And the (RttT) winners are…

In a previous post, I bemoaned the list of Race to the Top Nominees:

https://schoolfinance101.wordpress.com/2010/03/04/and-the-rttt-nominees-are/

Today, we have our winners – Delaware and Tennessee. Here’s my own summary of where these states stand on a number of key indicators. See previous post for discussion.

A helpful colleague offered the following summary bullet points for the above table (which I just didn’t have time to do myself when I first posted this). It’s a little hard to quote a table, so here’s the bottom line:

  • Delaware is dead last in the nation in terms of its effort to fund public education, despite that state having the nation’s greatest fiscal capacity (largest per capita GDP).
  • Delaware is also dead last in the nation in terms of its public schools serving school-aged kids:  21% of its school-aged kids do not attend the public schools.
  • Tennessee is ranked 4th from last in states’ efforts to fund public education.  Tennessee is also among the lowest scoring states on the NAEP assessments.
    • (“Effort” is here defined as state and local spending relative to state fiscal capacity, with “fiscal capacity” measured as per capita GDP.)

So then, who cares? or why should we? Many have criticized me for raising these issues, arguing “that’s not the point of RttT.  It’s (RttT)not about equity or adequacy of funding, or how many kids get that funding. That’s old school – stuff of the past – get over it! This…  This is about INNOVATION! And RttT is based on the ‘best’ measures of states’ effort to innovate… to make change… to reach the top!”

My response is that the above indicators measure Essential Pre-Conditions! One cannot expect successful innovation without first meeting these essential preconditions.  If you want to buy the “business-minded” rhetoric of innovation, which I wrote about here , you also need to buy into the reality that the way in which businesses achieve innovation also involves investment in both R&D and production (coupled with monitoring production quality). You can have all of the R&D and quality monitoring systems in the world, but if you go cheap on production and make a crappy product – you haven’t gotten very far.  On average, it does cost more to produce higher quality products.

This also relates to my post on common standards and the capacity to achieve them. It’s great to set high standards, but if don’t allocate the resources to achieve those standards, you haven’t gotten very far! It costs more to achieve high standards than low ones. Tennessee provides a striking example in the maps from this post! (their low spending seems generally sufficient to achieve their even lower outcome standards!)

That in mind, should states automatically be disqualified from RttT for doing so poorly on these Essential Preconditions? Perhaps not. After all, these are states which may need to race to the top more than others (assuming the proposed RttT strategies actually have anything to do with improving schools). But, for states doing so poorly on key indicators like effort and overall resources, or even the share of kids using the public school system, those states should at least have to explain themselves – and show how they will do their part to rectify these concerns.

Proposed NJ State Aid Cuts 2010-11

Here’s a quick run down on the distribution of cuts to state aid for New Jersey school districts for 2010-2011. Much has been made in the media about how the cuts are most severe for wealthy communities. The graphs below show that that depends much on what you’re looking at. Yes, these communities lose a much larger share of their state aid, but their general fund budgets are much less dependent on state aid. When viewing the cuts in terms of per pupil aid cuts, the cuts are actually higher in higher poverty districts.

As a refresher – District Factor Groups are essential wealth/income classifications, where I and J are relatively wealthy generally suburban districts and A and B represent poorer, often (though not entirely) urban core districts.

Swatting Flies: Kansas City, NJ Tax Limits, NCLB Blueprint & Private School “Costs”

There’s just not enough time in the day to deal with all of the absurdity out there right now and to do so in any thorough way. So, here are a couple of quick replies to what I’ve seen in the past week.

1. Cato released They Spent What? http://www.cato.org/pubs/pas/pa662.pdf in an attempt to show how much more public school districts in any one location spend than “private schools.” So, Cato took total expenditure data (all capital outlay, etc.) for urban public school systems for 2009 and divided it by enrolled students to get a maximized total expenditure figure for public school districts. Then, they compared this maximized public expenditure figure to a “median” (not mean, or mean weighted by actual # of students served, but a deflated, school level median) tuition level from a national sample of private schools (about 2,300) from 2003-04 and rather arbitrarily assumed that tuition from 2003-04 represents 80% of total expenditures and that private school tuition rose by $347 per year between 2003-04 and 2009.  Note that even at the region level (not the city level used by Cato) the Schools and Staffing Survey includes relatively small samples of private schools. Further, Cato provides little justification for either the 80% or $347 figure – except to refer to their own “expert” on the topic (and some location specific reports). For a better analysis of actual private school spending with detail on samples and data sources, see: http://epicpolicy.org/publication/private-schooling-US (note that I make one similar inappropriate comparison in this report where I used operating expenditures for Wash DC in the discussion section. Other than that, this report compares totals to totals and based on actual financial documents of private schools).

