ERS articulates for states what we know about district resource use and how states' policies can best help district efforts. ERS Director Don Hovey’s gave this presentation in Miami at the Governors’ Education Policy Advisors (GEPA) Institute for the National Governor’s Association on April 26. The presentation focused on helping states to understand our perspective on strategic resource use, the district transformational strategies and the top ten ways that states can support and enable strategic resource transformation.

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
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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
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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)
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19. Thank You!
New Web Address: www.erstrategies.org