CCSSO Moving Forward Conference Given January 13, 2011

1. How States Can Support Transformation in Tough Times Moving Forward Conference January 13

2. 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 Education Resource Strategies, Inc. 2 Education Resource Strategies

4. 80% of increase went toward adding staff positions and increasing benefits while educator salaries remained flat in real dollars*

5. Spending on special education programs has gone from 4 to 21% of district budgets while regular education spending has dropped from 80% to 55%**Despite increased spending achievement gaps persist From to : 1970 2005 * Parthenon group analysis, 2008 **Richard Rothstein, Where has the money gone? 2009 Education Resource Strategies, Inc.

6. Source: Digest of Education Statistics 2007: Tables 61, 64, and 66 Overall class sizes have decreased, but basic structure of schooling has remained the same 4 Education Resource Strategies, Inc.

8. Benefits growingat ~10+% annually

9. Expensive class size mandates

10. SPED spending continues to grow

11. Tax revenue falling

12. Enrollment declining

16. CompensationReducing compensation spending by managing teaching work-force mix and differentiating instructional roles Class size models to target individual attentionStrategically raising class sizes and rethinking one-size-fits-all class size models for providing individual attention Special EducationRedirecting special education spending to early intervention and targeted individual attention for all students TimeStrategically using existing time and extending where needed to meet student learning needs 8 Four of the biggest areas of “misalignment” that states influence include: Education Resource Strategies, Inc.

17. Build understanding of the needed changes Create the right incentives Remove barriers Support and invest in new strategies and structures Change legislation Provide political cover 9 How can states support transformation at the district level?

18. Education Resource Strategies, Inc. 10 High-performing schools are about team, not just individual performance Deliberate assignments to teaching team Each school’s specificcurricular,faculty, andstudent needs School-based expert support Collaborative planning time Formative assessments

19. Education Resource Strategies, Inc. 11 Most districts spend little to reward increased teacher responsibility and contribution $88,052 $78,232 Benefits Responsibility & Results Longevity Education Base District ABalanced work-force District BSenior work-force Compensation cost adjusted to District A area Source: ERS District Aspen District Analysis FY 2009

20. Stop or reduce increases for steps and credits to redirect compensation spending toward increased responsibilities and contribution Aggressively manage low performers out of the system Revise compensation structures to link pay to increases in responsibility and contribution as well as individual results Revise work rules to insure flexibility in teacher assignment to match team and school needs 12 What can be done to optimize compensation spending? Start Now Build Toward Education Resource Strategies, Inc.

21. Education Resource Strategies 13 Class Size Models Special Education Source: Elementary Grades Homeroom file Oct 2009; Includes elementary schools and K-8 schools (grades K0-5); excludes classes that are special ed 60%+, ELL 60%+; includes Advanced Work classes; excludes schools with Two-Way bilingual program; excludes classes with “mixed” grade (mainly due to teacher data NA) Most districts have opportunities to strategically raise class size…

22. Education Resource Strategies 14 *Core class defined as ELA, Math, Science, Social Studies; Non-core defined as Art, Computer Literacy, Vocational, Foreign Language Source: District A and B 9th and 12th grade course data (internal – Resource Mapping presentation) …and to target class sizes to priority subjects and students Class Size Models Special Education In these districts class sizes for core subjects are higher than non-core

23. Education Resource Strategies, Inc. 15 Districts have more teaching staff, but use those FTEs for specialist positions outside of the core classroom Class Size Models Special Education

24. Education Resource Strategies 16 A cycle of isolation and specialization pulls students with additional needs out of regular education classrooms Class Size Models Special Education Large, diverse classes Overextended teachers Remove “problem” student fromclassroom Current Structure of SWD & ELL services Provide additional support: - Social services - Pull-out instruction Administration to coordinate, monitor special services Resources and responsibility move outside regular classroom

25. Education Resource Strategies 17 Moving students into rigidly defined programs diverts dollars from early intervention and targeted small groups for all students Class Size Models Special Education Poverty Increment Note: Excluded are all district Alternative/Adult schools. Sources: SY10 October enrollment, district budget as of 10/09. Excludes students who did not report; ELL includes those currently in programs, excludes students who opted-out

26. Education Resource Strategies 18 *Rochester SWD enrollment includes all students with a designated category of disability. Source: ERS Benchmark Database, National data from U.S. DOE Programs, SDP Special Ed student data (PIMS); Self contained typically defined as 60% or more time in special education setting. Districts vary widely in how many students they place in special education settings Class Size Models Special Education FY06: National ID rate: 9%

