Nearly $1 of every $4 in state aid sent annually to Louisiana’s public schools disappears before it reaches classrooms, siphoned away to pay retirement obligations that cost $853 million a year, according to a new report from the legislative auditor.
The retirement debt payment amounts to $1,302 per student and swallows an average of 10% in the total funding available for schools from state, local and other sources, according to the 44-page review from Legislative Auditor Mike Waguespack’s office.
The Advocate reports the audit said the Louisiana Legislature might want to consider revamping how the retirement debt for former teachers is handled in a way “that could be less burdensome for participating schools.”
State aid for public schools totaled $3.9 billion for the 2019-20 budget year reviewed by auditors. The teacher debt obligation grabbed 24% of that allocation, the report says. A total of 1,355 traditional and charter schools take part in the retirement system.
Author(s): Associated Press
Publication Date: 24 Oct 2021
Publication Site: Biz New Orleans