How rising teacher pension costs hurt school districts

How rising teacher pension costs hurt school districts

Originally posted at on April 22, 2019.

States try to rescue their pension systems from bankruptcy, leaving less money for classrooms and teacher pay

COLORADO SPRINGS, Colo. — Glenn Gustafson was already bracing for a rough Valentine’s Day. Looming on his calendar was a sure-to-be-wrenching meeting to cut $10 million in spending from the Colorado Springs School District’s budget, a move largely forced by rapidly declining enrollment as families moved out of the district and singles moved in. Gustafson, the district’s CFO and — according to his wife — the “world’s only extroverted accountant,” had dubbed the meeting the “St. Valentine’s Day Massacre.”

And then, the week before the scheduled budget bloodshed, he attended a presentation by the director of the state’s pension system and got some unpleasant news. Gustafson learned that his district might have to slash an additional $890,000 next year, as part of the state’s latest attempt to make the system solvent by 2049.

Read the Full Article.

Share this post