Economists tell subcommittee inflation‑adjusted teacher salaries fell while pension and health contributions pushed up total compensation

Two retired economics professors told the Budget Review Subcommittee on Education that Kentucky classroom teacher base salaries have declined when adjusted for inflation while large increases in pension and health contributions have driven growth in reported total compensation.

John Garren, a professor emeritus at the University of Kentucky and a scholar with the Bluegrass Institute, and Paul Coombs, an emeritus professor of economics at the University of Louisville, presented a multi‑decade analysis they said began in 2005 where data were available. Garren summarized the presentation by saying the inflation‑adjusted salary line "has fallen in the last decade or so," while the series of state 'on‑behalf' payments for pensions and health insurance rose sharply beginning about 2017.

Why it matters: the presenters argued that teachers and prospective recruits consider the full compensation package — salary plus employer‑paid health insurance and pension contributions — when assessing the attractiveness of teaching jobs. That matters for policy debates about shortages, pay equity and budget priorities.

The data the presenters highlighted included three linked findings. First, Garren said salaries measured in…