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Fordham plus choice equals charters

Volume 1, Number 47
11.27.2007
11.27.2007

Fordham plus choice equals charters

Volume 1, Number 47
view

Here's an idea: fire the boss

The Toledo Public Schools teachers union has proposed that the district's lowest-performing school should be teacher-run."Our proposal is that there would be no administrators and it will be totally teacher-led," said Francine Lawrence, Toledo Federation of Teachers president, told the Toledo Blade's Ignazio Messina.

Mike Lafferty 11.27.2007
NationalBlog

Here's an idea: fire the boss

Mike Lafferty
11.27.2007
Blog

State teacher pension plan: What, me worry?

Emmy L. Partin | Mike Lafferty
11.27.2007
Blog

Fordham plus choice equals charters

Mike Lafferty | Terry Ryan
11.27.2007
Blog

Here's an idea: fire the boss

Mike Lafferty
11.27.2007
Blog
view

State teacher pension plan: What, me worry?

Emmy L. Partin, Mike Lafferty 11.27.2007
Blog
view

Fordham plus choice equals charters

Mike Lafferty, Terry Ryan 11.27.2007
Blog
view

Here's an idea: fire the boss

Mike Lafferty 11.27.2007
Blog
view

Here's an idea: fire the boss

Mike Lafferty
11.27.2007
Blog

The Toledo Public Schools teachers union has proposed that the district's lowest-performing school should be teacher-run.

"Our proposal is that there would be no administrators and it will be totally teacher-led," said Francine Lawrence, Toledo Federation of Teachers president, told the Toledo Blade's Ignazio Messina.

The proposal for Pickett Elementary would selectively place teachers, offer salary incentives, concentrate on early childhood education and community engagement, and include a longer school year, Messina reports.

Lawrence called her idea "somewhat unique" in the nation. But, the Gadfly would like to remind readers that it was precisely this idea that was the genesis behind the charter school ideal in the late 1980s and early 1990s. In fact, there is nothing preventing public school teachers in Toledo or elsewhere in Ohio from opening a charter school and this is being done by union teachers in New York City (see here).

"The ultimate goal, what we are committing to do, is that the school will exit school improvement status," she said of Pickett's annually poor ranking.

The idea has some hurdles sans the charter school path: state law requires administrative leadership in schools and the principals' union contract states there will be a principal in every school.

But is also has support in high places.

"I was enthusiastic about some of the pedagogy and some of the ideas," State Superintendent Susan Tave Zelman, told the Blade.

view

State teacher pension plan: What, me worry?

Emmy L. Partin | Mike Lafferty
11.27.2007
Blog

Teacher retirement systems across the country are receiving much attention as of late. Lawmakers and leaders of Ohio's state teachers' pension plan need to read a feature in the new issue of Education Next (see here) by economists Robert Costrell and Michael Podgurksy. In the article they explore the peculiar incentives of teacher retirement systems around the country and the impact they have on the composition of our teaching workforce and on public finance. This will not come as a surprise to Gadfly readers as Costrell and Podgurksy examined Ohio's system in a report in June that identified a $19 billion unfunded liability for pensions and questioned the impact of the system's generous, optional retiree health-insurance program on the fiscal health of school districts and teachers (see here).

One solution, according to Costrell and Podgursky, is to switch from defined benefit (DB) plans to defined contribution or cash balance plans that tie benefits to contributions made by teachers and their districts. Most of the private sector in America has switched to defined contribution (DC) plans over the last 20 years. A few teacher pension plans (Ohio's is one) have also started to offer DC plans but with strings attached that make them less appealing than the traditional DB plans.

In Education Next, Costrell and Podgursky provide a detailed primer on how teacher pensions work and their pitfalls. Teachers typically earn relatively little in the way of pension benefits until they reach their early 50s. The system encourages teachers to "put in their time" until then, whether or not they are well-suited to the job or want to make a career out of teaching. Then, after 25 or 30 years, the pension system begins to punish teachers for staying on the job too long, pushing them out the door at a relatively young age even if they are still good teachers and want to keep teaching.

Teacher pension systems also have important implications for recruitment. Many young teachers might prefer more of their compensation paid up front rather than diverted into a system from which they may well never benefit, according to the economists.

Retirement benefits have major impact on school finances because teachers are living longer. According to Costrell and Podgursky, a teacher retiring at age 55 in Ohio with a $50,000 inflation-indexed annual pension has received an annuity valued at over $1 million.

Finally, retiree health insurance can add much more to the taxpayer-supported bill. To fund these benefits requires large contributions from employees and employers. In Ohio, for example, contributions currently stand at 24 percent of salary (10 percent from the teacher and 14 percent from the district). But even this falls well short of what is needed.

The Columbus Dispatch reports on STRS's efforts to shore up its retiree health-care benefits by putting the squeeze on already hard-pressed local school districts and working teachers (see here). Through H.B. 315, STRS would create a dedicated health-care benefit fund and add at least $9.8 billion in health-care costs to its obligations. Over five years, school district contributions to the system would increase to 16.5 percent of an employee's salary and working teacher contributions would reach 12.5 percent. All this, and still no guarantee that these larger contributions would cover future health-care costs any more than current contributions will cover future pension checks.

