new models of education - isasw.org schools in kenya nursery through primary school ... < 50k 0%...

New Models of Education October 2015 Bernie Noe

Photo: Reuters

Photo: Shuva Rahim

Cost per pupil

Cost per pupil per program

Metrics to assess school programs:

Cost per pupil (C/P)

Program total cost

School enrollment

Cost per pupil

Outdoor programs

$523,207

828 students

$632

Cost per pupil per program (C/P/P)

Program total cost

Students using the

program that year

Cost per pupil

per program

Outdoor programs

$523,207

395 students

$1,325

Program cost breakdown

Direct salaries and benefits

Direct and indirect program budgets

Allocated operating expenses

(facilities, technology, etc.)

Allocated administrative overhead

(business, development, head’s office,

etc.)

Dartmouth College

No allocated operating expenses (facilities,

technology, etc.)

No allocated administrative overhead

(business, development, head’s office, etc.)

Cost per pupil, IPEDS: $82,101

Cost per pupil, 990 method: $151,771

C/P for various school models

Aspire CMO

Dalton

Dartmouth College

Equity Project

Global Online

Academy

Lakeside School

Phillips Academy

$86,379

$40,533

$2,214

$14,506

$151,771

$45,143

$7,782

Core academics $ 19,823 $ 19,823

Visual and fine arts $ 1,449 $ 1,610

Performing arts $ 2,021 $ 2,246

Physical education $ 1,302 $ 1,302

Outdoor programs $ 632 $ 1,325

Student/family support $ 2,030 $ 6,089

College counseling $ 840 $ 2,485

Global programs $ 1,673 $ 10,653

Athletics $ 2,630 $ 3,094

Cost per pupil (without financial aid) $ 32,400 N/A

Financial aid $ 7,769 $ 26,043

Lakeside School C/P vs. C/P/P

Program Cost per pupil Cost per pupil

per program

Albuquerque Academy

Independent co-educational day school in

Albuquerque, NM

Grades: 6-12

Tuition: $22,375

Cost per pupil: $33,628 (using 990 method)

$31,607 (using school’s operating budget)

All Saints Episcopal Day School

Church-based private co-educational day

school in Phoenix, AZ

Grades: K-8

Tuition: $14,475

Cost per pupil: $18,588 (using school’s operating

budget) 990 not available because school is constituted as a church

Duchesne Academy of the Sacred Heart

Church-based college-prep school for girls in

Houston, TX

Grades: Pre-K -12

Tuition: $11,000 - $22,300

Cost per pupil: $21,442 (using school’s operating

budget) 990 not available because school is constituted as a church

The Lamplighter School

Nonsectarian co-educational elementary

day school in Dallas, TX

Grades: Pre-K - 4

Tuition: $12,837 - $23,063

Cost per pupil: $21,039 (using 990 method)

$22,413 (using school’s operating budget)

Metairie Park Country Day School

Nonsectarian co-educational college-prep

day school in Metairie, LA

Grades: Pre-K - 12

Tuition: $19,395

Cost per pupil: $19,303 (using 990 method)

$20,992 (using school’s operating budget)

Wichita Collegiate School

Independent co-educational college-prep

day school in Wichita, KS

Grades: 2-yr-olds - Grade12

Tuition: $16,295

Cost per pupil: $14,989 (using 990 method)

$15,185 (using school’s operating budget)

Andover-Phillips Academy

Independent co-educational boarding and day

preparatory school in Andover, MA

Grades 9-12

Tuition: $38,000 day; $48,850 boarding; $2,400

fees

Cost per pupil: $87,435

Cost per pupil

Albuquerque Academy $32,933

Catlin Gabel School $27,405

Cranbrook $38,132

Hawken School $28,252

Head Royce $31,325

Holy Names Academy $14,696+

Punahou $23,554

Pacific Collegiate (charter school) $8,649

Cost per pupil at additional schools

Photo: Victor J. Blue, Bloomberg/Getty Images

BASIS Schools

CMO operating charter schools in Arizona, Texas,

and Washington, D.C. Entered independent

school sector in 2013.

