Education Policy Institute

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Education Exchange
Volume 2, Issue 6 -- June 1998

Focusing on Education Reforms at Your School, in Your State Legislature, and in Congress

In This Issue

Edison Project Grows Exponentially

Supreme Court Decision Deals Blow to Unions

Does Dollars to the Classroom Make Sense?

National PTA Gears Up for Annual Convention

Peer Review Addressed in Teachers Evaluating Teachers

EPI's Education Quick Facts

Edison Project Grows Exponentially

The Edison Project, America's largest for-profit manager of K-12 public schools, announced in late May that it plans to nearly double the size of its school network this fall.

Having begun with just four schools in 1995, the company grew to 12, then 25 schools in succeeding years. Next fall, 48 Edison schools will be in operation across the country. Thirteen will be added to cities that already have existing Edison schools. Twelve more will be started in cities from Trenton, New Jersey to Denver, Colorado and Napa Valley, California.

Total enrollment will jump from 12,500 students in the 1997-98 school year to approximately 23,000 students next year.

Increasing along with enrollments are company revenues. They are expected to grow from $68 million to $126 million, with another $35 million coming through philanthropic support. In late May, the owners of The Gap clothing chain announced a $25 million grant to school districts in the San Francisco Bay area to enable them to bring in an Edison school.

In a cost saving decision, Edison opted to take over and renovate existing public school facilities rather than open a large network of new private schools, as it had earlier planned to do. The company recently secured $20 million in financing to renovate facilities for its new charter schools.

Since its founding in 1991 by media entrepreneur Chris Whittle, Edison has charted a unique course in the area of for-profit education.

It has invested $40 million in curriculum research and development. As a result, Edison schools follow a rigorous curriculum including:

  • pervasive use of technology, including a computer on every teacher's desk and in the home of every student in grade three and up;
  • class days extended by 90 minutes over most public schools;
  • school years extended by nearly a month over public schools; and
  • a commitment to substantial continuing professional training for its teachers.

According to Edison Chairman and CEO Benno Schmidt, "The key driver of our growth has been the outstanding performance of Edison students and teachers." The teacher unions, however, are disputing Edison's claims concerning student performance.

In a recent American Federation of Teachers report on Edison schools' student achievement, the union determined that the quality has been "mixed and inconclusive." The AFT Research Department claims to have conducted this study because there has been little oversight thus far of Edison schools.

Edison concedes some rough patches in staffing, but says its student test scores have been rising at nearly all of its schools. As the project continues to grow, there has been no attrition of previously signed school partners.

Supreme Court Decision Deals Blow to Unions

In a 7-2 decision on May 26, the U.S. Supreme Court dealt a defeat to organized labor, especially to the teacher unions, in a case involving service (agency shop or "fair share") fees for nonunion employees.

The ruling in Air Line Pilots Association v. Miller (Case No. 97-428) was a victory for the nonunion pilots who argued that nonunion employees need not comply with a union sponsored arbitration process before filing any lawsuits in federal court challenging the service fees. In states which permit agency-shop fees, the unions charge a service or agency fee to workers who do not join the union. The fees are to cover the employee's pro-rata share of the union's collective bargaining costs, but may not include costs for political expenditures such as lobbying.

The NEA, in a friend of the court brief filed on behalf of the airline pilots' union, argued that it is "expensive and burdensome" to deal with some nonmember objections in arbitration while responding separately to those who take their cases to court. The NEA brief asserts that about 13,000 out of 44,000 nonmember service-fee payers objected to the amount of their $200 - $500 annual service fees in a recent year.

The National Right to Work Legal Defense Foundation, which often represents teachers required to pay service fees, successfully argued that nonmembers of a union need not first submit to arbitration before initiating legal action to uphold their constitutional rights. The fact is that when objectors take their cases to federal court, the unions are much less successful in settling the amount of their service fees. Arbitration was an economical way for the unions to settle service-fee objections, but it was often unsatisfactory for the objectors.

Stefan Gleason, the director of legal information for the National Right to Work Legal Defense Foundation said, "The NEA is probably the most frequent user of these compulsory-arbitration schemes. They want to keep people out of their books."

Last year, the U.S. Court of Appeals for the 9th Circuit, based in San Francisco, ruled that nonunion teachers who were challenging their service fees did not have to go through the union-sponsored arbitration process. The Supreme Court decision in May was a union appeal from that decision, and the decision in Air Line Pilots v. Miller is likely to weaken union ability to extract service fees from nonmembers.

Does Dollars to the Classroom Make Sense?

The Dollars to the Classroom Act (H.R. 3248) was referred to the House Committee on Education and the Workforce on Feb. 24, 1998. Since then, it has been referred to the Subcommittee on Early Childhood, Youth and Families, where hearings were held on May 5.

H.R. 3248, and its related Senate version (S. 1589), require direct awarding to the states of all federal funds specified under provisions of:

  • the Goals 2000: Educate America Act;
  • the Educational Research, Development, Disseminations, and Improvement Act of 1994;
  • the School-to-Work Opportunities Act of 1994;
  • the Elementary and Secondary Education Act of 1965; and
  • the Stewart B. McKinney Homeless Assistance Act.

