As subtropical storm Alberto washes away Miamians Memorial Day weekend plans, it seems fitting to pause and reflect on how superintendent Alberto has washed away Miami teacher pay during his ten year tenure. The first step to permanent teacher salary suppression took place during the Great Recession when step advancements were withheld for three years and teachers were never advanced accordingly on the step schedule when the economy recovered, thus delaying the ever evasive lifetime journey to the top of the pay scale.
After negotiating away the steps entirely in September of 2015 with the assistance of current FEA Vice President/FEA Presidential candidate and former UTD President Fed Ingram, the current maximum teacher pay of $72,750 has become an unattainable Promised Land for all but a few thousand teachers who through dumb luck reached the top of the pay scale before steps were abolished. The withholding of steps for three years followed by the removal of the step schedule altogether, has permanently suppressed the salaries of mid to late career teachers in Miami Dade and the result has been a massive savings for the district.
Thanks to my teacher hoarder colleagues, I happened to have a salary schedule from 2000 forwarded to me and to my surprise, there are many mid-career teachers (16-22 years experience) working in MDCPS who would have made more money 18 years ago than they do today!
All Miami teacher salaries have lost considerable value since 2000 but the losses for mid-career teachers are staggering.
Although superintendent Carvalho was not in charge when mid-career pay started to be collectively bargained away by UTD in favor of raising top pay and beginning salaries in 2005, his denial of steps for three years during the Great Recession and the subsequent removal of grandfathered teachers from the step schedule has caused financial devastation for mid to late career teachers working for the MDCPS. Granted Mr. Carvalho works extremely hard leading the 4th largest school district in the nation but is it fair that his salary has more than kept up with inflation over the past decade while not a single teacher’s salary in the MDCPS has come close with keeping up with inflation?
Perhaps UTD could bring these charts to the next round of bargaining sessions?
In a rare moment of transparency for both the district and UTD at the last bargaining session, there was mention of a mysterious $50 million that was transferred into the general fund that could be used for salaries in December of 2017 just weeks after teachers voted yes to a 2-2.67% raise.
There was no mention of where this $50 million dollars that could be used for salaries suddenly appeared from, why it wasn’t used for 2017-18 teacher salaries, and where it went after December 2017. It’s kind of like if you and your spouse went to buy a house, he insists that there is no way you can afford the house you really want, so you settle for a smaller house, sign the contract, and the next week your husband transfers $50 million into your checking account. You might be like, “WTF? Why didn’t you tell me we had an extra $50 million lying around before we signed the contract for the smaller house?”
Some are wondering exactly where this extra $50 million came from, and my wild theory (which may be totally off base), is that it is a reflection of how much money the district is saving on teacher salaries since they delayed step advancements for three years and then transitioned to a percentage based salary advancement. The former step schedule was based on an average step increase of around 3%. But the steps were so unequal in Miami Dade that some teachers at the bottom of the pay scale received 0-0.75% for the first 13 years with the promise of receiving 5-18% step increases in their mid to late career. Only now that the steps were thrown out, they are looking at a future of 2-3% increases in a booming economy thus ensuring they will never reach the advertised $72,750 maximum pay.
After running the math on this rainy Memorial Day weekend regarding the salary savings to the district on mid to late career teacher pay using first hand statements of 2017 salary, the 2013 step schedule, and a public records release of how many teachers were at each step as of 2014 before steps disappeared from the system, I compiled the following chart.
Miami Dade Teacher Salary Savings After Removal of Steps
These numbers are neither perfect nor exact, but the savings are significant and the number coincides with the mysterious $50 million that appeared only after teachers agreed to a 2-2.67% raise. It makes one wonder, what if UTD hadn’t presented a 2-2.67% offer (worth approximately $30 million) to the bargaining unit? What if they had demanded more? What if teachers had voted down the contract and forced the district and union back to the bargaining table? Would the mysterious $50 million suddenly have appeared and been used to increase salaries for the 2017-18 school year?
Further proof that the mysterious $50 million is coming from the savings since steps were eliminated can be seen in this chart which shows that the amount spent on salaries has decreased $200 million despite a $100 million increase in the General Fund. Note there is a $50 million decrease from 2016-17 to 2017-18. These numbers were compiled using numbers made available on the districts financial affairs website under Executive Summaries.
Mr. Carvalho should be praised for his economic stewardship of district funds during his tenure, however, his fiscally conservative nature might be bankrupting his workforce at the expense of growing an ever larger surplus in the General Fund (monies that could have been used for salaries). As of June 30th 2017, the General Fund surplus was stated as $222,269,017 according to the FLDOE. When Mr. Carvalho became superintendent in 2008, the General Fund balance was only $32,629,633.
As we enter the 2018-19 bargaining season, let the mysterious $50 million be a lesson for both the union and MDCPS employees, when the district says they have no new money for salary increases, there’s probably $50 million worth of old money in a secret vault somewhere on N.E. Second Avenue just waiting for you to demand that it be used.