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The Rise of Decentralized Education Policy
Collapse of Macro Policy Initiatives and the Rise of Decentralized
Education Policy in the United States
James Keatin
June !"# "$!"
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The Rise of Decentralized Education Policy
%&stract
'his paper illuminates the underlyin trend of decentralization of education(
'he potential for a mass e)odus a*ay from pu&lic education could have a
revolutionary impact on society( +ith Internet technoloy and ro*in
discontent *ith pu&lic education as a catalyst# a po*erful irreversi&le trend
to*ard home schoolin has emered( %ccordin to statistics# it is clear that
lare &ureaucratic federally manaed educational system is neither efficient nor
productive( Investin in education is &est left to parents or communities rather
than the national overnment( 'his is &einnin of the end of the socialist
education model practiced in +estern countries over the last century( It is also
the &einnin of mass customization of education(
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The Rise of Decentralized Education Policy
%s school district consolidation persists the evidence indicates that
consolidated districts are more e)pensive to maintain# result in lo*er student
performance# and deter learnin( ,Co)# "$!$- If *e can infer a neative
relationship &et*een the consolidation of school districts and measurements of
performance and productivity then ho* much reater *ill this relationship hold
as the model is e)panded to include a nation*ide system *ith a lare
&ureaucratic command and control center such as the U(S( Department of
Education and an authoritarian policy implementation reime.
Economies of scale favor manufacturin lare /uantities of products for
mass consumption since the cost per unit decreases as fi)ed costs &ecome
marinally lo*er as a percentae of the costs incurred in producin a product(
'his economic reality cannot hold in education *here different needs and values
necessitate different educational outcomes and strateies( In simpler terms# one
size does not fit all(
'he last one hundred years has seen educational policy in the U(S( tric0lin
do*n from Ivy 1eaue university administrators and industrial oliarchs(
2riinatin from small localized one room school &uildins# pu&lic education in
the U(S( today is institutionalized# &ureaucratic# inefficient# and under
3
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The Rise of Decentralized Education Policy
performin( In Decem&er "$!$ the US school system fell in educational
ran0ins *orld*ide( 3'he three4yearly 2ECD Proramme for International
Student %ssessment ,PIS%- report# *hich compares the 0no*lede and s0ills of
!54year4olds in 6$ countries around the *orld# ran0ed the United States !7th out
of 87 2ECD countries for readin s0ills# !6th for science and a &elo*4averae
"5th for mathematics(3 , 9eitvoel#"$!$- US Education Secretary %rne Duncan
said# 3'his is an a&solute *a0e4up call for %merica#3 and 3'he results are
e)traordinarily challenin to us and *e have to deal *ith the &rutal truth( +e
have to et much more serious a&out investin in education(3 ,%rmario# "$!$-
'he term investment usually means that the investor e)pects a positive
return on investment( :or the U(S( educational system# the return has &een
neative and steadily decreasin as po*er is consolidated and policy is
implemented from the top do*n( %ccordin to statistics# it is clear that lare
&ureaucratic federally manaed educational system is neither efficient nor
productive( Investin in education is &est left to parents or communities rather
than the national overnment( Statistics sho* a eneral decline in the
participation rates of the lare pu&lic education schools( ;omeschoolin is the
fastest ro*in sector in U(S( education( ,<oyd = <ichao# "$!"- %s another
alternative to the traditional model# universities are &einnin to offer online
hih school diplomas( ,Simon# "$!"-
4
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The Rise of Decentralized Education Policy
Internet technoloy has finally ena&led telecommutin alternatives for
students( 2ver&urdened ta) payers no loner have to support these overnment
institutions as the Internet has vastly increased the choices availa&le( 'he failed
centralized command and control policies oriinatin from industrial titans and
ivy leaue university administrators are &ein replaced &y e)cellent
decentralized initiatives despite the most challenin circumstances(
Pu&lic education in the U(S( is almost as old as the country itself( Some
nota&le events in educational policy include the Pennsylvania Constitution of
!6>$ callin for free education of poor children and the first pu&lic hih school
openin in the U(S( in !?"$( %lthouh there *ere many landmar0 events in the
history of pu&lic education such as racial interation# ta) payer revolts# Enlish
lanuae enforcement# and policy ad@ustments# the theme throuhout the history
of the U(S( pu&lic education system has &een one of consolidation( Pu&lic
schools moved a*ay from locally controlled institutions to*ard the un*ieldy
disoranized &ureaucratic laress of today(
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The Rise of Decentralized Education Policy
The origin of the American project of local control lies in a delierate
attempt to protect the sphere of education from eing colonized y a!
