1. Arizona’s Performance Based Compensation National Conference on Teacher Compensation and Evaluation Chicago, IL November 21-22, 2002 Penny Kotterman, President Arizona Education Association

2. The Arizona Picture: Major Legislative and Policy Initiatives

3. Setting the Context n Right to Work State –Local bargaining in the public sector is discretionary n Public Schools –226 School districts, 300+ Charter Schools –900,000 students –50,000 teachers –Average Salary $35,000

4. Key Elements n Sales Tax Revenue:$275 million in first year PLUS n School Lands Trust:$13 million first year supplemental PLUS n Inflation increase:2% over prior budget year PLUS n Student population growth: Per pupil increase in base funding each year

5. Teacher Compensation n Estimated increase of $3,500 per teacher n Traditional Salary (base salary) is estimated at 92-98% of total salary n Performance Based compensation is estimated at 2%-8% of total salary

6. Provisions and Premises n All districts and all schools are required to have Performance-based Pay –Specified funding can only be used for Performance-based Pay n Districts with Career Ladders meet provisions n Participation in plan by individuals is optional - either procedurally or structurally n Performance-based Pay plans may supplement current salary schedules

7. Arizona Career Ladder Provisions n Established a multi-level system of teaching n Provides opportunities for continued professional advancement n Requires: –Improved or advance teaching skills –Higher level instructional responsibilities –Demonstration of pupil academic programs n Ensures placement is based on multiple measures of teacher performance n Requires teachers to be involved and supportive of the process

8. Performance-based Pay Goals n Performance-based pay as one of several mechanisms to affect instruction and student academic progress – Clearly defined goals and expectations – Provides teachers with opportunities for clear feedback – Provides opportunities for the development of knowledge and skills – Rewards teachers who develop knowledge and skills needed to meet organizational goals and expectations

9. Outcomes n Strengthen the teaching profession n Raise teacher salaries n Insure quality teachers in every classroom

10. Performance Based Compensation - What’s Happening Now? n Developed and approved at the local district level, or Charter School level n Experiences range from arbitrary and contentious to cooperative and collaborative n Plans are built off of base salary and most have site incentives as the key component – (www.arizonaea.org, Issues, Prop 301 Update, District PBP Plans)www.arizonaea.org

11. Non-Classroom Expenditures 12.5% n Building maintenance and operation 12.5% 10.8% n Administration - 10.8% Over 1/2 n Combined = Over 1/2 of all non-classroom expenditures

12. Factors associated with higher Classroom Spending n District size n Teacher Salaries n Teacher Experience

13. Where does the Money Go? n 76% of all Classroom instruction $ = Base Contract Teacher salaries  n For every $1000 paid to teachers annually  0.3% increase in Classroom $

14. What does the Future Hold? n Economic downturn has created enhanced skepticism –Shortfalls in current revenues have delayed or reduced payments in some instances –’03 budget is unsettled and includes some education cuts to make up the $1 billion shortfall n Passage of legislation, member and community support could set groundwork for enhanced revenue in the future –Economic impact studies of long term cost –Formation of the Arizona Business Education Coalition n Political environment is uncertain

15. Key AEA Initiatives/Activities n Public Policy and Community Engagement –Legislative advocacy, partnerships with the ADE, business groups, and community groups n Quality Teaching and Learning –Focus on the connection to Arizona Learns and ESEA (Priority Schools and Accountability) n E 3 -- Professional Development and Teacher Evaluation Instrument

17. Performance-based Pay in the Mesa Public School District Ann Rifleman, Teacher Mesa Public Schools

18. Mesa’s Performance-based Pay n What have we developed so far? n What have we learned? n What changes are we contemplating for the future?