MEMO TO: Mr. Rhodes FROM: Tim Lewis MEMORANDUM TEC d( c'Y SUBJECT: Comments on Teacher Salary Information as Presented in Winston Power's Letter DATE: March 11, 1979 1. To understand the minimum salary schedule, one must examine it as it was initially set forth in 1969 when the Legislature adopted the 10 step schedule. At the time of its adoption, teachers with a bachelors degree were grouped in steps 0-4 and teachers with a masters degree were grouped in steps 0-6, as shown in the attached copy of the law in effect at that time. Bachelors degree teachers began reaching step 10 in fiscal 1976 and masters degree teachers began reaching this top step in fiscal 1974. In 1977, the Legislature added three more steps. To keep the costs more manageable, a two year wait was required between each step. As a consequence of these two legislative actions, steps 10- 13 each contain teachers with a range of years of experience. For example, masters degree teachers with between 13 and 16 years of experience are all on pay grade 8, step 10 for the 1978 fiscal year. However, this does not mean that one stays in step 10 for 4 years before advancing to step 11. 2. The Texas Education Agency projects that 33,000 professional personnel will not receive an automatic pay increase in 1979-80, including 21,000 teachers. These individuals will receive an increase in 1980-81, however. For 1980-81, the projection is 43,500 profes- sional personnel, including 33,000 teachers. No professional personnel will have reached the maximum of step 13 at the beginning the 1979-80 school year, but teachers with master's degrees and 27 or more years of experience will be paid at this maximum step for the 1980-81 school year. 3. Teachers with nine or less years of experience as of September 1, 1979 will receive automatic increase for both years of the biennium. Teachers with ten or more years of experience will receive one pay raise, averaging about 4 percent, during the biennium. 4. A teacher with a bachelors degree and 10 years of experience in 1977-78 would be at step 9 and have an annual minimum salary of $12,240. Under current law, this individual's minimum salary will be $13,380 in 1980-81, an increase of 9.3 percent over 3 years. Assuming a continued inflation rate of 12.8 percent in Houston, the cost of living would have increased by 43.5 percent. In 1980-81, this individual would have about 3/4 of his 1977-78 purchasing power, a startling decrease, but certainly not the same as a 50 percent decrease.