potentially tyrannical go"ernment# $itizens% organized in to&nships% &ould eest positioned to dedicate the appropriate amount of time% resources% and
energy to the education of the young# 'y cutting the ties et&een political
go"ernment and pulic education that ecame so strong in Europe% the
(nited )tates had opted for a singular departure in the construction of
education go"ernance# *et% in one of those parado+ical turns that &e often
oser"e in history% protecting the system against go"ernment y placing it
under the direct control of the people produced in time its e+act opposite#
,-eyer% 2./.0
% chorus of educators have alerted the pu&lic over the years a&out the
sustaina&ility of the educational &ureaucracy in the United States( +ashinton
D(C( schools chancellor# Michelle %( Rhee *ho also heads the oranization
Students:irst indicated that# A;avin run a lare pu&lic school system# I can tell
you that a lot of thins the District does ma0e a&solutely no sense *hatsoever(
%nd so it *as an incredi&ly frustratin environment for a hih4performin#
motivated principal or teacher to *or0 in# oftentimes(B ,'ur/ue# "$!!-
Some have one as far as to arue that the U(S( pu&lic school system has
&ecome a socialist practice( %l&ert Shan0er# *hile head of the %merican
:ederation of 'eachers &oldly proclaimed# AIts time to admit that pu&lic
education operates li0e a planned economy# a &ureaucratic system in *hich
every&odys role is spelled out in advance and there are fe* incentives for
innovation and productivity( Its no surprise that our school system doesnt
improve it more resem&les the communist economy than our o*n mar0et
1
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The Rise of Decentralized Education Policy
economy(3 %lthouh these statements may seem radical to some# the *ords of
Karl Mar) illuminate the meanin of communist education *hen he said# A'he
education of all children# from the moment that they can et alon *ithout a
mothers care# shall &e in state institutions at state e)pense(B Reardless of
semantic and connotative meanins of socialism and communism# there can
little dou&t that centralized state plannin has created a massive unresponsive
pu&lic education &ureaucracy hardly fle)i&le enouh to adapt to chanes# too
lare to reconize opportunities# too &ureaucratic to &e efficient# and too slo* to
implement policy initiatives( :urthermore# the U(S( educational &ureaucracy
enforces strict teacher certification re/uirements *hich protect the &ureaucracy
from competition from uncertified &ut potentially more productive teachers(
Professor 'homas So*ell &lames the principals and teachers for
educational failure(
At the heart of the prolem of educational failure is the lo& academic uality
of the people &ho ecome teachers and principals# This lo& academic uality
has een documented y empirical research so many times% o"er so many
years% that it is incredile ho& this crucial fact gets o"erlooed again and
again in discussions of the prolems of our schools#
,So*ell#"$$"-
2ne reason &esides certification o&stacles for this lac0 of /uality personnel
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The Rise of Decentralized Education Policy
in the lo*er ran0s of the pu&lic education monolith is in part due to the clear
lac0 of incentives for innovative or hihly productive teachin *hich is more of
a reflection on the policy administrators rather than the educators themselves(
Pu&lic school teachers receive salaries !>(8 lo*er than private *or0ers *ith a
similar educational &ac0round( ,<is = Rich*ine# "$!!-
Political rhetoric a&out Ainvestin in educationB has &een around for a lon
time and al*ays seems to suest that money is the pro&lem rather than a
