No Money, Mo’ Problems: A Realistic Solution to Improve Tier 6 and Paraprofessional Compensation – Restore the Stock Transfer Tax

The 2025-26 school year is an increasingly distant memory and most of us have two more months of sunny days ahead, but there are several issues plaguing our union. The two challenges that are at the forefront right now are the continuing battle to fix Tier 6 and remedying the unfair and unconscionable pay rates of our paraprofessionals through the paraprofessional RESPECT check (which should only be the first of many steps to net our paras a decent wage). Our union has made inroads in both areas. The retirement age for Tier 6 UFT members was recently lowered by five years from 30/63 to 30/58. Additionally, almost all council members have signed on in support of the RESPECT check, which will be voted on by City Council members tomorrow. However, we still have mountains to climb in both areas. Having a stack of money to help us reach the summit would certainly make things easier.

When trying to figure out how to realistically tackle these seemingly insurmountable obstacles, we often get the same responses: Contact your local council member or legislator. Write letters. Call their offices. Tag them on social media. Wear blue in solidarity. Take bus rides up to Albany to try to sway lawmakers into cosigning Tier 6 enhancements. While all that may help and could be effective, we also need to be practical. Fixing Tier 6 and getting paras the RESPECT check they rightfully deserve will cost a lot of money. The RESPECT check alone would cost north of a quarter billion dollars per year. The improvements recently made to Tier 6 will cost the state $557 million annually. If we propose a way to fund these endeavors, as well as further upgrades in the future, those in charge will be more inclined to listen. One solution originally proposed by Michael Shulman of New Action is to restore the Stock Transfer Tax (STT).

The STT is a miniscule tax (five cents) on any stock trade worth more than $20. It served as a valuable revenue stream for New York State until 1981, when those taxes went right back to Wall Street. It is a drop in the bucket, but because of the sheer volume of daily trades, the STT would collect in the vicinity of $14 billion per year. Many other countries throughout Europe, Asia, and South America implement a tax on financial transactions, so this isn’t unprecedented. It’s also important to note that the STT has substantial political backing. Last April, Senator James Sanders Jr. and Assemblymember Phil Steck, spoke out in favor of restoring the STT. Steck also proposed a bill in 2021 to reinstate the STT. The bill has more than 50 co-sponsors, but has not seen any progress. That has to change.

Restoring the STT may not be the be-all end-all solution to fully reforming Tier 6, increasing pay for our paraprofessionals, or repairing our other monetary issues. We certainly would not be the sole recipients of the windfall. Nevertheless, it is a pragmatic suggestion that could actually grab the ears of our legislators rather than appealing to their generous nature. Mayor Mamdani has repeatedly dwelled on the city’s budget deficit, which may set the stage for difficult contract negotiations next year. The STT could be a step in the right direction to solving some of our current and forthcoming problems sooner rather than later.

Highs and Lows: A Year In Review

Summer has finally arrived. After a ridiculously long school year filled with ups and downs for UFT members, we finally made it. This is a brief, incomplete review of the highs and lows we experienced this past year.

Highs

1. The Fix Tier 6 Campaign (age)

Synopsis: The retirement age to receive an unreduced pension was lowered from 30/63 to 30/58. This shaves five years off retirement for Tier 6 members who started in their late 20s or younger. This will help thousands of UFT members as they get to retire earlier without taking a financial shellacking. To a lesser extent, the age change also helps educators who began their teaching careers at 29-32 years old. Under 30/63, a 29 year old just starting out in the profession would have had to work until 63 to avoid a penalty to their pension contributions. Now they can retire at 59, assuming they didn’t take extended time off at any point. Someone who starts out at 32 could hypothetically retire at 62 (instead of 63) without incurring a hit to their pension. Educators positively impacted by this save their time and their money. Don’t let anybody minimize this. 30/58 is a big win, regardless of how we got there or what other unions have.

2. The Class Size Law

Synopsis: 60% of all NYC schools had to be in compliance with the class size law this past school year. Teachers and students throughout the city are benefitting from more manageable classroom settings, as well as increased engagement through individualized and small group attention.

Beyond the obvious educational advantages that come with the class size mandate is something just as important – job security. Student enrollment is freefalling and shows no signs of stopping, as studies reveal that NYC schools are at risk of losing 150,000 students over the next ten years. Schools are already feeling the pressure. The Citizens Budget Commission announced that, “The number of school-age children enrolled in NYC public schools has fallen by 163,046 between school years 2014-15 and 2023-24.” Reducing class sizes keeps educators out of the jackpot. Without the class size law, we’d likely face mass-excessing throughout the city and possibly even job losses.

