Tough Times Enable Resource Transformation:
State Role in Districts’ Doing More with Less
      GEPA Institute, Miami, Florida
      April 26, 2010
Education Resource Strategies
      • ERS is a non-profit consulting firm,
        head-quartered in Boston

      • We work with leaders of public school
        systems to rethink the use of district and
        school-level resources

      • We analyze district spending, human
        resources, school organization and
        performance data to generate insight
        around resource strategies

      • We leverage this insight to design new ways to allocate and organize
        resources at the district and school level

      • Our work is grounded in over a decade of experience, working with
        school districts across the country

                     Fundamental Message: It’s not just how much, it’s how well
EDUCATION RESOURCE STRATEGIES, INC.                                               2
Despite increased spending achievement gaps
     persist


         From 1970                            to             2005   :


      • Real spending doubled from $3,800 to $8,700 per pupil

      • 80% of increase went toward adding staff positions and
        increasing benefits while educator salaries remained flat in real
        dollars*

      • Spending on special education programs has gone from 4 to 21%
        of district budgets while regular education spending has
        dropped from 80% to 55%**
       * Parthenon group analysis, 2008
       **Richard Rothstein, Where has the money gone? 2009

EDUCATION RESOURCE STRATEGIES, INC.
Overall class sizes have decreased, but basic structure
     of schooling has remained the same




      Source: Digest of Education Statistics 2007: Tables 61, 64, and 66

EDUCATION RESOURCE STRATEGIES, INC.                                        4
New spending has increased the number of staff, but
     not the quality

                         100%
                          90%
                                                                 All other non-staff
                          80%
                          70%                               Increase in Benefits Rate
                          60%
                                                               Increase in SPED staff
                          50%
                          40%                                 Increase in number of
                                                                  Non-Teachers
                          30%                                      (excl. SPED)
                          20%
                                                              Increase in Number of
                          10%                                  Teachers (excl. SPED)
                            0%
                                             Growth in Per Pupil Expenditure (1970 to 2005)


      Source: The Parthenon Group, 2007 from NCES; Educational Research Service; Parthenon Analysis

EDUCATION RESOURCE STRATEGIES, INC.                                                                   5
Despite federal stimulus funding, trends in revenue
     and spending continue…

                                            • Teaching salaries growing
                                              at ~3-5% annually
                                            • Benefits growing
                                              at ~10+% annually
                                            • SPED staff/student continues to
                                              grow



          • Tax revenue falling
          • Enrollment declining
          • State stabilization funds are
            filling the revenue gap
            (but only temporarily)


EDUCATION RESOURCE STRATEGIES, INC.                                             6
In tough times, districts usually hunker down…

      • Across the board spending cuts
      • Cut “non-classroom” spending
         - Teacher professional development
         - Collaborative planning time
         - Coaches
      • Layoff junior teachers without regard
        to teacher results or contribution




                      Less support for teachers   Less support for students


EDUCATION RESOURCE STRATEGIES, INC.                                           7
The districts we have are not the systems we need

     WE NEED                       WE HAVE

                                   • Schools and students with same needs receiving
      Equitable, transparent,        different levels of resources
      and flexible funding         • Unintelligible or unreported school budgets
      across schools
                                   • Rigidly defined budgets that don’t match needs

                                   • Limited investment in recruiting, screening, &
                                     induction
      Effective teaching for all
                                   • Teaching jobs that promote burnout and isolation
      students
                                   • Salary and job structures that do not encourage
                                     effectiveness and contribution
      School designs that
      maximize teaching            • Traditional schedules and staffing that do not
      effectiveness, academic        match time and individual attention to priority
      time and individual            needs or foster professional working conditions
      attention
EDUCATION RESOURCE STRATEGIES,
INC.                                                                                    8
The districts we have are not the systems we need

     WE NEED                          WE HAVE


      Aligned curriculum,             • Underinvestment in formative assessments
      Instruction, assessment, PD       and fragmented professional development


                                      • Limited investment to build and reward
      Strong school and district
                                        leadership effectiveness over career
      leaders
                                      • Principal jobs that don’t allow for innovation

      Central services that foster    • Central office services that are not designed
      empowerment, accountability       to improve productivity or customize support
      and efficiency                    to school needs


                                      • District pays too much for social services and
      Partnership with families and
                                        non-core instruction that could be provided
      communities
                                        through community partners

EDUCATION RESOURCE STRATEGIES,
INC.                                                                                     9
Teacher compensation is the biggest single expense
     category in education – how is it directed?