re4enineerin of the entire educational system( U(S( Secretary of Education
%rne Duncan said( AIf *e *ant to strenthen the %merican *or0force# *e must
continue to invest in education( F 'he U(S( Department of Education is
re/uestin GH>(? &illion in discretionary fundin for "$!8# an increase of G!(6
&illion or "(5 percent from "$!"( ,ed(ov# "$!"- Statistics indicate that the
economic la* of diminishin returns ensures that every inflation ad@usted
dollar spent to improve the U(S( pu&lic educational system *ill produce
marinally lo*er returns( Educational e)penditures continue to rise &ut
performance remains averae at &est(
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The Rise of Decentralized Education Policy
%fter ad@ustment for inflation# current e)penditures per student in fall
enrollment at pu&lic schools rose durin the !>?$s# remained sta&le durin the
first part of the !>>$s# and rose aain after !>>">8( 'here *as an increase of
86 percent from !>?$?! to !>>$>! a chane of less than ! percent from
!>>$>! to !>>7>5 ,*hich resulted from small decreases at the &einnin of
this period# follo*ed &y small increases after !>>">8- and an increase of 8"
percent from !>>7>5 to "$$6$?( In "$$6$?# current e)penditures per student
in fall enrollment *ere G!$#">6 in unad@usted dollars( In "$$6$?# some 55
percent of students in pu&lic schools *ere transported at pu&lic e)pense at a cost
of G?57 per pupil transported# also in unad@usted dollars(
(U(S( Department of Education# ational Center for Education Statistics# "$!!-
6
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The Rise of Decentralized Education Policy
:iure ! %nnual e)penditures per student for elementary and secondary
education in selected 2ranization for Economic Cooperation and Development
,2ECD- countries# &y ross domestic product ,LDP- per capita "$$?
(Source: US Department of Education)
:iure " %nnual e)penditures per student for postsecondary education in
selected 2ranization for Economic Cooperation and Development ,2ECD-
countries# &y ross domestic product ,LDP- per capita "$$?
/.
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The Rise of Decentralized Education Policy
,Source US Department of Education-
//
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The Rise of Decentralized Education Policy
:iure 8
,Source httpmat(usc(eduu4s4education4versus4the4*orld4inforaphic-
/2
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The Rise of Decentralized Education Policy
Educational statistics rarely define LDP althouh it is fre/uently used as a
standard of measurement( LDP measures the spendin in an economy( LDP
includes overnment spendin( 'hrouh hihly leveraed &orro*in# the
overnment can increase LDP even *hile the private sector is in decline( If the
U(S( fiscal deficits continue to rise *ith an e)pandin pu&lic de&t LDP can rise
even thouh the real economy is in decline( 'herefore# even an averae
educational performance amon industrialized nations could &e an illusion as
the /uality of U(S( LDP &ecomes more of a overnment economy *hich relies
on ta)in a declinin private sector(
:iure 7
,Source usovernmentspendin(com-
/3
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The Rise of Decentralized Education Policy
<esides overnment spendin representin a&out "$ of LDP accordin to
the U(S( Department of Commerce# soarin healthcare costs reached !6(8 of
LDP in "$!$( ,'erry# "$!$- Sustaina&le U(S( LDP could &e a much smaller &ase
of comparison than assumed as even increased overnment educational
spendin also increases LDP(
ot lon after a credit ratins do*nrade on U(S( treasury &onds# the
Conressional <udet 2ffice *arnin that the U(S( could fall off a Afiscal cliffB(
,Sahadi#"$!"- Many people are still under the illusion that the overnment can
