This is correct, teachers don't just stop getting paid and lose all benefits every summer (my best friend is a teacher and so is his brother), but at the same time it seems tons of schools now prefer (or are only able to find positions for) short contracts, more subs and temporary positions etc.
Especially if its not in a well funded area.
The cost to municipalities/towns for medical insurance has skyrocketed which I think is a contributor (not to mention pension obligations for retirees).