                  Breakout of district                                    What drives that spend
                  spend on teacher                                             on teacher
                    compensation                                            compensation?
                                                                         100%
        100%
         90%                                                              90%
         80%                                                              80%
         70%                                                              70%
         60%
                                                         Social           60%
                                                         Security
         50%                                                              50%                 Contribution
                                                         Pension
         40%                                                              40%                 Education
                                                                                              Experience
         30%                                             Benefits         30%
                                                                                              Base
         20%                                                              20%
         10%                                             Salaries         10%
          0%                                                               0%
                            District A                                           District B
                                                                                Spending
      ERS Estimates based on district salary schedules and budget data
      District B has a “pay for performance” program
EDUCATION RESOURCE STRATEGIES, INC.                                                                          10
We see a cycle of isolation and specialization
     developing that pushes resources away from core
     instruction

                                        Diverse, high-needs classes
                                                                                Class size
                                                                                reduction can
                                       Teachers under-prepared to               weaken
                                       provide core instruction to all          teacher quality


                                                           Provide additional support:
                      Create supplemental                      Extended learning opportunities
                      service requirements                     Instructional aides
                                                               Pull-outs


                                       Administration to coordinate,
                                         monitor special services


                                       Resources and responsibility
                                      move away from core instruction


EDUCATION RESOURCE STRATEGIES, INC.                                                               11
Which is reflected in a huge gap between a regular
    education class size of 23 and 7:1 staff to student ratio
    in this district

                          Example District: Elementary and Secondary School-Level Staffing
                                                       Ratios


                                  Regular Class Size                                  23

                 Regular Ed Student Teacher Ratio                               17

                                 Pupils per Teacher                        12

                               Pupils per Instructor                  10

                            Pupils per Professional               9

                                      Pupils per Staff        7

                                                         0        10             20          30



EDUCATION RESOURCE STRATEGIES, INC.                                                               12
Mandates and inflexibility make differentiating time
     and attention where needed difficult to do
                                                               Core Academic Time by
                    HS AVERAGE CLASS SIZE             80%           Subject in HS
                                                      70%     8%
     25                   23                                               8%
                                                                                       Foreign
                                                      60%
                                           Core               16%         16%
                                                                                       Language
     20                               18                                               Social Studies
                                                      50%
                                           Non-core
                                                      40%     14%         14%          Science
     15
                                                      30%     15%                      Math
     10                                                                   17%
                                                      20%                              ELA

       5                                              10%     20%          17%
                                                      0%
       0                                                    District C   District B

                           District B

EDUCATION RESOURCE STRATEGIES, INC.                                               GEPA Institute April 2010   13
Top 10 things states can do in “tough times” to focus
     resources to their most productive uses …

     1. Revise funding systems to promote equity and
        flexibility

     2. Revamp teacher compensation, including benefits
        and pensions, to increase compensation for
        teachers who have the best results and contribute
        the most to improving student performance

     3. Overhaul regulations that strictly define specific staff
        positions and use of school time

     4. Rethink graduation requirements that are linked to
        taking specific courses rather than demonstrating
        skills and knowledge
EDUCATION RESOURCE STRATEGIES, INC.                                14
Top 10 things states can do…

     5. Create new models of accountability and support for
        special education and English language learners
        that redirect resources to more integrated settings

     6. Insist on turnaround strategies that restructure
        existing resources and consider district-wide impact,
        including the challenge of displaced teachers

     7. Invest in statewide leadership development and
        succession planning, including providing information
        tools



EDUCATION RESOURCE STRATEGIES, INC.                             15
Top 10 things states can do…

     8. Remove barriers to creative provision of education
        and support services by untraditional providers
     9. Promote the use of technology as a productivity
        improvement tool in education and school support
        services
     10. Report useful comparative data on school and
         district resource use that includes information on
         spending by student as well as on the use and
         organization of resources




EDUCATION RESOURCE STRATEGIES, INC.                           16
States need to adapt and create the conditions to help
     districts excel in current environment

                   Industrial Model                  Information Age
                             Rules           Guidance & Best Practice models
                      Compliance        TO     Information & Accountability
                      Enforcement                        Support
               Qualification - Inputs              Quality - Outcomes




EDUCATION RESOURCE STRATEGIES, INC.                                            17
As we heard, there is no silver bullet, one size fits all –
   it is important to thoughtfully prioritize strategies


                              EASY             NO                        YES
                                       the time and effort         make the change
                                        don’t make sense                NOW!

