Ending free pension giveaway would save Cleveland schools $35 million, EAG report finds

August 16, 2012

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Jason

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Teachers took 45,757 days off in 2010-11, led to sub costs of $11.6 million

CLEVELAND – For a school district facing possible bankruptcy, the Cleveland Metropolitan School District was very generous with its employees during the 2010-11 school year.

For example, taxpayers may be surprised to learn they paid the pension contributions for both the district and the teachers during 2010-11. So instead of paying just the district’s portion to the State Teachers Retirement System (nearly $49 million), taxpayers picked up the teachers’ $35 million tab, too.

That’s a nice perk for educators, but bad business for the financially troubled district.

Of course, taxpayers didn’t really have a choice in the matter. That payment had already been written into the district’s collective bargaining agreement with the Cleveland Teachers Union.

Education Action Group discovered the pension giveaway – and many other budget-busting provisions – during its recent analysis of CTU’s collective bargaining agreement with the school district.

Under the Freedom of Information Act, EAG was able to track how some of CMSD’s $995 million total budget for 2010-11 was spent. The findings were remarkable:

• CMSD paid out nearly $11.6 million in total substitute teacher costs in 2010-11. The district’s 3,547 full-time teachers took a total of 45,757 days off during that school year (40,675 sick days and 5,082 personal). That averages to nearly 13 absences per teacher.

• Cleveland schools paid out just over $4 million in reimbursement for unused sick days for teachers and others covered by CTU’s collective bargaining agreement in 2010-11.

• The Cleveland school district spent $3.9 million on automatic, annual “step” raises for teachers and other employees covered by the teacher union’s contract in 2010-11.

• The district also paid out $116,423 for salary and benefits for the union president, who didn’t teach a single day during the 2010-11 school year.

While the teachers’ contract requires the union to reimburse the district for the CTU president’s salary, there is no mention of reimbursement for the cost of a replacement teacher. And if no replacement teacher was hired, then the district is, in effect, loaning money to the union to pay its president that could be used to hire at least one full-time teacher.

“These are the hidden costs of an increasingly expensive government education system,” said Kyle Olson, founder of EAG. “Taxpayers would be wise to scrutinize how their schools are spending dollars before turning over even more hard-earned money.”

The report, “Sucking the Life Out of America’s Public Schools: Part 6 – Cleveland Teachers Union Contract,” is the latest in a series which includes Milwaukee, Detroit, Philadelphia, Minneapolis and Los Angeles.

All of the reports are available at EAGnews.org.

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