Public Schools Have a Spending Problem

When the Congress passed the Public School Bailout, it was akin to slapping a band-aid on a bleeding head wound.  American public school systems spend somewhere around a half-trillion dollars a year, and another $10 billion is going to make everything alright?  Hardly.

Public schools have a serious spending problem.   When a local teachers union bargains with the school district over a new teacher contract, the new contract typically includes all kinds of hidden expenses.  Collective bargaining agreements typically put school districts on the hook for sick leave pay, cash payouts for unused sick days, release time to conduct union business, and other embedded costs that cause school districts to hemorrhage huge amounts of money.

News coverage of teacher contracts, if there is any, is rarely controversial or in-depth.  It usually covers the general raise every employee receives, as well as the modest increase in health insurance co-pays.  But dig beneath the surface, and a different story emerges.

Education Action Group is dedicated to pointing out the huge spending problems plaguing our schools.  We recently conducted an analysis of nearly 20 teacher contracts in southwest Ohio and uncovered some shocking numbers.  For example, Cincinnati Public Schools spent $7.5 million on sick leave in last year.  How many teacher salaries would that cover?

(more…)