In Case You Missed It (ICYMI) … Your mini news clippings
Will the State Freeze the MFP Again?
The MFP advisory committee has recommended the state Board of Elementary and Secondary Education (BESE) request a 1.375 percent increase in MFP funding ($35 million) for the 2017-18 school year, but Gov. John Bel Edwards is going to recommend legislators freeze basic aid to public schools for another year. Edwards might include an $18 million increase in his proposed budget for high-needs students and high school programs, but this targeted funding won’t give districts the income needed to offset the projected $38 million increase in payments to the Teacher Retirement System of Louisiana (TRSL).
Teachers Retirement Systems Penalize New Teachers
A new study on teacher retirement systems finds that for the majority of new teachers, what they will receive in retirement benefits will be worth less than what they contributed, even if they stay in the school system for decades. The study looks at the largest school district in each state. In 27 districts, teachers have to work 21-30 years in the system before they reach the “crossover point” where their benefits are worth more than their contributions. In 35 districts, three-fourths of teachers will leave the system before they reach the crossover point, and in 3 districts the wait is infinite – benefits will never be more than contributions. In Jefferson Parish, the crossover point is 29 years. The Teachers’ Retirement System of Louisiana (TRSL) requires a 12.3% contribution for current employees (employee + employer contribution). A large portion of this goes to fund benefits for retired teachers (the unfunded accrued liability). As mentioned above, TRSL costs are expected to go up by $38 million next year.