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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

    [email protected]

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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/

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