Teacher pay: Only New York averages six figures

Teacher salaries vary by as much as a factor of two from one state to another, according to Bureau of Labor Statistics data. Only one state – New York – pays its public school teachers a six-figure average, excluding cost-of-living adjustments.

The disparity matters beyond the classroom. Teacher pay is the largest single line item in most state education budgets, so wage compression or divergence affects fiscal planning, bond ratings, and the demand for private alternatives.

States with below-average teacher compensation, particularly in the South and Mountain West, tend to see higher turnover and chronic shortfalls in certain subjects. That dynamic creates pressure on school districts to raise pay or accept lower instructional quality. Districts that cannot raise pay often face enrollment shifts toward charter schools, private institutions, or online learning platforms – companies such as K12 Inc. or tutoring chains benefit indirectly.

Municipal bond investors watch teacher pay trends as a proxy for state fiscal discipline. When a state's average teacher salary falls significantly behind its peer set, the legislature often faces pressure to boost education spending, which can crowd out other priorities or force tax increases. The result may be a drag on the state's credit profile, particularly if revenue growth is tepid.