New Jersey teachers earn 86 cents for every dollar their college-educated peers make in other professions, according to a national study released Sept. 3.
The Economic Policy Institute and Center for Economic and Policy Research analyzed U.S. Bureau of Labor Statistics data on full-time workers with at least a bachelor's degree. They compared weekly wages of public school teachers to those of corporate executives, accountants, software developers, engineers and scientists.
The gap matters locally. Summit and New Providence schools opened for the 2026-27 year facing budget pressure and active contract discussions.
The national picture
Nationwide, the teacher pay penalty stood at 25.2% in 2025, down slightly from a record 26.9% the year before. That penalty has more than quadrupled since 1996, when it was 6.1%.
Teachers do receive stronger benefits packages than many other professionals. But even after factoring in health insurance, retirement plans and payroll taxes, the total compensation penalty was 14.5% nationally, the study found.
Inflation-adjusted weekly wages for public school teachers fell 6.2% over the past three decades. Wages for other college graduates rose 28.8% in the same period.
The New Jersey-specific figure of 86 cents on the dollar is drawn from pooled data covering 2020 through 2025, not a single-year snapshot. State-level penalties ranged from 10.4% in Rhode Island to 40.7% in Colorado.
Local budget and contract signals
In Summit, the 2026-27 school budget totals $90.5 million and carries a 4.93% property tax increase. That amounts to roughly $344 more per year for the average homeowner. About $200 of that increase covers rising healthcare costs for school employees, according to 70and73.com.
The Summit Board of Education's Aug. 25 agenda listed a Negotiations & Personnel Committee report. Superintendent Scott Hough and board President Eileen Kelly lead the district heading into those discussions.
In New Providence, the board's Monday, Aug. 31 agenda included 27 payments totaling about $188,000 to high school and middle school teachers taking on extra class periods. Most involved teachers assigned 16, 17 or 18 periods in a four-day rotation. One high school department head received $8,000 for teaching four classes instead of three, according to NJ21st.com. The agenda did not explain why the extra assignments were needed. Superintendent Lauren Zirpoli leads the district.
Statewide contract landscape
Across New Jersey, the average entry-level teacher salary crossed $60,000 for the first time in 2025-26, reaching $60,909. That is a 2.79% increase over the prior year, according to the New Jersey School Boards Association. Average settlement increases for new contracts came in at 3.72%.
About 45% of districts with contracts that expired June 30, 2025, and that had provided a status update, were at impasse or moving toward mediation as of October 2025, the NJSBA reported. That share was described as notably higher than the previous cycle.
The Summit Board of Education meets next on Thursday, Sept. 10 at 6 p.m. in the Summit High School Library/Media Center.