2. Much has been made in recent days of the closure of about half of the Kansas City Missouri Public Schools. Some have compared this event to Central Falls firings – Taking a hard line on “failing urban schools in need of reform.” Wow… that’s a stretch. Others have casually thrown around rhetoric of $2 billion dollars wasted on social engineering in Kansas City, in reference to desegregation litigation that extended from the 1970s through 2003. For a more precise history of what actually went on during the desegregation litigation, see: http://law.bepress.com/expresso/eps/1213/

Also, note that in 2006 (2007?), the Missouri legislature passed a law which allowed the remaining predominantly white residential corner of Kansas City Missouri School District to vote itself out of KCMSD and into a neighboring predominantly white district (since the deseg case was over, apparently this was okay). This resulted in the transfer of a large share of children and a handful of school facilities to Independence, MO. As a result of this and other factors (including increased charter school enrollment), KCMSD now serves about half the number of children it did when I first lived there about 12 years ago.  While I’m unaware of the specific reorganization plan to be implemented, it would seem that some reorganization might be warranted. But, it should also be acknowledged that the State of Missouri has, since 1995, continuously pulled back financial support for KCMSD while advancing policies that leave KCMSD with a more needy, albeit smaller, student population to serve. More on this at a later point.

3. New Jersey’s Governor has proposed a constitutional amendment placing a cap on both local property tax growth and on state expenditure growth. It would appear that the proposal would allow for local referendum to override the cap, but it is a cap nonetheless and one based on an arbitrary constraint of 2.5%. What do we know about such “Tax and Expenditure Limitations,” or TELs? In short, they are generally bad policy which do not lead to “economic growth” (“private” sector growth) and which often lead to decreases in a) the quality of public school teachers and b) student outcomes.  That is, hard caps on state expenditures and/or local property taxes tend to harm public service quality – specifically public education – and really don’t provide other economic growth benefit. Colorado’s TABOR is a particularly striking example. The local override option would result in significant inequities across municipalities and school districts which have widely varied capacity to achieve an override. Link to analysis of Massachusetts’ Prop 2 1/2.

4. Finally, the NCLB Blueprint (http://www2.ed.gov/policy/elsec/leg/blueprint/blueprint.pdf) was released by the Dept. of Ed. The Blueprint contains only this short reference to “equity,” and seems to emphasize the district responsibility over the state responsibility – in part by the sequence of their reference, but also by reference to “comparability” which is terminology specifically related to within district allocations and Title I aid.

Greater equity. To give every student a fair chance to succeed, and give principals and teachers the resources to support student success, we will call on school districts and states to take steps to ensure equity, by such means as moving toward comparability in resources between high- and low-poverty schools.

As I’ve noted many times before, the greatest disparities between higher and lower poverty schools are those that exist between, not within districts, largely because few districts have both high and low poverty schools. Rather, there are higher and lower poverty districts. I will post more on this topic when my forthcoming article on within versus between district disparities comes out in the near future.

And the (RTTT) Nominees are…

Not much time today to analyze, but I can’t pass up the opportunity for some quick comments on the Race to the Top Finalists announced today. The list is indeed a mixed bag (DC, CO, DE, DC, FL, GA, IL, KY, LA, MA, NY, NC, OH, PA, RI, SC, TN).

And yes, the list does include three of the most talked about early heavy favorites – and my favorites, of course – Louisiana, Tennessee and Illinois. (and there are many more comments on these states and their RTTT prospects throughout my earlier blog posts).

Here’s my rap sheet on these states in particular, and why I find it so completely absurd that simply a) removing caps on numbers of charter schools coupled with b) removing firewalls between teacher and student data are the primary criteria (or at least seem to be) for the big race.

It’s not just that some of these states have mildly problematic policies from a critical academic perspective. Rather, these three states in particular have compiled a record of education policies – both on the fiscal input end and on the outcome, standards and accountability end which are outright disgraceful.