               Ease of
        Implementation
      (barriers ex: contracts,                MAYBE                       YES
            required, human
      capacity and political          if you need a quick or    plan changes over the
                          will)             political win       LT and prioritize based
                                                                   on achievement
                                                                       impact
                             HARD
                                      LOW                                          HIGH
                                                       District Impact
                                                   (magnitude of misalignment)




EDUCATION RESOURCE STRATEGIES, INC.                                                       18
Thank You!

New Web Address: www.erstrategies.org

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States and School District Reform

  • 1. Tough Times Enable Resource Transformation: State Role in Districts’ Doing More with Less GEPA Institute, Miami, Florida April 26, 2010
  • 2. Education Resource Strategies • ERS is a non-profit consulting firm, head-quartered in Boston • We work with leaders of public school systems to rethink the use of district and school-level resources • We analyze district spending, human resources, school organization and performance data to generate insight around resource strategies • We leverage this insight to design new ways to allocate and organize resources at the district and school level • Our work is grounded in over a decade of experience, working with school districts across the country Fundamental Message: It’s not just how much, it’s how well EDUCATION RESOURCE STRATEGIES, INC. 2
  • 3. Despite increased spending achievement gaps persist From 1970 to 2005 : • Real spending doubled from $3,800 to $8,700 per pupil • 80% of increase went toward adding staff positions and increasing benefits while educator salaries remained flat in real dollars* • Spending on special education programs has gone from 4 to 21% of district budgets while regular education spending has dropped from 80% to 55%** * Parthenon group analysis, 2008 **Richard Rothstein, Where has the money gone? 2009 EDUCATION RESOURCE STRATEGIES, INC.
  • 4. Overall class sizes have decreased, but basic structure of schooling has remained the same Source: Digest of Education Statistics 2007: Tables 61, 64, and 66 EDUCATION RESOURCE STRATEGIES, INC. 4
  • 5. New spending has increased the number of staff, but not the quality 100% 90% All other non-staff 80% 70% Increase in Benefits Rate 60% Increase in SPED staff 50% 40% Increase in number of Non-Teachers 30% (excl. SPED) 20% Increase in Number of 10% Teachers (excl. SPED) 0% Growth in Per Pupil Expenditure (1970 to 2005) Source: The Parthenon Group, 2007 from NCES; Educational Research Service; Parthenon Analysis EDUCATION RESOURCE STRATEGIES, INC. 5
  • 6. Despite federal stimulus funding, trends in revenue and spending continue… • Teaching salaries growing at ~3-5% annually • Benefits growing at ~10+% annually • SPED staff/student continues to grow • Tax revenue falling • Enrollment declining • State stabilization funds are filling the revenue gap (but only temporarily) EDUCATION RESOURCE STRATEGIES, INC. 6
  • 7. In tough times, districts usually hunker down… • Across the board spending cuts • Cut “non-classroom” spending - Teacher professional development - Collaborative planning time - Coaches • Layoff junior teachers without regard to teacher results or contribution Less support for teachers Less support for students EDUCATION RESOURCE STRATEGIES, INC. 7
  • 8. The districts we have are not the systems we need WE NEED WE HAVE • Schools and students with same needs receiving Equitable, transparent, different levels of resources and flexible funding • Unintelligible or unreported school budgets across schools • Rigidly defined budgets that don’t match needs • Limited investment in recruiting, screening, & induction Effective teaching for all • Teaching jobs that promote burnout and isolation students • Salary and job structures that do not encourage effectiveness and contribution School designs that maximize teaching • Traditional schedules and staffing that do not effectiveness, academic match time and individual attention to priority time and individual needs or foster professional working conditions attention EDUCATION RESOURCE STRATEGIES, INC. 8