28. ELL enrollment trends

29. Staffing models

30. Inclusion models

31. Out of district policies

32. Program placement

34. Highlight the class size vs. teacher quality trade-off Strategically raise class sizes in non-core classes and later grades Review special education spending to reduce compliance spending and unplanned extra spending on subscale programs Encourage movement away from class size mandates in state regulations and contracts Clarify rules on maintenance of effort spending Champion revisions to special education funding that create incentives for more integrated services Explore improved ways to measure special education outcomes 21 What can be done to rethink one-size-fits-all class size model and redirect special education spending to targeted individual attention for all students? Education Resource Strategies, Inc. Start Now Build Toward

35. 22 Sources: District figures are from Time and Attention in Urban High Schools: Lessons for School Systems (Frank, 2010) and from ERS analyses for the Aspen CFO network. Leading Edge school figures are from Shields, R. A., and K. H. Miles. 2008. Strategic Designs: Lessons from Leading Edge Small Urban High Schools. Watertown, MA: Education Resource Strategies. Charter school figures are from The Boston Foundation report (May 2010) “Out of the Debate and Into the Schools.” Many districts have an opportunity to increase instructional time by increasing the school day National Avg. = 1170 Education Resource Strategies, Inc. 3. Making every minute count

36. 23 ….by varying time by grade and subject 3. Making every minute count Typical District Percent of Student Time By Grade & Subject 100% PE 80% Electives Foreign Language 60% Science Social Studies 40% Math 20% ELA 0% ES 7-9th 10-12th Education Resource Strategies, Inc.

37. CompensationReducing compensation spending by managing teaching work-force mix and differentiating instructional roles Class size models to target individual attentionStrategically raising class sizes and rethinking one-size-fits-all class size models for providing individual attention Special EducationRedirecting special education spending to early intervention and targeted individual attention for all students TimeStrategically using existing time and extending where needed to meet student learning needs 24 Four of the biggest areas of “misalignment” that states influence include: Education Resource Strategies, Inc.

38. CompensationReducing compensation spending by managing teaching work-force mix and differentiating instructional roles Class size models to target individual attentionStrategically raising class sizes and rethinking one-size-fits-all class size models for providing individual attention Special EducationRedirecting special education spending to early intervention and targeted individual attention for all students TimeStrategically using existing time and extending where needed to meet student learning needs 25 Four of the biggest areas of “misalignment” that states influence include: Education Resource Strategies, Inc.

39. Build understanding of the needed changes Create the right incentives Remove barriers Support and invest in new strategies and structures Change legislation Provide political cover 26 How can states support transformation at the district level?

40. Revise funding systems to promote equity and flexibility 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 Overhaul regulations that strictly define specific staff positions and use of school time Rethink graduation requirements that are linked to taking specific courses rather than demonstrating skills and knowledge EDUCATION RESOURCE STRATEGIES, INC. 27 Top 10 things states can do in “tough times” to focus resources to their most productive uses …

41. Create new models of accountability and support for special education and English language learners that redirect resources to more integrated settings Insist on turnaround strategies that restructure existing resources and consider district-wide impact, including the challenge of displaced teachers Invest in statewide leadership development and succession planning, including providing information tools EDUCATION RESOURCE STRATEGIES, INC. 28 Top 10 things states can do…

42. Remove barriers to creative provision of education and support services by untraditional providers Promote the use of technology as a productivity improvement tool in education and school support services 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. 29 Top 10 things states can do…

43. 30 Back up

44. 31 The Baltimore City Schools Transformation Strategy—a three-year journey Under new teacher contract, decisions about trade-offs to pay higher salaryfor teaching quality will be made at school level Education Resource Strategies, Inc. Transformation Restructuring Decentralization Consolidation

45. Real per pupil spending varies widely across districts, but spending patterns similar Note: Dollar amounts are adjusted for inflation (using BLS inflation adjusters) and for cost of living (NCES-CWI); all dollars from K-12 operating budgets. Uncoded dollars in Philadelphia are dollars spent on alternative schools and additional EMO payments Source: RCSD 2009-2010 budget data; RCSD BEDS enrollment; Oakland Unified School District annual report 2008; ERS Benchmark database 32 Education Resource Strategies, Inc.

46. Assumptions:Net step increase of 3.5% (4% average discounted for staff turnover)Lane increase of 2.5% Benefits increase 7.5% annually One district example: If the district must pay COLA at 3.5%, this number nearly doubles to equivalent of 360 average cost teachers next year or 600+ first year teachers by 2015 33 Education Resource Strategies, Inc.

47. Education Resource Strategies, Inc. 34 The way districts reward salary increase over a teaching career varies; merit pay is rare, primary increase is for leadership roles and NBPT Total Possible Raises Over Teacher’s Career Methodology: Experience and Education derived from salary schedules. Stipends aggregated from contracts – leadership roles conservative avg of multiple stipends (e.g. dept head, lead tchr, curricdevel) Source: Salary Schedules and Teacher Contracts.

49. Instructional Support

50. Finance & Ops

51. Special Pops

52. Human Resources10-15 Schools 10-15 Schools Education Resource Strategies, Inc.