3. Foundation Aid Formula

Synopsis: There was a change in the Foundation Aid formula, which will increase the amount of funding for ELLs, homeless, and foster students. As a result, NYC schools are expected to receive nearly $900 million in additional funding. The update to the funding formula was long overdue and certainly helps NYC schools, “where more than 150,000 students experienced homelessness last year and one in every six students is learning English as a new language.” The Foundation Aid formula hadn’t been updated since 2007.

4. Hold Harmless

Synopsis: Hold harmless is an essential school funding policy that began during Covid. Hold harmless ensures that schools maintain their budgets despite shrinking student enrollment. Michael Elsen-Rooney of Chalkbeat explains, “Schools get their budgets in the spring for the coming academic year based on their projected enrollment. Then in the middle of the school year, money is either added or taken away from that initial allocation based on the number of students who actually showed up.” Since 2020, schools have been keeping the money initially allotted to them despite enrollment dropoffs. According to Chancellor Samuels, that trend will continue next school year.

Lows

1. The Fix Tier 6 Campaign (pension contributions)

Synopsis: Pension contribution rates for Tier 6 NYCTRS and NYSTRS members remain unchanged while other Tier 6 workers received slightly reduced pension contributions.

The new pension contribution rates for other Tier 6 members are as follows:

$45,000 and under: 3% (same)

$45,001-$55,000: 3% (down from 3.5%)

$55,001-$75,000: 3% (down from 4.5%)

$75,001-$100,000: 4% (down from 5.75%)

$100,001-$125,000: 5.25% (down from 6%)

$125,001 and up: 5.75% (down from 6%)

The money saved doesn’t amount to much (although members making between $55,001-$100,000 benefit decently), but it doesn’t bode well that we weren’t included in the contribution decrease. Tier 6 contribution rates are astronomical. Tier 6 educators conservatively contribute $150,000 more towards pension contributions over the course of our careers than early Tier 4 members. And in many cases, that figure is modest. Imagine how much that comes out to if Tier 6 members had the chance to invest that money over the course of their careers. To be clear, this is not a knock on Tier 4 members. They deserve what they have. But it needs to be equalized. When you factor in investment opportunities, the difference could reach high six digits/low seven digits per member by the time we retire. More than half of active educators are in Tier 6.

2. The Class Size Law

Synopsis: You may be noticing a pattern. A little good, a little bad. Although the class size law has helped us immensely, it has been extended two years. 80 percent of classes throughout the city were supposed to be in compliance with the mandate next year, followed by 100 percent in 2027-28. Instead, only 70 percent of classes will have to be in compliance next year, followed by 80 percent in 2027-28, 90 percent in 2028-29, and 100 percent by 2029-2030, not counting exemptions. The delay means hundreds of millions less in funding for NYC schools and thousands fewer new teacher hires than originally promised for the upcoming school year.

3. The Federal Tax-Credit Scholarship

Synopsis: Governor Hochul has expressed her support for the federal tax-credit scholarship, a school voucher program that will rob tax money from public schools and public works in order to fund private schools. This is a blatant, anti-public school initiative that could have serious consequences. In January, Chalkbeat published an alarming piece about the school choice tax credit program. Chalkbeat reporter Lily Altavena explains, “families can donate up to $1,700 to scholarship-granting organizations and receive an equivalent tax credit back.” Allowing families to receive tax credit to financially benefit private schools reduces the amount of tax dollars that go into our communities. In fact, in 2022, Kentucky’s Supreme Court “ruled that Kentucky’s tax credit scholarship program is unconstitutional.” As Peter Greene explains, “In a tax credit scholarship program, corporations or individuals contribute money to a ‘scholarship’ fund that will pay part of some student’s tuition at a private school. The state then counts that contribution towards taxes.” In other words, tax dollars are reallocated to private schools instead of going to public schools, projects, and programs that would otherwise support our communities. You can learn more and take action to stop this attack on public schools here.

