Differentiated Teacher Pay in Senate Bill 727

Several years ago, I was invited to give a guest lecture to a group of STEM educators seeking a doctoral degree. My task was to share with them ways in which my work in education policy overlapped with their world. My key point that night was that we need to change how we pay teachers. It was a point I have been making since the release of my 2012 report, “The Salary Straitjacket: The Pitfalls of Paying All Teachers the Same.” Now, if Senate Bill (SB) 727 is signed by the governor, one of those recommendations from that paper may finally come to pass.

Teachers in nearly every school district are paid by what is called a “single salary schedule.” This is a system that pays all teachers, regardless of subject matter expertise or teacher demand in that district, the same amount. These schedules generally provide raises based on years of experience and graduate degrees.

When I spoke with that group of doctoral students, I presented a hypothetical situation of a local business. When the business attempted to hire, they received numerous applications for one type of position and very few for another. I asked them what they might do to attract and retain people in that harder-to-staff position. The answer was clear—pay them more.

This is the very situation we have in public schools. Some positions may get few, if any, applications. These include subjects such as physics or, in some instances, special education. Nevertheless, school districts fail to use one of the key levers they have to attract and retain these teachers—pay. Instead, everyone is on the same salary schedule.

In that 2012 report, I argued that school districts could place teachers in hard-to-staff subjects at a higher level on the salary schedule. SB 727 followed that recommendation completely. The bill states: “The board of education of a school district may include differentiated placement of teachers on the salary schedule to increase compensation in order to recruit and retain teachers in hard-to-staff subject areas or hard-to-staff schools.”

When I joined the Show-Me Institute’s Director of Education Policy Susan Pendergrass on a recent podcast to discuss SB 727, I said there were things in the bill that people would like and other things they would not like. Allowing districts to differentiate pay for hard-to-staff subjects is a sensible policy that everyone should like. Of course, it would be even better if we could pay teachers based on everything they bring to the table, including their performance, but this is a step in the right direction.

Missouri Needs a Taxpayer Bill of Rights, SB 727 and Metrolink Expansion

David Stokes, Elias Tsapelas, and Avery Frank join Zach Lawhorn to discuss:

– The need to update Missouri’s tax and expenditure limits (the Hancock Amendment)
– The passage of SB 727, the education reform bill, by the Senate
and House
– Metrolink expansion, and more

Listen on Apple Podcasts 

Listen on SoundCloud

Show Links:

Find tickets for the April 30 event in Columbia, MO here. 

Read Elias’ new report here. 

Read Avery’s blog on SB 727 here. 

Read David’s blog on the Metrolink project here. 

Produced by Show-Me Opportunity

MidAmerica Airport and MetroLink Deserve Each Other

They used to be two empty ships passing in the night, but now MidAmerica St. Louis Airport in Illinois and St. Louis’s MetroLink system will finally connect, to the great joy of nobody but local politicians and contractors.

These two deserve each other. Let’s examine the usage projections that were used to convince taxpayers to approve funding(and various extensions).

Projected passengers for MidAmerica Airport, back in 1997 when the airport was built? Two million.

Plog Research Inc., one of the consultants for the MidAmerica project, estimates 2 million air passengers will be served by the Downstate airport.

Actual passengers in 2022? 163,000. (And trust me, they celebrated that wildly.)

Projected MetroLink ridership after the construction of the cross-county MetroLink extension? 80,000 daily boardings in Missouri alone by 2025.

Actual daily boardings in Missouri in 2023? 16,700.

Public agencies habitually overstate ridership and understate costs to justify these massive projects of all types. High-speed rail, anyone? 

It is worth noting that the current five-mile MetroLink extension to the airport in Illinois cost $98 million, while the proposed MetroLink extension in St. Louis, which is also five miles long, is estimated to cost $1.1 billion. A billion-dollar difference for the same length of route. To paraphrase Everett Dirksen—himself a son of Illinois—a billion here, a billion there, pretty soon you’re talking real money.

It is great that we can finally connect two massive transportation boondoggles that don’t take anyone for a ride but taxpayers.

 

Transparency Stalled

It ain’t over ’til it’s over, but the chances Missouri’s general assembly takes action on healthcare price transparency in 2024 are getting smaller by the day.

At the end of January, I traveled to Jefferson City to deliver testimony on House Bill (HB) 1837, and at the time it seemed like the state’s legislature had finally decided to make healthcare price transparency a priority. HB 1837 is a bill that, among other things, codifies the federal government’s healthcare price transparency rules into state law, and was the first of its kind to receive a public hearing in Missouri. But since that hearing it has yet to receive any further attention from policymakers.

As my colleagues and I have written numerous times, Missouri desperately needs healthcare price transparency. And despite the federal government requiring hospitals to publish their price since 2021, fewer than 40% are complying nationally. That’s where HB 1837 comes in.

