explainer

The real but misunderstood incentive to remove senior teachers

Do New York City principals have a financial incentive to get rid of veteran teachers?

That’s been a fiercely disputed accusation as the teachers union and city have traded shots over layoff threats in recent weeks. While the union embraces the claim as evidence that senior teachers need to be protected from layoffs, Chancellor Cathie Black denies that senior teachers are penalized at all.

Black recently told the Staten Island Advance that if a highly paid teacher is let go, a principal can go out and hire another veteran teacher without any repercussions. “It really doesn’t matter if it’s a more senior teacher making more money, or a younger teacher,” she told the newspaper. “It doesn’t change the equation. I think the UFT has really distorted that.”

The dispute is even more confusing because different Bloomberg administration officials appear to take different positions on the matter. According to a report in the New York Post, one of Black’s deputies has described the incentive structure as a problem and floated a plan to eliminate it, at least temporarily.

So again: Do New York City schools have a financial incentive to get rid of veteran teachers?

The truth is that the rules do favor less experienced and thereby cheaper teachers — but principals are so limited in firing decisions that it’s hard for them to maneuver more expensive, veteran teachers off of their budgets.

Currently, teachers are laid off citywide based on how many years they’ve been teaching and how desirable their license area is. Excessing — when principals have to cut teachers because they can’t afford them — works the same way except it happens by seniority within the school, not the entire city.

But a change introduced in 2007 to the way schools are funded inserted a new dynamic into the teacher job market.

Fair Student Funding

Since 2007, New York City has used “Fair Student Funding,” a formula that allocates money to schools based on how many students they have and what their students are like. Schools get different amounts of money if they have more special education students, how severe their students’ disabilities are, how many of them qualify for free or reduced lunch, and a host of other factors.

Though some teachers’ salaries are paid for centrally (such as speech teachers) and others are paid with Title I money, schools pay for most of their teachers with their Fair Student Funding dollars. Those funds are the least restrictive and the most abundant.

Before Fair Student Funding, schools paid for their teachers differently. Based on a teacher-to-student ratio, the city would centrally decide that a school needed to have X number of teachers. To fill those X number of positions, principals could hire low or high-salaried teachers — it didn’t matter which — because they were only charged for the citywide average salary.

If a school in Staten Island hired teachers in the $80,000 a year range and a school in the South Bronx hired beginner teachers making $40,000, both schools were charged the same amount of money per teacher — the average of $60,000. This system tended to hurt schools in poorer neighborhoods that couldn’t attract more experienced teachers. They had to share the costs of other schools’ experienced teachers, but they didn’t benefit from those teachers’ work.

When Fair Student Funding was put in place, city officials wanted to charge schools for the actual cost of their teachers, but they didn’t want to abruptly switch from one system to the next. Doing so would have the reverse effect of the formula at the time: it would hurt the schools where experienced teachers wanted to work by having teacher salaries swallow up their entire budgets. Instead, they moved to a “middle ground,” as a city document describes it.

That middle ground means that the city no longer gives schools money for teachers according to a formula. Fair Student Funding dollars form a pot of money for covering teacher salaries, and the effective price of each teacher is not the average salary of all teachers in the city — but the average salary of all teachers at the school.

Shifting the average from the city to the school changed some of the incentives working on principals. If before principals didn’t have to consider a teacher’s salary before hiring her, now they have reason to pay attention.

Today, School A and School B are no longer paying the same amount per teacher. Imagine they both have annual budgets of about $1 million and 10 teachers each. School A has more senior teachers, bumping its average teacher salary up to around $75,000. Meanwhile School B has newer teachers, keeping its average teacher salary down around $50,000. School A has to spend $750,000 a year on teacher salaries, whereas School B is spending $500,000, freeing up money for after-school programs and classroom supplies.

Consequences

The funding structure means that schools hit hardest by layoffs will also see their average teacher salaries jump the most — and their ability to hire new teachers from the pool of those available within the city will suffer.

