fiscal fire
The sheriff has taken plenty of heat from gun-control advocates and those who describe Clarke’s message as tantamount to endorsing vigilante justice. Morgan, too, badgered Clarke on the show, shrugging off the sheriff’s assertion that an individual protecting herself is a personal decision.
“It’s not a personal choice when a sheriff in Milwaukee makes an advertisement directly telling the people in Milwaukee to go arm themselves. That becomes a law enforcement mission statement,” Morgan railed.
Missed in the debate is an equally stark truth: the trade-off between unaffordable pension systems and keeping cops on the street.
“With officers laid-off and furloughed, simply calling 911 and waiting is no longer your best option,” the sheriff says in the ad.
Milwaukee County laid off 42 officers last year, on top of what Clarke contends is a law enforcement roster shortage of about 200 officers.
The county and the city, like communities across the United States, have faced budget cuts in times of declining revenues and unsustainable expenses. Among the latter, increasing pension obligations top the list.
On Thursday, the city must make its 2013 pension plan payment of $60.7 million, Nicolini said. The brunt of the payment, $59.3 million, goes to general city operation employee pensions, and more than half of that, $29.95 million is marked for the police pension.
“It’s a large element, not only of our operating budget but for our pension benefits,” Nicolini said of the city’s law enforcement pension obligations. Every 23 cents of every dollar paid in sworn-police pensions goes to pay for the defined pension benefit, the budget director said.
Rae Ann McNeilly, executivedirector for public pension reform advocates Taxpayers United of America, said Milwaukee’s police furloughs to help pay for pensions is a perfect illustration of a response to ballooning pension obligations nationwide.
“We’re leveraging services we need today to pay the bill for services that were performed yesterday,” and leaving citizens in danger, McNeilly said.
The Chicago-based nonprofit fought against Illinois’ 67 percent income tax increase that was supposed to cover a mountain of delinquent bills to state vendors.
“Here we are a year and a half later and the vendors still are not being paid, but the pensions are being paid,” McNeilly said. Communities in many places are doing what Milwaukee, so far, has not had to do: layoff police and firefighters. Teachers, too, are losing jobs, in part to pay for teacher pensions.
Michael Crivello, president of the 1,700 member Milwaukee Police Association, counters that the pension is money owed by the city, bargained for in good faith over the years. He’s right. The City Council and Milwaukee’s present and past mayors made those deals – as unsustainable as they may be – with the city employee unions over the years.
Crivello, fighting for more cops on the street, said Milwaukee is “absolutely less safe” in a furlough program that would cut as many as 48,000 police man hours this year.
“It’s common sense that the less police coverage you have the more the opportunity a bad situation might fall upon you,” the union chief said. “Not only the community but the officers themselves will be less safe.”
Nicolini said the furlough days effectively are unpaid vacation days, and will be scheduled accordingly. More-than-minimum staffing requirements will be met, he said.
More officers on the street, though, comes with the added legacy costs.
The highest paid Milwaukee city employee in 2010 was Kenneth Grams, a police lieutenant who earned total pay of $174,154, according to a salary and pension analysis by Taxpayers United of America. Based on the organization’s estimates (the state does not release individual pension data), Grams’ total pension payout was calculated at $2.92 million, in accordance with IRS life expectancy table. Several police administrators make the top 100 list of highest paid city employees, taking home $130,000 or better, with pension payouts projected at $2.3 million or more.
Critics dispute the figures, arguing that standard pay is much lower for rank and file patrol officers. But deals bolstering pension payouts over the years have weighted down public retirement funds.
“The fact that any public servant can be making multi-millions not to work while we need to pay someone to do that work is insane. It’s unsustainable,” McNeilly said.
Milwaukee’s public pension plan ranks among the best in the nation, according to Pew and city officials.
The Milwaukee Employes’ Retirement System, was 113 percent funded in 2009, based on pension industry valuations. ERS is about 96 percent funded today, with about $4.4 billion in assets, according to the city. Moody’s ranked it in the top 5 percent of public pension funds last year.
Big deal, says Andrew Biggs, public pension expert at the American Enterprise Institute, a Washington, D.C.-based free market think tank.
Milwaukee’s public pension system relies on investment projections — called the discount rate — that are more optimistic than most plans, at 8.25 percent. Biggs said the higher risk makes the plan look better today, requiring smaller contributions. Any gap in funding will land on the backs of future taxpayers. He joins a chorus of critics who assert public pensions need to bring their return assumptions more in line with the private sector in order to stave off looming financial disaster.
Biggs begs an important question.
“If you’re so well-funded, why are you having furloughs to pay for your pension?”
Contact Kittle at mkittle@wisconsinreporter.com