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The Agony of American Education

How per-student funding can revolutionize public schools.

(Page 2 of 3)

School closure is another prominent feature of the weighted student formula model. In Edmonton, if a school declines to the point that it can’t cover its expenses with the per student money, the principal is removed and the remaining teachers and facilities are assigned to a strong principal—or the school is closed altogether, and the staff is moved to other, more successful schools. The San Francisco school district closed five schools in 2005 because of underenrollment and is considering closing or consolidating 19 other schools.

Lifting All Boats

San Francisco’s system produced significant academic success for the children in the district. Miraloma Elementary, the school Caroline Grannan would not consider for her children in 1996, has seen test scores for second-graders in English language improve from 10 percent proficient in 2003 to 47 percent proficient in 2005. “Now’s the time to get in on the ground floor of one of the most up-and-coming schools in San Francisco,” one Miraloma parent recently wrote in an anonymous review for greatschools.net. “Student achievement is rising, parent involvement is soaring and the entire community is working very well together to improve the quality of every aspect of the school.…Parents are moving their kids from private schools to Miraloma because they like what they see. Yes, there is still work to be done but I am very confident that Miraloma will be the next Rooftop or Alvarado.” (Rooftop and Alvarado are two previously average schools that are now considered top-notch by parents due to high student achievement.) Greatschools.net had 19 similarly positive reviews for Miraloma.

Similarly, at Aptos Middle School, where Grannan’s daughter started this year, the share of students scoring proficient in English language increased from 29 percent in 2002 to nearly 50 percent in 2004–05. Aptos is also the most ethnically diverse school in the district: Its demographic composition in 2004–05 was 26 percent Hispanic, 32 percent Asian, 19 percent black, 13 percent white, 6 percent Filipino, 3 percent multiracial, and 1 percent Native American. Close to 50 percent of the students participate in the federal free lunch program, which is the standard proxy for poverty in public schools—schools with large free lunch populations generally have a more difficult time with academic achievement. California’s academic performance index (API) ranks a student body’s performance on several standardized tests. Aptos’ score has just risen from 6 out of 10 to 7 out of 10 (10 is best); it ranks 8 out of 10 when compared to schools with similar demographics.

Such gains have been made throughout the school district. Every grade level in San Francisco has seen increases in student achievement in math and language arts, and the district is scoring above state averages. (Fifty percent of San Francisco seventh-graders were proficient in language arts in 2005, compared to 37 percent proficiency statewide.) Even high schools, the most intractable of all schools, appear to be improving. Mission made Newsweek’s 2005 list of the nation’s top 1,000 high schools. Galileo has shown a big jump in test scores—its statewide API ranking jumped from a 3 to a 6 in just one year, while its ranking compared to similar schools climbed from a 2 to an 8. Balboa is on the radar for families who never would have considered it a few years ago.

These gains have been made even as students who used to be excluded from standardized tests are increasingly being tested. In the last year of Superintendent Bill Rojas’ administration, 1998–99, only 77 percent of the district’s students in the tested grades were included, with kids who were deemed likely to bring scores down left out whenever possible. In 2003–04, 98 percent of students in the tested grades were included.

San Francisco is not alone. William Ouchi of UCLA’s Anderson School of Management has done extensive research on the effects of school district decentralization throughout the United States. Ouchi and his team of 12 researchers studied three very centralized public school districts: New York City, Los Angeles, and Chicago; three very decentralized public school districts that used the weighted student formula: Seattle, Houston, and Edmonton; and three very decentralized Catholic school systems: Chicago, New York City, and Los Angeles. In his 2003 book Making Schools Work, Ouchi found that the decentralized public school districts and private Catholic schools had significantly less fraud, less centralized bureaucracy and staff, more money at the classroom level, and higher student achievement.

He also found that most districts merely give lip service to local control. According to Ouchi, the money must follow the child. The only true local control occurs when the principal controls the school budget.

At John Hay Elementary School in Seattle, which Ouchi profiled, the principal controlled about $25,000 a year before decentralization and now controls about $2 million. The principal used her new freedom to hire 12 part-time reading and math coaches and set up a tutoring station outside every classroom, plus another station in a wide hallway, for “turbo-tutoring” the gifted children. Now the school teaches reading in groups of five to seven students while other classes are in larger sections, and every student who is behind grade level receives one-on-one tutoring.During a four-year period following the change, the school’s standardized math scores rose from the 36th percentile to the 62nd, and reading scores rose from the 72nd percentile to the 76th. In third grade, black and white students now have identical reading scores, and all of them are at or above grade level.

Such gains also occur in other districts that have implemented public school choice and the weighted student formula. After Oakland’s first year of student-based budgeting, a majority of the city’s African-American students met basic reading standards at their grade levels in 2005—probably a first in recent district history. In addition, every grade level in Oakland saw increases in the number of students who were proficient in reading and math. Similarly, in 2005 Cincinnati public schools, where 70 percent of students are African-American, improved their state rating from “Academic Watch” to “Continuous Improvement,” and test scores were up for most students in most grade levels. Seattle also continues to see increases in student achievement and in 2005 reduced the number of schools rated “failing” under the No Child Left Behind Act from 20 to 18, even as the state raised the bar for proficiency.

As a result of these changes, parents are returning to public schools. In Seattle, the public school district has won back 8 percent of all students from the private schools since implementing the new system. In Edmonton, where it all began, the public schools are so popular that there are no private schools left. Three of the largest private schools voluntarily became public schools and joined the Edmonton district. (This has not held true in San Francisco, where families continue to leave the city, largely because of high housing costs. San Francisco’s private schools have lost enrollment as well, as the city’s child population reaches an all-time low of 11 percent.)The

Constraints of Public School Choice

Public school choice is not a panacea. In many districts there have been tensions between parents who want more choices and parents who want their children to have a guaranteed spot in a neighborhood school. In Seattle, the district recently considered abolishing the school choice system in favor of the traditional system based on a child’s address. The district’s reasoning is that busing students all over Seattle is complicated and expensive. So far, a parental outcry has staved off the plans to return to residence-based schools. Parents have suggested charging for transportation or leaving it up to families rather than killing off school choice.

In addition, unlike an actual market system in education, public schools are still strapped with myriad local, state, and federal regulations. No matter how decentralized San Francisco schools become, they still must comply with the No Child Left Behind Act and abide by silly state laws, such as the California statute that forbids parents from bringing home-baked cupcakes to school to celebrate their children’s birthdays with classmates.

Public school choice is at best a weak substitute for true school choice, where parents are not bound by excessive government regulations. In support of this point, Ouchi’s research found that the three Catholic school systems he examined—Chicago, New York City, and Los Angeles—were the most decentralized. They have very small central staffs, spend the least money per pupil, and have the highest student achievement. (While demographics do not affect the per-pupil spending or smaller centralized staff in Catholic schools, they probably contribute to higher test scores. For example, the New York City Catholic schools in Ouchi’s study have only 32 percent low-income children, compared to 74 in the city’s public schools.)

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