continue to support an already massive &ureaucratic pu&lic educational system
*hich already spends more per pupil than nearly every country in the *orld(
Consolidation and Demise of the State Model
7f reform is to e de8ned y something other than the amount of money
9ushed do&n the toilet% it is time to re"erse the 9o& of po&er from the top
,administrators% school districts% teachers unions% go"ernments0 to the
ottom ,students% their parents% and ta+payers &ho &ant their money spent
&isely0#
,de Ruy# "$!!-
/4
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The Rise of Decentralized Education Policy
:iure 5
,Source Meratus Center at Leore Mason University-
'he United States spends more on education than nearly every other country
in the *orld# spendin an averae of G>!#6$$ per student &et*een the aes of
si) and fifteen( Even countries *ith &etter achievement records such as :inland
spend less per student(
% decade ao# some had hoped that another top do*n command and control
policy *ould revive the U(S( pu&lic educational system( 'his *as the U(S( o
Child 1eft <ehind %ct of "$$! *hich intended to close the achievement ap
&et*een lo* performin and hih performin children as *ell as ensure /uality#
/5
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The Rise of Decentralized Education Policy
promote standards# and improve accounta&ility( 'en years later half of the U(S(
schools failed the federal standards in the act( ,%ssociated Press# "$!!-
%lso the failure rate in advanced placement tests continues to clim&(
,Lillum = 'oppo# "$!$-
Clearly# the financial stimulus dispersed throuhout an unaccounta&le
&ureaucracy is not improvin performance( 2ther countries spend less money
and are a&le to sho* &etter results accordin to the 2ECD( 'his comes at a time
*hen the *orld economies have &een in a lon period of contraction and
financial constraints are often the only limit to fiscal carelessness and
e)propriation of funds( If anythin# the data sho*s that smaller and leaner
pu&lic educational systems can produce &etter results than lare unaccounta&le
&ureaucracies( Decades of statistics# e)pert analysis# and failure of lare scale
reforms have demonstrated that the U(S( pu&lic educational system is neither
effective nor sustaina&le under the current model( <ut even if money *as not an
issue# there remains a /uality deficit &et*een the U(S( pu&lic schools and their
forein counterparts(
/1
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The Rise of Decentralized Education Policy
The mass collection of euals% each ideally earing the same relation to the
state% must ecome an assemly of interchangeale parts# )ince statist
ideology in the (nited )tates places a hea"y emphasis on schools as placesfor reshaping indi"iduals and reforming society% the standardization of
schooling has ecome one of the most prominent features of the e+tension
of federal control
,<an0ston# "$!$-
%nother factor *hich may &e especially important in the U(S( is the
heteroeneity of the U(S( pu&lic school population( Diversity in ethnicity#
income levels# industry re/uirements# levels of productivity# and e)pectations
for education are considera&ly different amon different roups( 'his is part of
the reason for the politicization of pu&lic school reform activities and fundin
initiatives( Is the &ureaucrat in +ashinton D(C( capa&le of Areshapin
individualsB. Can even the reatest educator e)pect a policy to Areform societyB
usin an un*ieldy inefficient &ureaucracy as their tool for implementation in a
country as lare and diverse as the U(S(. If federal control results in inefficient
&ureaucracy# polarization of the reform process# and unaccounta&le
misallocation of funds then *hat is the alternative.