The only thing going for Tennessee’s education system – beyond its data quality – is the fact that funding is relatively equitable within the state (compared to many states). But, that’s only because everyone has next to nothing! Tennessee currently maintains the least well-funded, overall, education system in the nation after correcting for costs associated with a) poverty, b) economies of scale and sparsity and c) regional competitive wage variation.

And not only is Tennessee dead last in overall funding, but it is also dead last in the rigor of its testing standards, when compared against NAEP proficiency standards. So, can the data really be that good if the standards are so low? if the proficiency rates on state assessments are so high even though the state ranks near the bottom on NAEP proficiency?

So, Tennessee spends little and expects little, but measures it well! In addition, Tennessee’s low spending appears to be largely a function of lack of effort, not lack of wealth. Tennessee is 4th lowest in the nation on the percent of gross state product spent on schools. Further Tennessee has the largest income gap between children not in the public schools and children in the public schools.

I’ve written more about Louisiana’s prospects in the past. Louisiana, like Tennessee, has mainly itself to blame for its low spending. Louisiana is 3rd lowest in the nation on the percent of GSP allocated to public schools. Coupled with that, Louisiana has the 3rd smallest share of 6 to 16 year olds in the public school system and the 3rd largest income gap between those in and not in the system. Louisiana’s own state testing standards are relatively average, but its NAEP outcomes are right there at the bottom (okay… 3rd from bottom across math and reading, grades 4 and 8 in 2007).

So, these two standout RTTT finalists are states that have pretty much chosen to throw their public education systems under the bus. Yet, they are somehow racing to the top!??

So, how does Illinois fit into this mess? Instead of throwing its entire system under the bus, Illinois has merely chosen to sacrifice the education of poor and minority children. Illinois maintains among the least equitable state school funding systems in the nation with among the largest funding gaps between wealthy and poor, minority and non-minority districts.  And, as it turns out, Illinois also has very low testing standards when mapped to NAEP standards.

Slides from recent presentation to National Urban League.

National Urban League Presentation

Who’s next? And who is really to blame?

Apparently, we now have a national initiative underway to replicate the Central Falls, Rhode Island drama across poor urban and inner urban fringe schools and districts. This national initiative places blame for school failure directly on school principals (who, by necessity must be replaced if reform is to happen) and on at least 50% of each failing school’s teachers. Once again, there is no attention paid to whether or not the STATE has, in fact, fulfilled its obligation to provide (or ensure) equitable and adequate financial resources for the district or schools under fire. None – no mention of it whatsoever. Clearly, it must be the principal’s and teachers’ fault if a school fails, regardless of the resources available to that school or host district???

Few locations nationwide provide more stark examples than Duncan’s home state of Illinois for why this “blame the school,” “blame the teachers,” “blame the central district office” perspective is so deeply problematic.

To date (assuming Pennsylvania continues to follow through on its finance reforms), Illinois maintains the most regressive state school finance system in the nation. What I mean by this is that Illinois maintains a system whereby higher poverty school districts – and higher minority concentration school districts – receive systematically less state and local revenue per pupil than lower poverty ones. And the disparities in Illinois are far greater than almost anywhere else in the country.

Here, for example, is the relationship between the relative level of state and local revenue per pupil (2007-08) and district shares of low-income children for school districts in the immediate Chicago region. 1.0 on the vertical axis represents the average state and local revenue. A value of less than 1.0 indicates less than average state and local revenue in the region. As poverty increases, relative state and local revenue decreases. There are no fancy cost adjustments applied here. This is just straight up, state and local revenue – the bulk of school funding.

So – why does this matter? The reality is that these much higher need districts require more, not fewer resources if we expect them to approach comparable outcomes. On the one hand, they need more resources in order to provide greater staffing intensity (staffing quantities) to provide the level of services needed to overcome background differences of the children they serve. In addition, it is increasingly well understood that to recruit and retain comparably qualified teachers into higher poverty, higher minority concentration settings requires a higher wage than in surrounding districts which happen to have more desirable working conditions. In short, higher need districts require a greater number of comparable teachers, who come at a higher price per teacher. That gets expensive.  So, even if these higher poverty districts had comparable state and local revenue, they’d be in a bind.

