Showing papers in "Journal of Education Finance in 2012"

Assessing the Cost of Instructional Coaching

Abstract: School-based instructional coaching is an increasingly popular approach to professional development used to support in-service learning for teachers. However, little is known about the cost of coaching. The following study aims to fill this gap. First, the study describes a framework for measuring the cost of an instructional coaching program; second, this cost framework is applied to three schools with instructional coaching programs during the 2009–10 school year. While model developers suggest a cost of $2,298 per teacher, the study found average cost per teacher at three schools to range from approximately $3,260 to $5,220. Third, a cost framework is developed and applied to three schools utilizing traditional approaches to professional development and average costs are presented for comparison. The study found that instructional coaching is between 6 to 12 times more expensive than traditional approaches to professional development. Because schools are making large investments in coaching programs, research should explore whether instructional coaching is cost-effective. By presenting a framework for measuring costs and reporting costs of a specific program, this study lays the groundwork for cost-effectiveness studies.

A Comprehensive Model for Estimating the Financial Impact of Teacher Turnover

Abstract: The purpose of this study was to develop a model that may be used to estimate the financial costs of teacher turnover in urban school districts. It is estimated that 50% of the beginning teachers leave the profession within the first five years on the job (Murname, Singer, Wilett, Kemple, and Olsen 1991; Colbert and Wolff 1992; Ingersoll 2003; Schlechty and Vance 1981). When teachers depart, they take with them their knowledge of instructional techniques, students’ learning styles, and professional development training (Chuong 2008). Teacher turnover creates many problems. The annual recruitment and placement of teachers is not only time-consuming and labor intensive, it is a costly burden on public school administrators (Boe, Bobbitt, Cook, Whitener, and Weber 1997) and the general tax-paying public. Furthermore, teachers hired to replace the teachers who have left often do not have the teaching experience and qualifications of the teachers they are replacing (Rollefson 1993), and the induction of replacement teachers disrupts instructional programs until the new teachers are assimilated to the culture, curriculum, and school community (Boe, Bobbitt, and Cook 1997). In the past ten years, educational researchers have been trying to put a price on teacher turnover using various business and education models—from Benner’s $2.1 billion annual costs in Texas to Alliance for Excellent Education’s $4.9 billion to National Commission of Teaching and America’s Future $7.3 billion price tag. This study presents a 4-component Teacher Turnover Cost Model (TTCM) that accounts for separation costs of a departing teacher, hiring and training costs of a new teacher, and the development of performance productivity in a new teacher.

Estimating Teacher Turnover Costs: A Case Study

Abstract: High teacher turnover in large U.S. cities is a critical issue for schools and districts, and the students they serve; but surprisingly little work has been done to develop methodologies and standards that districts and schools can use to make reliable estimates of turnover costs. Even less is known about how to detect variations in turnover costs for teachers of different grades and disciplines. This study created a model and methodology to document turnover costs for the middle and high schools in the Boston Public Schools to test the degree to which it could detect differences in costs for teachers of science, and to explore the feasibility of its implementation by school personnel. We found that although the model and methods were sensitive enough to detect differences between schools and for science teachers, it could not be easily or fully applied at the district or school levels, where the component costs of turnover were scattered between department budgets, and where some costs were undocumented. At the same time, our data show that when teachers leave a school, whether it is due to a departure from the district or a reassignment to another school, there is an associated cost that has previously gone unmeasured. Therefore, understanding the full cost of teacher departures is essential when trying to estimate the true cost—and cost savings—of a layoff. Since professional development consistently represents the largest cost in the district studied, we suggest steps that can be taken to track these expenses more systematically at the school and district levels.

Predicting Significant Reductions in Instructional Expenditures by School Districts

Abstract: This article uses survival analysis to investigate the symptoms of fiscal distress that can lead to significant reductions in instructional expenditures by independent public school districts in the United States. We hypothesize that the likelihood of significant reductions in instructional expenditures is positively correlated with revenue concentration and debt usage, and negatively correlated with organizational slack and entity resources. Parsimonious models are developed and tested to predict the likelihood of significant reductions in instructional expenditures. The model correctly classifies up to 92% of the sampled school districts. The results show that the most important indicator of significant reductions in instructional expenditures is revenue concentration. School districts with more diverse revenue sources are less susceptible to significant reductions in instructional expenditures. This information can be used to prevent, detect, and mitigate fiscal distress that could lead to significant reductions in instructional expenditures in U.S. school districts.