  • 9. The districts we have are not the systems we need WE NEED WE HAVE Aligned curriculum, • Underinvestment in formative assessments Instruction, assessment, PD and fragmented professional development • Limited investment to build and reward Strong school and district leadership effectiveness over career leaders • Principal jobs that don’t allow for innovation Central services that foster • Central office services that are not designed empowerment, accountability to improve productivity or customize support and efficiency to school needs • District pays too much for social services and Partnership with families and non-core instruction that could be provided communities through community partners EDUCATION RESOURCE STRATEGIES, INC. 9
  • 10. Teacher compensation is the biggest single expense category in education – how is it directed? Breakout of district What drives that spend spend on teacher on teacher compensation compensation? 100% 100% 90% 90% 80% 80% 70% 70% 60% Social 60% Security 50% 50% Contribution Pension 40% 40% Education Experience 30% Benefits 30% Base 20% 20% 10% Salaries 10% 0% 0% District A District B Spending ERS Estimates based on district salary schedules and budget data District B has a “pay for performance” program EDUCATION RESOURCE STRATEGIES, INC. 10
  • 11. We see a cycle of isolation and specialization developing that pushes resources away from core instruction Diverse, high-needs classes Class size reduction can Teachers under-prepared to weaken provide core instruction to all teacher quality Provide additional support: Create supplemental Extended learning opportunities service requirements Instructional aides Pull-outs Administration to coordinate, monitor special services Resources and responsibility move away from core instruction EDUCATION RESOURCE STRATEGIES, INC. 11
  • 12. Which is reflected in a huge gap between a regular education class size of 23 and 7:1 staff to student ratio in this district Example District: Elementary and Secondary School-Level Staffing Ratios Regular Class Size 23 Regular Ed Student Teacher Ratio 17 Pupils per Teacher 12 Pupils per Instructor 10 Pupils per Professional 9 Pupils per Staff 7 0 10 20 30 EDUCATION RESOURCE STRATEGIES, INC. 12
  • 13. Mandates and inflexibility make differentiating time and attention where needed difficult to do Core Academic Time by HS AVERAGE CLASS SIZE 80% Subject in HS 70% 8% 25 23 8% Foreign 60% Core 16% 16% Language 20 18 Social Studies 50% Non-core 40% 14% 14% Science 15 30% 15% Math 10 17% 20% ELA 5 10% 20% 17% 0% 0 District C District B District B EDUCATION RESOURCE STRATEGIES, INC. GEPA Institute April 2010 13
  • 14. Top 10 things states can do in “tough times” to focus resources to their most productive uses … 1. Revise funding systems to promote equity and flexibility 2. Revamp teacher compensation, including benefits and pensions, to increase compensation for teachers who have the best results and contribute the most to improving student performance 3. Overhaul regulations that strictly define specific staff positions and use of school time 4. Rethink graduation requirements that are linked to taking specific courses rather than demonstrating skills and knowledge EDUCATION RESOURCE STRATEGIES, INC. 14
  • 15. Top 10 things states can do… 5. Create new models of accountability and support for special education and English language learners that redirect resources to more integrated settings 6. Insist on turnaround strategies that restructure existing resources and consider district-wide impact, including the challenge of displaced teachers 7. Invest in statewide leadership development and succession planning, including providing information tools EDUCATION RESOURCE STRATEGIES, INC. 15
  • 16. Top 10 things states can do… 8. Remove barriers to creative provision of education and support services by untraditional providers 9. Promote the use of technology as a productivity improvement tool in education and school support services 10. Report useful comparative data on school and district resource use that includes information on spending by student as well as on the use and organization of resources EDUCATION RESOURCE STRATEGIES, INC. 16
  • 17. States need to adapt and create the conditions to help districts excel in current environment Industrial Model Information Age Rules Guidance & Best Practice models Compliance TO Information & Accountability Enforcement Support Qualification - Inputs Quality - Outcomes EDUCATION RESOURCE STRATEGIES, INC. 17
  • 18. As we heard, there is no silver bullet, one size fits all – it is important to thoughtfully prioritize strategies EASY NO YES the time and effort make the change don’t make sense NOW! Ease of Implementation (barriers ex: contracts, MAYBE YES required, human capacity and political if you need a quick or plan changes over the will) political win LT and prioritize based on achievement impact HARD LOW HIGH District Impact (magnitude of misalignment) EDUCATION RESOURCE STRATEGIES, INC. 18
  • 19. Thank You! New Web Address: www.erstrategies.org