
Illinois Teacher Salaries Drop Despite Record Education Spending
A recent report reveals a concerning trend for public education in Illinois and across the U.S.: inflation-adjusted teacher salaries are declining even as overall spending reaches unprecedented levels. This paradox, highlighted by the Reason Foundation, points to significant structural issues within the system that demand attention from local communities and policymakers.
The Rising Cost of Public Education
According to the Reason Foundation’s K-12 Education Spending Spotlight 2025, U.S. public schools are now spending close to an astounding $1 trillion. Despite this record-high investment, the dollars aren’t translating into better pay for educators, especially here in Illinois.
Unpacking the Structural Problems
Aaron Garth Smith, the report’s author and Director of Education Reform at Reason Foundation, identifies several key structural issues driving these rising costs without direct benefit to teacher pay:
- Surge in Non-Teaching Staff: While public school enrollment grew modestly by 4.1% between 2002 and 2023, the number of non-teaching staff, including counselors, psychologists, social workers, and instructional aides, soared by nearly 23%. This shift diverts resources away from core academic instruction.
- Teacher Pension Debt: A sharp increase in benefit spending is directly tied to the burden of teacher pension debt. A significant portion of education funding is now dedicated to paying off these long-standing obligations, rather than increasing current teacher salaries.
- Empty School Buildings: Since the pandemic, U.S. public schools have lost approximately 1.2 million students. However, schools haven’t closed buildings at a corresponding rate, leading to thinly spread resources and higher operational costs for underutilized facilities.
The disproportionate growth of non-teaching staff compared to student enrollment is particularly striking:
| Period (2002-2023) | Public School Enrollment Growth | Non-Teaching Staff Growth |
|---|---|---|
| 2002-2023 | 4.1% | Nearly 23% |
Illinois Teachers Feel the Squeeze
The report specifically notes that the average Illinois teacher’s inflation-adjusted salary dropped by nearly 8% between 2002 and 2022. This finding is particularly surprising given the substantial increase in overall public school spending within the state over the same period.
For Chicagoans, this broader trend might seem counterintuitive to recent local news. While Chicago Public Schools (CPS) teachers recently approved a four-year contract projected to raise the average CPS teacher’s salary to over $114,000 annually, Smith emphasizes that such district-specific gains do not reflect the statewide reality. The majority of increased education dollars in Illinois are not reaching classroom teachers’ paychecks.
“It’s up to policymakers and taxpayers and other stakeholders to ask the question of why is this the case and how do we address this problem,” Smith urges.
Charting a Path Forward
Addressing these challenges requires both “simple and incredibly difficult” solutions, according to Smith. The difficult part involves confronting deep-seated structural issues:
- Policymakers must make tough decisions to start paying down existing teacher pension debt.
- There needs to be a re-evaluation of the growth in non-instructional staff.
On the simpler side, Smith points to states like Mississippi and Louisiana, which have seen improved test results by refocusing public schools on core academic subjects, especially reading. This suggests that prioritizing classroom instruction and student outcomes can yield positive results without necessarily pouring more money into existing inefficient structures.
Frequently Asked Questions
- Why are Illinois teacher salaries declining in real terms?
Despite record spending, a significant portion of funds is being absorbed by structural issues like increasing non-teaching staff, substantial teacher pension debt, and the costs of maintaining underutilized school buildings due to declining enrollment. - Does this apply to Chicago Public Schools (CPS) as well?
While CPS recently approved a contract raising average teacher salaries, this is an exception to the statewide trend. The report indicates that across Illinois, increased spending isn’t translating to higher inflation-adjusted pay for most teachers. - What are “structural problems” in education finance?
These refer to systemic issues such as the rapid growth of non-teaching personnel, the rising burden of pension obligations for retired educators, and the inefficiencies of operating numerous school buildings despite decreasing student populations. - What solutions are proposed?
Solutions involve making difficult policy decisions to tackle pension debt and re-evaluate non-instructional staff growth. Additionally, refocusing education on core academic subjects, similar to reforms in states like Mississippi, is suggested to improve outcomes.
Understanding where education dollars truly go is crucial for Chicago taxpayers and parents. By advocating for reforms that address structural inefficiencies and prioritize classroom support, communities can work towards ensuring public education spending genuinely benefits students and teachers.
Illinois teacher pay drops despite record spending