23 charter schools in Arizona, Texas, and

Washington, D.C.; three independent schools in

Silicon Valley, CA; Brooklyn, NY; and Washington,

D.C.; one international school in China.

Grades: K-12

Tuition: $24,000

Cost per pupil: Less than the cost of tuition

Cost savings at independent schools

Centralized curriculum development

Tuition covers only academics

Different “product lines”

One administrator

Centralized administrative functions

Good analytics about student needs

A “charter school mentality” about spending

The Equity Project

Public charter school

One in New York, NY

Grades 5-8

Revenue: $13,316 per student in public school funding (2011-2012)

Cost per pupil: $14,506

Cost savings

Smaller, less expensive physical plant

Larger class size

Few administrators

AltSchool

Network of micro-schools, for-profit, with a beneficial purpose (B-Corp).

Five schools in Bay Area; two more in San Francisco; one in New York.

Grades pre K-8

Tuition: between $20,875 and $28,250

Cost per pupil: less than the cost of tuition

(no 990; AltSchool is B-Corp)

Cost savings

Technology does administrative tasks

Smaller, less expensive physical plant

Few administrators

Few or no extracurricular programs

Blyth-Templeton Academy

For-profit, college prep

One in Washington, D.C.; 12 in Canada

Grades 9-12

Tuition: $14,205-$15,615; additional fees for

books, trips, labs, etc.

Cost per pupil: less than the cost of tuition (no

990)

Cost savings

Smaller, less expensive physical plant

Few administrators

Few or no extracurricular programs

Vertical integration of all school functions

Flexible scheduling program

Centralized curriculum development

Bridge International Academies

“Academy-in-a-box,” vertically integrated, for-profit

model

359 schools in Kenya

Nursery through primary school

Tuition: average cost per student per year: $105

Cost per pupil: equals the cost of tuition (no 990)

Cost savings

Smaller, less expensive physical plant

Few administrators

Few or no extracurricular programs

Vertical integration of all school functions

GEMS Academy

Private, for-profit, varying cost structures from

very low-cost to high-end premium schools

70+ schools in 19 countries on 4 continents;

two in the U.S. in Chicago

Grades: pre K-12 in U.S.

Tuition: $28,000-$36,000 in US; extra cost for

after-school enrichment and languages.

Cost per pupil: less than the cost of tuition (no

990)

Cost savings

Schools in U.S.

Vertical integration of all school functions

Centralized curriculum development

Schools outside of U.S.

Plant administration, extracurricular

programs, and costs vary with tier of school

$0 $5,000 $10,000 $15,000 $20,000

New York

Alaska

D.C.

New Jersey

Connecticut

Mississippi

Oklahoma

Arizona

Idaho

Utah

Public school cost per pupil (2013) H

igh

est

Lo

west

$19,818

$18,175

$17,953

$17,572

$16,631

$8,130

$7,672

$7,205

$6,791

$6,555

College student spending

Spending

Yale $177,314

Princeton $87,518

Dartmouth $82,101

Harvard $74,360

Williams $61,881

Amherst $53,975

Brown $48,849

Tufts $44,916

Technology to do administrative tasks

Smaller, less expensive physical plant

Larger class size

Few administrators

Few or no extracurricular programs

No lunch

Vertical integration of all school functions

Flexible scheduling and program

Centralized curriculum development

Cost-savings recap

Photo: Reuters

Who can afford our schools?

Percentage of families who can afford tuition of:

$12,000 $30,000 $40,000

Chicago 41% 21% 11%

Boston 50% 29% 17%

New York 34% 26% 15%

Washington,

D.C.

