paying teachers for performance: november 2009
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Paying Teachers for PerformancePaying Teachers for Performance
An Overview and Update of ProgramsAn Overview and Update of Programsin Colorado and Other Statesin Colorado and Other States
Prepared February 2008Prepared February 2008
Updated November 2009Updated November 2009
Ben DeGrow, Education Policy Analyst, Independence Institute
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Speaking & Writing onSpeaking & Writing onTeacher Performance PayTeacher Performance Pay
American Legislative Exchange Council
Legislative Briefing and Testimony
Good Day Colorado (Fox31)
News Radio 850 KOA Amy Oliver Show (1310 KFKA)
School Reform News (national)
Education News Colorado Various community groups & forums
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OverviewOverview
1) Teacher Quality &
Compensation Models
2) Compensation Reform inColorado
3) Compensation ReformNationwide
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Teacher Quality & Compensation ModelsTeacher Quality & Compensation Models
Teacher Quality = Single Most ImportantEducational Factor (Public Policy) Fewer top-notch students are being attracted to the
teaching profession Steady decline since the 1960s
Not an indictment of individual efforts orachievements
Part of the problem is a compensation system thatrewards career longevity over professional excellence
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Teacher Quality Makes a Difference One year of a great teacher vs. an average
teacher is worth 5 percentile points in test
scores Three years in the classroom of a great
teacher vs. a poor teacher is worth 50
percentile points in test scores
Teacher Quality & Compensation ModelsTeacher Quality & Compensation Models
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SINGLE SALARY SCHEDULE(steps and lanes)
1921: Denver & Des Moines become first 2school districts on single salary schedule
Since 1950, nearly all districts pay teachersbased on YEARS & CREDIT HOURS
On average, each years gain + Cost of Living= 6% pay raise, regardless of teacher quality
Teacher Quality & Compensation ModelsTeacher Quality & Compensation Models
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SINGLE SALARY SCHEDULE(steps and lanes)
Designed primarily to eliminate inequities for femaleteachers entering workforce
This industrial model ignores highly relevantdifferences (e.g., success with students, difficulty ofassignment, scarcity)
The single-salary schedule is highly inefficient andcant be sustained indefinitely
No correlation of performance with advanced degrees orexperience after the first few years Teacher raises based on seniority & credentials make up
roughly 12 percent of school district budgets
Teacher Quality & Compensation ModelsTeacher Quality & Compensation Models
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Teacher Quality & Compensation ModelsTeacher Quality & Compensation Models
Divided Teacher Opinion 38% of teachers favored rewards based on
students standardized score achievement
48% of teachers favored rewards based on value-added assessment, orstudent growth
57% of teachers favored rewards based on NationalBoard certification
67% of teachers favored rewards based on time
commitments and work ethics 70% of teachers favored rewards based on tougher
school assignments
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Pay-for-Performance: Some Policy Questions How will performance be measured?
What goal is trying to be achieved?
Bonuses vs. permanent salary increases? How many rewards can be paid out?
How significant will the rewards be?
Rewards to individuals or groups? Whose input should dictate the program?
How will the program be funded now & future?
Teacher Quality & Compensation Models
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OverviewOverview
1) Teacher Quality &Compensation Models
2) Compensation Reform in
Colorado
3) Compensation ReformNationwide
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Compensation Reform in ColoradoCompensation Reform in Colorado
Strongholds of Teacher Compensation ReformDOUGLAS COUNTY Performance-Based Pay Plan
(1994): performance-, knowledge-, & skills-based pay;
responsibility pay; group incentivesEAGLE COUNTY Teacher Advancement Program (2002)
ADAMS 14 [COMMERCE CITY]: Group bonuses basedon meeting CSAP target growth
DENVER PROCOMP (2006)
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Compensation Reform in ColoradoCompensation Reform in Colorado
Charter School Performance Pay Liberty Common School (Fort Collins, K-8) Borrowed from business model
Based on performance evaluations in 6 areas(measuring longitudinal student growth onassessments is under investigation)
Emphasis on performance & results, not on
activity or effort Embraces subjectivity, recognizes limitations
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Compensation Reform in ColoradoCompensation Reform in Colorado
Charter School Performance Pay The Classical Academy (Colo Springs, K-12) Started out as pure merit pay, evolved
2nd generation Strategic Compensation 3 Factors = Merit, Market, Loyalty