If teacher ratings become a factor in layoffs, union leaders worry that principals might have a financial incentive to give veteran teachers low ratings, even if those teachers wouldn’t otherwise merit them. This would bring down the cost of all the teachers in their building for the following year, when budgets could become even tighter.

To some principals, the suggestion that their hiring is driven by dollars is an oversimplification.

“Your only consideration can’t just be money,” the principal of a new school told me.

“A good teacher, a teacher who has a history of experience and knowledge to share and can be a mentor — they’re worth every penny. The difference in salary is negligible when you’re looking at what they’re really bringing to the table,” she said.

But schools’ average teacher costs, and the incentive principals have to keep them low, are enough of an issue that some people in the Department of Education are trying to think of a solution. In a memo to Chancellor Black, Deputy Chancellor John White proposed freezing schools’ average teacher salaries for the next two years.

“That would mean schools that let go of highly paid staff would see no greater flexibility in spending than they see now,” he wrote.

Under White’s plan, the incentive to lay off expensive teachers would be put on hold for two years because during this time, regardless of who principals lay off, their average teacher salaries would remain the same. His plan is still under consideration, a city official said.

A Manhattan principal, who asked to remain anonymous, said that the problem with this idea is that few principals believe the DOE will maintain the same policy for two years. If principals lay off teachers with no eye to salary and then the city changes its mind, schools could find themselves with tighter budgets and high teacher costs. “There’s not much trust between us and the DOE,” she said.

First Person

First Person: Why my education nonprofit is bucking the coastal trend and setting up shop in Oklahoma

PHOTO: Creative Commons

“Oklahoma?! Why are you expanding to Oklahoma?!”

The response when I told some people that Generation Citizen, the nonprofit I run, was expanding to central Texas and Oklahoma, quickly became predictable. They could understand Texas, probably because our headquarters will be in the blue-dot-in-sea-of-red Austin. But Oklahoma?

My answer: Generation Citizen is expanding to Oklahoma City because no one would expect us to expand to Oklahoma City.

Our nonprofit is dedicated to empowering young people to become engaged citizens by reviving civics education in schools. We help middle and high school students learn about local politics by guiding them as they take action on issues they care about, like funding for teen jobs or state resources for teenage moms.

I founded the organization after graduating from Brown University in Rhode Island in 2009. Since then, we’ve expanded our programming to Boston, New York City, and the San Francisco Bay Area. All are urban areas with wide swaths of low-income young people, unequal schools, and disparate power dynamics. Our work is needed in those areas.

At the same time, all of these areas have predominantly liberal populations. In fact, according to The Economist, they are among the 10 most liberal cities in the country.

Generation Citizen is a non-partisan organization. We do not wish to convince young people to support a particular candidate or party — we just want them to engage politically, period. But the fact that we are preparing low-income young people in liberal urban centers to become politically active complicates this narrative.

So despite the fact that we could work with many more students in our existing cities, we made a conscious decision to expand to a more politically diverse region. A city that had real Republicans.

As we started talking about expansion, I realized the extent to which the dialogue about political and geographic diversity was a rarity in national nonprofit circles. While several large education organizations, like Teach for America and City Year, have done an admirable job of in working in conservative and rural regions across the country, a lot of other organizations follow a more predictable path, sticking largely to cities on the east and west coasts and sometimes, if folks feel crazy, an Atlanta or Miami.

There is nothing wrong with these decisions (and we were originally following this trajectory). A big reason for the coastal-focused expansion strategy is the availability of financial resources. Nonprofits want to raise money locally to sustain themselves, and those cities are home to a lot of people and foundations who can fund nonprofits.

But a more problematic reason seems related to our increasing ideological self-segregation. Nonprofits lean toward expanding to places that are comfortable, places that their leaders visit, places where people tend to hold similar values and political views.

One of the fault lines in our democracy is our inability to talk to people who disagree with us (highlighted daily by this presidential election). And non-profits may be exacerbating this reality.

