POLICY BRIEF - Rural School and Community Trust

[Pages:23]POLICY BRIEF

The Competitive Disadvantage: Teacher Compensation in Rural America

By Lorna Jimerson, Ed.D. March 2003 RURAL TRUST POLICY BRIEF SERIES ON RURAL EDUCATION

The Competitive Disadvantage: Teacher Compensation in Rural America

By Lorna Jimerson, Ed.D. March 2003

RURAL TRUST POLICY BRIEF SERIES ON RURAL EDUCATION

Copyright ? 2003 by the Rural School and Community Trust. All rights reserved. Printed in the United States of America.

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The Rural School and Community Trust (Rural Trust) is the premier national nonprofit organization addressing the crucial relationship between good schools and thriving rural communities. Working in some of the poorest, most challenging rural places, the Rural Trust involves young people in learning linked to their communities, improves the quality of teaching and school leadership, advocates for appropriate state educational policies, and addresses the critical issue of funding for rural schools.

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Table of Contents

I. Introduction: Good News and Bad News

7

II. The National Context of Teacher Shortages

7

III. The Rural Context: Teacher Salaries

8

IV. The Triple Whammy: The Competitive Disadvantage for Rural Districts

10

V. Cost-of-Living and Cost-of-Education: What Types of Cost Adjustment Makes Sense? 11

VI. Consequences of Teacher Shortages for Districts and Students

12

VII. Will Increasing Compensation Fix the Problems?

13

VIII. Current Efforts to Alleviate Teacher Shortages

15

IX. Policy Recommendations

15

X. Conclusion

18

Endnotes

20

References

22

TEACHER COMPENSATION IN RURAL AMERICA

List of Tables

Table 1 Table 2 Table 3

Teacher Salary Schedules FY 2000 Highest Teachers Salaries: Rural vs. Non-rural Districts Teacher Recruitment Strategies: Financial Incentives

5

9 10 16

TEACHER COMPENSATION IN RURAL AMERICA

7

I. Introduction: Good News and Bad News

A highly qualified teacher in every classroom. Not too much to ask or expect.

While other areas in education are hotly disputed (e.g, high stakes testing, whole language, vouchers, funding formulas, etc.), the need for excellent teachers escapes debate. Bolstered by the latest reauthorization of the Elementary and Secondary Education Act (ESEA), commonly known as "No Child Left Behind" (NCLB), legal decisions, and research evidence, we now have a national consensus--every child deserves an excellent education and "highly qualified" teachers are essential in achieving this goal.

This is the good news.

The bad news, especially for many rural schools, is that there are huge hurdles in implementing this vision.

The biggest obstacle in staffing every classroom with a skilled teacher, is that nationwide, schools are now facing an ever-increasing teacher shortage --especially of "highly qualified" teachers .1

A proliferation of reports document serious teacher shortages, especially in some subject areas and in specific locales. In addition, researchers predict that this shortage will escalate dramatically over the next decade. Adding to the challenge, the No Child Left Behind Act now places an explicit premium on "highly qualified" teachers. Thus, we anticipate that the demand will increase and further intensify the shortage problem for all hard-to-staff schools.

And though teacher shortages are found in all areas--urban, suburban and rural--there are demographic differences. Available information suggests that rural areas, especially, are finding it increasingly difficult to attract and retain wellqualified new teachers.

The teacher shortage problem itself involves complex economic, social and demographic factors. However, any solution needs to include

salaries (and benefits) that are fair and competitive.Unfortunately for rural districts, the latest data indicate that salaries in most rural districts are significantly lower than suburban and urban districts.2 Thus, it is not surprising that rural districts around the country report that many highly qualified new teachers are taking jobs in higher paying districts (or states)--leaving rural districts with less choice of whom to hire--or no candidates at all.

The challenge of staffing every rural classroom with a highly qualified teacher is not trivial. More than 31% of all public schools are in rural areas. And most importantly, there are more than eight million students attending schools in rural communities. Those eight million children deserve an excellent and equitable education, with access to well-qualified, professional educators. Geography should not dictate which children obtain an excellent education and which do not.

This issue brief explores the latest data and research relevant to rural teacher compensation and suggests policy directions that can help guarantee that "no rural children are left behind" in the national quest for educational excellence.

II. The National Context of Teacher Shortages

The teacher shortage dilemma actually consists of three overlapping elements. First, is the recruitment challenge of increasing the number of potential new candidates for staff vacancies. Second, is the problem of retention (retaining teachers once they are hired). And lastly, teacher shortages are magnified by recent attention to, and demand for, teacher "quality" and thus the need to recruit "highly qualified" teachers.

Effective solutions to teacher shortages need to address all three elements. All are critical and all demand attention. For example, it is futile to increase recruitment if new teachers leave within a short time.3 Likewise, strategies that fill vacancies with under-prepared teachers may only divert money while under-serving children.

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TEACHER COMPENSATION IN RURAL AMERICA

The reports of a burgeoning teacher shortage have increased dramatically over the past five years. Even teaching areas that traditionally have been "over-supplied," such as elementary education, are witnessing a shortage, at least in some locations (Ingersoll, 2001; North Central Regional Educational Laboratory, 1999).

teacher compensation becomes important. Traditionally, rural teachers earn less than their peers in other locales. If rural districts hope to attract and retain highly qualified teachers, and provide rural students with equal educational opportunities, they must be able to offer competitive wages.

