Sunday, April 13, 2008

The Hidden Paycheck (pt. 2 in a series)

How much are your benefits worth? How much do you pay for your benefits...particularly your health insurance premiums?

At right is data for the 2005-school year, for area school districts, along with averages statewide. The Wisconsin Association of School Boards, of which Sun Prairie--as is true for most districts--is a member, USED to publish salary and compensation data reported by districts statewide on their website. Interestingly enough, that data is now only available to "members" who can log-in and obtain the data.

Historically, Sun Prairie teachers have paid NOTHING toward the cost of their health insurance premiums. [SP-EYE note: Beginning July 1, 2008, teachers will pay about 1% of the cost; 2% if they choose not to participate in a health risk assessment monitoring program.]

As the data shows, Sun Prairie teachers contribute far less than the average of both area schools and statewide towards their health insurance premiums. In the Madison teachers' union current contract, teachers pay 10% of their premiums. Most state employees, who historically paid nothing towards their health insurance benefits (in lieu of lower salaries relative to the private sector) now are paying between 6 and 10% of the costs. And that percentage has increased with each new biennial contract.

Are teachers underpaid? Perhaps a case could be made, particularly for new (1st year) teachers. Are teachers under-compensated? That is the real question to be asking. We really can't fully answer the first question without considering all the pieces of the pie.

A good article, published in 2001, addresses the compensation issue. It may be a few years dated, but conceptually the points raised remain valid.

http://www.wpri.org/WIInterest/Vol10No3/Hruz10.3.pdf

A few key excerpts from this article are provided below:

"Teachers earn considerably more than most workers in the state, and do so for a job that only involves, at most, ten months of full-time employment."

"It is only to salaries that proponents of higher teacher compensation draw attention, while they remain silent on the value of the benefits that public school teachers are afforded. This focus is deceptive but necessary if the teachers’ union is to be able to convince anyone of the claim that its teachers are not remunerated well."

- WISCONSIN TEACHER COMPENSATION: A Bum Deal or a Plum Deal?
Thomas Hruz - Wisconsin Interest Fall 2001

"It is within the realm of employee benefit compensation that public school teachers, like most public employees, own the privilege of being some of the highest compensated. Put simply, the financial benefits that flow to public school teachers are very nice both in absolute terms and — to play the teachers’ unions game — in relative terms. Public school teachers in Wisconsin receive some of the best health care coverage experienced by workers in the state, and are they are also welcomed into the generous pension payments of the Wisconsin Retirement System for government employees."