FOR IMMEDIATE RELEASE
March 28, 2023
Contact: Christina Mazzanti
703-717-5333
christina@aaeteachers.org
AAE Proposes Payroll Deduction Fairness,
Providing $50,000,000 for Classrooms Annually
Mission Viejo, CA – The Association of American Educators (AAE), a national nonunion, professional association serving educators in all fifty states, announced a brand new proposal that would put half a billion taxpayer dollars back into public school classrooms over the next decade: Three Percent for Public Schools.
Professional associations, employee organizations, and unions collect billions of dollars each year in dues payments from members, often utilizing public school payroll services to collect those annual fees at no cost. However, payroll deduction services are allocated unequally, with some professional associations excluded, requiring them to pay significant fees to credit card companies and payment processors.
AAE is calling on states to enact legislation requiring public school districts offering payroll deduction services to any professional association to extend that service to all qualifying associations and to charge a standard fee of three percent for those transactions. A three percent standard fee for payroll deduction services currently conducted by our public districts would provide up to $50,000,000 for our classrooms every year.
“The current system short-changes both our students and our educators,” added Colin Sharkey, AAE’s Executive Director. “This proposal keeps more taxpayer dollars in our classrooms, provides a convenience to educators, and compensates our public school districts for their services.”
Professional associations and other merchants not afforded free payroll services pay interchange, payment processor, and assessment fees that can exceed four percent. This proposal, if enacted, would provide a more affordable option for non-profit organizations while rewarding school districts rather than private, for-profit payment processors, some of which are based overseas. This also means the amount provided to our classrooms could increase as more associations utilize our neighborhood public school services rather than private credit card companies.
“Fifty million dollars per year would exceed the annual combined benefit of the popular Box Tops for Education and the defunct Campbell’s Labels for Education program,” noted Sharkey. “Although it must be acknowledged that it is a drop in the bucket compared to what our nation’s educators spend on their classrooms out of their own pocket.”
Three Percent for Public Schools would not implement a fee for charitable contributions, insurance payments, or other elected transactions. It is likely that nearly every public school district is already equipped to provide payroll deduction services, but is receiving no financial compensation from any of the beneficiaries of this service.
Although AAE would be impacted by these new fees, it has committed to not passing them on to members. AAE calls on other associations to make the same commitment to their members.
AAE’s Three Percent for Public Schools proposal complements AAE’s Thousand Dollar Deduction proposal, which calls on Congress to increase the popular Educator Expense Deduction to $1,000 and include $400 of broadband services. This reflects that the average educator spends more than $500 each year on necessary classroom supplies, some of which is taxed due to the $300 limit on the current deduction.
The Association of American Educators (AAE) is the largest national, nonunion, professional educator organization, advancing the profession by offering a modern approach to educator empowerment and advocacy—promoting professionalism, collaboration, and excellence without a partisan agenda. AAE is committed to a teaching profession that is student oriented, well respected, and personally fulfilling. AAE serves members in all fifty states and welcomes professionals from all education entities. Membership includes $2 million professional liability insurance, employment rights coverage, professional resources, and many other benefits. Classroom teachers, paraprofessionals, administrators, student teachers, university professors, and supporters can learn more at joinaae.org.
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