School Finance Analysis Reveals Secrets of Nation's Most 'Productive' Districts

Through its partnership with Center for American Progress, EducationWorld is pleased to feature this reprinted excerpt from the Center’s January 2011 report Return on Educational Investment: A District-by-District Evaluation of U.S. Educational Productivity, by Ulrich Boser. This article represents Part 2 in an EducationWorld series on School Finance Analysis. See also Part 1: How Efficient is Your School Spending?

What should schools and districts do to improve productivity? What programs and practices do the most productive districts have in common? To answer these questions, [the Center for American Progress] analyzed the more than 240 districts that scored well on each of our productivity measures. We examined both their achievement and their expenditures as well as surveyed a sample of districts to learn more about their principles and practices.

The most productive districts were generally larger and more privileged than the inefficient districts. They enrolled lower percentages of low-income students than the least productive districts (37 percent to 49 percent). They were also more likely to be classified as large suburban school systems (20 percent versus 10 percent) and less likely to have small student bodies (77 percent of the least productive districts enrolled less than 2,000 students, in contrast to 51 percent of the most productive districts).

But highly productive districts do vary widely in size, location, and demographics. The Hawthorne School District, for instance, a few miles west of Compton, California, has a student body that’s more than 85 percent low-income and almost 40 percent English-language learners, and earned very high marks on each of our efficiency metrics. Other highly productive districts were very small and rural, such as the 700-student Dolores School District in the mountains of western Colorado. For all their diversity, we found that the highly productive districts shared a number of attributes. Let’s examine each of them in turn.

A focus on outcomes

Highly productive districts reported a laser-like focus on student performance. “The biggest driving force [here] is first and foremost the question: ‘How will this enhance learning?’” said Michele Campbell, superintendent of Pennsylvania’s Fort Leboeuf School District. “Expenditures need to fit into our vision and overarching educational objectives.” The districts used a variety of ways to increase student achievement. Some emphasized low-cost strategies, such as requiring principals to visit every classroom each week to give feedback on instruction. Some tried to create a more collaborative teaching culture. Waverly-Shell Rock Community Schools in Iowa has been building “learning communities” of teachers to ensure student learning is taking place and help educators develop their curricula.

Strong community relations

Many of the highly productive districts worked closely with their communities to help maximize education spending. Franklin Public Schools in Massachusetts, for example, merged its technology department with that of the town in order to reduce costs. Poyen School District in Arkansas developed an agreement with a local community college to offer Poyen students free college and vocational courses. Strong community relationships can also help with tough fiscal decisions. In 2009, St. Lucie County Schools in Florida had to cut $30 million from its budget. The union and the administration agreed on a number of cost-saving strategies, including pay freezes so that classroom teachers would be protected as much as possible. “There is a unity from our school board, our district and school leaders, and our union partners that provide the context of how work is done,” said Kathy McGinn, the district’s assistant superintendent for strategic planning and central services.

A willingness to make tough choices

Reducing spending while maintaining strong outcomes takes fiscal acumen, political savvy, and a willingness to make hard choices. In Taylorville, Illinois, the district recently closed two underenrolled elementary schools and laid off administrators. The cuts saved the 3,000-student district more than $1 million, and the system continues to post solid academic results—with test scores well above the state average. “Our communities are getting a good bang for their buck,” said superintendent Gregg Fuerstenau.

Reducing costs without cutting into achievement also requires careful planning. Norwell Public Schools in Massachusetts is in the third year of a comprehensive reform plan. A 25-member team of teachers, parents, administrators, and community leaders developed the initiative, which was aimed at boosting student outcomes and improving efficiency. “Rather than jumping from bandwagon to bandwagon, enough time is spent on initiatives to see the results,” said Norwell Superintendent Donald Beaudette. “Doing more with less has become a necessity.”

A priority on quality instruction

The country’s highly productive districts devoted 3 percentage points more of their budget to instructional costs than did the least efficient districts. They spent about 61 percent of their dollars on instructional expenditures, which includes teacher salaries, curriculum materials, and other classroom costs. “We aggressively protect resource[s] … for direct instructional services,” said Vic Noel Adkison, superintendent of Thomasville City Schools in Alabama.

Highly productive school systems sought large pools of teacher applicants by broadening job postings to local newspapers, state employment websites, and area universities. They also often employed instructional coaches to help mid-career educators hone their skills. “Our teaching staff continues to grow stronger and more effective as a result of a careful selection process and the support and training provided by the district,” said David Johnson, superintendent of the Harlan Independent School District in Kentucky.

Smart use of data

Most of the highly productive districts reported having sophisticated data systems that provided detailed information on a variety of school outcomes, from parent satisfaction to student success in college. Districts reported that the data allowed them to understand what works and what doesn’t. “We need to see the possibilities. When there is an outlier in the district—an upward outlier—that means the bar is raised and others can do it,” said Susan Parks, superintendent of San Gabriel Unified School District near Los Angeles.

Robust data systems also allowed the districts to identify potential cost inefficiencies. By analyzing its facilities spending, Rio Rancho Public Schools in New Mexico was able to post a 23 percent decrease in natural gas usage and a 71 percent reduction in irrigation water usage. In many ways, of course, these highly efficient districts were also a lot like other, less productive districts, and they were concerned that additional budget cuts could impair future outcomes.

Florence District Five in South Carolina, for instance, has weathered major revenue reductions over the last three years. “This year we received funding levels that reflect spending 10 years ago,” said Superintendent John Morris. In trying to protect key academic programs from budget rollbacks, Florence has cut everything from custodial uniforms to cell phones. Morris said he was worried that if budget reductions continued, his district would not be able to continue to post high student outcomes. “Things are getting desperate.”

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