Moved to more objective, predictable criteria
Also recognizes preparation, compatibility withschool philosophy, extra contributions, teamworkand leadership
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Compensation Reform in ColoradoCompensation Reform in Colorado
Charter School Performance Pay KIPP-Sunshine Peak Academy (Denver, K-8)NEW: 2009-2010 School Year
Three pathways: New, Associate, Senior Teachers
Performance pay scale: Four indicatorsStudent achievement / growth (50%)
Overall school performance: DPS framework (20%)
Demonstrated competencies in pathway (20%)
Commitment to excellence, model school values (10%)
Awarded as year-end bonuses
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Compensation Reform in ColoradoCompensation Reform in Colorado
Eagle County in Transition 1st school district in Colorado completely off
the single-salary schedule
Version 2.0 (2007): revised technical designfor assessments; simplified, transparent Up to 4% bonus based on student assessments
Up to 4% salary raise based on evaluations
Other negotiated/inflationary increases available
Sustainable: 1% local override, TIF grant
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Compensation Reform in ColoradoCompensation Reform in Colorado
Fort Lupton Teacher Incentive Fund (2007) Federal TIF grant sought as part of effort to
reduce massive teacher turnover (all high-
poverty Title I Schools) Group bonuses available for schools that meet
growth targets in AYP, CSAP ($2,000 cap) including improvements in subgroups
Includes rewards for principals Year 3 of 5-year grant
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Compensation Reform in ColoradoCompensation Reform in Colorado
Harrisons REAL Program (2007) Brainchild of Superintendent Mike Miles Three types of rewards:
Group bonuses for meeting AYP growth targets (up to$1,000 / teacher) Tuition reimbursements for coursework that enhances
teaching of Math and Literacy across curriculum, andfor hard-to-fill endorsements (e.g. Special Education)
Distinguished Performance evaluations (up to $3,000) Annual caps ($4,000/teacher; $5,000/principal) Primary funding: Federal TIF Grant
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OverviewOverview
1) Teacher Quality &Compensation Models
2) Compensation Reform inColorado
3) Compensation ReformNationwide
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Compensation Reform NationwideCompensation Reform Nationwide
1980s Merit pay & career ladderprograms many tried, most abandoned
Missouri, Arizona
1990s School-wide award programs
Georgia, North Carolina
2000s New wave of reform
Teacher Advancement Program
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Compensation Reform NationwideCompensation Reform Nationwide
Minnesota Q-Comp Program
Only full-fledged, statewide adoption of TeacherAdvancement Program (TAP) model
Includes Multiple Career Paths, EmbeddedProfessional Development, and Peer Review
Uniquely designed as categorical general fundrevenue: sustainable financing
Up to $190/pupil in state aid 39 Districts & 21 Charter Schools (Jan 2008)
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Compensation Reform NationwideCompensation Reform Nationwide
Texas: District Awards for TeacherExcellence (2006)
Non-competitive grants to school districts that
develop their own performance pay plan (oradopt the Teacher Advancement Program)
At least 60% of funds to reward teachers and
principals for improving student performance
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Compensation Reform NationwideCompensation Reform Nationwide
Florida: From STAR to MAP Conditional state grants to school districts
STAR (Special Teachers Are Rewarded, June 2006): State test must be primary evaluation factor
Awards limited to top 25% of teachers
Teacher association buy-in
MAP (Merit Award Program, March 2007): Student performance at least 60% of factor
No cap on number of teachers Plans subject to collective bargaining
One-third of districts participate: program fundingcontingent on revenues available to state budget
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Compensation Reform NationwideCompensation Reform Nationwide
Lessons from Little Rocks AchievementChallenge Pilot Project
Merit pay can have real, measurable impact on
student academic growth (reading & math) No evidence of more innovation, harder work from
teachers (common pro arguments)
No evidence of divisive competition, negative work
environment, or avoiding low-performing students(common anti arguments)
Transparency is necessary when implementingperformance pay programs
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SUMMARYSUMMARY
1. The single salary schedule is unsustainable,not aligned with 21st century education goals
2. Supporting the concept of performance pay is
not enough3. Improved assessment and evaluation tools areneeded
4. You get what you pay for
5. In most contexts, employee buy-in will becrucial if not at first, eventually
6. Its time to re-think the debate
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SourcesSources