Here’s a map of district composite test scores expressed as standard deviations from the mean of districts serving comparable grade levels (because proficient rates tend to shift by grade level). Deeper brown colors are the “low performers” and darker blue colors are the “high performers.” We can quickly identify a few good candidates for whipping out the Central Falls playbook! There they are – in Deep Brown… the failures… who must be reformed… replaced…!!! And of course, it’s their own darn fault! Mismanagement. An abomination. Our kids deserve better!!!!! How dare these adults treat them so poorly!!!! (in this map, purple dots indicate majority Hispanic schools and red dots, majority black schools).

Okay, enough of that. Note above that most of these low performing districts are also districts with majority black or Hispanic schools. Here’s the same map but with school poverty represented as circle size. Notably, these low performing districts also have very high poverty schools.

Now let’s go back to the scatterplot of relative state and local revenues, but focus on the highest poverty school districts:

Our very low performing, high poverty districts are also very low in state and local revenue per pupil relative to their surrounding districts! Again, this graph includes no fancy attempt to adjust the value of state and local revenues for the different costs and needs faced by these districts.

But, this map does!!! Here, I have estimated a statistical model to determine the relative costs in each district of achieving state average composite scores, and from that model I have calculated just how much more (or less) each district would need to spend per pupil in order to be able to achieve state average outcomes (if it did so at average efficiency).Districts in the deepest red color would need over $5,000 more in per pupil current operating spending in order to have a shot at achieving average outcomes. Districts in blue have well more than what they need in order to achieve averageness.

Each of our Central Falls candidates is in deep red here. Each has well less than it would need in order to achieve average outcomes. And that deficit is a function of inequitable and selectively inadequate state funding for local public school districts.

Should we really be blaming, exclusively, the teachers and principals in these schools and districts for their failures? Does adequate and equitable state and local funding of these schools and districts have absolutely no place in the current policy discourse? How can two guys from Illinois take such a stand and do so with a straight face?

Isn’t the state at least partly to blame for which schools and districts are failing under the STATE’s accountability system and under the STATE’s approach to financing schools? Do we really think that we can fix these schools and districts by dumping half the teachers, firing the principal and giving them a one time infusion of federal funding without ever addressing the systemic failures of the state’s education policies?

I’m not trying to argue that these schools and districts actually do have great teachers who should be considered untouchable. They may not. They may have among the least qualified teachers available on the local labor market. It might even actually be a good idea to replace some or many of them. But, replacing these teachers with “better” teachers will require appropriate sustained resource levels – not a one shot infusion of federal bailout, or a constant churning of cadres of eager, well-educated and well-meaning volunteers.

Some statistical context for Central Falls

Pundits have been tweeting and blogging the Central Falls Rhode Island High School story this week, with many cheering the bold “turnaround” strategy of firing all of the school’s teachers. Essentially, the district Superintendent has dismissed all teachers in the school with the option for them to re-apply. The reason for the dismissal is that the school has performed very poorly in recent years on state assessments and when teachers were asked to work extra time, their union resisted – or so the reports go.

Pundits seem to think this is a great idea: http://www.usatoday.com/news/education/2010-02-24-all-educators-fired_N.htm

But Joe Williams of Democrats for Education Reform, a political action group, says: “This is what real political cover can do for public education. You see very clear signals coming from Washington that the Obama administration is serious about turning around our worst schools.”

Central Falls has long been one of the worst-performing in Rhode Island. Just 7% of 11th-graders tested last fall were proficient in math and 55% were proficient in reading. In 2008, 52% of students graduated within four years.

And: http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20100224/NEWS/100229948

U.S. Secretary of Education Arne Duncan applauded the plan, saying students only have one chance for an education.

“When schools continue to struggle we have a collective obligation to take action,” he said in a written statement.

The U.S. Department of Education does not play a role in deciding which model schools choose and did not know Wednesday whether Central Falls was the first to opt to get rid of its teachers, said Sandra Abrevaya, a department spokeswoman.

The decision won praise from Republican Gov. Don Carcieri, a former math teacher who supports Gist.

“We can no longer stand by as our schools underperform,” Carcieri said in a written statement. “While we have some excellent individual teachers, our students continue to be held back by a lack of a quality education and by union leadership that puts their self-interests above the interests of the students.”

