DeLaney: ‘Sales tax increase alone could solve teacher pay problem’

INDIANAPOLIS – State Rep. Ed DeLaney (D-Indianapolis) today urged bold action with newfound state funds to invest in Indiana’s future. The sales tax revenue increase alone could solve Indiana’s teacher pay problem.  

In 2020, the Next Level Teacher Compensation Commission issued its report, finding that reaching a competitive average pay rate of around $60,000 a year would require an investment of over $600 million.

Today, the newest state revenue projections were released. They show a very different picture from the previous projections issued last December, which the new state budget must reflect. The increase in funds will require a significant reworking of the state budget in the final week of the 2021 Legislative Session. Among the list of results outperforming expectations is a $691.3 million increase in expected sales tax revenue over the next two years. Other tax sources are growing as well.

“The math is clear,” DeLaney said. “Using the growth and sales tax revenue alone we could implement the Commission’s strategy to get our schools back in competition recruiting and retaining teachers.”

Indiana’s average teacher pay ranks last among our border states and 38th nationwide, with the slowest growth rate in the country. This has led to a teacher shortage, as talent leaves for neighboring states where they can find higher pay. 

While House Democrats have fought to fix this problem, efforts have gotten little traction despite repeated vows from the governor and Republican leadership to take action. Most recently, Rep. DeLaney offered two amendments to the proposed budget attempting to raise teacher pay, but they were voted down on the House floor.

“Leadership across the aisle continues to tell us that education funds can simply be tossed out into the system and eventually trickle down to teachers,” DeLaney said. “We’ve been watching this strategy play out for over a decade now. It is plain to anyone watching that it’s not working.

“Fixing teacher pay in Indiana requires an intentional, targeted solution, not wishful thinking that funds will find their way to the right place. What is the supermajority’s solution to our teacher shortage? Earlier this week they told us it was lowering the standards for a teaching license. Our children and grandchildren deserve better than that. The answer is right in front of our faces.

“This new forecast is a second chance to fill the gaps left in the budget the first time around. We have to do this. There are no more excuses to hide behind.”