<raun and Lrote ,"$$$- defined decentralization as the transfer of authority
and responsi&ility for pu&lic functions from a central overnment to su&ordinate
overnments( A:ull Nscal decentralization is *elfare ma)imizin if reional
differences in the productivity of pu&lic capital are sufficiently lare(B
/
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The Rise of Decentralized Education Policy
,%rcalean# # Llomm# # Schiopu# = Suede0um,"$!$- Ra@a ,"$!!- concluded
that national standards should &e determined at the institutional level *ith
districts rather than the federal overnment &ein responsi&le for monitorin
and control( :iscal decentralization has sho*n to have a positive impact on
educational spendin( ,<usemeyer# "$$? i0olai# "$$6-
'he U(S( is movin to*ard a decentralized structure larely &ecause of
policy failure and fiscal mismanaement( <ut this development may actually
improve the performance of the U(S( pu&lic school system in the lon run &y
ma0in it more efficient and responsive to demands at the local level( ;o*ever#
*ith the emerence of ne* technoloies# poor school districts *ill no loner
suffer as the overnmentOs role is diminished(
'oday# computer literacy is mainstream( Children are accustomed to usin
computers for school *or0# playin video ames# and communicatin *ith their
friends via social net*or0s and messain soft*are( +ith centralized system#
schools *ere slo* to adapt often *aitin for their ne)t handout from
+ashinton D(C( and ma)imizin their e)penditures so as to @ustify re/uests for
larer &udets( +ith the localized system# schools *ill depend more on parents
to support the school and local industry to define the direction of educational
curriculum( Schools *ill also &e empo*ered to e)pand their o*n initiatives
/
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The Rise of Decentralized Education Policy
rather than *aitin for the marchin orders from the U(S( Department of
Education(
'his is not a vision of the future &ut an o&servation of *hat is already
occurrin naturally across the United States( %s money dries up and the federal
overnment loses its command and control a&ility# innovative educators are
usin human capital rather than financial capital to raise standards and optimize
the learnin e)perience *ithin tiht financial constraints( <ut this innovation is
not sproutin from the decayin remains of the last centuryOs state run
educational monopoly &ut from private enterprises /uic0 to reconize the
opportunities in providin /uality educational services(
3District administrators in close to half of all states 0no* that they are losin
students to online schools#3 says John +atson# the founder of the Everreen
Education Lroup# a Durano# Colorado &ased oranization that researches
online learnin# and an author of the 3Keepin Pace +ith K4!" 2nline
1earnin3 report# *hich trac0s annual trends in online learnin( :ollo*in the
trend# the ?$$$ student Sprinfield# 2hio pu&lic school system unveiled their
o*n virtual academy for rades K4!"(,%sh# "$!"-
Implications for ;uman Resource Development and the :uture +or0force
/6
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The Rise of Decentralized Education Policy
%s the U(S( economy passes throuh a ma@or structural chane and
education underoes a rapid process of decentralization# students enterin the
university must concentrate on the applica&ility of s0ills( 'he far reachin
effects of lo&alization *ill ensure a more competitive future for people in the
U(S( and more demands &ein placed on the overall educational system( ;uman
Resource Development practitioners must adapt to ne* *or0ers enterin the
*or0force *ho do not fit the historical models( In the future# *or0ers *ill come
from diverse &ac0rounds and have more specific s0ills(
'he reatest transformation in trainin *ill ta0e place in the method of
delivery( %s more people are learnin in virtual trainin environments# the ;RD
practitioner *ill &e e)pected to have sufficient computer s0ills to implement
online trainin activities( Just as trainers in the past had to &e familiar *ith
presentation media# the practitioner of the future must &ecome accustomed *ith
online trainin methods(
'he history of top do*n authoritarian policy implementation in the U(S(
continues( Money continues to &e thro*n at pro&lems in hopes that some*here
alon the &loated &ureaucratic net*or0 *ithin the U(S( Department of
Education it *ill &e *isely spent &y someone no more accounta&le than the
leaders themselves( Even thouh the federal overnment continues to AinvestB
2.
