This presentation was used in a session at the Policy Leadership Academy hosted by Leadership for Education Equity, a political organization that mobilizes, supports and trains Teach for America alumni.

1. Leading Education Reform
in an Era of Limited Resources
LEE Policy Leadership Academy
Rethinking Resources
for Student Success July 28, 2012

2. Education Resource Strategies: Who we are
ERS is a non-profit dedicated to helping
school systems spend and organize
time, talent and technology to create
great schools at scale
Education Resource Strategies 2

3. Public Ed budget gaps will continue
$850,000 Budget Gap by 2017 is 9.1%
$800,000
$750,000
$700,000
Current spending
$650,000 trajectory
Likely revenues
$600,000
$550,000
$500,000
Source: Marguerite Roza, Research Associate Professor at the University of Washington's College of Education and Senior Scholar at the
Center on Reinventing Public Education. November 2011; Current spending trajectory assumes no incremental reforms and spending growth
of 4%
Education Resource Strategies 3

4. Why?
Increasing:
• Teaching salaries
• Benefits
• Special Ed programs
• COLA (cost of living adjustments)
Declining:
• Tax revenue
• Enrollment
• Federal Funds
Education Resource Strategies 4

5. We have created a labor intensive public
education system – salaries and benefits
increase every year
Growth in Per Pupil Expenditure
(1970-2005)
Salaries & Benefits
26% 23%
Increase # non-teachers (excl SPED)
Increase # of teachers (excl SPED)
Increase # SPED staff
Increase Benefits Rate
10%
21% All Other
19%
Almost 75% of growth in spending came from
salaries and benefits
Source: The Parthenon Group, 2007 from NCES; Educational Research Service; Parthenon Analysis
Education Resource Strategies 5

6. Public education jobs continued to grow
through recessions
Source: Marguerite Roza
Education Resource Strategies 6

7. Typical responses preserve current
structures and attempt to do less with less
Furlough days Across the board cuts
Frozen salaries Incremental staffing
ratio adjustments
Education Resource Strategies 7

8. Where do you look to begin addressing the
gap?
1 2 3
Pray for Restructure & re-
Identify new
economic imagine what is
funding sources
recovery possible
1. © Funny Times
Education Resource Strategies 2. © Original Artist. Reproduction rights obtainable from cartoonstock.com 8
3. © http://employee-rewards-incentives.blogspot.com/2009/02/employee-meetings.html

9. Why is restructuring difficult?
Currently “Inputs” are dictated to schools…
…But schools are accountable for “outcomes”
Input Discrete Time Teacher Class Size
Subject Requirements Certification
Requirements (Carnegie Units)
Desired College and Subject matter High quality Individual
Outcome Work ready proficiency instruction Student
HS graduate Attention
Education Resource Strategies 9

10. Who is dictating the inputs?
Federal
Com-
State
munity
School
District Union
Education Resource Strategies 10

11. The four highest priorities for restructuring:
1. Restructure teaching job and compensation structure
2. Rethink standardized class size model
3. Shift special education spending
4. Optimize existing time and extend where needed
Education Resource Strategies 11

12. A typical district devotes 1% of 1. Restructure teaching compensation
2. Rethink class size model
teacher compensation spending to 3. Shift special education spending
4. Optimize use of time
reward increased contribution
$500 Million
24%
Benefits
>1% Increased Contribution
27% Longevity
7% $35M
Education
Base
42%
Source: ERS Analysis
Education Resource Strategies 12

13. 1. Restructure teaching compensation
How can teachers increase 2. Rethink class size model
3. Shift special education spending
their contribution? 4. Optimize use of time
Assume a leadership
role in the school
and/or district
Individual and team- Innovate better ways to
deliver instruction and
based
improve student
measurements of outcomes
student growth (academic, behavioral)
Take on larger class
Take on a position in
sizes or more
a high-priority school
challenging classes
Education Resource Strategies 13

14. Typical districts have 1. Restructure teaching compensation
2. Rethink class size model
opportunities to target class sizes 3. Shift special education spending
4. Optimize use of time
to priority subjects and students
Avg Class Size by Subject Area Avg 9th Grade Math Class Size by
District T Student Performance Group
District P
30
27
30 27
26
24 25
20 18
20
10
10
0 0
9th Grade Core Class 12th Grade Non-Core Repeaters Double One Basic Proficient
Size Class Size Basic &
Advanced
Low Performers High Performers
*Core class defined as ELA, Math, Science, Social Studies and Foreign Languages; Non-core defined as Art, Computer Literacy, Vocational,
Source: District T and District P high school course data (internal – Resource Mapping presentation); District P 8 th grade state standardized test
scores
Education Resource Strategies 14

