December 2003

DATELINE DECEMBER 2, 2003

THE SCEA SEEKS GOVERNOR'S INTENT FOR TERI
Rumors surrounding Governor Mark Sanford's intentions for the Teachers and Employees Retention Incentive (TERI) program have prompted calls from The SCEA members in recent days, leading The SCEA President Jan McCarthy to seek clarification from Sanford personally.

Sanford's Management, Accountability and Performance (MAP) Commission issued a recommendation on September 30 that TERI be eliminated. The question is whether Sanford will push for a "fast-track" disposition of the recommendation, and whether he will seek to make its elimination effective immediately (upon his signature of the bill) or beginning with the next fiscal year on July 1.

Rather than add to speculation, McCarthy faxed a letter to Sanford's office this morning and asked for a quick response, noting that educators and state employees deserve opportunities to communicate with their elected officials before action may be taken in the legislative session. The 2004 session opens on January 13.

The text of McCarthy's letter is reprinted below:

December 2, 2003
Governor Mark Sanford
Columbia, South Carolina

Dear Governor Sanford,

In an attempt to quash rumor and reassure our members that their voices are welcomed in your offices and deliberations, I write to ask your position on your Management, Accountability and Performance (MAP) Commission's recommendation to eliminate the Teachers and Employees Retention Incentive (TERI). Specifically, (1) is it your intent to seek the elimination of TERI as part of your legislative agenda in 2004, (2) is it your intent to seek a "fast-track" disposition of such a recommendation, and (3) is it your intent to seek immediate elimination effective upon your signature of such a bill?

The SCEA and others in the community of educators and state employees were extremely disappointed that our testimony was not reflected in the commission's recommendation regarding TERI. As intended and presently, the TERI program offers an incentive to veteran educators who might otherwise retire after 28 to 30 years of service in public schools. The importance of retaining qualified veteran teachers cannot be overstated:

1. The projected stream of graduates from college and university education programs is insufficient to meet the demand of ever-higher enrollment in public schools.

2. Greater demands of higher standards and accountability -- reflected in state and federal legislation -- and their practical impacts on the workload of classroom educators, in addition to non-competitive salaries and benefits packages, are driving qualified teachers out of the classroom and into the private sector. The S.C. Department of Education has documented that more than 90,000 men and women hold teacher certification in South Carolina, but fewer than half of them currently teach.

3. National and state studies demonstrate that students taught by qualified, veteran educators score higher on standardized tests, which now form the basis of state and federal accountability models.

Because the state salary schedule for educators includes only 22 steps, veteran educators receive no guaranteed rise in salary after the 22nd year of their service to schools. The TERI incentive is available to educators in their 28th year of service and, while it is not a true salary increase, it represents to many veteran educators a significant new benefit of salary. Indeed, The SCEA members worked to educate lawmakers during debate on the measure and we view the TERI program as an employment benefit. For many, this incentive provides an important reason -- for some, the single most important reason, given ever-increasing demands and expectations -- to remain in the classroom.

The TERI program's associated costs do not presently impact the state's retirement system. The state retirement system's executive director, Peggy Boykin, has suggested that if the legislature will invest in that system with additional direct appropriations or through an increased employer contribution for retirement, there is no reason that TERI should negatively affect the retirement system in the future.

If amendments may be proposed to improve or refine the provisions of the TERI program, we will be happy to review such amendments with you, at your invitation, and ultimately we may support their passage. But we will oppose wholesale elimination of the program, as well as proposed changes that will substantively undermine its present purpose. We would appreciate your support in this position.

As the legislative session approaches and our members are about to take a well-deserved holiday break, we respectfully ask you to respond to this inquiry as quickly as possible. Our members deserve the opportunity to communicate with their representatives on this matter before action is taken.
Sincerely,
Jan McCarthyPresident



DATELINE DECEMBER 5, 2003

KIRSH SEEKS TERI ELIMINATION, NO WORD FROM GOVERNOR
Rep. Herb Kirsh of Clover has pre-filed a bill that would prevent new participants from enrolling in the Teachers and Employee Retention Incentive (TERI) program as of July 1, 2004, and would eliminate the program completely effective July 1, 2009 -- five years after the last participant could enroll. Kirsh's bill, H4427, has been referred to the House Ways and Means Committee, which is chaired by Rep. Bobby Harrell of Charleston.

Kirsh's bill does not offer any substitute proposal to encourage veteran educators and public school employees to remain in employment. Neither does the bill propose a substitute benefit -- such as a strengthened State Health Plan, a higher employer contribution to employee retirement accounts, or a guaranteed cost-of-living adjustment for retirees -- to replace the TERI benefit.

Meanwhile, The SCEA President Jan McCarthy has received no response from Governor Mark Sanford on his intentions regarding the TERI program. McCarthy faxed a letter to Sanford's office Tuesday and asked for a quick response, noting that educators and state employees deserve opportunities to communicate with their elected officials before action on TERI may be taken in the legislative session. The 2004 session opens on January 13.

It is The SCEA's position that the TERI program is successfully addressing the need for which it was designed and implemented, offering an incentive to veteran educators and public school employees who might otherwise retire after 28 to 30 years of service in public schools. This position is held also by the S.C. State Employees Association, the S.C. Retired Employees Association, the S.C. Association of School Administrators and others. Testimony to this point was given in August to a subcommittee of Sanford's Management, Accountability and Performance (MAP) Commission, but this testimony was not reflected in the commission's recommendation to the governor on September 30.

Further, because the state salary schedule for educators includes only 22 steps, veteran educators receive no guaranteed rise in salary after the 22nd year of their service to schools. The TERI incentive is available to educators in their 28th year of service and, while it is not a true salary increase, it represents to many veteran educators a significant new benefit of salary. The SCEA led support for this important employment benefit and worked to educate lawmakers during debate on the measure. For many, this incentive provides an important reason -- for some, the single most important reason, given ever-increasing demands and expectations -- to remain in the classroom.

The TERI program's associated costs do not presently impact the state's retirement system. The state retirement system's executive director, Peggy Boykin, suggested in August that if the legislature will invest in that system with additional direct appropriations or through an increased employer contribution for retirement, there is no reason that TERI should negatively affect the retirement system in the future.

The SCEA has offered to review any amendments to improve or refine the provisions of the TERI program, and the association is willing to support those amendments that do not substantively undermine TERI's present purpose. We do not support wholesale elimination of the program.

The SCEA urges members to contact Rep. Kirsh, Governor Sanford and Rep. Harrell and ask them to oppose efforts to eliminate the TERI program. To contact Rep. Kirsh, call 803-222-3768 or 803-222-9430 in Clover. Governor Sanford's office may be reached at 803-734-2100. To speak to Rep. Harrell, call 843-556-9075 or 843-572-1500 in Charleston.