Rearranging Deck Chairs in Dallas: Contextual Constraints and Within-District Resource Allocation in Urban Texas School Districts

Abstract: The goal of this study is to simultaneously explore resource allocation across schools within large urban school districts and across all schools within major metropolitan areas that include those urban districts in the state of Texas This study uses a three-year panel, from 2005 to 2007, for Texas elementary schools in the Houston, Dallas, Austin, and San Antonio Core Based Statistical Areas Large city districts evaluated include Houston, Dallas, Ft Worth, San Antonio, and Austin We find that within the state of Texas, the relative competitive position of urban core districts varies widely We find that on average current spending in the metropolitan areas surrounding these large urban districts is progressively distributed with respect to poverty rates In Dallas, spending fell well below that of surrounding districts and was less progressively distributed In San Antonio, spending fell below surroundings, but was progressively distributed Austin and Fort Worth also progressively distributed spending Houston, while spending more on elementary schools than surrounding districts, provided a relatively flat distribution of that spending, advantaging lower poverty schools to the disadvantage of higher poverty ones

The Reliability, Impact, and Cost-Effectiveness of Value-Added Teacher Assessment Methods

Abstract: This article reviews evidence regarding the intertemporal reliability of teacher rankings based on value-added methods. Value-added methods exhibit low reliability, yet are broadly supported by prominent educational researchers and are increasingly being used to evaluate and fire teachers. The article then presents a cost-effectiveness analysis suggesting that the use of value-added methods to identify and fire the bottom 40% of all teachers reduces average student achievement, is extremely expensive, and is not cost-effective. The policy implication of these results is discussed.

The Determinants of High School Closures: Lessons from Longitudinal Data throughout Illinois

Abstract: Facing substantial financial pressure, many districts close schools in order to preserve solvency and improve student outcomes. Using a new longitudinal data set on all non-Cook County Illinois schools, we examine the determinants of high school closure decisions from 1986 through 2006. Our dataset combines information from a wide variety of sources, including the Illinois State Board of Education, the Census Bureau, the Illinois Department of Revenue, and the Bureau of Labor Statistics. Prior studies in this area typically use cross-sectional data, short panels, or case-studies. Enrolments and fiscal resources are indeed the most important determinants of school closures, but not always in expected ways. We carefully investigate the causes of closures, incorporating numerous trends and providing a series of robustness tests. Per-pupil expenditures, student demographics, and test scores are not significant determinants of closures. The most important predictors appear to be enrolment, school-aged population, and the proportion of property tax revenues allocated to the district.

From Statehouse to Schoolhouse: Education Finance Apportionment Systems in the United States.

Abstract: This research investigates state finance policies for public elementary and secondary education using survey methodology. The purpose is to update the existing knowledge base in the field as well as to provide a compendium of finance and policy options that are being used across the states to finance school for lawmakers, educators and others. Chief state school officers or their designee were queried; data were provided for all 50 states and posted on the web for verification. The data showed that states continue to use funding policies developed in the past but they are implementing weighted apportionment systems and other mechanisms that recognize the differential costs of students and districts. This research provides new knowledge about state apportionment policies for K-12 education, special student populations, capital outlay and transportation systems.

Resource and Output Equity as a Mechanism for Assessing Educational Opportunity in Korean Middle School Education

Abstract: Korea is recognized as a high-performing country in international achievement studies; however, many researchers in and outside Korea have been worried about the existing gaps between high-socioeconomic and low-socioeconomic (SES) students in both student achievement and educational resources. We analyzed the resource and output equity of Korean middle school education to verify if educational opportunities are inequitably provided in terms of educational resources and outputs as international comparison surveys have reported. Contrary to previous studies, we find that there is a horizontally and vertically equitable distribution of educational resources corresponding to SES status and region in Korean middle school education. However, we find inequity in the distribution of educational resources for special needs students. The output equity analysis of student achievement shows evidence of equity—a possible indication that equitable educational resources, particularly throughput resources, are having desired effects on equitable, not equivalent, distribution of educational outputs. The vertical equity analysis of educational outputs implies that SES, region, percentage of non-tenured teachers, percentage of special education students, and the number of professional development programs should be considered criteria for ensuring adequate provisions of educational resources.

