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.

"I'd endorse something like that in a hot minute," said Day Higuchi, the president of the Los Angeles teachers' union from 1996 to 2002. "Right now L.A. Unified is the employer of last resort. People who can't get jobs elsewhere come here. If we did this, we'd become the employer of first resort. High-powered college students will be taking the job." Arne Duncan, the CEO of the Chicago Public Schools, told me that now there's "very little incentive outside of pure altruism" to get someone into teaching. This proposal "would dramatically change the face of the teacher profession," he said.

To gauge the conservative reaction, I spoke with Chester E. Finn Jr., a longtime school reformer on the right. Finn is the president of the Thomas B. Fordham Foundation, and served as an assistant secretary of education in the Reagan Administration. He expressed several concerns. "The troubling part of this proposal," he said, "is a 50 percent boost for just showing up for work, without any reference to whether anybody you teach learns a damned thing."

I replied that the offer was designed to make it worthwhile for the unions to accept real reform in pay and dismissal practices. And the pay increase would subsidize mediocrity only briefly, because under the new dismissal rules bad teachers could much more easily be fired.

Finn had his own variation to offer. "If you wanted to make this plan really interesting," he told me, "job security and tenure would be traded for this raise. The swap here ought to be that you take a risk with your employment and you don't have to be retained if you're not good at what you do. If you are good and you get retained, you get paid a whole lot more money. If current teachers can't swallow that tradeoff, make this a parallel personnel system for new ones coming in and for the existing ones who want to do it."

How might that work? I asked.

"Any current teacher is free to join this new system on its terms," Finn said, "or to stick with the old arrangement, in which they have high security and low pay. That's just a political accommodation to an existing work force for whom this might be too abrupt a shift. Over time you'll get a very different kind of person into teaching."

"It sounds tempting from a union point of view," Sandra Feldman told me of Finn's parallel approach. "The more voluntary you can make a system like this, the easier it is to sell. But I worry that something like that could create resentment between the people in the different tracks." Other union and district leaders, however, told me they thought that virtually every new hire would opt for the new system, as would perhaps a quarter of the senior teachers—meaning that most of the urban teacher corps would be on the plan within five years.

That union leaders think it makes sense to move toward serious pay differentials for teachers is important. But educators are concerned about two related questions. In determining pay rates, who will decide which teachers are better performers? And what standards will be used to assess teachers?

I asked Sandra Feldman if there was a consensus in the faculty lounges at most schools about who the best teachers were. "Absolutely," she said. The question is how to evaluate performance in a way that is objective and untainted by cronyism.

The superintendents and conservative reformers I spoke to agreed that serious weight should be given to students' test scores. In theory, so-called "value-added analysis"—the effort to track the impact of teachers on student achievement each year—is the holy grail of accountability, and thus the ideal basis for performance pay. But in reality, many people think it has serious limits. "There's just no reliable way of doing that right now," Feldman told me. This isn't only a union view. Joseph Olchefske, the superintendent of schools in Seattle, has studied the issue; he believes it would be hard to measure the value added by individual teachers. Others, however, think individual value-added analysis may soon be practical. Day Higuchi, the former L.A. union leader, argues that in elementary school, where each child has essentially one teacher, the right testing could constructively measure that teacher's impact.

Finn and others suggested a blended approach to teacher assessment. "You could have value-added analysis at the school level, which is clearly going to be done," Finn said, "combined with some other kind of performance reviews." Adam Urbanski, the president of the Rochester Teachers Association, who has spearheaded union-reform efforts for two decades, said, "It would be a fatal mistake not to include student learning outcomes as the ultimate test of this. It would be equally fatal to use only test scores, because you would have a huge invitation to cheating and manipulation." He and others proposed that various indicators regarded as germane to teacher assessment by educators and the public—such as dropout rates, graduation rates, peer review, specialized training, teaching technique, and student work—be considered along with test scores.

The superintendents all told me that principals should be the final arbiters of teacher performance. This is a sticking point with the unions. The problem with giving principals control is that many teachers think principals don't know the first thing about good teaching. Jene Galvin, a teacher who has worked in the Cincinnati school system for twenty-seven years, told me, "We don't really believe that the principals are the experts on pedagogy or classroom teaching or classroom management. The reason is they just didn't do it very long." The solution might be to have peer evaluators—mentor and master teachers—do the evaluations along with principals.

Experts I spoke with, including Finn, thought that all these challenges ultimately seemed surmountable. Finn said that a key to his supporting such a plan would be "that it included the ability for managers of schools to have a whole lot of control over who is working in their school."

If this agenda were presented as a federal challenge, in which the President or congressional leaders said, "We're putting this pot of money on the table for those communities that can come together around a plan that meets its conditions and make it work," school districts would almost surely step forward. If unions declined to come to the table, local media and business leaders could ask why they were balking at billions of dollars. Rank-and-file teachers, who might earn an extra $20,000 to $50,000 a year, would obviously have a huge stake in the plan's adoption. They might tell union leaders they supported finding ways of speedily dismissing poor performers.

Some Republicans may resist. After all, teachers' unions are big Democratic donors and the chief foes of Republican efforts to introduce school vouchers. The last thing we need, these Republicans might say, is a bunch of teachers with more money to spend on making sure that Republicans never get elected.

But some savvy Republicans think the time for a plan like this is ripe. Rick Davis, a political adviser to Senator John McCain, believes that such a plan may be inevitable. "Anybody who has looked at teacher pay as an element of the overall problem in education realizes that money matters," Davis told me. "Other than the voucher debate, we've exhausted the Republican position on education. So sooner or later we're going to get to teacher pay, because we can't be against teachers' making money. The American public is going to figure out that their teachers make less than their garbage collectors, and they're not going to be for that."

Matthew Miller is a consultant and a syndicated columnist. This article is drawn from his book The Two Percent Solution: Fixing America's Problems in Ways Liberals and Conservatives Can Love, to be published in September by PublicAffairs.
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