So, according to the above cast of characters, the way to fix low performing schools is simply to shake them up, get rid of the status quo current crop of teachers and others will be anxiously waiting in line to fill their shoes and fix these schools with the same or fewer resources and the same kids who’ve been there for years. I often point out that getting rid of your current teachers can really only lead to improvement if you are able to replace them with better ones. Are there 74 better teachers waiting in line outside Central Falls HS?

That issue aside, let’s take a look at where Central Falls fits in among Rhode Island High Schools in terms of a) student characteristics, b) spending per pupil and c) outcomes (based on 2006 data – which hasn’t shifted much over time). First, let’s look at the relationship between school level free/reduced lunch rates and combined (summed) proficiency rates across RI HS:

Yes, Central Falls is in tough shape – very high poverty and relatively low performing. But, not really off the trendline (above it, if anything) for performance given its poverty level and better than other high schools of similar poverty.

Now lets look at Central Falls performance with respect to school site spending from Rhode Island’s IN$ITE database:

Central Falls spending is somewhat above average. But again, its student needs are far greater than average – in fact, they are on the outer edge of the entire distribution. So, it is unlikely that “somewhat above average” per pupil spending is going to fully compensate for their high needs.

Here is an oversimplified, but still ugly enough statistical model of the relative costs, given student populations, economies of scale and current outcomes, of Rhode Island High Schools in 2006 (I had run this previously with 2003 to 2005 with similar results):

Admittedly this is no way to do “real” rigorous research. This is a single year of data on 30 high schools and too many covariates for the data. But, these data do reconcile with the model of the previous 3 years. I should also note that such analysis – those that try to pin down the relative efficiency of school district performance and/or cost – are generally unstable/unreliable. All that fun stuff aside, we have this crude model that tells us that at constant outcomes, per pupil costs are higher in higher poverty high schools and high schools with more special education children. And the model can produce for us an indicator of the extent to which each high school spends more or less than expected for the outcomes it receives – that is, the relative efficiency of the school. For the other stat geeks who might be reading, in this particular case, the estimates from the Stochastic Frontier Model and from the OLS regression model were identical.

Here’s the “relative efficiency” of Rhode Island High Schools with respect to cost, from lower to higher poverty high schools.

As it turns out, the relative efficiency of Central Falls HS stacks up pretty well with other Rhode Island High Schools. That is, the actual spending per pupil in Central Falls is not far off from the predicted amount to achieve their current outcomes, with their current population.

Here’s the above data, rescaled (from the OLS version of the model), and with the relative efficiency measures sorted from lowest to highest per pupil spending. The “0” line is the line where the district spends what it is predicted to spend to achieve its current outcome levels given its current students. Central Falls actually spends less than it is predicted to spend given its students and current outcome levels.  Many other high schools spend far more than expected, given their students and current outcomes.

This seems like a fairer comparison than simply casting stones at Central Falls teachers for their miserable test scores.

This is not to excuse low performance or to simply set a lower bar for this school because it serves a very high need population. But it is to point out that given their resources and their kids, they are doing as well as can be expected and better than many other Rhode Island high schools.

This analysis is far from definitive, but is illustrative. If it turns out, through more rigorous multi-year analyses, that Central Falls is efficiently producing its current (miserably low) level of outcomes at its current (relatively inadequate) spending level (at least by comparison with all other Rhode Island High Schools), then one answer here might actually be that Central Falls needs more resources to achieve better outcomes. Why is there no talk of this possibility?

The figures above suggest that Central Falls is doing as well with what it has as any other Rhode Island High School, after accounting for student needs. Where is the outcry over the amount Westerly High is spending to achieve its current outcomes (far less efficient that even Central Falls, in this quick analysis)? Yes, Westerly gets better outcomes, but with a much less needy student population (under 20% free or reduced compared to over 80%) and nearly $1,000 per pupil more in spending.

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Here’s the position of Central Falls based on my previous 2004-05 analysis. The overall cost inefficiencies are higher because the high schools were included in a model with middle and elementary schools (but with a dummy variable identifying them as high schools). This model included math outcomes only (language arts outcomes were non-significant). Again, Central Falls is not the standout inefficient school (Higher up in the graph is less efficient).

Common Standards and the Capacity to Achieve Them

It would appear that the Common Standards movement has picked up some momentum this week, with the administration’s pitch that Title I aid should be tied to states adopting common college readiness standards. This is all good talk, but standards alone, on paper and/or in state policies or proclamations don’t achieve themselves. It is inappropriate for state policymakers, federal policymakers, pundits or the general public to simply assume that local public school districts all have sufficient resources to achieve any reasonable common standards.