This schism actually became more apparent to me when our board of directors started having conversations about expansion. Oklahoma City had come to the top of my proposed list because of my personal and professional contacts there. But I quickly realized that no one on my board lived more than five miles from an ocean, and save a board member from Oklahoma, none had stepped foot in the state.

“Are we sure we want to expand there? Why not a gateway city?” (I still don’t know what a gateway city is.)

“We can hire a Republican to run the site, but they can’t be a Trump supporter.”

“Are we sure that we can raise enough money to operate there?”

It wasn’t just my board. Whenever I talked to friends about our plans, they’d offer the same resistance.

The stereotypes I heard were twofold: Oklahoma was full of bigoted conservatives, and it was an incredibly boring location. (The dullness narrative got an unquestionable boost this year when star basketball player Kevin Durant left the hometown Thunder. It became quite clear that a main rationale for his leaving the team was Oklahoma City itself.)

But as I met with folks about Generation Citizen’s work, I met citizen after citizen who was excited about our mission. The state is facing tremendous budget challenges, and its voter participation rates amongst the worst in the country. Given these realities, there seemed to be widespread recognition that a program like ours could actually be helpful.

I did not talk about national politics with most people I met. Indeed, we might disagree on whom to support. But we did agree on the importance of educating young people to be politically active, shared concerns about public school budget cuts, and bonded over excitement for the Thunder’s playoff chances.

Still, the actual expansion to Oklahoma will be a challenge for our organization. Despite our local ties, we are coming in from the outside, and we do have the perception of being a progressively minded organization. What will happen if one of our classes wants to advocate for open carry at schools in response to a shooting? How will my board handle working in a site where they wouldn’t ordinarily visit?

I am excited to tackle all of these challenges. And I would push other similarly sized non-profits to think about working in a more diverse set of areas. It is not possible to be a national organization and avoid entire swaths of the country. But more importantly, given these tenuous political times, it feels important to interact with people who may not hold our beliefs.

Nonprofits can’t fix our national dialogue alone. But by expanding where we work, we might help improve the conversation.

honor system

Meet Derek Voiles, the Morristown educator who is Tennessee’s newest Teacher of the Year

PHOTO: Tennessee Department of Education
Derek Voiles, Tennessee's 2016-17 Teacher of the Year

Derek Voiles, a seventh-grade English language arts teacher in Morristown, is Tennessee’s 2016-17 Teacher of the Year, the State Department of Education announced Thursday.

One of nine finalists for this year’s award, Voiles teaches at Lincoln Heights Middle in Hamblen County Schools in East Tennessee. He received the top teacher honor at a banquet in Nashville.

Voiles, who has been teaching for six years, has long shared his teaching practices publicly — on Twitter, through a blog he wrote with a colleague, and as a state ambassador for the Common Core standards. In recent years, according to a state news release, his classroom became a hub as teachers from across his district observed his teaching in hopes of replicating his practices, which often improved the performance of students far behind their peers.

“All students are capable of achieving great things, and all students deserve a teacher who believes this and will do whatever it takes to make it happen,” Voiles said in the release. He is also a doctoral candidate at East Tennessee State University.

Now, Voiles will gain an even wider stage, as Tennessee’s representative to the National Teacher of the Year program. He will also share insight from the classroom as part of committees and working groups with the Tennessee Department of Education.

All nine Teacher of the Year finalists, representing each of the state’s regions, will serve on the Commissioner Candice McQueen’s Teacher Advisory Council during the 2016-17 school year.

The department also recognized two division winners from Middle and West Tennessee. Cord Martin, a music education and enrichment teacher at Whitthorne Middle School in Maury County, was recognized for his innovative teaching strategies and connecting content to contemporary culture. Christy McManus, a fifth-grade English language arts and social studies teacher at Chester County Middle School in Henderson was honored for equipping her students with the end goal in mind: a college-ready twelfth grader.

Voiles follows Cathy Whitehead, a third-grade teacher from Chester County, who served as Tennessee’s 2015-16 Teacher of the Year. Whitehead teaches at West Chester Elementary School in Henderson in West Tennessee.