Figures released last week from the 2009-10 school year show a record number of New York City high school students graduated in four years — 61%. But just 21.4% of those who started high school in 2006 were “college or career ready,” based on their English and math scores, the state found.
The dismal results are frustrating, considering that New York state spends more per pupil — $18,126 — than any other state in the nation. In New York City, we spend $17,928 per student — more than any other city except Boston.
Why have costs continued to skyrocket while performance lags?
A major cause is pensions. New York City doled out $4,822 for each child in its public schools on fringe and retiree benefits for teachers and other education employees in 2008-09 (the latest available) — a whopping 27% of the total spent per kid.
That’s more than twice the $1,493 cost of health care and pensions per kid in the 1999-2000 school year, and double the 13.4% of $11,121 in per-pupil spending back then, data by the Independent Budget Office show. “Unlike the increases in salaries and staffing, this isn’t something that was planned or desired,” said Charles Brecher, research director for the Citizens Budget Commission. “It’s proven to be very difficult to manage and control.”
The biggest culprit was the stock market collapse, and losses or lackluster gains on investments made by the city’s Teachers Retirement System. The pension funds assume an 8% annual rate of return, and anything short of that means taxpayers have to pay more to make up the difference.
All teachers hired today contribute 3% of their salaries toward pensions, and can retire at age 57. For state teachers, Gov. Cuomo wants to hike that contribution to 6%, and raise the retirement age to 65, but he faces union resistance.
“It’s a reminder that even as parents suffer threats of layoffs and uncertainty, it’s not because the taxpayers are saving any money,” said Manhattan Institute Scholar Nicole Gelinas. “It’s because we’re spending ever more money on pensions and health benefits.”
Meanwhile, the total number of children served by the city Department of Education (excluding those in charter and private schools) fell from 1,099,437 in 2000 to 986,461 in 2009 — a 10.3% drop.
Here’s how the per-student spending broke down in 2000 and 2009:
