Education July 2003

A New Deal For Teachers

Here's how to fix our desperate urban schools: attract better teachers by paying them more—much more—but tie compensation to performance and allow districts to fire bad teachers quickly
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No one should need convincing that schools in the nation's poor districts are in crisis. A recent Department of Education study found that fourth-grade students in low-income areas tested three grade levels behind students in higher-income areas. "Most 4th graders who live in U.S. cities can't read and understand a simple children's book," a special report in Education Week concluded a few years ago, "and most 8th graders can't use arithmetic to solve a practical problem."

There are probably a hundred things these schools need, and ten things that could make a very big difference, but if we had to focus on only one thing, the most important would be improving teacher quality. Owing to rising enrollments and a coming wave of retirements, more than two million teachers must be recruited over the next decade—700,000 of them in poor districts. That means fully two thirds of the teacher corps will be new to the job. Finding top talent and not simply warm bodies is a tall order, especially in urban districts, where half of new teachers quit within three years (and studies suggest that it's the smarter half). Research shows that much of the achievement gap facing poor and minority students comes not from poverty or family conditions but from systemic differences in teacher quality; thus recruiting better teachers for poor schools is not only the biggest issue in education but the next great frontier for social justice.

The obstacles to improving teacher quality are great. Good teachers in urban schools have told me with dismay of the incompetence of many of their colleagues. The state competency requirements that aspiring teachers must meet are appallingly low. The late Albert Shanker, the legendary president of the American Federation of Teachers, once said that most of the state tests are so easy to pass that they keep only "illiterates" out of teaching. Yet even these minimal standards are routinely waived so that districts can issue "emergency credentials"; in our biggest cities as many as half of new hires, and up to a quarter of city teachers overall, aren't properly trained or credentialed.

The situation may soon get even worse, because many of the teachers now reaching retirement age are among the best in the system. Until the 1960s and 1970s schools attracted talented women and minority members to whom most higher-paying careers weren't open. Now people who might once have taught science or social studies become doctors, lawyers, and engineers. Salaries that start, on average, at $29,000 simply can't compete with the pay in other professions. In 1970 in New York City a lawyer starting out at a prestigious firm and a teacher going into public education had a difference in their salaries of about $2,000. Today that lawyer makes $145,000 (including bonus), whereas the teacher earns roughly $40,000. Sandra Feldman, the president of the American Federation of Teachers, is quite open about the problem. "You have in the schools right now, among the teachers who are going to be retiring, very smart people," she told me. "We're not getting in the same kinds of people. In some places it's disastrous."

How should we address this crisis? Most discussion so far has revolved around improving the skills of the teachers we already have. But upgrading the skills of current teachers can get us only so far when so many new teachers will be needed. Although changing the kind of person who goes into teaching may be hopelessly beyond the power of local school budgets and policies, we need to seize this moment of generational turnover in the teaching ranks to lure top college graduates to our toughest classrooms.

How to do this? Let's stipulate first that pay isn't everything. Teachers are the only category of people I've ever met who routinely say, without irony, that their jobs are so fulfilling they hardly care how little they make. For many of them, too, job security, good health benefits and pensions, and free summers offset the low income. But fulfillment and fringe benefits will never suffice to attract and retain hundreds of thousands of talented new teachers for poor districts.

There's no way to get large numbers of top people without paying up. Conservatives rightly worry that pouring more money into the system will subsidize mediocrity rather than lure new talent—especially when union rules make it next to impossible to fire bad teachers. "Dismissing a tenured teacher is not a process," one California official has said. "It's a career." The effort can take years and involve hundreds of thousands of dollars. Rather than being fired, bad teachers are shuffled from school to school. In a recent five-year period only sixty-two of the 220,000 tenured teachers in California were dismissed.

A grand bargain could be struck between unions and conservatives: make more money available for teachers' salaries in exchange for flexibility in how it is spent. For instance, the standard "lockstep" union pay scale, whereby a teacher with a degree in biochemistry has to be paid the same as one with a degree in physical education if both have the same number of years in the classroom (even though the biochemist has lucrative options outside teaching), should be scrapped. Better-performing teachers should make more than worse ones. And dismissing poor performers—who, even union leaders agree, make up perhaps 10 percent of urban teachers—should be made much easier.

If the quality of urban schools is to be improved, teaching poor children must become the career of choice for talented young Americans who want to make a difference with their lives and earn a good living too. To achieve that the federal government should raise the salary of every teacher in a poor school by at least 50 percent. But this increase would be contingent on two fundamental reforms: teachers' unions would have to abandon the lockstep pay schedules, so that the top-performing half of the teacher corps could be paid significantly more; and the dismissal process for poor-performing teachers would have to be condensed to four to six months.

In Los Angeles teachers currently earn about $40,000 to start and top out, after thirty years and a Ph.D., at about $70,000. Under this new deal those teachers would start at $60,000, and the top-performing half of teachers would make $85,000 to $90,000 a year, on average. A number of the best teachers could earn close to $150,000 a year. The plan is designed to pay America's best teachers of poor students salaries high enough to allow them to put aside a million dollars in savings by the end of their careers.

How much would this plan cost? Roughly $30 billion a year, which would lift the federal share of K-12 spending from seven percent to 14 percent of the total nationwide—only right, given that on their own poor districts can't afford the skilled teachers they need. This federal investment looks modest beside the $80 billion a year that some representatives of corporate America say they spend training ill-prepared high school graduates to work in modern industry. The plan could be administered through a program similar to Title I, which provides supplementary federal funds to poor schools. We might call it Title I for Teachers.

To find out whether this basic plan is politically feasible, I presented it to big-city superintendents, high-ranking union leaders, and assorted education experts and teachers.

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