1. Weather Report for SES: Storm Warnings are Posted!!! Steven Pines, Executive Director Education Industry Association June 8, 2010

2. About the Education Industry Association (EIA) The leading trade association for private providers of preK-12 education services, products, curricula and technology.  Advocacy and public relations  B2B ventures, networking, professional development  Special interest groups –SES tutoring, Innovations in Education, Online Learning; Special & Alt. Education

3. Overview Current Threats to SES and Why USED Actions to Date Congressional Actions/Timeline Forecast What You Can Do to Preserve SES

4. No Child Left Behind (NCLB) Created/Expanded Markets for Private Sector Supplemental Educational Services (SES) Professional development Assessment and curricula Comprehensive school reform/restructuring Special/Alternative Education Drop-out prevention/recovery Technology Data and student information systems WILL ESEA BE AS OPEN TO PRIVATE SECTOR?

5. Cautionary Flags for Private Sector Miller’s 2007 “Discussion” draft of NCLB with restrictions on vendors-as potential template for ESEA re-authorization Less bi-partisanship in House; Rep. Kline ranking minority new to committee Sen. Harkin as HELP Chair brings uncertain leadership; strong on IDEA and chairs Approp’s Ed. subcomm. Duncan’s bias for non-profits; exclusion of for-profits as eligible i-3 grantees Dept of ED waivers on SES/Choice for ARRA $ under banner of “freedom” and “flexibility” for districts Congressional Democrats/staff cynical about private sector in public education

6. Threats to SES-Districts Do not support 20% set-side Lack of control over $ and providers Budgetary pressure Little felt impact on classroom/AYP testing No admin $ to manage program Views SES as Punitive- Defensive

7. Threats to SES- Providers Aggressive Marketing and Loose Ethics--- Both Self-Inflicted Wounds Little Communication with Schools/Parents Too Little Hours of Service Impacts Not Reflected in State AYP Tests Inconsistent Program and Staff Quality

8. USED Actions Waivers to Title 1-SES for ARRA $ Waived SES for SIG $ Waived Regs for LEA as Provider RTTT Grantees Obtain NCLB Waivers Future Title 1-SES Waivers?? e.g.State of MA and USED Rejection of Request as Precedent?

9. Administration’s BluePrint for ESEA Guidance to Congress on Reauthorization New Accountability Standard-College and Career Readiness; new assessments of growth/proficiency Creates 3 Categories of Schools and Interventions: –Rewards for top 10% of schools –Flexibility for middle 85% of schools –Prescriptive turn-around measures for bottom 5% SES as an option for bottom 5% No set-aside of Title 1

10. Congressional Action on ESEA Turn-over in House and Senate Staff from NCLB “days”-little institutional memory Key Players House: Chairman George Miller (D-CA) and Ranking Minority John Kline (R-MN) --2007 Discussion Draft of NCLB Senate: Chairman Tom Harkin (D-IA) and Ranking Minority Mike Enzi (R-WY) --Heads Subcomm on Approp’s for Ed.

11. Congress-Cont’d Staff using Blueprint as format but will devise its own policies. House D’s don’t like emphasis on turn-around models and too much consolidation of formula-funded programs; R’s drafting own bill with SES. Bi-partisanship is still the goal. Miller—Synchronize with Senate’s timetable, that is working slower Kline and others—No artificial timeline for bill “Miracle” to complete in 2010; Why?: Election Year Politics, Short Session, Other Bills: Finance Overhaul, Climate Change/Energy Big ESEA issues are Teacher-School Leader Quality, Merit Pay, Standards/Accountability System and consequences-Interventions. SES is Not Favored by Dem’s (no data on performance) but Rep’s Like It for Parent Choice Extended Learning Time (XLT) is Favored by D’s- Possibly Funded by Set-aside – threat to SES and 20%.

12. Improvements to SES ? Note: Not Official EIA Policies, But Are Considerations Tougher State Approval-Evaluation Standards Better Alignment of Tutoring to Classroom Raise Tutor Quality/Credentials Reduce Set-aside Keep Parent Choice But Enhance LEA Control Increase “MinimumDosage”- More Hours Real Consequences for Bad Ethics More Admin $ for LEAs/SEAs

13. Forecast Reauthorization Unlikely Completed in 2010. Bill Must be Completed by July In Comm. for Sept Floor Vote. SES Likely to Continue for 2010-2011 School Year with Increased LEA as-Provider Competition. Impact of Mid-term Elections on Reauthorization: More R Clout in Negotiations with D’s or New Leadership in House Delay is Good For SES-Advocates When ESEA is Reauthorized in 2011,SES May End or Be Restricted to NonProfits or LEAs Unless You Act Today. The Solution is More Political Than Policy.

14. What You Can Do? Perform at highest standards: ethics and program quality Engage Members of Congress and USED with the message that you help deliver results for students and schools Join EIA to amplify the industry’s message. Attend EDVentures Conference July 22 in Chicago to get the latest ESEA info. EIA has launched $1.5 million Campaign to preserve and improve SES thru Tutor Our Children, Inc (TOC) to position fight as civil rights issue for low-income students. Join the Campaign to Save SES TODAY. www.educationindustry.org