15. 1. Restructure teaching compensation
2. Rethink class size model
Special Ed is often used as a 3. Shift special education spending
4. Optimize use of time
catch-all program
Special Ed Enrollment in “Softer” Categories as
Percent of Subgroup
18% Example urban district
16%
14% 16%
12%
10% Subgroup
8% 10%
9% 9% Other
6%
4% 5% 5%
2% 4% 4%
0%
Low IncomeAfrican Amer Male LI AA Male
This is Expensive – Spending per pupil for Special
Ed is typically 2X – 4X compared to Gen Ed
“Softer” Special Ed categories include Emotional Disabilities, Mild Intellectual Disabilities and Specific Learning Disabilities.
“Harder” Special Ed categories include Deaf-Blindness, Developmental Delay, Hearing Impairment, Multiple Disabilities, Orthopedic
Impairment, Intellectual Disabilities – Moderate and Severe, Traumatic Brain Injury (TB) and Visual Impairment
Source: Example district student database
Education Resource Strategies 15

16. 1. Restructure teaching compensation
2. Rethink class size model
Spending on Special Education has 3. Shift special education spending
4. Optimize use of time
increased significantly
Federal Grants to States for Special Education
Special Education >$11 Billion
spending has grown
from 4% to 21% of
total school
spending between
1970 and 2005
Is the increased spending
worthwhile?
<$250M
The drop out rate for students
with disabilities is two times
that of general education
students
--U.S. Dept of Education
*Sources: “Rethinking Special Ed Spending” by Frederick Hess, Education Next, 6/16/2011; 2006 U.S. Budget, Historical Tables; “The Dropout
Rate of Special Needs Students” by Finn Orfano 10/26/2010 in Bright Hub quoting statistics from the US Dept Of Education
Education Resource Strategies 16

17. Typical schools allocate time in 1. Restructure teaching compensation
2. Rethink class size model
rigid blocks that don’t change 3. Shift special education spending
4. Optimize use of time
based on need or priority
9th Grade Student Time
by Student Performance Category
District P
Core Non-Core Support & Enrichment
100%
90% 24%
29% 28% 27% 32%
80%
% of Instructional Time
70%
60%
50%
40% 75%
70% 69% 72% 67%
30%
20%
10%
0%
All 9th Graders Repeaters Double Basic 1 Basic Proficient/Advanced
9th Grade Student Performance Category
Low Performers High Performers
Core class defined as ELA, Math, Science, Social Studies;, Foreign Languages ; Non-core defined as Art, Computer Literacy, Vocational
Source: District P HS Course Schedule Data SY0910, ERS HS Resource Use Analysis
Education Resource Strategies 17

18. 1. Restructure teaching compensation
How can schools transform 2. Rethink class size model
3. Shift special education spending
how time is used? 4. Optimize use of time
Larger Class
vs.
Larger Class Larger Class
Education Resource Strategies 18

19. What can districts and schools do to
optimize use of resources?
1. Restructure Teacher Comp
•Limit teacher compensation directed 2. Rethink Class Size Model
towards steps and lanes •Strategically raise class sizes where
•Build new evaluation systems to accurately appropriate
measure teacher effectiveness •Highlight class size vs. teacher quality
•Compensate for increased responsibilities trade-off
& contribution
3. Shift Special Ed Spending 4. Optimize Use of Time
•Reduce Special Ed spending on
•Longer blocks in key subjects for
subscale programs
struggling students
•Move away from class size mandates
•Regularly adjust time and staffing
•Invest in early intervention
according to student progress
•Integrate special ed with gen ed as
•Leverage technology to redefine
much as possible by employing dual
instruction
certified and teacher teams
Education Resource Strategies 19

20. Trade-offs for Transformation
For the same cost a typical 25,000 student urban district can:
Pay the top contributing
Reduce class sizes
grades 4-12 by 2
OR 15% of teachers $10K
more
Add 60 minutes to the
Allow benefits spending school day in the 25%
OR lowest performing
to increase by 10%
schools
Provide half-day pre-K
Give all teachers annual
step increase OR for 50% of incoming
Kindergarten students
ERS’ District Reallocation Modeler (DREAM)
Education Resource Strategies 20

