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Charlotte-Mecklenburg Schools considering bonuses of up to $15,000 for some teachers

Charlotte-Mecklenburg Schools considering bonuses of up to $15,000 for some teachers

Yahoo12-03-2025

Charlotte-Mecklenburg Schools is trying to make the most of a tight budget next year as it seeks to retain and recruit top educators. The budget may include a potentially controversial new incentive: performance-based bonuses of up to $15,000 for math teachers at some high schools.
The move is in line with the CMS Board of Education's goal to increase scores in Math I. Though, it's being debated as the district projects shortfalls in local, state and federal funding sources.
'The Math I Excellence Bonus is an incentive designed to increase the quality of math instruction and reward educators who demonstrate excellence in teaching,' CMS executive director of federal programs Elenia Daniels said at Tuesday's board meeting. 'This bonus is for teachers who have demonstrated the ability to move the needle in terms of student outcomes.'
The district wants to increase the proportion of students scoring in the highest rung of achievement on state exams in Math I from 27% in 2023 to 57% in 2029. CMS projects 32% of students will score in that category this year.
The new bonus program would target the district's 14 high schools that receive federal Title I funding — schools with a high number of economically disadvantaged students. It would be paid for with Title I funds.
In total, it could apply to 32 educators and 960 total students at the 14 schools. The maximum bonus would be around $15,000.
Leaders didn't rule out expanding the program down the line, however.
'We're thinking about this as a pilot program to see if we could get a return on our investment,' said CMS Chief Financial Officer Kelly Kluttz. 'If we did see that return on investment, then next year we would look at the budget to see if we could duplicate that in non-Title I schools.'
Only teachers with four or more years of teaching experience, two or more years of high progress in student outcomes and a principal recommendation would qualify for the bonus, Daniels said Tuesday.
The district still plans on asking the county for additional funding to increase pay for each of the district's educators in its next budget.
Some teachers and former educators, including CMS board member Melissa Easley, worry a bonus only for teachers of one subject could cause tension and affect morale among other educators in the district without the same opportunity for additional pay.
'The state does math and language arts bonuses for teachers, but an unintended consequence of that is it pits teachers against one another and creates animosity in the schools. If you have a principal, for example, who doesn't care for you personally, then they're not going to recommend you,' Easley said. 'I want to make sure that we have an even playing field and we aren't pitting teachers against each other for a financial bonus that they each so desperately need.'
Teacher pay in North Carolina is set by the state, with a base salary schedule applied to all educators, regardless of the cost of living in their district. This year, for example, starting teachers in North Carolina made a base salary of $41,000, dropping the state to 41st nationally.
School districts add a supplement to base teacher salaries from the state, in large part, to compete with other districts for the best talent. Money for that comes from the county. This school year, for example, beginning teachers in CMS made a supplement of $7,636, bringing the salary for a beginning teacher in the district to $48,636.
Meanwhile, in neighboring South Carolina, starting teachers are making a minimum of $50,000 this year in Fort Mill School District, for example.
Mecklenburg County presents the added challenge of a higher cost of living than many areas of the state. The current estimated living wage in Mecklenburg County is just over $55,000, according to Massachusetts Institute of Technology's Living Wage Calculator.
CMS Superintendent Crystal Hill hasn't made her official budget recommendation to the board of education yet, but she's previously said she plans to recommend increasing average teacher supplements by 5% — an average of $10,801 during the 2025-26 school year.
The district projects around a 3% pay raise for teachers from the state.
'Our budget for this year is tight….but if our assumptions hold true, we will be in really good financial standing,' Kluttz said.
The elephant in the room is a $73 million one.
That's how much Title I funding CMS currently is allotted. However, CMS leaders say, under the Trump administration, funding could be in jeopardy. CMS also receives just over $10 million and $5 million in federal Title II and III grants, respectively.
'We believe these funds may be more at-risk than other federal funds,' said Kluttz.
In total, over 8% of the district's budget comes from federal funding, and over 10% of district employees are paid using federal dollars. Meanwhile, the U.S. Department of Education, which oversees the administration of education grants like Title I, II and III, announced Tuesday that it would be laying off 1,300 of its around 4,000 total staff.
Kluttz said while this potential bonus would be affected by the loss of federal funding, if Title I goes away, the district will have larger issues to address.
'If the Title I budget was cut, we would have significantly larger problems than this bonus that we would have to deal with in a structured way and determine what's best for our district at that time,' Kluttz said.
CMS already learned that three other grants totaling over $6 million for teacher professional development initiatives had been cut Feb. 18. Kluttz says the district is in the process of appealing those terminations.
The superintendent won't present her official budget recommendation to the board until March 25. The board will vote on it April 22.

