BGR Studies Jefferson Public School Tax on December 7 Ballot

November 21, 2024 • Bureau of Governmental Research

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Resumen Español

This On the Ballot report informs Jefferson Parish voters about a December 7 proposition for a new property tax for pay raises for teachers and other employees of the Jefferson Parish Public School System.

On December 7, Jefferson Parish voters will decide whether to approve a new 10.89-mill property tax that would be levied by the Jefferson Parish School Board and dedicated to increased pay and benefits for teachers and other employees of the public school system. The parishwide tax would take effect in 2025 and run for 10 years, expiring at the end of 2034 unless renewed by voters. Jefferson Parish Schools (the School System) conservatively estimates that the tax would generate $45.8 million in the first year.

The School System views the property tax as necessary to make its teacher salaries competitive with the highest-paying area districts and address persistent teacher retention and recruitment issues that hinder academic improvement. It would use the tax revenue to raise pay for all certified teachers by $8,300 a year, a 16% increase to their starting salary – from $51,800 to $60,100. In addition, the revenue would fund proportionate pay increases for school and central office leadership positions, except the superintendent, and $2,000 raises for all support positions.

BGR analyzed the School System’s pay raise tax proposition based on three questions to assess whether it supports the efficient and effective use of public resources: (1) Has the School System carefully planned how it will spend the tax revenue and provide financial stewardship and accountability for the public dollars? (2) Is the tax an acceptable way to fund the pay raises in light of alternative funding options? (3) Is there evidence indicating the tax would result in effective outcomes for the public?

Scroll through our slides for a quick overview of the report and continue scrolling to read the rest of the InBrief summary.

Key Findings

Has the School System carefully planned how it will spend the tax revenue and provide financial stewardship and accountability for the public dollars?

The School System has identified improving teacher recruitment and retention as a critical need for boosting student performance. The School System has targeted its proposal to bring its starting certified teacher salary to the highest among area districts, as shown in the chart below. More than 500 teachers have regularly left the School System each year since well before the pandemic, keeping the annual turnover rate between 15% and 24%. Finding replacements for departing teachers has become a greater challenge, leaving more classrooms without a designated teacher. In 2022, the School System’s vacancy rate was 4.2%, the 13th highest among 61 reporting districts in Louisiana and well above the 1.5% average rate. Three-quarters of the estimated $45.7 million annual cost of the pay raise plan would go to teachers, with the rest supporting the system’s leadership positions and support staff, as shown in the table below.

BGR estimates the tax would generate $50.3 million in its first year, exceeding the School System’s conservative estimate of $45.8 million. However, the additional tax revenue would help cover a projected annual funding increase of between $5.4 million and $6.3 million for its six charter schools (about $900 to $1,000 per student), which fall outside the system’s pay raise plan. State law requires that charter schools receive a proportionate share (based on student enrollment) of the district’s local sales and property tax revenue to support their personnel and other operating costs. So, a local tax increase would trigger an increase in funding for the charter schools’ operations.
School System officials acknowledge concerns that the proposed raises for support staff are insufficient. They say that the primary purpose of the tax proposal is to resolve persistent teacher shortages and that the School System will prioritize support staff salaries if any other funding sources become available.
The School System has demonstrated strong stewardship and accountability for public dollars. It has invested one-time revenues in facility and technology needs, produced clean financial audits, and increased the public’s access to spending data. The School System has also used cost savings from consolidating under-enrolled schools to help fund a recent pay raise, reducing the size of the tax proposed to voters.

Is the tax an acceptable way to fund the pay raises in light of alternative funding options?

The School System lacks clear alternative funding options that could fully support the pay raises on an ongoing basis, or significantly reduce the size of the proposed tax. While relying on the School System’s current revenue streams to fund the pay raises could save money for parish taxpayers, the system’s budget outlook does not indicate sustained, sufficient surpluses to make this a viable alternative to the tax.
The School System does not anticipate increases in existing property tax or sales tax revenues sufficient to support the pay raise plan. Increased State funding for schools is uncertain. In general, new State funding could help the School System and other districts statewide to make their pay scales more competitive with other sectors and schools outside Louisiana. However, it would not necessarily make Jefferson teacher salaries more competitive with area districts in the same way as the proposed locally funded raises.

Is there evidence indicating the tax would result in effective outcomes for the public?

Research has connected teaching experience with growth in student achievement and higher teacher turnover with poorer learning outcomes. Research also finds that pay is an important factor in recruiting and retaining teachers. Putting these findings together suggests that the teacher salary increase funded by the proposed tax would help boost Jefferson students’ academic performance.
The School System could increase the potential for these effective outcomes by also addressing non-compensation factors that discourage teachers from remaining in the classroom, such as growing workloads and reporting requirements.

BGR Position

FOR. Like many school districts across the country, the Jefferson Parish Public School System has faced severe challenges attracting and retaining teachers. During the last five years, it has lost an average of 550 teachers annually and classroom vacancies have often surpassed 100. The constant churn means students often have new and inexperienced teachers who are learning the ropes of managing their classrooms and providing effective instruction. National research positively links teacher experience with student achievement and has found that higher teacher turnover reduces students’ academic growth.

The salary increase funded by the proposed tax would make the School System’s starting teacher pay the highest in southeast Louisiana and help it overcome hiring and retention disadvantages relative to other area districts. It would also boost competitiveness with opportunities in other sectors. While pay gaps alone are not responsible for the School System’s teacher shortage, they are a significant driver. The pay raise has the potential to improve teacher attraction and retention, the effectiveness of the School System’s teaching force and, ultimately, the system’s lagging student achievement levels. The School System did not aim to comprehensively address support staff pay concerns with the tax proposal and plans to prioritize this issue if any other funding sources become available.

The 10.89-mill tax is a significant request of voters, but one that would support a core building block for the future success of the parish’s families, economy and quality of life. Not addressing teacher pay now could worsen the situation and make it more difficult for the School System to achieve its education goals for students. The School System has worked to limit the request through cost savings in its operations and facilities, as well as careful financial management. If voters approve the proposition, the School System should continue to pursue opportunities to lighten local taxpayers’ burden by levying a lower rate if future circumstances reduce the level of revenue needed.

And regardless of the outcome of the proposition, the School System should continue to seek operational efficiencies that allow it to redirect financial resources to students’ greatest needs. In addition, it must commit to working with its teachers as well as State partners to develop solutions that address the non-financial issues that drive teachers from the classroom.

This report is part of BGR’s On the Ballot series, which provides voters with objective, nonpartisan analysis of significant ballot propositions in the New Orleans metropolitan area. In producing these reports, BGR recommends positions consistent with its mission of promoting informed public policy making and the effective use of public resources to improve local government. On the Ballot reports highlight the strengths and weaknesses of ballot propositions and assess the potential for government expenditures or actions to efficiently achieve beneficial outcomes for citizens.