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.

that was weird

The D.C. school system had a pitch-perfect response after John Oliver made #DCPublicSchools trend on Twitter

Public education got some unexpected attention Sunday night when John Oliver asked viewers watching the Emmys to make #DCPublicSchools trend on Twitter.

Oliver had been inspired by comedian Dave Chappelle, who shouted out the school system he attended before he announced an award winner. Within a minute of Oliver’s request, the hashtag was officially trending.

Most of the tweets had nothing to do with schools in Washington, D.C.

Here are a few that did, starting with this pitch-perfect one from the official D.C. Public Schools account:

Oliver’s surreal challenge was far from the first time that the late-show host has made education a centerpiece of his comedy — over time, he has pilloried standardized testing, school segregation, and charter schools.

Nor was it the first education hashtag to take center stage at an awards show: #PublicSchoolProud, which emerged as a response to new U.S. Education Secretary Betsy DeVos, got a shoutout during the Oscars in February.

And it also is not the first time this year that D.C. schools have gotten a surprise burst of attention. The Oscars were just a week after DeVos drew fire for criticizing the teachers she met during her first school visit as secretary — to a D.C. public school.

Startup Support

Diverse charter schools in New York City to get boost from Walton money

PHOTO: John Bartelstone
Students at Brooklyn Prospect Charter School in 2012. The school is one of several New York City charters that aim to enroll diverse student bodies.

The Walton Family Foundation, the philanthropy governed by the family behind Walmart, pledged Tuesday to invest $2.2 million over the next two years in new charter schools in New York City that aim to be socioeconomically diverse.

Officials from the foundation expect the initiative to support the start of about seven mixed-income charter schools, which will be able to use the money to pay for anything from building space to teachers to technology.

The effort reflects a growing interest in New York and beyond in establishing charter schools that enroll students from a mix of backgrounds, which research suggests can benefit students and is considered one remedy to school segregation.

“We are excited to help educators and leaders on the front lines of solving one of today’s most pressing education challenges,” Marc Sternberg, the foundation’s K-12 education director and a former New York City education department official, said in a statement.

Walton has been a major charter school backer, pouring more than $407 million into hundreds of those schools over the past two decades. In New York, the foundation has helped fund more than 100 new charter schools. (Walton also supports Chalkbeat; read about our funding here.)

Some studies have found that black and Hispanic students in charter schools are more likely to attend predominantly nonwhite schools than their peers in traditional schools, partly because charter schools tend to be located in urban areas and are often established specifically to serve low-income students of color. In New York City, one report found that 90 percent of charter schools in 2010 were “intensely segregated,” meaning fewer than 10 percent of their students were white.

However, more recently, a small but rising number of charter schools has started to take steps to recruit and enroll a more diverse student body. Often, they do this by drawing in applicants from larger geographic areas than traditional schools can and by adjusting their admissions lotteries to reserve seats for particular groups, such as low-income students or residents of nearby housing projects.

Founded in 2014, the national Diverse Charter Schools Coalition now includes more than 100 schools in more than a dozen states. Nine New York City charter groups are part of the coalition, ranging from individual schools like Community Roots Charter School in Brooklyn to larger networks, including six Success Academy schools.

“There’s been a real shift in the charter school movement to think about how they address the issue of segregation,” said Halley Potter, a senior fellow at the Century Foundation, a think tank that promotes socioeconomic diversity.

The Century Foundation and researchers at Teachers College at Columbia University and Temple University will receive additional funding from Walton to study diverse charter schools, with the universities’ researchers conducting what Walton says is the first peer-reviewed study of those schools’ impact on student learning.