DATA REQUIREMENTS AND PROCESS STEPS TO CALCULATE ADJUSTED AVERAGE TEACHER SALARY BY STATE OR GEOGRAPHY

 

q     DATA REQUIREMENTS

 

ü      Published, estimated or projected average teacher salary by state or accepted geography 

 

ü      Cost of Living Index by state

 

ü      Most current percent of teachers with more than Bachelors Degree by state

 

ü      Most current average years of teaching experience

 

q     FORMULA TERMS AND CALCULATION:

 

          ATS(i) _t                           =  Average teacher salary in state (i) or geography (i) at time (t).

 

                _mcCLI (i)                         =  Most current Cost-of-Living Index for state (i) or geography(i).

 

_mcTAF(i)                 =  Training Adjustment Factor = Most current percent of teachers in state (i) or geography(i) with more than Bachelors Degree multiplied by 0.1 and add 1.0 to result. The factor 0.1 represents 10% which is the School Finance Commission’s consultant estimate that a 10% difference exists between B.A. degree teacher and advanced degree teacher salaries.

 

_mcEAF(i)                 =  Experience Adjustment Factor = Most current average years of teaching experience in state (i) or geography (i)  multiplied by 0.02 and add 1.0 to the result. The value 0.02 is 2% which represents the School Finance Commission’s consultant estimate of salary difference due to experience.

 

WATS(i)_t              =  Weighted average teachers salary in state(i) or geography (i) in time (t).

                                               

WATS(i)_t                 = ATS(i) _t   X  _mcCLI(i)   X ( _mcTAF(_LA)  / _mcTAF(i))  X

                                                                                (_mcEAF(_LA) / _mcEAF(i))

EXAMPLE:

ATS (Louisiana) in 2000-2001 = $35,100

ATS (Alabama)   in 2000-2001  =$ 37,300

 

Louisiana _MCCLI = 100

Alabama  _mcCLI = 101.5

 

Louisiana 1999-2000 Percent Teachers > BA = 33.1%

Alabama   1999-2000 Percent Teachers > BA = 54.3%

 

Louisiana AFT 1997-1998 Average Years of Experience = 14.1

Alabama   AFT  1997-1998 Average Years of Experience = 14.7

 

Alabama’s Salary Adjusted by CLI, TAF and EAF Relative to Louisiana

 

Cost of Living Adjustment:  $37,300 X (100/101.5) = $36,749

Percent Teachers > BA Adjustment:  $36,749 X (1.0331/1.0543) = $36,010

Experience Adjustment: $ 36,010 X ((14.1 X 0.02) +1)/((14.7 X 0.02) +1) =  $35,676

 

CONCLUSION

 

When controlled for comparable living costs, education and experience, a $600 deficit exists in favor of Alabama between Louisiana teachers pay and Alabama teachers pay. The original difference between the estimated 2000-2001 salaries ($37,300-$35,100) is $2,200. Of this amount ($ 2,200 - $600), $1,600 is accounted for by slightly higher cost of living in Alabama vs. Louisiana; greater educational attainment and more teaching experience of Alabama teachers vs. Louisiana teachers.

Prepared by Systems Solutions Consulting, August, 2001