In some state-by-state lineups, the average salary for licensed teachers in Hawaii’s public schools — currently $68,000 a year, according to the Hawaii State Teachers Association — ranks within the top 20 states. But in listings that factor in a cost-of-living price tag, Hawaii plummets to the bottom bracket.
The upshot is an insufficient supply of qualified teachers in Hawaii’s K-12 system. In recent years, the retention rate for new teachers — those who stay on the job for five years — has hovered near 55%, with a large portion of resigning educators noting “leaving Hawaii” as their primary reason — often due to difficulty in making financial ends meet here.
In an effort to address Hawaii’s teacher pay problem, the Legislature is now weighing House Bill 2671, which proposes funding pay raises by giving the state Board of Education (BOE) joint authority with counties to levy property taxes. While the need for gains in teacher retention and recruitment is undeniable, this proposal is not the answer.
The bill aims to put a question on the 2020 general election ballot, with voters being asked whether the Hawaii Constitution should be amended by repealing the counties’ current exclusive jurisdiction over real property taxation, and giving concurrent jurisdiction to the counties and the BOE. Corey Rosenlee, president of the 13,700-member HSTA, said the proposal aligns with funding approaches in parts of the mainland.
Pointing out that nationwide about 45% of all school funding comes from local sources, the majority of which is generated through property taxes, Rosenlee said: “Hawaii schools are underfunded because the counties don’t provide any funding for the school system, which doesn’t happen in any other state in the country.”
However, while other states are often divided into hundreds of school districts, Hawaii is the only state with a single, statewide district. The bulk of funding for the DOE’s budget comes from the state general fund, which includes revenue from the general excise tax and income taxes.
HB 2671 has echoes of the 2018 proposed constitutional amendment that would have given the Legislature authority to impose a surcharge on investment property to support public education. In that case, the counties prevailed in a legal challenge asserting that the ballot question was too vaguely worded.
This time around, the wording seems clear, but much of the criticism tied to the 2018 proposal is likely to resurface. The counties may again argue that such a move could cut into their revenues and hurt their bond ratings. And many taxpayers — especially those on Oahu bracing for the possibility of a property tax hike to cover the cost of rail transit operations — may view this separate pot of money for education as a double-dip levy.
Further, some critics contend that before pursuing this matter, the Education Department should first more clearly bear out that its $2 billion operating budget is spent efficiently and effectively.
In addition, giving the Board of Education authority to levy a tax is concerning because it consists of governor-appointed members. Elsewhere, school district board members are typically selected by voters, who have the option of casting members off the board.
Given these snags, lawmakers should consider tapping other funding possibilities. Following the lead of the University of Hawaii Cancer Center’s draw from a tax on cigarettes, a portion of revenues from a tax on vaping products could go to teacher pay. Or perhaps, the state could explore a lottery: In 2018, California’s lottery ticket sales sent $1.7 billion to K-12 schools, colleges and universities.
The Legislature should dig deep for fixes to Hawaii’s teacher pay problem — but looking to the state Constitution as a funding well creates problems of its own.