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The Rise of Decentralized Education Policy
in education even *hile receivin marinally decreasin returns# leadership has
&eun to reconize 0ey challenes in the economy and educational system(
Despite the failed policies of the past# the federal overnment continues to
understand the pro&lems &ut still relies on the old top do*n command and
control implementation approach(
'ecause &e need more high:uality training programs that gi"e students
crucial sills and prepare them for the high:sill jos that employers are
looing to 8ll% the Administration is proposing ; illion in mandatory funding
for a $ommunity $ollege to $areer <und# =ointly administered &ith the (#)#
Department of >aor% this competiti"e program &ould pro"ide funding to
de"elop ne& partnerships et&een community colleges and usinesses in
order to train and place 2 million &orers in high:gro&th industries#
,U(S( Department of Education# "$!"-
Even thouh this proram may not in itself &e successful# it does represent a
ro*in partnership &et*een &usinesses and schools( Ultimately# hih school
*ill &ecome irrelevant as community collees and universities appeal to youn
*or0ers ready to &ein their career( 'oday a hih school diploma is no loner an
advantae in the la&or mar0et( It only serves as a prere/uisite for collee
admission( 'he focus of ;RD *ill not only &e on e)istin employees &ut also in
formin partnerships *ith universities and collees(
2/
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The Rise of Decentralized Education Policy
'oday# employers o to university @o& fairs to recruit employees sho*in
desira&le traits( ;o*ever# these university students are typically cut from the
same cloth *ith the same &asic s0ill &ac0round( In the future ;RD
practitioners *ill create employees as *ell as train them( ;RD practitioners
must communicate industry demands and instructional desin practices *ith
universities and community collees(
Due to &udet constraints# the hih school *ill cease to e)ist as *e no*
0no* it( If it survives# it *ill only survive in the form of a school to *or0
transitional institution similar to the Department of 1a&orOs unemployment
office( Remedial classes *ill &e offered &ut advanced students *ill &e e)pected
to move straiht to university studies &y passin tests rather than spendin time
in hih school(
Conclusion
Decades of overnment *aste have e)acer&ated the U(S( fiscal situation and
led to insolvency( Just as Europe is in the death throes of &an0ruptcy the U(S(
*ill find itself in a similar position( 'he &loated inefficient pu&lic educational
&ureaucracy *ill &ecome one of the victims of the upcomin austerity and a
painful leacy of consumerism# political apathy# and nelect( <ut this does not
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The Rise of Decentralized Education Policy
have to &e the end of pu&lic education( It *ill &e the &einnin of a
decentralized efficient student centric educational policy(
Remnants of the centralized command and control policies oriinatin from
a time &efore empo*erin technoloies such as the Internet are &ein replaced
&y charter schools# virtual learnin# local university initiatives# home schoolin#
and partnerships &et*een educators and industry( 'he future *ill not only
involve more independent practitioners of ;RD &ut also a much more
framented and decentralized society &ased on specific s0ills and customized
solutions rather than the mass produced &ureaucratic one size fits all solutions
of today(
%s the vision of the Department Education correctly identifies
Community collees Aneed to &ecome community career centers *here people
learn s0ills that local &usinesses are loo0in for riht no*(B ,U(S( Department of
Education# "$!"- 'he U(S( Department of Education 2ranizin %ct of !>6>
prevents the federal overnment from control or direction over curriculum or
materials( 'his control has &een outsourced to private interests( 'e)t&oo0
pu&lishers and third party corporate entities# *ealthy industrialists# and ivy
leaue university administrators have &een at the helm of the national aenda
for the last one hundred years(
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The Rise of Decentralized Education Policy
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The Rise of Decentralized Education Policy
:inally# the one size fits all educational policy of the past has &eun to
crum&le( 'he carrot is still on the stic0 in the form of incentives danled &efore
school districts to persuade them to comply *ith overnment mandates &ut the
carrot farmOs soil has &een seriously depleted of vital minerals( 'he future
incentives *ill &e local and ;RD practitioners must reconize this
decentralization trend and prepare for a ne* eneration of employees in the
United States(
ot only *ill this trend affect the United States# the entire *orld *ill soon
reconize the destructive fallacy of imposin heavy &urdens on its citizenry
throuh ta)ation *ithout receivin reciprocal marinal &enefits( <efore the slo*
&ureaucratic machinery of overnment has time to react# parents and educators
are already positionin fortunate children ahead of the impendin collapse of
macro educational policy &y optin out of the pu&lic education systems *hich
have morphed into detention centers for children# *hich should more accurately
&e compared to prisons or day care centers rather than edcuational facilities(
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The Rise of Decentralized Education Policy
References
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The Rise of Decentralized Education Policy
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The Rise of Decentralized Education Policy
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The Rise of Decentralized Education Policy
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The Rise of Decentralized Education Policy
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The Rise of Decentralized Education Policy
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