Oceanside Unified 2019 Compensation Analysis

Oceanside Unified 2019 Compensation Analysis

The following analysis is derived using data available from various sources as listed on my “References/Data Sources” page.

See my “Methodology” page for a description of the methodology used.

This current version was updated July 27th, 2020.

If anyone has any issue with the data or analysis, I’d welcome that discussion – I’d like to make sure my data is as accurate as possible, if you see something, say something!  You’re welcome to email me at ousd@maddisonweb.com.

Analysis

Data for this analysis was from a period starting in 2012 and ending in 2019, based on the latest pay data available from the sources listed.

I use this period for a specific reason. In 2012 the people of California recognized that cuts made as a result of the Great Recession had gone too deep into education, and voted to increase taxes to fund better education for our kids, via Proposition 30.

San Diego County


Funding

During this period funding for schools (per the California Department of Education’s “Annual Financial Data” reporting, commonly called “SACS Data”) has increased dramatically.

Education funding in San Diego County is up $4,660/student, from $9,468 in 2012 to $14,128 in 2019.  A total increase of 49.22%, or 5.88% per year. 

This has resulted in a total rise in revenue in this county of $1.7 billion dollars per year, to $5.7 billion dollars in 2019.

During this time the inflation rate in the county (per the California Department of Industrial Relations) has averaged 2.21%, meaning school funding has gone up 2.66 times faster than inflation.

Compensation

As a baseline for comparison to compensation levels normal in private industry in this area, I’m using statistics for private industry as reported by the US Bureau of Labor Statistics (US BLS) and the US Census Bureau (US CB). 

Wage and Benefit Compensation

According to the US BLS, in 2019 (preliminary) the average pay of private industry workers in the county was $62,706/year.

The average worker’s pay has increased at a rate of 2.47%/year during this period.

Median Wages by Educational Attainment

To determine comparable wages by educational attainment, I use US CB numbers, which are reported as median values.

According to the Census Bureau in 2018 the median county resident with a bachelor’s degree made $61,333/year.  The median for those with graduate or professional degrees was $84,155/year.   Data for 2019 is not yet available as of this update.

According to the California Department of Education’s DataQuest reporting system (“Staff Education Report – District Level”) for 2018-2019, 44.74% of OUSD teachers have a bachelor’s degree, 55.26% have more advanced degrees.

If we adjust the US CB numbers to weight them to the same mix, the average county resident with educational attainment equivalent to the OUSD teacher workforce made $73,945 in 2018.

To adjust for 2019, the growth rate of these wages has been 2.93%/year since 2012.  If we assume this growth from 2018 to 2019, the current comparable private industry wage to OUSD teachers would be $76,114/year.

Benefits

Education employees receive significantly more in benefit compensation than private employees, so a comparison of total compensation needs to include this. 

Healthcare package details are difficult to obtain.  We know many school districts pay 100% of the cost of healthcare for the employee, and often their dependents.  We also know many districts also pay the cost of healthcare during the period between retirement and eligibility for Medicare (called Other Post Employment Benefits or “OPEB”). 

And we know that in private industry both are rare, with most private industry paying 50-75% of healthcare insurance costs and no benefit for retirees.

However, the differences are not consistent enough to develop a consistent factor to be used for adjustment so for this purpose we are not attempting to calculate a difference ascribed to Health and Welfare costs so for the purpose of this study we will ignore the additional compensation given to education employees in their Health and Welfare benefits.

Retirement benefits are much more consistent and available.

Vanguard (the world’s largest retirement plan administrator) has found the average contribution by private companies to retirement plans on behalf of their employees in 2019 was 4.0%.  Typically the employee is required to contribute an equal amount to obtain that match.

In private industry both employer and employee are also required to contribute 6.2% to social security.

Total annual retirement contributions would be:

For a total annual retirement contribution amount for private industry of 20.40% of employee pay, of which 10.20% of that is compensation provided by the employer.

California’s public employees are usually exempt from Social Security withholding so nothing is deducted from the employee’s pay and no employer contributions are required.

CalPERS and CalSTRS (the pension plans for support and certificated staff respectively) have different employer contribution rates. 

District contributions are broken down by “Normal” (mandated annual contributions), “State:” contributions (which come from the General Fund, not the local district), “Supplemental Benefit Maintenance Account”, and (SBMA) contributions – which funds future inflation adjustment increases  to pension payments.

In 2019 these were:

Since private industry provides compensation of 10.40% for these benefits, this means employees covered under CalPERS were given an extra 7.86% in compensation and CalSTRS members an additional 15.91%.

For the purposes of this examination, we will call that the “benefit difference”.

Oceanside Unified

Funding

According to SACS data, in OUSD during our examination period funding has risen from $8,810/ADA in 2012 to $13,861/ADA.  That is a total increase of $5,051/student, 57.33% or 6.69%/year.