William L. Sanders and June C. Rivers, Cumulative and Residual Effects ofTeachers on Future Student Academic Achievement(1996)
Bryan C. Hassel, Better Pay For Better Teaching: Making TeacherCompensation Pay Off in the Age of Accountability(2002),http://www.ppionline.org/documents/Hassel_May02.pdf
National Council on Teacher Quality, Increasing the Odds: How Good PoliciesCan Yield Better Teachers, http://www.nctq.org/nctq/images/nctq_io.pdf
Eric A. Hanushek, John F. Kain, Steven G. Rifkin, The impact of individualteachers on student achievement: Evidence from panel data, Econometrica(March 2005)
Marguerite Roza, Frozen Assets: Rethinking Teacher Contracts Could FreeBillions for School Reform (2007),http://www.educationsector.org/research/research_show.htm?doc_id=436576
Robert Holland, Merit Pay for Teachers: Can Common Sense Come to PublicEducation?(2005), http://www.lexingtoninstitute.org/docs/708.pdf
The Teaching Commission, Teaching at Risk: A Call to Action (2006),http://www.policypointers.org/page_58.htm
http://www.ppionline.org/documents/Hassel_May02.pdfhttp://www.nctq.org/nctq/images/nctq_io.pdfhttp://www.educationsector.org/research/research_show.htm?doc_id=436576http://www.lexingtoninstitute.org/docs/708.pdfhttp://www.policypointers.org/page_58.htmhttp://www.policypointers.org/page_58.htmhttp://www.lexingtoninstitute.org/docs/708.pdfhttp://www.educationsector.org/research/research_show.htm?doc_id=436576http://www.nctq.org/nctq/images/nctq_io.pdfhttp://www.ppionline.org/documents/Hassel_May02.pdf -
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More SourcesMore Sources
Frederick M. Hess and Martin R. West,A Better Bargain: Overhauling TeacherCollective Bargaining for the 21st Century(2006), http://www.ksg.harvard.edu/pepg/PDF/Papers/BetterBargain.pdf
Dan Goldhaber, Teacher Pay Reforms: The Political Implications of RecentResearch (2006),http://www.americanprogress.org/issues/2006/12/pdf/teacher_pay_report.pdf
Center for Teaching Quality, Performance Pay for Teachers: Designing a
System that Students Deserve (2007),http://teacherleaders.org/teachersolutions/index.php Emily A. Hassel and Bryan C. Hassel, Improving Teaching Through Pay for
Contribution (2008),http://www.nga.org/Files/pdf/0711IMPROVINGTEACHING.PDF
Public Agenda Survey, Stand by Me: What Teachers Really Think aboutUnions, Merit Pay, and Other Professional Matters (2003),
http://www.publicagenda.org/specials/standbyme/standbyme.htm Center for Educator Compensation Reform, U.S. Dept. of Education, http://
cecr.ed.gov
http://www.ksg.harvard.edu/pepg/PDF/Papers/BetterBargain.pdfhttp://www.ksg.harvard.edu/pepg/PDF/Papers/BetterBargain.pdfhttp://www.americanprogress.org/issues/2006/12/pdf/teacher_pay_report.pdfhttp://teacherleaders.org/teachersolutions/index.phphttp://www.nga.org/Files/pdf/0711IMPROVINGTEACHING.PDFhttp://www.publicagenda.org/specials/standbyme/standbyme.htmhttp://cecr.ed.gov/http://cecr.ed.gov/http://cecr.ed.gov/http://cecr.ed.gov/http://www.publicagenda.org/specials/standbyme/standbyme.htmhttp://www.nga.org/Files/pdf/0711IMPROVINGTEACHING.PDFhttp://teacherleaders.org/teachersolutions/index.phphttp://www.americanprogress.org/issues/2006/12/pdf/teacher_pay_report.pdfhttp://www.ksg.harvard.edu/pepg/PDF/Papers/BetterBargain.pdfhttp://www.ksg.harvard.edu/pepg/PDF/Papers/BetterBargain.pdf -
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More SourcesMore Sources
National Institute for Excellence in Teaching, http://www.talentedteachers.org Eagle County Teacher Advancement Program, http://
eagleschools.net/teachers/teacheradvancementprogram Fort Lupton Teacher Incentive Fund Program, http://ftlupton.k12.co.us Minnesota Q-Comp Program,
http://children.state.mn.us/MDE/Teacher_Support/QComp/index.htm
Texas Educator Excellence Grant Program,http://www.tea.state.tx.us/opge/disc/EducatorExcellenceAward/EdExcellenceAwar
Florida Merit Award Program (MAP), http://www.fldoe.org/PerformancePay/ David Figlio and Lawrence Kenny, Individual Teacher Incentives and Student
Performance, National Bureau of Economic Research Working Paper No.W12627
Year Two Evaluation of the Achievement Challenge Pilot Project in the LittleRock Public School District, http://uark.edu/ua/der/Research/merit_pay/year_two.html
http://www.talentedteachers.org/http://eagleschools.net/teachers/teacheradvancementprogramhttp://eagleschools.net/teachers/teacheradvancementprogramhttp://ftlupton.k12.co.us/http://children.state.mn.us/MDE/Teacher_Support/QComp/index.htmhttp://www.tea.state.tx.us/opge/disc/EducatorExcellenceAward/EdExcellenceAward_RFA.htmlhttp://www.fldoe.org/PerformancePay/http://uark.edu/ua/der/Research/merit_pay/year_two.htmlhttp://uark.edu/ua/der/Research/merit_pay/year_two.htmlhttp://uark.edu/ua/der/Research/merit_pay/year_two.htmlhttp://uark.edu/ua/der/Research/merit_pay/year_two.htmlhttp://www.fldoe.org/PerformancePay/http://www.tea.state.tx.us/opge/disc/EducatorExcellenceAward/EdExcellenceAward_RFA.htmlhttp://children.state.mn.us/MDE/Teacher_Support/QComp/index.htmhttp://ftlupton.k12.co.us/http://eagleschools.net/teachers/teacheradvancementprogramhttp://eagleschools.net/teachers/teacheradvancementprogramhttp://www.talentedteachers.org/http://www.talentedteachers.org/