In addition to codifying the federal requirements into state law, the bill provides new protections for patients who receive health services in Missouri without being adequately informed of the prices beforehand. If patients aren’t told how much a procedure is going to cost before they receive it, there’s no way for them to plan for the expense, shop for a better deal, or even change their mind about the procedure altogether if the price is more than they can afford at the time.

HB 1837, which is modeled after legislation that became law in Colorado a few years ago, would shield patients from debt collection efforts by hospitals that aren’t complying with the required price transparency laws. Patients who find out they were overcharged would also have recourse for financial restitution (a way to get some of their money back).

With Missouri’s legislature, it’s always difficult to know why a bill stopped advancing, but one thing that was clear from the hearing on HB 1837 was that hospital lobbyists were vehemently opposed to it becoming law. The opposition claimed that complying with the transparency requirements would be too expensive. In fact, the cost is one of the primary reasons the federal government cites for not currently punishing noncompliant hospitals. But these requirements have been in place now for more than three years, which is more than enough time for hospitals to budget for this.

Given how confusing and expensive our healthcare system is, Missouri patients can’t afford to wait any longer for hospitals or the federal government to act. Healthcare price transparency would be a real win for Missourians in their battle against ever-rising healthcare costs. There’s still about a month left in the legislative session, so it’s still possible that our general assembly could push healthcare price transparency across the finish line this year, but at this point, I certainly wouldn’t hold my breath.

Let’s Jump on the Nuclear Energy Bandwagon

A few months ago, I delved into a fascinating bill being debated in Congress, the ADVANCE Nuclear Act, which had the potential to reinvigorate the nuclear energy sector in the United States. This bill would have helped streamline and modernize the cumbersome regulatory process that restricts construction of  new nuclear plants (you can read the specifics of the bill here). Now, a new House version of the bill, the Atomic Advancement Act (AAA), seems to be inching closer to the president’s desk.

Nuclear momentum is building at the federal level, and with the AAA gaining serious traction in Congress, shouldn’t Missouri position itself to take advantage of possible federal changes?

In Missouri, there appears to urgency in finding coal’s replacement. Nuclear energy could be the keystone piece in this future transition. So what can Missouri do?

While I have highlighted numerous state reforms in previous blog posts and testimonies, the most pressing issue is fixing a statute passed in the 1970s, seemingly at the behest of the anti-nuclear lobby. This statute prevents utilities from raising rates in order to help pay for construction works in progress (CWIP). Nuclear power plants are both extremely capital intensive and subject to extensive holdups in the regulatory process. These two factors make nuclear developments risky investments, and this absence of a financial backstop has been, and continues to be, a roadblock for further nuclear development in Missouri.

While there are many important topics being debated in Jefferson City, legislators should not forget about the importance of nuclear regulatory reform—especially as federal reform could be near. In the Missouri Legislature, House Bills 1435 and 1804 (which address the CWIP statute) have made little progress.

As coal power is being phased out, Missourians will need an energy source that will keep the lights on and the air clean. Nuclear power can check both these boxes—but power plants do not arise out of thin air, and they will not be built in Missouri if the regulatory environment here makes them infeasible or prevents them from being cost effective. Eliminating the longstanding CWIP statute through HB 1435 and HB 1804 would help utilities shoulder the upfront cost of plant construction so that they can work with both domestic and international nuclear developers to revive our state’s nuclear industry.

We should set a solid foundation in our state while the federal government works on its end. Missouri should not miss opportunities for nuclear development because we allowed bad state policies to remain in place.

A Win for Education in Missouri

Senate Bill (SB) 727, which has been moving through the legislature in fits and starts this year, was finally passed by the House and will be going to the governor’s desk. The bill ended up being quite large. Here is some of what’s in it.

Charter schools could be coming to Boone County. If a group of teachers, parents, or citizens wants to open a charter school and has a solid application, it can now apply to a university or the state charter school board for sponsorship. The group does not need the approval of a local school board.

Eligibility for the MOScholars scholarship program for low-income students and students with disabilities has been greatly expanded. There are no longer geographic restrictions for who is eligible. The income limits for eligibility have been raised. The total amount of tax credits that can be dedicated to the program was increased from $50 million to $75 million. And the dollar amount of the scholarship was raised to bring the number in line with the Foundation Formula amounts for similar types of students.

Districts in the state’s largest communities must now put a potential switch to a four-day school week to a vote. There is also a financial incentive that will be remitted to any district that remains open five days per week.

There is also an important change to the state’s foundation formula. Previously, students were counted purely based on attendance. Now, the formula will be 50 percent based on attendance and 50 percent based on enrollment.

The minimum teacher salary was raised from $25,000 to $40,000 for all teachers and from $33,000 to $46,000 for teachers with master’s degrees.

Districts will be able to attempt to fill teaching positions in “hard-to-staff” schools by placing teachers higher on the salary schedule than they normally would be.

There are many more provisions to SB 727. It represents a defensible trade-off between increasing options for Missouri students who need them and investing in the system. I look forward to the governor signing it.

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