The financial journal Barron's also has weighed in on the state of public pension systems with an editorial calling for a defined-contribution system that is simpler and fairer than the increasingly archaic defined-benefit system. Barron's calls for a public pension system that "does not lock people into jobs they do not like or pushes people out of jobs they want to do" (see here).

Citing an example, provided by Costrell and Podgursky, "an Ohio teacher can work for 24 years accumulating benefits that would be paid starting at age 60, if he quit or retired at any time in those 24 years. But on working a 25th year, the teacher suddenly becomes eligible for retirement at 55, gaining five years of benefits in an instant. Missouri uses a ‘rule of 80,' permitting retirement when age and years of service add up to 80, as long as the teacher is over age 45."

"Such features have been seen in private plans," according to Barron's, "but they are more powerful when there is an inflation adjustment in benefits. That's a feature almost never seen in private pensions, which of course are sponsored by entities lacking the power to levy taxes on their customers."

view

Fordham plus choice equals charters

Mike Lafferty | Terry Ryan
11.27.2007
Blog

The Thomas B. Fordham Foundation has issued its "Sponsorship Accountability Report 2006-07" for the nine charter schools it sponsors in Dayton, Cincinnati, and Springfield (see here). The bottom line of the report is that Fordham and the schools we sponsor have a lot of work to do. As a group, Fordham-sponsored schools are simply not performing as well as we, or they, had hoped they would, but that doesn't mean we're giving up or that those schools are not making a difference to the students and communities they serve.

Fordham got into sponsorship by choice because it was the most obvious way to begin to bring much needed change to public education. Creating and running charter schools in Ohio has proved incredibly difficult for both sponsors and school operators. Yet, our challenges are largely mirrored by urban districts in Ohio. When the state report card data came out in August, we saw that 183,000 district and charter-school students in Cincinnati, Cleveland, Columbus, and Dayton were attending schools graded either D or F (officially, "academic watch" or "academic emergency"). In Dayton, Fordham's hometown, the numbers were especially grim. Fully 80 percent of children attend a public school in Dayton (district or charter) rated F or D.

Clearly, both charters and public district schools must improve. Toward this end, Fordham is excited about its effort to sponsor two strong new school models for Ohio: a KIPP (see here) school and a "Building Excellent Schools" (see here) school will both open in Columbus in 2008 under Fordham sponsorship. Additionally, we are working closely with the current schools we sponsor to see them strengthen their academic performance. In the two years that Fordham has sponsored schools, most have struggled to meet and exceed state standards. Even so, students in Fordham-sponsored schools have largely outperformed their peers in charter schools statewide and in their home districts in Dayton, Cincinnati, and Springfield. They have done so with 30 percent fewer operating dollars per pupil than district schools, with no public money for facilities, and in an increasingly hostile political environment (see here).

Despite the challenges, we at Fordham believe that sponsorship is worth continuing and even expanding, although the charter school cap makes this hard to do. Too many children in Ohio still attend low-performing schools. For these children, charters provide hope. Moreover, we know that Ohioans value school choice in general and the charter option in particular. Support among residents of Ohio's big cities is even higher - a fact not very surprising considering these folks' long and painful experience with troubled district schools that seem inert to change. (For survey details, see here.)

We've learned many important lessons as a sponsor, beginning with the tremendous challenge of successfully educating acutely disadvantaged children. We share these lessons in the report and we note that we certainly don't have it all figured out. But, what we have learned is interesting for those who work in, or care about, public education in urban communities.

view

Here's an idea: fire the boss

Mike Lafferty
11.27.2007
Blog

The Toledo Public Schools teachers union has proposed that the district's lowest-performing school should be teacher-run.

"Our proposal is that there would be no administrators and it will be totally teacher-led," said Francine Lawrence, Toledo Federation of Teachers president, told the Toledo Blade's Ignazio Messina.

The proposal for Pickett Elementary would selectively place teachers, offer salary incentives, concentrate on early childhood education and community engagement, and include a longer school year, Messina reports.

Lawrence called her idea "somewhat unique" in the nation. But, the Gadfly would like to remind readers that it was precisely this idea that was the genesis behind the charter school ideal in the late 1980s and early 1990s. In fact, there is nothing preventing public school teachers in Toledo or elsewhere in Ohio from opening a charter school and this is being done by union teachers in New York City (see here).

"The ultimate goal, what we are committing to do, is that the school will exit school improvement status," she said of Pickett's annually poor ranking.

The idea has some hurdles sans the charter school path: state law requires administrative leadership in schools and the principals' union contract states there will be a principal in every school.

But is also has support in high places.

"I was enthusiastic about some of the pedagogy and some of the ideas," State Superintendent Susan Tave Zelman, told the Blade.

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