4. Abusive Administrators

Synopsis: Self-explanatory. Although we do not have data to provide us with exact numbers, the anecdotal evidence is overwhelming. If social media is any indication, educators throughout NYC are facing retaliatory, unfair, and unreasonable administrators. Granted, social media is more conducive to people who tend to vent rather than regale us with stories about glorious, flawlessly run schools with competent and compassionate leadership, so it may not be the most accurate measure, but it’s hard to ignore when tales of abusive admin continue to run rampant. There doesn’t seem to be much in the way of checks and balances. Under state law, untenured employees are considered “at will” and can be discontinued at the drop of a hat, which has been weaponized by school administrators. Principals have entirely too much power, running their schools like fiefdoms rather than academic institutions where educators are valued and treated as professionals.

It’s been a mixed bag of a year. These are just some of the broad strokes. Anyone that says everything is great isn’t telling the whole story. On the flip side, those who claim all hope is lost and that the sky is falling are being equally disingenuous. The upcoming school year will be very telling as to the future of our union. In addition to everything mentioned above, our contract expires in November 2027 and we’re still waiting on the paraprofessional RESPECT check. We must continue to work together and support each other so we can collectively improve our lot, both within our schools and in the broader union landscape. Ascension or descension. The choice is ours.

Be It Resolved… That the UFT Delegate Assembly Vote on More Resolutions

The Delegate Assembly (DA) holds monthly meetings (October-June) in which elected chapter leaders and delegates throughout the city discuss union issues. The DA is often referred to as the highest decision-making body in the UFT. At the end of each meeting, the DA votes on resolutions that usually directly impact our union. These resolutions are proposals that often center around topics such as our working conditions, political endorsements, legislative priorities, supporting social issues and other unions, and healthcare, just to name a few. The resolution period is, for all intents and purposes, when the work of the DA is supposed to get done. If the DA votes to support a resolution, that resolution is supposed to become the official stance and policy of the UFT.

The DA hit the ground running this year, voting on eight resolutions in October (one of which was deemed moot) and an additional five in November. Over the next seven months, we voted on a total of ten resolutions, only voting on one most of the time. The number of resolutions voted on by month this school year is as follows:

October – 8 (1 moot)

November – 5

December – 2

January – 2

February – 1

March – 1

April – 1

May – 1

June – 2

The massive dip since November is problematic. Many vital resolutions have been left to languish since the DA only voted on ten since December. One proposed resolution that we were unable to vote on calls for the DOE to respond to low survey scores, implement improvement plans, and enforce ethical administration of our annual school surveys. Year after year, school staff fill out these surveys, yet nothing happens to help struggling schools and chapters with subpar leadership. Imagine if our union was able to successfully convince the DOE to get involved and mediate or otherwise try to mend problems within our schools based on the annual school survey results. Members would not only feel more empowered since their voices would be heard, but perhaps some of those seemingly impossible-to-solve issues would be remedied, or at least negotiated to the point where they become tolerable.

A different resolution sought to urge the DOE and school construction to prioritize and allocate resources to schools in need of adequate Wi-Fi bandwidth, an issue many of us grapple with on a regular basis.

Another resolution proposed an adjustment to staffing in 3K and Pre-K classrooms, advocating for there to be at least two adults in every 3K and Pre-K classroom, which would greatly benefit early childhood educators and students.

There’s a resolution currently sitting ninth in the queue (not kidding) demanding a more legitimate role for educators and families who serve on C-30 committees. As we all know, the C-30 process is a complete farce and waste of time. The principal (or superintendent) hires whoever they want, regardless of the input given by the rest of the committee. The C-30 process badly needs a remodel. At this pace, we’ll never have the opportunity to push this proposal forward.

A resolution seeking human oversight and accountability regarding AI in schools – an issue that becomes more important by the second – is currently last in a long line of its lingering siblings. Alas, we wait.

There’s more, but you get the point. Thirteen resolutions untouched and ignored. Many have been sitting there for months. It’s not just about the resolutions that have been left hanging, either. Think about the ones that are never even brought up during the motion period because people are dissuaded from proposing a resolution to the following month’s agenda when they see there are a dozen others ahead of theirs.

We need to vote on more resolutions moving forward. Allotting a specific amount of time to tackle resolutions every month might help. Occasionally holding a bonus DA meeting when resolutions get badly backlogged may be another possible solution. Someone once suggested decoupling the resolution period from the President’s Report and holding multiple meetings each month, allowing us more time to vote. Whatever the solution(s) may be, we need to prioritize voting on as many resolutions as possible in the future.


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