Perhaps if those standards are set obscenely low they will be broadly attainable at current state and local spending levels. Even then, there will be significant inequities in the ease with which those standards are attained.

Noticeably absent in the current policy conversations is any discussion of the relative capacity of state education systems and local school systems  to achieve any reasonable common standards. It would be far more logical for the federal government to tie Title I funding not to some vacuous statement of endorsement of toothless common standards, but rather to a guarantee that the state will ensure that all local public school districts (and charter schools) have sufficient financial resources to achieve common standards – whatever they are.  In this paper, I, along with Lori Taylor, explain how we approach the measurement of cost and its implications for common standards.

To see just how far our nation has to go in order to move toward common capacity to achieve common standards, let’s take a look at some national maps. Let’s start with a map of the projected relative state and local revenue per pupil levels across states, corrected for a variety of “cost” factors (regional wage variation, economies of scale, population density, poverty):

After correcting for a variety of factors, some stats like Tennessee, Mississippi, Utah and Oklahoma simply spend far less than most others on schools and only slightly above half as much as some states.

Here’s a different view, down to the district level based on an alternative set of cost adjustments. This second map shows that not only are some states much lower spending overall, but within those states, after adjusting for various cost differences, there also exist significant differences in spending (in this case, the map uses current operating expenditures per pupil with Title I funding). Again, Tennessee and Mississippi have overall very low spending. So do many areas of eastern central Washington, much of California and Texas major urban centers. Estimates are not provided for non-unified districts (large expanses of white bkgd).

So, by this point, you’re probably saying – yeah… but money doesn’t really matter that much. It’s how you use it. Maybe Tennessee, for example, is just really, really efficient at producing great outcomes on little expenditure.

Let’s now take a look at state assessment outcomes by districts, nationally. In this map, I’ve taken the proficiency levels for each district, based on the 3 year data set compiled by the New America Foundation (Thanks NAF) and I’ve expressed them as standard deviations from the national mean proficiency rate. Blue areas are those with relatively high proficiency rates and brown areas have relatively low proficiency rates. Check it out:

Wow, Tennessee does do great, despite its low spending! So does Oklahoma. These are model states, right? Low spending, yet really high performance on their own state tests! Check out Missouri. What’s going on there? Well, as it turns out, Tennessee is doing great on its own self-validation exercise – state tests – because it has really easy state tests – or, in other words, really low proficiency cut-points for its state tests. This is the game that states have been playing since the adoption of NCLB. We don’t have to spend much, or actually fix our education system as long as we set low enough standards to make it look like we’re awesome. This is well documented in a series of NCES reports which map state cut-points to NAEP cut-points. By the way – Missouri has a very hard test (in contrast with Kansas, right next door, which has relatively easy tests.)

Finally, here is a scatterplot of the relationship between an overall index of the relative equity and adequacy of state and local revenues per pupil, and state mean 4th and 8th grade, math and reading NAEP assessments for 2007. The funding equity/adequacy ratings are based on national, district level data from 2005 to 2007, and account for a) relative effort by states to fund schools (% of gross state product), b) shares of children in the public school system (and ratio of family income of those not in the system to those in the system), c) predicted state and local revenue level at average poverty, and d) extent to which funding is targeted based on poverty differences across districts.

If we really plan to get serious about Common Standards, then states like Louisiana, Tennessee, Alabama and Oklahoma are going to need to step things up a bit. Notably, low fiscal capacity states like Mississippi and Alabama will need significant federal assistance to pull this off. But, Tennessee and Louisiana are two states which spend less by choice – having among the lowest “effort” among states (% of Gross State Product allocated to schools).

Alternatively, we could just set standards as low as Tennessee standards, spend as little as Tennessee and pat ourselves on the back for a job well done. I don’t believe that this is the intent of the common standards movement, but I may be wrong. Nonetheless, if we continue to throw around the rhetoric of common standards without ever discussing the capacity to achieve them, then we should not expect much to ever come of this movement. Without sufficient capacity, there can be no substantive reform.