An Analysis of Michigan Charter Schools: Enrollment, Revenues, and Expenditures*

Abstract: Though charter schools are a relatively new phenomenon in American education, they have been in existence long enough now to allow for evaluation of operational outcomes relative to traditional public schools. Using a comprehensive data set for the State of Michigan that spans the years 1995 through 2006, this article aims to provide such an evaluation in several dimensions. Specifically, we address four questions with our dataset: (1) To what degree do charter schools compete with local public schools? (2) Are charter schools underfunded relative to public schools? (3) What is the effect on state education finances of operating a system of charter schools? (4) Judging from expenditure from revenue patterns, do charter schools behave more as profit maximizing entities than do public schools?

Lottery Funded Scholarships in Tennessee: Increased Access but Weak Retention for Minority Students

Abstract: Student retention and low graduation rates are the most significant problems associated with state provided student aid. Evidence suggests that the problems are chronic to certain populations in state colleges and universities. This research examines lottery scholarship data to determine those factors that affect scholarship retention and graduation. Specifically, the fall 2007 lottery scholarship and financial aid data from the Tennessee Higher Education Commission indicate that low income African Americans and students who score low on the ACT are most likely to lose their scholarship at every undergraduate level. In addition, the data shows that high school GPA, undergraduate GPA, gender, Pell grant eligibility, adjusted gross family income, and student major are positively correlated with scholarship retention. These findings strongly suggest that while lottery funded scholarships promote access to higher education, they are insufficient for academic success for certain populations. Thus, if state and higher education institutions want to maintain higher levels of retention and a diverse student body, they should do much more than simply provide lottery scholarship funding. On the contrary, they should provide institutional support by creating mechanism that will positively affect student achievement. This includes establishing support groups, specialized learning communities, and innovative faculty/student relationships that accentuate the learning experience.

Adequate Yearly Progress as a Means of Funding Public Elementary and Secondary Education for Impoverished Students: Florida Funding

Abstract: The purpose of this research was to address the public policy of adequacy by the creation of a Florida state-wide poverty index model to assist in the distribution of state and local dollars in funding public education. This poverty index model would measure the amount and severity of poverty in every public school within the state each year and determine how much money should be allocated to each school beyond the basic allocation now in existence by using Adequate Yearly Progress (AYP) data. This poverty index model would address the funding for schools with a disproportionate percentage of students living in poverty. A weighted formula was developed to increase funding to Florida students focused on addressing poverty and supplemental indicators. The creation of this funding index could be utilized by the state legislature in determining an adequate funding level for all public elementary and secondary students in the state and, thus, to enhance the Florida Education Finance Plan (FEFP).

Fiscal Capacity Measurement and Equity in Local Contributions to Schools: The Effects of Education Finance Reform in Massachusetts.

Abstract: In Massachusetts, state aid to public schools fills the gap between a district's foundation budget and its required local contribution. Historic inequities in required local contributions and the resulting inequities in state aid across districts led to a call for education finance reform. Since 2007, the state has put in place a number of measures intended to improve fairness in regard to local contributions. Recent reforms include using both local income and property values to set target local contributions, capping target contributions at 82.5% of foundation and providing funding mechanisms to bring required district contributions closer to these targets. The goal of this article is to examine the effects of these new policies. Results indicate that the impact of the decision to include income in measuring fiscal capacity has been limited by the imposition of the cap on contributions. Further analysis reveals that the reforms, in general, have been more successful in increasing fairness in districts that previously received too little state aid than in requiring more of perennially under-contributing districts. It is also shown that the ratio of required to target contributions across districts shows a positive relationship with community wealth. Finally, an examination of the 2010 policy that reclassified voluntary excess contributions as required contributions in some districts indicates that smaller communities as well as those with more college graduates were more likely to have seen a reduction in state aid as a consequence of this policy.

