In this brief, we examine an important but obscure form of state spending on K-12 education-state subsidies of school district pension costs. In 2018, this exceeded $19 billion across 23 states. To put that amount into perspective, 2018 federal spending on Title I programs was $15.8 billion. This revenue stream is often ignored in analyses of…

Voters in Marin County have long been willing to pass parcel taxes to fund their schools. In 2016, taxes faced unprecedented opposition from local activists; taxes in Kentfield and Mill Valley were defeated or passed by previously unheard-of narrow margins, respectively. What changed? This case study uses district financial and demographic data as…

A recent survey of 41 different state boards of education revealed that officials from 28 states indicate that they are experiencing teacher shortages. The shortages in some states are significant. While the teacher shortage in many states is tied to different factors, one frequently cited reason for leaving the teaching profession is low pay.…

On January 10, 2019, Governor Newsom released his Budget Proposal for the 2019-2020 fiscal year, which includes around $60 billion in state funds for K-12 schools. The budget bill and implementation bills will be deliberated and modified in each house in the upcoming months after which they are expected to incorporate significant revisions that…

On February 24, 2017, all of the authors of the state-of-the-state manuscripts published in the "Journal of Education Finance" met in Cincinnati, Ohio, to participate in a roundtable discussion focused on recent legislative actions in 38 states. A majority of those papers were revised to reflect a final report on legislative actions…

Public school districts are facing twin challenges: maintaining a labor supply of qualified teachers while shoring up the deteriorating system that compensates them. Keeping public-school teachers' pensions plans flush is expensive, and it accounts for a growing share of education spending. In some states, public charter schools provide an…

Teacher salary decisions are often made with little connection to the pension obligations they entail. In this paper, authors Marguerite Roza and Jessica Jonovski model the impacts of late-term raises on teacher pension obligations showing that on average each dollar raise triggers $10 to $16 in new taxpayer obligations. The authors provide…

Boosting early retirement in cash-strapped districts does not hurt students' math and reading scores, according to new studies released at the American Economic Association meeting, but pension-incentive programs may cost schools some of their most effective teachers. Separate studies of teachers in California, Illinois, and North Carolina paint a…

The city of Los Angeles will face enormous budgetary pressures from the growing deficits in public pensions, both at a state and local level. In this policy brief, the author estimates that Los Angeles faces a total $152.6 billion liability for pensions that are underfunded--including $49.1 billion for the city pension systems, $2.4 billion for…

The city of San Francisco will face enormous budgetary pressures from the growing deficits in public pensions, both at a state and local level. In this policy brief, the author estimates that San Francisco faces an aggregate $22.4 billion liability for pensions and retiree health benefits that are underfunded--including $14.1 billion for the city…

Orange County will soon face enormous budgetary pressures from the growing deficits in public pensions, both at a state and local level. In this policy brief, the author estimates that Orange County faces a total $41.2 billion liability for retiree benefits that are underfunded--including $9.4 billion for the county pension system and an estimated…

The city of San Diego will face enormous budgetary pressures from the growing deficits in public pensions, both at a state and local level. In this policy brief, the author estimates that San Diego faces total of $45.4 billion, including $7.95 billion for the county pension system, $5.4 billion for the city pension system, and an estimated $30.7…

California has promised its public employees lavish pensions and retiree health benefits without setting aside nearly enough money to pay for those benefits. As a result, California already admits to a $75.5 billion shortfall in paying for these promises to public employees--$40.5 billion for the teachers' retirement plan (California State…

The tension at the heart of pension politics is the incentive to satisfy today's claimants in the here and now at the expense of long-term concerns. Teacher pensions, in particular, pose two challenges. The first is that political incentives invite irresponsible fiscal stewardship, as public officials make outsized short-term commitments to…

The tension at the heart of pension politics is the incentive to address today's claimants and focus on the here-and-now at the expense of long-term concerns and more dispersed constituencies. In the private sector, rules and regulations seek to tame corner-cutting and short-sighted behavior. In the public sector, the primary safeguard is the…