Alabama Republican Liberty Caucus

Cam Ward provides some good data on the cost of public education

Here are the key points raised by Rep. Ward over at Doc’s:

• In 2010, at least 60 school districts will have to take out loans to meet payroll.
• With the economic downturn hammering sales and income tax collections, spending in the education budget will be $1.4 billion less than what was spent in 2008. The budget for 2010-2011 is estimated to allow for somewhere around $5.29 billion in total revenue.
• The cost of retirement benefits for all education personnel went from $300 million in 2004 to an estimated $780 million in 2010.
• Alabama drained its entire rainy day account of almost half a billion dollars to limit the effects of proration.
• In 2010 it will cost the State of Alabama $750 a month for each employee in education while the employee with single coverage will pay $2 toward this cost. Family coverage will be considerably higher as will the amount paid out by the employee.
• From 2005 to 2010 the state saw the cost of health insurance per education employee go from $6,996 to $9,024 per employee.
• Overall the cost of the entire health insurance benefits package for education employees will cost $960 million in 2010.
• Since 2006 Alabama has increased funding for K-12 initiatives like the reading and math initiative by $89 million.

“One thing that is quite evident from these numbers is that we must reform the pension and public health care system in the education budget,” wrote Mr. Ward.  “Every state is facing the same issue as Alabama when it comes to huge reductions in services and available revenue sources.”

Considering the state of Alabama’s projected economy over the next couple of years, perhaps it’s time for teachers to tighten their belts just like the rest of us are having to do.