While reasons for teacher shortages are numerous, a few national trends stand out as playing a significant role in accelerating the need for new teachers.

Some of these trends include the following: l Legal decisions highlighting a need for adequate and equitable pay to attract qualified teachers4 l Making "teacher quality" a high stakes federal mandate with NCLB l State, local and federal policy that encourages and/or mandates smaller class size, resulting in need for additional teachers5 l Rapid student enrollment growth in some geographic areas l High attrition rates for new teachers l "Distribution" problem of new teachers, i.e., newly certified teachers avoiding job openings in the most needy districts/areas (Darling-Hammond, 2001) l Higher salaries available in the private sector for new college graduates, especially for math and science majors l Development of a national (and interna tional) labor market for teachers l "Graying" of the present teaching force (i.e., large number of teachers predicted to reach retirement age within the next decade)

For rural districts, the convergence of all these trends has put increased pressure on districts to figure out how to attract and retain well-qualified teachers. The teacher labor market is national. NCLB requires highly qualified teachers in all classrooms. Courts are demanding that state funding formulas enable poor districts to offer competitive salaries. The stakes are high for districts--and for students.

Thus, it is within this context that equity of

III. The Rural Context: Teacher Salaries

Demographics

By definition, rural communities are characterized by sparse population. However, taken together, rural people encompass a significant proportion of our nation's citizenry.

l More than 8 million children attend public schools in rural America. This is 21% of all public school students (National Center for Education Statistics [NCES], 2002a).6

l A total of 2.5 million rural children live in poverty (Save the Children, 2002).

l There are 24,143 public schools in rural places or over 31.3% of all schools.

l There are 7,832 rural districts in the United States, or 49.3% of all public school districts.

l More than 400,000 educators teach in rural schools, representing 31% of all public school teachers.

These statistics are noteworthy; rural communities are found in all states and en masse represent a large segment of our nation. In fact, millions of children live in rural places and attend local public schools. Their education is in the hands of more than 400,000 teachers. How we pay these educators matters.

Teacher Compensation

In general, across the country, rural teachers are paid less than teachers in other locales. This is true for beginning salary, average salary, and highest salary on the pay scale. Though there are some exceptions, the trend of offering a lower salary to teachers in rural areas is found in every region of the country.

TEACHER COMPENSATION IN RURAL AMERICA

9

l In 39 out of the 50 states, rural beginning Since the national data is presented as averages,

teachers earn less than non-rural beginning the range of rural pay within states is not apparent.

teachers.

And in most states, rural teacher salaries are

l In 44 out of the 50 states, the average sal- frequently considerably lower than state averages

ary for rural teachers is less than the

indicate. The extent to which rural teachers are

average salary for non-rural teachers.

underpaid becomes especially apparent when

l In 41 out of the 50 states, the highest salary examining salaries at the district level.

offered rural teachers is less than what is

offered non-rural teachers (NCES, 2002b). Salary Differences Within States

The table below presents the latest national data from the 1999-2000 Schools and Staffing Survey (SASS).

Table 1 Teacher Salary Schedules--FY 2000

National Average Salaries

Salaries

All Districts

Non-rural Districts

Rural Districts

Beginning*

$25,898 $26,895

$24,170

Average

$32,371 $33,838 $29,828

Highest*

$43,791 $46,271 $39,487

Note: Average beginning salary is based on attainment of a BA + 0 years experience; highest salary is based on attainment of MA + 20 years experience)

Thus nationally, beginning teachers can earn 11.3% more ($2,725) in non-rural districts than in rural districts. The average salary in non-rural districts is 13.4% higher ($4,010) than in rural areas. And experienced teachers in non-rural districts (those with masters' degrees plus 20 years) can expect over 17.2% more ($6,784) than peers in rural areas. Thus, this rural-non-rural disparity is significant from the very beginning of a teacher's career, and gets even worse with training and experience.

This establishes a very clear trend. Nationally, rural teachers earn less than others in their respective states. And unfortunately, for many rural districts, these national averages under-estimate the actual differential between rural and non-rural teacher compensation.

Rural districts face the most immediate competitive challenge with other districts within their respective states. In the past few years, the differences for beginning teachers between rural and non-rural districts within states have decreased (Beeson & Strange, 2000). This is probably a direct reflection of efforts in some states to raise minimum salaries (e.g. California and Arkansas).

Unfortunately, even with these well-intentioned efforts, in many states there remain glaring disparities between rural and non-rural districts, especially at the highest salary level. This has implications for the ability of rural districts to retain experienced teachers, who may be offered significantly more money in other (wealthier) areas within the same state.

The following table presents some of the latest data on salary scales within selected states. The highest salary offered in any rural district is compared with the highest salary offered in any nonrural district. Only states with a non-rural-rural differential of over $4,000 are presented. In 29 out of 49 states (Hawaii, with only one statewide district, is not included) experienced teachers can earn $4,000 or more in a non-rural district than their equally experienced counterparts can earn in a rural community (NCES, 2002b).

Unexpectedly high differentials for Connecticut, North Carolina and Kentucky--all of which have a statewide teacher salary scale--are noteworthy. Disparities in these states are the direct result of wealthier districts having the ability to supplement salaries with local taxes. Generally, supplements are generated through local property taxes. In some states, other local taxes can also be set to generate additional educational revenue (e.g., some Vermont towns can levy a local sales tax).

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