21. Now it’s time to play …
Hold „Em Experience
School Budget Hold‟em Ga DOE + 5 districts
 An interactive game to help districts Rochester, NY
make thoughtful trade-offs as part of
the budgeting process Duval County, FL
 Encourages transparency and Prince George‟s County, MD
accessibility
Memphis, TN
Cleveland, OH
Aspen CFO/CAO network
Council of Chief State
School Officers
PIE Network
Education Resource Strategies 21

22. Why a card game?
 Allows you to put on the hat of school district leaders and
understand the tough choices they must make
 Removes us from the traditional budget process of
fighting for resources within silos
 Focuses on investing in district priorities by freeing
resources from low value- added “historic” uses
 Enables teams to engage in open exploration of a range of options
available to the district in a low stakes environment
 Builds understanding of relative size of different options
 Playing cards frees “non-spreadsheet” types to interact in new ways
with the budgeting process
Education Resource Strategies 22 22

23. ERS Resources:
School Budget Hold ‘Em is more than a game …
... it's an interactive exploration of the thoughtful trade-offs school
administrators have to make in these challenging budget times.
What is a Hold „Em Card?
Category Class Size 2.0% Investment or
Savings as % of
Description of savings budget
or investment option
Explanation
FYI: Additional
information
Education Resource Strategies 23 23

24. How to play:
The Object of the Game
Use the Hold’em cards provided to create a “hand” of investment and
savings options to create a budget that moves toward improved district
performance while still meeting a budget reduction target of 5%.
Instructions
Step 1 Assign Roles and Review Process (score keeper, task 5 min
master, speaker for share-out)
Step 2 Read: Quickly read through the sample deck and create 10 min
piles for “yes,” “no,” or “maybe” for each option.
Step 3 Review priorities and select your investments: As a group 15 min
review the scenario and priorities presented and then
identify the top investments you would like to include in
your hand.
Step 4 Finalize your hand: Identify new budget total and find 10 min
savings to meet it.
Education Resource Strategies 24

25. Setting the Context
Imagine you are the Superintendent of District X:
Enrollment/Size: Mid-Large size district with recent enrollment
declines
Budget: Current gap is 8%; in fourth year of budget cuts – already
cut central office and other operations
Demographics: 45% F&R, 15% Special Ed, 6% ELL
Student Performance: Low in reading/avg in Math – low
performers concentrated at 25% of schools
Teacher Comp: 90% of increases over base due to education/
experience
Teacher PD: 4 staff days/year; 75 min daily prep; 45 min
collaborative planning
Teacher Evaluation: Not historically rigorous
Education Resource Strategies 25

26. Things to consider…
 Select cards carefully – not all the choices are strategic; larger
hands mean more initiatives in place
 Consider inter-relationships – Not all choices are independent of
each other. Some choices may reduce the value of other choices –
you can choose one or the other or make a rough estimate of
additional changes.
 Accept approximation – The budget percentages are estimates
built from averages and including high-level assumptions. They are
meant to be directionally correct, but actual district results could
vary widely.
 Budget cutting in education means cutting staff positions – there will
be pain, the question is whether there are ways to leverage it to
accelerate the freeing of resources from unproductive structures
Education Resource Strategies 26

27. Discussion Questions
1. What were the biggest insights and/or surprises regarding opportunities for
district transformation during budget-cutting times?
2. What particular investments or savings would be feasible or challenging in
your state?
3. What role can school boards, state legislators or other elected officials
play to achieve desired investments and savings?
4. What action will you take?
Education Resource Strategies 27 27

28. Take Action
 Play Hold‟em: holdem.erstools.org
– Encourage your network to consider a new conversation
around trade-offs
– Facilitators’ Guide allows groups to play independently
– Online version allows you to share your hand
 Use your role to advance reform
– Change the debate over how to navigate tough times
– Continue to advocate for changes in state laws that limit effective
resource use
Education Resource Strategies 28 28

29. Want to play again?
1.
1 Play using the complete deck with 60 cards
2.
2 Play online at holdem.erstools.org
Please return the “mini-decks” to us!
Education Resource Strategies 29 29

30. Education Resource Strategies 30

31. Please return the
“mini-decks” to us!
Education Resource Strategies 31