Legislators have ‘no plan B’ for teacher pay raise

Published 12:00 am Sunday, March 4, 2001

Discussion of teacher salaries isn’t a new subject for state Rep. Bryant Hammett, D-Ferriday. The topic was first brought to his attention at age 8, when he heard his mother and other teachers discussing the profession and its low pay. True, Hammett is certainly hearing more about it these days – &uot;at church, at ballgames, at the grocery store&uot; – from teachers who want to know why lawmakers have not found a way to grant them a raise by now.

Hammett also has received dozens of calls and letters in recent months from educators seeking a raise, but he is not complaining. &uot;If teachers were making a decent salary, we wouldn’t be in this situation,&uot;&160;Hammett said.

He was referring to the fact that in recent weeks, teachers throughout the state – including, last Thursday and Friday, Concordia Parish educators – have staged sickouts to call for raises.

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Lawmakers have one more shot to raise teacher salaries, but the plan has three parts that must be passed separately, and it is not clear whether two of the measures have enough Senate support to pass. The state’s teacher unions have left open the option of striking if the plan doesn’t pass.

&uot;This (plan) is the best shot we have at giving teachers a raise,&uot; said Hammett, chairman of the House Ways and Means Committee. &uot;And if we don’t pass this, there is no Plan B for teacher salaries.&uot;

How did the Louisiana Legislature get into the situation of having to raise teacher salaries but not having the money to do so?

According to Dr. Jim Richardson, professor of economics at Louisiana State University, the reason can be summed up in two words:&160;campaign promises.

Gov. Mike Foster promised in his last campaign to raise pay to the Southern regional average.

&uot;He did not, however, say how it was going to be funded,&uot;&160;Richardson said.

Government revenues did not rise enough due to expansion of the economy to come up with enough money for teacher raises.

&uot;So unless you increase taxes or find something to cut from the budget, you can’t raise it. And they haven’t found anything else they can cut out of the budget,&uot;&160;he said. &uot;It was a matter of a campaign commitment, but now it will take $220 million to do it.&uot;

Voters failed to pass a tax swap measure – dubbed the Stelly plan after its author, Rep. Vic Stelly – to fund raises last fall, Richardson pointed out. Under the Stelly plan, which was actually two proposed constitutional amendments, the 4-cent tax on food and utilities would have been eliminated.

Louisiana taxpayers would have no longer been allowed to deduct federal income tax paid.

Some other state deductions, including those for charitable contributions and mortgages, would have be eliminated, although they could still be deducted from federal taxes.

Also, tax brackets would have ranged from $0 to $50,000 instead of the current $100,000, with a maximum rate for 5 percent instead of the current 6 percent. Of the revenue from such changes, at least 80 percent would have be used to raise salaries for teachers, college and university instructors and school support personnel. The Legislature could have appropriated remaining funds for any educational purpose.

Given the Stelly plan’s defeat, &uot;the only avenue left is gambling taxes,&uot;&160;Richardson said.

One possible source of $70 million for teacher raises is an increase in gaming taxes. Riverboat casinos now pay an 18 percent tax on revenues to the state in addition to taxes they pay at the local level.

Still, the public should not feel too sorry for the casinos, for they will get something in return – a &uot;tradeoff,&uot;&160;Richardson said.

The Legislature is considering allowing casinos to operate dockside or – as in Mississippi – be based on a stationary barge. &uot;Twelve of the 14 casinos have said they would go to barges if this is passed, but all 14 would at least go to dockside gambling,&uot; Hammett said.

Currently, most casinos in Louisiana must move along a body of water unless severe weather prevents it. In exchange, dockside casinos would pay a 21 percent tax to the state, while barge casinos would pay 23 percent. That would raise an estimated $70 million annually in gaming taxes that would be used for teacher raises, Hammett said.

And approving a four-year agreement under which the troubled Harrah’s New Orleans casino would pay of $50 million to the state the first year and $60 million a year for the next three years would bring in additional revenue for raises. Harrah’s previously agreed to pay the state $100 million a year. But a review of the company’s finances by the Legislative Auditor’s Office has confirmed that the casino can’t pay that amount and still remain in business.

As it now stands, two-thirds of the state’s legislators would have to vote for the riverboat measure for it to pass. But it is not yet clear whether the Harrah’s measure would have to have a simple majority of votes or two-thirds to pass. Although it appears that the House would have enough votes to pass both measures, not enough senators have committed to passing the bills as of yet.

And it is essential that the Harrah’s agreement pass before the riverboat bill is considered, Hammett said. That is because the support of legislators who represent districts with riverboat gambling is needed to pass the Harrah’s measure. &uot;And if we give them what they want&uot; – by passing the riverboat bill – they would have no reason to support the Harrah’s bill, Hammett said.

Another possible source of money for teacher raises would be an increase in money the state forwards to local school districts through the Minimum Foundation Program. The State Board of Elementary and Secondary Education will probably vote this year to increase the MFP by $70 million starting with the 2001-2002 school year.

The board will probably mandate that districts use the increase for teacher pay raises. And since the Legislature must approve the MFP formula -something it will do in its regular session, set to start later this month – it has to leverage to force the board to do so.

But such restrictions will not be popular with district officials, who will have to find some other way to offset inflationary costs.

Taking money &uot;for raises out of the MFP would cost us $1.5 million, and you can imagine what that would do to our budget,&uot;&160;Concordia Parish Superintendent Lester &uot;Pete&uot;&160;Peterman said at a recent rally teachers held in Vidalia to push for raises.

There are other budget pitfalls to consider, Hammett said. For one thing, lawmakers must already find a way to cover a $200 million state deficit, not counting a $80 million deficit left from this year, $40 million in budget overruns and the cost of teacher raises. Even if it does find the money for teacher raises, it must find a way to keep the money coming not just for one year, but each subsequent year.

No plan includes raises for support workers, such as cafeteria or maintenance workers, although both of the state’s teacher unions have called for such raises.

And even if all three plans being mulled over by lawmakers pass, that will still not bring teacher salaries to the Southern average. &uot;That would take $70 million more, and there’s no way to get that. We’re having to cut social programs as it is,&uot; Hammett said. &uot;Besides, that average is a moving target, because as we increase salaries, it moves up.&uot;

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Given such problems, what does Hammett tell teachers who confront him with pay issues?

&uot;I say that I’m not going to tell them there’s a solution or that we’ll come out of this special session with anything, but that I’m sympathetic to their cause,&uot; Hammett said.

And since he believes most legislators are already sympathetic to the cause of teacher raises, he does not see sickouts making much of an impression on lawmakers.

&uot;I think most legislators already are attentive to their cause. When you’re doing all you can already, sickouts aren’t effective,&uot; he said. &uot;But at least with these sickouts, there will be no doubt that we know they need a raise.&uot;