For more on whether school finance reforms actually can help, see: https://schoolfinance101.wordpress.com/2009/12/14/finance_reforms/

Stossel & Coulson Misinformation on Private vs. Public School “Costs”

Last summer, I had an interesting exchange with Andrew Coulson regarding the issue of private school costs. That discussion can be found here: https://schoolfinance101.wordpress.com/category/private-school-costs/

I had the displeasure this evening, while channel surfing, to catch a few minutes of John Stossel’s latest episode on the failures of the public education system and low-cost wonders of private education markets.  Here’s a link that summarizes some of the content of Stossel’s latest: http://www.washingtonexaminer.com/opinion/columns/John-Stossel–84692012.html

I happen to be a strong supporter and admirer of private schools, having worked as a middle school science teacher for years in one of NYC’s elite private independent day schools. In my ideal world, I would provide every child the opportunity to attend such a school. And that would be an expensive proposition!

I’ve realized over time, having studied teacher characteristics and finances of various types of private and public schools, that what you get on the private marketplace for education is simply a wider range than what you get in the more regulated public system. That just makes sense. Less regulation broadens the range of options – at both ends.

Private schools do not, by any stretch of the imagination, spend uniformly less than public schools per child. In fact, private independent day schools (a non-trivial segment of the private school marketplace) typically spend much more per pupil than public school districts operating in the same labor market. The school in NYC where I used to work continues to charge in tuition alone, nearly double the average expenditure (operating expense per pupil) of NYC public schools. Further, it is especially important to understand that private school tuition covers only a portion of actual cost.

How can this happen on the open marketplace for education? Shouldn’t market competition  drive these prices into line – bring them down well below public bureaucracy spending on education – and still yield better quality? Or, perhaps the tuition these schools charge and amount they spend to operate actually represent the competitive price of providing the excellent education many parents demand. Perhaps better quality (hard to compare), but at a higher, not lower cost!

Quite simply, when it comes to public or private education, you get what you pay for. Many private schools spend far more than the public schools in the same labor market – many spend roughly the same and some do spend less. And the quality of that schooling varies accordingly. I document this thoroughly in this lengthy report: http://www.greatlakescenter.org/docs/Policy_Briefs/Baker_PvtFinance.pdf

Here are a few highlight figures from the report:

Finally, and perhaps most interesting:

The punchline here is, as I’ve said above – You get what you pay for.  And on the private marketplace for education, high quality comes at high cost – much higher than the average public school cost.

  • Private independent day schools which provide small class sizes with highly academically qualified teachers spend well above nearby public schools.
  • Catholic schools, where they report their finances (not the crude survey summary data of tuition and expense compiled annually by the National Catholic Education Association) spend marginally less than nearby public schools (but charge much lower tuition than cost), perform about the same if given the same kids and have comparably qualified teachers in terms of academic preparation. Note that Catholic schools in trying to operate on a shoestring have been financially failing at an alarming rate. That is how markets work when you try to hard to price your product below the cost of maintaining quality (a more friendly spin being that the social service mission of urban Catholic schools has outpaced church philanthropy). I discuss this extensively in the report.
  • Conservative Christian schools (to the extent they can be lumped together) operate at much less per pupil than traditional public schools and have lower outcomes given the same students and have disturbingly academically weak teaching staff based on national survey data.

Again, you get what you pay for. The open market place for private schooling is simply more diverse than the more regulated public marketplace, on price to consumers, average overall spending and ultimately on quality.

It is entirely inappropriate to argue that the public would be better served by wholesale shifting of current public school students into only those private schools which presently do spend less than the public schools.  It is particularly twisted to suggest that for the price of Conservative Christian or Catholic education, we can provide kids with the equivalent of private independent school education. While pundits like Stossel or Coulson may not make this claim in this particular form, they imply as much by lumping all of these schools together as “private” and proclaiming that “private schools simply do more with less.” The reality – Some do more with more. Some do less with less. And yes, there are exceptions that do more with less, and less with more – just as in any analysis which involves thousands of points.

Private Public Schools – OK Idea – Bad Calculations

I read with curiosity today, the Fordham Institute’s new report on “Private Public” schools, or elementary schools where fewer than 5% of children qualify for free or reduced lunch and middle or secondary schools where fewer than 3% qualify. Not a bad idea on their part, but some of the numbers just didn’t match up with my reasonably sound knowledge of the NCES common core Public School Universe data.