Simulating Alternative Approaches to Addressing Fiscal Resource Tensions and Quality in U.S. Public Higher Education

Abstract: Severe fiscal tensions threaten U.S. public higher education. Many policy solutions have been suggested, but it is difficult to subject these qualitative ideas to rigorous empirical evaluation. In this work, we employ an agent-based model of a representative state-funded public university system (including a flagship campus, an urban campus, and several regional-comprehensive campuses) to examine approaches aimed at optimizing institutional performance in an era of declining state funding. These options include imposing fiscal austerity in staff compensation, incentivizing faculty productivity, increasing faculty teaching loads, improving operating efficiency, raising admission standards, and increasing the delivery of online instruction. No solution is found that stabilizes tuition costs relative to present conditions, but scenarios that facilitate faculty productivity and incorporate online instruction also lead to improvements in funded research activity and student outcomes compared to current trends. Further productivity enhancements would be possible if a means to streamline academic decision-making processes in the conduct of regular university business (in shared-governance context) could be found. These factors combine in the best cases so that graduation rates, research funding, and system quality improve. In contrast, fiscal austerity in the form of direct cost cutting saves money for the state but results in significant increases (70% to 180%) in real (inflation-adjusted) tuition and fees at the several campuses over the course of 40 simulation iterations relative to 2009–10 levels. Further, this reliance on fiscal austerity alone is highly damaging to institutional performance. Declines in faculty productivity, resulting from worsening compression of faculty compensation, lead to reductions in external-grant funding, six-year graduation rates, and system quality. Growing enrollments in response to demographic pressure offset the most deleterious effects of reduced support, without which, an unsustainable spiral of declining enrollment and rapid tuition rises can occur. Overall, the simulation results suggest that efforts to maintain system affordability and quality in the face of long-term funding constraints are best directed towards incentivizing productivity improvements.

Constructing a Model of Lottery Tax Incidence Measurement: Revisiting the Illinois Lottery Tax for Education

Abstract: Nearly half a century of lottery scholarship has measured lottery tax incidence predominantly through either the Suits Index or regression analysis The present study builds on historic lottery tax burden measurement to present a comprehensive set of tools to determine the tax incidence of individual games in addition to determining which lottery consumer demographic bears the burden of the Illinois lottery tax Previous research has suggested that the Illinois lottery presents an ambiguous tax-burden determination, which prompts our selection of that state for this study Results of Suits Index analysis with corresponding confidence intervals suggest that the Illinois lottery functions as a regressive tax on lottery consumers Lottery games in Illinois were found to vary greatly in their degree of regressivity Regression analysis provides a sequential model building illustration to suggest the importance of model justification and appropriateness in determining lottery tax incidence Regression results reveal the impact of gender, education, race, age, and economic status on lottery burden determination The significance of this study is in the presentation of a comprehensive set of metrics provided to educational policymakers as they determine which public finance tools to employ in raising funds to finance public schools

NEFC 2011 Outstanding Dissertation Award

Abstract: The recent economic downturn has caused public schools across the nation to face significant budget reductions. Exacerbating this situation are unprecedented mandates for public school leaders to demonstrate they were providing an adequate education for all students as measured by annual state and federal benchmarks. This dissertation investigated decisions regarding resource allocation and the rationale for those decisions when school districts are simultaneously confronted with constrained budgets and governmental accountability. An important finding was that school divisions varied in their decisions and rationales. Analysis of data suggested several factors, articulated through three grand assertions and 29 subassertions, that accounted for the variation in decisions and rationales across a sample of Virginia school divisions. The conceptual framework used for the study was Allison and Zelikow’s governmental politics theory, a theory that examines decisions through a bureaucratic lens by uncovering the actors who participated in the decisionmaking process; the action channels utilized to make decisions; and the presence of competition, compromise, conflict, confusion, and coalition building as decisions are considered and negotiated.1 The study employed a mixed-methods approach where quantitative analysis identified the changes in total and categorical budgetary expenditures as well