September 2016 Educator Compensation: Context, Status, and Direction Matthew G. Springer

3 Themes 1.We spend a lot of money on k-12 public education 2.We spend a lot of that money on teachers 3.The way we spend this money is inefficient and the mechanisms we use are rigid

We spend a lot on k-12 public education

How much money did the United States spend on K-12public education during the school year? A.957,823,000 B.127,436,987,000 C.527,166,106,000 D.867,530,900,000 * U.S. Department of Education, National Center for Education Statistics, Biennial Survey of Education in the United States, through ; Statistics of State School Systems, and ; Revenues and Expenditures for Public Elementary and Secondary Education, ; and Common Core of Data (CCD), "National Public Education Financial Survey," through Constant dollars based on the Consumer Price Index, prepared by the Bureau of Labor Statistics, U.S. Department of Labor, adjusted to a school-year basis. NC spent just north of $12.6 billion

How much money did the United States spend on K-12public education over time? * U.S. Department of Education, National Center for Education Statistics, Biennial Survey of Education in the United States, through ; Statistics of State School Systems, and ; Revenues and Expenditures for Public Elementary and Secondary Education, ; and Common Core of Data (CCD), "National Public Education Financial Survey," through Constant dollars based on the Consumer Price Index, prepared by the Bureau of Labor Statistics, U.S. Department of Labor, adjusted to a school-year basis. (This table was prepared September 2016.)

A.$6,224 B.$8,342 C.$9,446 D.$15,435 How much money did the United States spend on K-12public education per pupil during the school year? WRONG!!!! $10,763 * U.S. Department of Education, National Center for Education Statistics, Biennial Survey of Education in the United States, through ;Statistics of State School Systems, through ; Revenues and Expenditures for Public Elementary and Secondary Education, through ; and Common Core of Data (CCD), "National Public Education Financial Survey," through (This information was prepared September 2016.) Constant dollars based on the Consumer Price Index, prepared by the Bureau of Labor Statistics, U.S. Department of Labor, adjusted to a school-year basis.

How much money did the United States spend on K-12public education over time? * U.S. Department of Education, National Center for Education Statistics, Biennial Survey of Education in the United States, through ;Statistics of State School Systems, through ; Revenues and Expenditures for Public Elementary and Secondary Education, through ; and Common Core of Data (CCD), "National Public Education Financial Survey," through (This information was prepared September 2016) Constant dollars based on the Consumer Price Index, prepared by the Bureau of Labor Statistics, U.S. Department of Labor, adjusted to a school-year basis.

Annual expenditures per FTE student for elementary and secondaryeducation in selected OECD countries, by GDP per capita (2010) * Organization for Economic Cooperation and Development (OECD), Education at a Glance, 2008 through (This figure was prepared February 2015.) Includes all expenditures by public education institutions (such as administration, instruction, ancillary services for students and families, and research and development) unless otherwise noted. Data adjusted to U.S. dollars using the purchasing power parity (PPP) index. Constant dollars based on the Consumer Price Index, prepared by the Bureau of Labor Statistics, U.S. Department of Labor.

Annual expenditures per FTE student for elementary and secondaryeducation in selected OECD countries, by GDP per capita (2010) * Organization for Economic Cooperation and Development (OECD), Education at a Glance, 2008 through (This figure was prepared February 2015.) Includes all expenditures by public education institutions (such as administration, instruction, ancillary services for students and families, and research and development) unless otherwise noted. Data adjusted to U.S. dollars using the purchasing power parity (PPP) index. Constant dollars based on the Consumer Price Index, prepared by the Bureau of Labor Statistics, U.S. Department of Labor.

Annual expenditures per FTE student for elementary and secondaryeducation in selected OECD countries, by GDP per capita (2010) * Organization for Economic Cooperation and Development (OECD), Education at a Glance, 2008 through (This figure was prepared February 2015.) Includes all expenditures by public education institutions (such as administration, instruction, ancillary services for students and families, and research and development) unless otherwise noted. Data adjusted to U.S. dollars using the purchasing power parity (PPP) index. Constant dollars based on the Consumer Price Index, prepared by the Bureau of Labor Statistics, U.S. Department of Labor.

We spend a lot of that money on k-12 public school teachers

* U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," through This information was prepared September Current expenditure by function

* U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," through This information was prepared September Current expenditure by function

We need to create less rigid and more efficient compensation practices (current remuneration practices promote equality, resulting in disturbing inequities)

The Single Salary Schedule 15

Salary Schedule Suppresses Pay Differentials by Field Source: Podgursky, M. and Springer, M.G. (2012). Teacher Compensation Systems in the United States K-12 Public School System. National Tax Journal, 64, Elementary EducationMathematics

Incentive approach to compensation 17 Types of reforms can be classified into a handful of categories. Pay for performance / merit pay Knowledge- and skill-based pay Career ladders Hard-to-staff subjects Hard-to-staff schools Recruitment and retention awards Awards based on predetermined tasks /outcomes Market-oriented Source: Springer, M.G. (2009). Performance Incentives: Their Growing Impact on American K-12 Education. Washington, DC: Brookings Institution Press.

Arguments for/against incentive pay Arguments for… o Motivational effect o Selection or compositional effect Arguments against… o Crowding-out of intrinsic rewards o Lack appropriate measures and technical capacity o Empirical evidence is inconclusive

Why do I argue pay practices promote equality, resulting in disturbing inequities?

Problem Highly effective teachers in high priority schools are 5 times more likely to exit Proposed Solution Offer $5,000 retention bonuses for highly effective teacher to stay Finding Retention bonus increases retention by approximately 23 percent This is huge. Let me show you why. Source: Springer, M.G., Rodriguez, L., Swain, W. (2015). Effective Teacher Retention Bonuses: Evidence from Tennessee. Educational Evaluation and Policy Analysis, 38(2),

Average TN teacher Average Level 5 teacher in priority school Average teacher hired by priority school 1.7 σ difference Source: Springer, M.G., Rodriguez, L., Swain, W. (2015). Effective Teacher Retention Bonuses: Evidence from Tennessee. Educational Evaluation and Policy Analysis, 38(2),

Compensation practices promote equality, resulting in disturbing inequities ? Taught by teacher at or above 75 th percentile Taught by teacher at or below the 25 th percentile

Current compensation practices are rigid and inefficient. Current compensation practices promote equality, resulting in disturbing inequities. We need to find a better way to (a) respond to labor market realities and (b) reward and recognize our highest performers. Concluding Thoughts

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