60% 37% 23%

Seattle 46% 23% 12%

The price break point

For Lakeside: 10% of gross income

Price break point (extrapolated from 2015 financial aid data)

Family income Ability to pay

(% of income)

Ability to pay

$$

Aid needed

(% of tuition)

Aid needed

$$

< 50K 0% $0 100% $30K

$50K - $100K 1 - 10% up to $10K 90% + $20K - $30K

$100K - $150K 10% $10 - $15K 50% - 67% $15K - $20K

$150K - $200K 10 - 15% $15 - $30K up to 50% $0 - $15

$200K - $300K 10 - 15% $20K + up to 33% $0 - $10K

$300K + >10% $30K 0% $0

Changes in independent school and

college tuitions compared to income Percentage of change, 1981-2013, adjusted for

inflation

INCOME TUITION

410%

487%

732%

3% 8% 12% 20% 49%

75%

0%

100%

200%

300%

400%

500%

600%

700%

800%

NAIS Privatecollege

Publiccollege

Firstquintile

Secondquintile

Thirdquintile

Fourthquintile

Topquintile

Top 5percent

Solutions

Open a microschool

Join Global Online Academy or a similar program

Do nothing and assume all is fine

Raise more money to cover costs

Mission-based budgeting

Direct

salaries and

benefits

Direct/indirect

program

budgets

Allocated

operating

expenses

Allocated

administrative

overhead

Total cost per

program

Core Academics $

9,926,159 $ 634,782 $ 2,596,187 $ 3,256,188 $ 16,413,316

Visual and Fine Arts $ 724,179 $ 81,536 $ 198,068 $ 196,068 $ 1,199,852

Performing Arts $

1,029,372 $ 94,563 $ 276,296 $ 273,506 $ 1,673,737

Physical Education $ 672,141 $ 51,704 $ 177,942 $ 176,145 $ 1,077,933

Outdoor Programs $ 315,352 $ 35,987 $ 86,370 $ 85,497 $ 523,207

Student/Family

Support

$

1,046,973 $ 81,482 $ 277,407 $ 274,606 $ 1,680,469

College Counseling $ 428,419 $ 38,883 $ 114,876 $ 113,716 $ 695,895

Global Programs $ 408,420 $ 521,541 $ 228,611 $ 226,303 $ 1,384,875

Athletics $

1,105,169 $ 356,962 $ 359,434 $ 355,805 $ 2,177,370

Financial Aid $ 6,432,500 $ 6,432,500

Mission-based budgeting

Global Online Academy

Online courses, grades 9-12

Enrollment: 500

Class size: 18 students max.

Teacher salary: $6,000 per semester course

taught,

no benefits Tuition: $500/semester course;

member schools pay dues $10K-$30K

Cost per pupil per course: $1,339

A Lakeside School Micro-school

October

2015

Total revenue $2,250,000 200 students; $11,250 tuition per student

Teacher pay $1,200,000 10 teachers

Admin pay $50,000 0.5 FTE administrator (principal, curriculum)

Staff pay $45,000 1.0 FTE part-time staff: bookkeeper, custodian, admin

assistant

Payroll taxes,

Benefits $323,750 Estimate 25% of payroll

Instructional

expenses $140,000 Estimate $700 per student

Professional

Development $10,000 Estimate $1,000 per teacher

Administrative

overhead $75,000

Hiring, travel, legal, property/liability insurance, audit,

office supplies, etc.

Occupancy overhead $406,250 Rent, utilities, phone, internet, copiers, maintenance

Total expense $2,250,000

Teachers perform all other duties: college counseling, scheduling, tech support, admin

functions, student support etc.

Fundraise for financial aid and start-up / facilities

Revenue and expense statement

Creative schedules

Four 10-week semesters

Two-hour classes

Academic day ends at 1 p.m.

Blended classroom

Online classes at home

Creative curricula

Differentiated learning

Project-based learning

Internships

The city as classroom

Interdisciplinary classes

Blended learning

Enroll for part of the day

Enroll for one or more of four semesters

Home-school for part of the day

Flexible attendance

The more students you teach, the more you earn

Bonuses

All teachers are administrators

One teacher, several schools

Creative personnel policies

Faculty pay:

Academically talented

Motivated

Diverse

Global citizens

The students we will serve

The Lakeside School micro-school

governance structure

South Lake Union Prep: A Lakeside School

Lakeside School at South Lake Union