For example, on Page 6, State Findings, the report indicates 70 private public schools in Illinois, and on page 7, the report indicates 402 such schools in New Jersey. These are two states where I have used the most recent available 3 years of NCES CCD data quite often. While the New Jersey numbers seem close to reasonable, the Illinois numbers are undoubtedly low – and quite honestly, wrong.

First, here’s my tally of total schools by grade level in Illinois and New Jersey:

|                 schlevel08
state_name | 1-Primary   2-Middle     3-High    4-Other |     Total
———–+——————————————–+———-
Illinois |     2,562        777        788        203 |     4,330
New Jersey |     1,547        453        425        158 |     2,583
———–+——————————————–+———-
Total |     4,109      1,230      1,213        361 |     6,913

(sorry for the messy layout)

Next, here’s my tally for total schools by grade level with less than 5% free or reduced lunch in 2007-08:

. tab state  schlevel08 if  pct_freereduced08<.05

|                 schlevel08
state_name | 1-Primary   2-Middle     3-High    4-Other |     Total
———–+——————————————–+———-
Illinois |       281         89         65          4 |       439
New Jersey |       273         98         94          7 |       472
———–+——————————————–+———-
Total |       554        187        159         11 |       911

And again in 2006-07:

. tab state  schlevel08 if  pct_freereduced07<.05

|                 schlevel08
state_name | 1-Primary   2-Middle     3-High    4-Other |     Total
———–+——————————————–+———-
Illinois |       302         90         60          3 |       455
New Jersey |       194         74         73          6 |       347
———–+——————————————–+———-
Total |       496        164        133          9 |       802

In either year, and many other years, Illinois has far more than 70 elementary schools alone (280 to 300) under 5% free or reduced price lunch. The New Jersey numbers, while close, can’t be reconciled that easily either.

Fordham includes a footnote which suggests that schools reporting no children qualifying for free or reduced lunch were dropped on an assumption of non-reporting/non-participation. This is likely an incorrect assumption and one that should be checked across multiple years.

For example, here is a map of district level low income rates (background shading, based on state data source) and schools reporting “0” Free Lunch children (to NCES CCD) in North Shore areas near Chicago. Note that most of the “0” flags by schools are in very low poverty districts. These likely are “Private Public” schools by the Fordham definition, but were inappropriately excluded by their count method:

Here are some New Jersey “0” values for free or reduced lunch, against a backdrop of median family income. The “0” value schools here are in Franklin Lakes and Saddle River. I suspect that those “0” values for kids in poverty are real – not errors in the data.  There were likely better ways to handle these values than to simply exclude all “0” values. For example, checking across multiple years, or identifying “0” value schools in districts that show higher versus lower U.S. Census poverty rates (not subject to district level reporting). “0” values in low poverty districts are more likely to be correct where as “0” values for schools in high poverty districts are more likely reporting error.

  • Note: I just ran a quick test of this latter approach using Census Small Area Income and Poverty Estimates. About 198 of 341 Illinois “0” value schools are in districts with less than 5% poverty. About 303 of those 341 are in districts with less than 10% poverty – using Census poverty tabulations. These schools likely should have been included as “Private Publics” rather than excluded outright.

===== On a related note:

I should also point out that Fordham is among those organizations that has frequently pointed the finger at school districts as being the primary causes of persistent inequities, and not state education systems. Fordham does not point out in their report that  almost invariably, these private public schools are clustered in private public school districts. The low poverty schools are in low poverty districts often immediately adjacent to high poverty schools in high poverty districts. That is, the inequity the authors reveal in this report is largely a between not within district inequity and one that cannot be resolved by reshuffling resources within districts, as many of their previous reports have argued (most notably Fund the Child).

Here’s a fun map of New Jersey Private Public Schools in the Newark metro area:

Data for NJ and IL available on request.

Today’s fun maps: NYC charter school free lunch rates

Just for fun, here are a few maps of New York City traditional public, special public and public charter schools. Charter schools are indicated with an asterisk. School level rates of children qualifying for free lunch are indicated by circle color.  Deep red circles have free lunch shares over 83.6%. Blue circles have very low free lunch shares. Free lunch shares and school locations (lat / lon) are from the National Center for Education Statistics Common Core – Public School Universe 2007-08. Note that as with my previous NJ charter slides, NYC charter schools tend to serve somewhat lower shares of children qualifying for free lunch than are served by many of the surrounding traditional public schools.