This has resulted in a total increase in revenue in this district of $66,495,337 dollars per year.

During this time the inflation rate in the county (per the CDIR) has averaged 2.21%, meaning school funding has gone up 3.03 times faster than inflation.

Compensation

Using public pay data reported by Oceanside Unified, obtained through California Public Records Act requests and posted on the Transparent California website, we find:

All Full-Time Employees

In 2019, the average total pay of all 1505 full-time OUSD employees was $72,984/year. 

This is $10,278 or 16.39% more than the average county resident. This does not include the additional compensation received by district employees in their retirement benefit plans.

The district’s employee population is about 58.14% certificated (meaning CalSTRS), applying this to the employee population as a whole gives a blended benefit advantage of about 12.54%.

This means OUSD employees receive an additional $9,152/year in compensation not given to private employees, making their adjusted comparable rate of compensation $82,136/year.

This is $19,430 or 30.99% more than the average county resident.

Total compensation actual (including benefits) of this group was $98,754/year.

Increase rate:

To determine the rate of pay increase for employees, we look at longitudinal data (data on the same employees over this period).  For more on how this works and why it’s important, see our Methodology page.

In 2019, we find 735 full-time employees who have been with the district since 2012.  This cohort of continuing employees has had their average total pay increase by $20,516/year (or 33.27%), with a Compound Annual Growth Rate (CAGR) of 4.19%/year. 

This average growth rate is 1.69 times greater than the rate of growth for the average county resident (of 2.47%) during this period.

Median total pay for this group increased with a CAGR of 4.19%

Administrative Employees

In 2019, the average total pay for 63 full-time administrative employees was $121,606/year.  Including benefits, average total compensation was $155,428/year. 

The median total pay for such employees was $122,162/year and $157,630/year respectively.

With benefit difference (CalPERS only) the average comparable compensation is $131,167/year, median comparable $131,766/year.

In 2019, we find 31 full-time administrative employees who have been with the district since 2012.  These continuing employees had an average total pay of $126,062/ year, with average total compensation (including benefits) of $161,360/ year.

Since 2012, these employees have had their average total pay increase by $41,852/ year (or 49.70%), with growth rate of 5.93%/year. 

This growth rate is 2.40 times greater than the rate of growth for the average county resident (2.47%) during this period.

Certificated Employees

In 2019, the average total pay for 875 full-time certificated employees was $87,762/year.  Including benefits, average total compensation was $116,194/year. 

The median total pay for such employees was $90,756/year and $120,242/year respectively.

With benefit advantage (CalSTRS only) the average comparable compensation is $101,724/year, median comparable $105,193/year.

In 2019, we find 436 full-time certificated employees who have been with the district since 2012.  These continuing employees had an average total pay of $99,124/year, with average total compensation (including benefits) of $130,099/year.  The median total pay for such employees is $101,267/year, with total compensation $131,851/year.

Since 2012, this cohort of employees has had their average total pay increase by $22,953/year (or 30.13%), with a growth rate of 3.83%/year.

This growth rate is 1.55times greater than the wage growth for the average county resident (2.47%) during this period. 

Median total pay for this group increased with a growth rate of 3.97%/year.

The case is often made that teachers should be paid commensurate with their educational attainment, based on what they would be likely to make with the same education if they were working in private industry.

Using data from the US Census Bureau and the California Department of Education we see that in 2019 the median county resident with similar educational attainment to the mix of Oceanside teachers that year made $76,114.

In 2019 OUSD’s median total pay for certificated full-time employees was $90,756/year, which is $14,642/year (19.24%) higher than this.

Adding the benefit advantage to this makes for a comparable median total compensation of $105,193/year, which is $29,079/year (38.20%) more than comparably educated county residents.

If we assume a 30 year career, this difference could amount to a minimum (not counting wage growth) total of $872,373 in additional pay over this time.

Budget Impact

As we saw above in “Funding”, despite revenue growth of 57.33% at a rate over 3 times greater than inflation, the district is having financial difficulties.

Wage growth at higher rates than average for residents of the area combined with final pay rates also significantly higher than comparable employees has substantial budgetary impact.  Particularly in K-12 education, where the cost of pay and benefits is often 80-90% of a districts’ budget.

To look at the impact of this higher growth rate, if we look at just the cohort of employees who have been with the district since 2012 (not the entire employee base of the district, just a sub-set), we see if this group’s total pay growth had matched the average county resident, the net budgetary impact (for this group only, for pay only – not including benefits) would have been a reduction in annual total compensation cost to the district of  $6,626,597 per year.

This  understates that number as well.  Pension contributions are determined as a percentage of pay, higher pay creates higher pension contribution obligations, increasing the financial impact on money available to the district to fund programs and services for our kids. 

These are just numbers.  Verifiable numbers, drawn from reliable and public sources of data, to inform our debate on the financial difficulties of our schools with real data. 

You are welcome to use this in any way to draw your own conclusions.