If all FCPS employees worked for 30 years, then retired, the actuarial liability would double from its present value. The portion of the median homeowner's real estate taxes that pays for the FCPS pensions would rise to $359. The present funding budget is relying on attrition. At present, only 8% of those hired remain with the FCPS for 30 years until retirement. For more detail, see the attached Report 083.
The purpose of the work reported herein was to determine if Fairfax County teachers are paid a fair wage, as compared to a living wage, the maximum wage to qualify for subsidized housing, a wage necessary for high student performance, and the salaries of other professionals living in Fairfax County. (Read More)
As of 25 January 2010 the biggest reason for FCPS program cuts is because of an increase in payments for retirement plans, $71 million, and health care costs, $25 million, which by keeping the budget flat from FY2010 to FY 2011 mean that $96 million in programs and positions have to be cut for FY2011. (Read More)
In setting salaries and benefits, the principal components of the school budget, we must consider what is just. Many teachers are paid much more than the taxpayers who provide the funds to pay them.
From 2000 to 2011, the school budget has increased 4.77% per year, far more than the 0.89% per year increase in enrollment and the 2.39% increase in cost of living (CPI-U). Almost all of the increase was due to increases in salaries and benefits. The average teacher salary increased 2.56%, which is faster than the 2.21% of the median taxpayer and faster than the 2.39% CPI-U increase. However, the teacher pay-scale increased only 2.06%. For FY 2013, the proposed budget calls for a 2% increase in the pay scale plus a step increase where justified. We can reasonably expect most teachers to get a step increase; therefore, the total annual increase in the salary of an individual teacher will be 5%, plus the increase in benefits that accompanies the salary increase.
Although the price of single-family homes increased a net of 7.6% per year from 2000 to 2011, taxes are paid from income, not house value. Because the median household income increased 2.21% while the school budget increased 4.77%, taxpayers in 2011 were more burdened in paying school-system expenses than they were in 2000. The added burden includes a 6.79% increase per year in the benefits the school-system employees received.
For more detail, see the attached Report 072.