Your superintendent has asked you to compare your district’s salary scale and benefits schedule with that of neighboring Hamilton County School District. You have decided to use the following hypothetical teacher’s career path in making the comparison:

The 22-year-old single teacher comes to the district with a bachelor’s degree and no previous teaching experience. At Year 5, the teacher completes a master’s degree and marries using Employee Plus 1 insurance. At year 10, the couple adopts two children, taking Family insurance and using the Family plan until retirement.

The teacher earns an Education Specialist degree at year 20 and retires at year 33

(age 55 and at least 30 years of teaching experience to have no reduction in retirement benefits). Adding up the salary and stipends and deducting the yearly insurance costs along this hypothetical career path nets the teacher in Hamilton County the following:

$1,653,700 in base salary—plus

$172,000 in education stipends—minus

$132,500 in insurance premiums NET = $1,693,200.

Compute the earnings minus insurance costs in your school system using this career path using this year’s salary scale for each step (as we cannot assume what will happen over time with the scales).

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TABLE 12.3 Hamilton County Salary Scale Year 1 $38,200 Year 11 $45,750 Year 21 $53,250 Year 2 $38,600 Year 12 $46,500 Year 22 $54,000 Year 3 $40,100 Year 13 $47,250 Year 23 $54,750 Year 4 $40,600 Year 14 $48,000 Year 24 $55,500 Year 5 $41,100 Year 15 $48,750 Year 25 $56,250 Year 6 $42,100 Year 16 $49,500 Year 26 $57,000 Year 7 $42,750 Year 17 $50,250 Year 27 $57,750 Year 8 $43,500 Year 18 $51,000 Year 28 $58,500 Year 9 $44,250 Year 19 $51,750 Year 29 $59,250 Year 10 $45,000 Year 20 $52,500 Year 30 $60,000 (cap)