Fun with numbers
Monday, Aug 26, 2019 - Posted by Rich Miller * Champaign News-Gazette editorial…
The K-12 increase mentioned above is going to schools as a direct result of the education funding reform law passed in 2017. It mandates at least a $350 million increase per year. The state exceeded that a bit this fiscal year. That’s not to say the state won’t be paying more for teacher pensions next year. It will. My beef is not with Schuster or the Illinois Policy Institute here, it’s with an editorial board that mistakes need-based education funding for pension spending. School districts in the suburbs and Downstate are only on the hook for pension contributions if their employees have negotiated it through their collective bargaining processes. Otherwise, the state itself picks up almost all of the employers’ costs, including legacy costs. Oh, and by the way, the new K-12 funding will give lots of poorer schools more money, and those tend to be the ones which are having the most trouble paying their teachers a decent wage. The editorial was about the new state mandate for a $40,000 minimum teacher salary over time.
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- Juice - Monday, Aug 26, 19 @ 12:43 pm:
The $379 million increase is going to schools through the funding formula, not TRS. TRS is getting their own increase. Yet Schuster claimed that a large share of the $379 million increase is going for pensions (at least according to the News-Gazette), which is simply not true. So why is your beef not with him and the IPI when they are lying? Especially when they have joined in on a law suit simply because some of their donors made a bad bet on credit default swaps and are making one last hail mary attempt to cash in.
- Rich Miller - Monday, Aug 26, 19 @ 1:23 pm:
===Yet Schuster claimed that a large share of the $379 million increase is going for pensions (at least according to the News-Gazette)===
I don’t think Schuster made that claim.
- Whatever - Monday, Aug 26, 19 @ 3:47 pm:
Unfunded pension obligations are really just back pay obligations. To the extent the unfunded pension obligations are for teachers, the notion that increasing contributions to the pension fund is somehow diverting money from teacher salaries is nonsense on its face.