Hawaii public teachers’ salaries misrepresented

This column was originally featured in the Honolulu Star-Advertiser on Wednesday, Oct. 17. This version includes the charts and footnotes.

A widely cited study issued last month by WalletHub erroneously stated that Hawaii public school teachers make a starting salary of only $24,409 when adjusted for cost of living, supposedly lowest in the nation.

In reality, Hawaii teachers make starting salaries that are $35,140 when adjusted for the cost of living, which is above the national average.

In response to a request for information from the Grassroot Institute of Hawaii, WalletHub said it assumed a cost-of-living index for Hawaii of 188.3. It attributed that number to a report by the Council for Community and Economic Research,[1] which catalogues cost-of-living indices of urban areas nationally.

This means that the WalletHub study adjusted statewide public school teacher salaries based on metropolitan areas, which is an apples-and-oranges comparison.

A more accurate way to calculate the cost of living is to use a statewide cost-of-living index. For example, the Bureau of Economic Analysis (BEA) pegged the cost of living index for all of Hawaii at 130.8.

Another problem is that the WalletHub study placed a heavy weight on housing costs of “professional and executive households in the top income quintile.”[2] It compared the cost in metropolitan areas of 4-bedroom, 2-bathroom homes on 8,000-square-foot lots,[3] which in Honolulu average $1.04 million,[4] but in Atlanta, Ga., for example, average only $290,041.[5]

Adjusting statewide teacher salaries for Hawaii’s high cost of living using only metro Honolulu prices is a methodological error, since the numbers imply a goal of attempting to bring teacher salaries in line with the prospect of buying a $1 million home, which is out of reach for most people in the state.

According to the National Education Association (NEA), and adjusting for the cost of living using the BEA index, the starting salary for Hawaii public school teachers in fiscal 2017 was $35,140, which was higher than the national average at $34,853.

Calculating teacher pay in fiscal 2017 without adjusting for the cost of living, licensed Hawaii public school teachers who worked 10 months a year had a starting salary of $45,963, the third-highest in the nation, behind only New Jersey at $51,179 and Alaska at $46,785, according to the NEA.

The average unadjusted salary for all Hawaii public school teachers in fiscal 2017 was $57,674, almost $10,000 more than the average private sector salary in the islands of $48,055[6] and higher than most other Hawaii state government workers, who averaged $37,561 in fiscal 2017.[7]

This year, in fiscal 2019, the unadjusted starting salary for licensed 10-month public school teachers in Hawaii rose to $48,428, according to their union contract,[8] and to $49,100 for teachers who worked an extra 21 hours. Ten-month teachers comprise the majority of teachers who work during the year; some of then can earn an extra stipend outside of the union contract if they teach during the summer

Licensed 12-month teachers in Hawaii this year have salaries that start at $58,113, or $58,781 with the extra 21 hours.[9] Twelve-month teachers are positions such as resource teachers or registrars who work at the school year-round.

In either case, Hawaii’s public school teachers clearly are better off than the WalletHub study suggests. This isn’t to say that good teachers should not receive more pay, but anyone endorsing higher pay for Hawaii’s public school teachers should at least use accurate statistics — especially if they are urging voters on Nov 6 to approve higher property taxes as the way to make that happen.

Hawaii Teacher Starting Pay
RankStatesTeacher starting pay
1New Jersey$51,179
2Alaska$46,785
3Hawaii$45,963
4Connecticut$45,280
5Wyoming$45,207
6New York$44,935
7California$44,782
8Massachusetts$44,726
9Maryland$44,675
10Pennsylvania$44,144
11Rhode Island$41,481
12Delaware$41,415
13Texas$40,725
14Washington$40,426
15Louisiana$40,128
16Virginia$39,398
17Illinois$38,820
–United States$38,617
18Vermont$38,483
19Alabama$38,477
20North Dakota$38,032
21Nevada$37,973
22Minnesota$37,644
23North Carolina$37,514
24South Dakota$37,419
25Florida$37,405
26Wisconsin$36,983
27New Hampshire$36,845
28Kentucky$36,494
29Tennessee$36,402
30Michigan$36,234
31Iowa$35,766
32Utah$35,722
33Oregon$35,534
34Ohio$35,249
35Indiana$35,241
36Kansas$34,883
37Georgia$34,872
38Mississippi$34,780
39New Mexico$34,544
40Arizona$34,068
41Arkansas$33,973
42Maine$33,876
43Nebraska$33,854
44Idaho$33,743
45West Virginia$33,684
46South Carolina$33,057
47Colorado$32,980
48Oklahoma$31,919
49Missouri$31,842
50Montana$30,036
Source: National Education Association

 

Teacher starting pay adjusted for cost of living
RankStatesTeacher starting pay, adjusted
1Wyoming$42,289
2New Jersey$40,943
3Pennsylvania$40,611
4Alabama$40,248
5Louisiana$40,208
6Alaska$40,193
7South Dakota$38,339
8Texas$38,025
9Rhode Island$37,710
10Connecticut$37,702
11Kentucky$37,662
12North Dakota$37,618
13Massachusetts$37,553
14Delaware$37,412
15North Carolina$37,365
16Maryland$36,952
17Tennessee$36,548
18Mississippi$36,457
19Wisconsin$36,081
20Iowa$35,910
21Ohio$35,749
22Illinois$35,517
23California$35,429
24Arkansas$35,389
25Indiana$35,312
26Nevada$35,291
27New York$35,188
28Michigan$35,179
29Hawaii$35,140
30Minnesota$34,953
31Kansas$34,883
32Virginia$34,865
–United States$34,853
33West Virginia$34,834
34Washington$34,671
35Vermont$34,268
36Georgia$34,255
37Nebraska$34,196
38Florida$33,943
39New Mexico$33,408
40Utah$33,230
41South Carolina$33,123
42Idaho$32,824
43Oklahoma$32,471
44Oregon$32,245
45Missouri$32,229
46Arizona$32,140
47New Hampshire$31,518
48Maine$31,165
49Colorado$29,006
50Montana$28,881
Source: National Education Association

 

[1] http://kedc.com/wp-content/uploads/2018/02/2017-Annual-Average-Index.pdf, page 8.

[2] Ibid, page 3.

[3] Ibid, page 5.

[4] Ibid, page 25.

[5] Ibid, page 25.

[6] Grassroot Institute calculations using Bureau of Economic Analysis data for FY 2017, available at https://www.grassrootinstitute.org/wp-content/uploads/2018/10/Wage-data-by-state-FY-2017-2.pdf.

[7] Grassroot Institute calculations, available at https://www.grassrootinstitute.org/wp-content/uploads/2018/10/Wage-data-by-state-FY-2017-2.pdf.

[8] https://www.grassrootinstitute.org/wp-content/uploads/2018/09/HSTA-CBA-FINAL-2021.pdf, page 84.

[9] Ibid, page 85.

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