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For instance, California has netted an estimated $8.8 billion this fiscal year from its tax on managed care plans and took in about $5.9 billion last year from hospitals. California Democrats are already facing a $12 billion deficit, and they have drawn political fire for scaling back some key health care policies, including full Medi-Cal coverage for immigrants without permanent legal status. And a loss of provider tax revenue could add billions to the current deficit, forcing state lawmakers to make even more unpopular cuts to Medi-Cal benefits. 'If Republicans move this extreme MAGA proposal forward, millions will lose coverage, hospitals will close, and safety nets could collapse under the weight,' Gov. Gavin Newsom, a Democrat, said in a statement, referring to President Donald Trump's 'Make America Great Again' movement. The proposals are also a threat to Proposition 35, a ballot initiative California voters approved last November to make permanent the tax on managed care organizations, or MCOs, and dedicate some of its proceeds to raise the pay of doctors and other providers who treat Medi-Cal patients. All states except Alaska have at least one provider tax on managed care plans, hospitals, nursing homes, emergency ground transportation, or other types of health care businesses. The federal government spends billions of dollars a year matching these taxes, which generally lead to more money for providers, helping them balance lower Medicaid reimbursement rates while allowing states to protect against economic downturns and budget constraints. New York, Massachusetts, and Michigan would also be among the states hit hard by Republicans' drive to scale back provider taxes, which allow states to boost their share of Medicaid spending to receive increased federal Medicaid funds. In a May 12 statement announcing its proposed rule, CMS described a 'loophole' as 'money laundering,' and said California had financed coverage for over 1.6 million 'illegal immigrants' with the proceeds from its MCO tax. CMS said its proposal would save more than $30 billion over five years. 'This proposed rule stops the shell game and ensures federal Medicaid dollars go where they're needed most — to pay for health care for vulnerable Americans who rely on this program, not to plug state budget holes or bankroll benefits for noncitizens,' Mehmet Oz, the CMS administrator, said in the statement. Medicaid allows coverage for noncitizens who are legally present and have been in the country for at least five years. And California uses state money to pay for almost all of the Medi-Cal coverage for immigrants who are not in the country legally. California, New York, Michigan, and Massachusetts together account for more than 95% of the 'federal taxpayer losses' from the loophole in provider taxes, CMS said. But nearly every state would feel some impact, especially under the provisions in the reconciliation bill, which are more restrictive than the CMS proposal. None of it is a done deal. The CMS proposal, published May 15, has not been adopted yet, and the reconciliation bill is likely to be altered significantly in the Senate. But the restrictions being contemplated would be far-reaching. A report by Michigan's Department of Health and Human Services, ordered by Democratic Gov. Gretchen Whitmer, found that a reduction of revenue from the state's hospital tax could 'destabilize hospital finances, particularly in rural and safety-net facilities, and increase the risk of service cuts or closures.' Losing revenue from the state's MCO tax 'would likely require substantial cuts, tax increases, or reductions in coverage and access to care,' it said. CMS declined to respond to questions about its proposed rule. The Republicans' House-passed reconciliation bill, though not the CMS proposal, also prohibits any new provider taxes or increases to existing ones. The American Hospital Association, which represents nearly 5,000 hospitals and health systems nationwide, said the proposed moratorium on new or increased provider taxes could force states 'to make significant cuts to Medicaid to balance their budgets, including reducing eligibility, eliminating or limiting benefits, and reducing already low payment rates for providers.' Because provider taxes draw matching federal dollars, Washington has a say in how they are implemented. And the Republicans who run the federal government are looking to spend far fewer of those dollars. In California, the insurers that pay the MCO tax are reimbursed for the portion levied on their Medi-Cal enrollment. That helps explain why the tax rate on Medi-Cal enrollment is sharply higher than on commercial enrollment. Over 99% of the tax money the insurers pay comes from their Medi-Cal business, which means most of the state's insurers get back almost all the tax they pay. That imbalance, which CMS describes as a loophole, is one of the main things Republicans are trying to change. If either the CMS rule or the corresponding provisions in the House reconciliation bill were enacted, states would be required to levy provider taxes equally on Medicaid and commercial business to draw federal dollars. California would likely be unable to raise the commercial rates to the level of the Medi-Cal ones, because state law constrains the legislature's ability to do so. The only way to comply with the rule would be to lower the tax rate on Medi-Cal enrollment, which would sharply reduce revenue. CMS has warned California and other states for years, including under the Biden administration, that it was considering significant changes to MCO and other provider taxes. Those warnings were never realized. But the risk may be greater this time, some observers say, because the proposed changes are echoed in the House-passed reconciliation bill and intertwined with a broader Republican strategy — and set of proposals — to cut Medicaid spending by close to $800 billion. 'All of these proposals move in the same direction: fewer people enrolled, less generous Medicaid programs over time,' said Edwin Park, a research professor at Georgetown University's McCourt School of Public Policy. California's MCO tax is expected to net California $13.9 billion over the next two fiscal years, according to January estimates. The state's hospital tax is expected to bring in an estimated $9 billion this year, up sharply from last year, according to the Department of Health Care Services, which runs Medi-Cal. Losing a significant slice of that revenue on top of other Medicaid cuts in the House reconciliation bill 'all adds up to be potentially a super serious impact on Medi-Cal and the California state budget overall,' said Kayla Kitson, a senior policy fellow at the California Budget & Policy Center. And it's not only California that will feel the pain. 'All states are going to be hurt by this,' Park said. Wolfson writes for KFF Health News, a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF — the independent source for health policy research, polling, and journalism.

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