The bill further provides a "formula for determination of such award amounts, based on relative numbers of such students in each state." It prescribes "requirements for the use of such funds, earmarking not less than 95 percent for distribution to local educational agencies (LEAs) for the costs of activities or services provided in the classroom that LEAs determine appropriate."

Section four of the bill stipulates that each LEA that receives funds under the Act provide for the participation of private and home schooled students.

In the House Subcommittee Hearing, sponsoring Congressman Joseph Pitts (R-PA) said the bill would block grant 35 K-12 federal education programs to Governors.

Opposition to H.R. 3248 included Congressman John Tierney's (D-MA) argument that accountability would be eliminated and that it could provide no assurance to Congress that student performance would improve. Additional objections were raised by Congresswoman Rosa DeLauro (D-CT) about the sole manner in which funds are to be distributed -- by student population. This, she said, would not take into consideration circumstances of poverty or previously demonstrated success.

While proponents claim the Dollars to the Classroom Act would ensure that more funds would reach the classroom, placing less administrative burden on teachers and administrators, loopholes are built into the bill. As it stands, smaller districts which may have far greater need than larger districts, could not receive equal or greater funding due to the funding formula based on student population. Also, the requirement that 95 percent of the funds reach the classroom through local education agencies in no way assures that this money would be used for student supplies such as tablets, books, pencils, and the like.

The door is left open for teacher unions to ratchet up the call for vastly increased teacher compensation, with the claim that only this will make "classroom" conditions better for all students.

On June 2, California citizens voted down a similar initiative, Proposition 223 which was known as 95/5, because it would have ostensibly allocated 95 percent of school district revenues to classroom operations. In fact, the largest, most vocal proponent of the California initiative was United Teachers of Los Angeles (UTLA).

The California initiative was not identical to the federal legislation, but the main features of each should not go unnoticed.

National PTA Gears Up for Annual Convention

From June 27-30, approximately 2,000 delegates representing over six million members will meet in Nashville for the National PTA convention. In keeping with the theme of her administration "PTA Doing More for ALL CHILDREN," President Lois Jean White will welcome Dr. James P. Comer, professor of child psychiatry at Yale Child Study Center, as the keynote speaker. Comer is the author of School Power, Implications of an Intervention Project. The book discusses how a community of teachers and parents, a private university (Yale) child study center, and a school (Baldwin), teamed up to restore academic achievement in a dismal and failing inner city school in New Haven, Connecticut.

Out of this experiment in the late 1960s, Comer created the School Development Program, a reform strategy that is being replicated in over 80 school districts.

Also at one of the four general sessions, Oliver Thomas, a noted religious liberty attorney, and Dr. Charles C. Haynes, both from the Freedom Forum First Amendment Center at Vanderbilt University, will participate in a point-counterpoint "debate" over religious liberty in schools.

In addition to the business meetings, delegates can choose from among 50 workshop sessions including:

  • "Investing in America's Future: Why Federal Funding for Education is so Important";
  • "Building PTA Image";
  • "Implementation Strategies for the National Standards for Parent/Family Involvement Programs"; and
  • "What's Happening in Washington," a discussion of PTA's lobbying efforts.

Since many PTA delegates will be shopping for the best fund raising ideas, the exhibit hall will feature nearly 200 booths of fund-raising ideas, and other resources. The National PTA convention generates nearly $500,000 from registration fees and exhibit space fees for the organization.

In her acceptance speech last year, Lois Jean White pledged to "reach out to all children," especially those in inner cities where there are few PTA affiliates. White also intends to "make PTA more inclusive." Inclusive does not mean all encompassing, however, because PTA's policies are critical of all forms of school choice which may benefit students but pose a threat to unionized school employees.

Peer Review Addressed in
Teachers Evaluating Teachers

EPI's Chairman, Dr. Myron Lieberman, has written a new book on peer review. Titled Teachers Evaluating Teachers: Peer Review and the New Unionism, the book provides an in-depth analysis of peer review in two prominent school districts, Toledo and Columbus, Ohio.

Although peer review programs are established to improve teacher performance and terminate the services of teachers whose performance is deemed unsatisfactory, Lieberman shows that peer review leads to union control over teacher evaluation and retention, exorbitant costs, erosion of school board authority, and a diminished role for principals.

As they prepare to merge, the NEA and AFT claim to be "reinventing the union" to give student achievement the highest priority. In fact, they have placed peer review at the heart of "the new unionism."

With this in mind, Lieberman points out that peer review is utilized for three different purposes:

  1. It is a procedure culminating in decisions to renew or not renew the contracts of first year teachers.
  2. It is also a procedure leading up to decisions about tenured teachers who are not performing adequately for one reason or another.
  3. It provides assistance to teachers without any implication of adverse action.

Lieberman concludes that peer review's potential is vastly overrated and that it is likely to create a host of problems in the unions and school districts that establish such programs.

This book is now available through the Education Policy Institute. Please visit EPI's web site for full details.

EPI's Education Quick Facts

  • Members of academic student employee (ASE) unions throughout the University of California voted by a margin of 87 percent to authorize a strike next fall if the administration does not recognize the unions and agree to begin collective bargaining. The state Public Employee Relations Board has certified that a majority of the ASEs -- tutors, readers, and teaching assistants -- chose representation by the UAW. UC administration has refused to meet with the union. (Source: Work In Progress, June 8, 1998, a weekly publication of the AFL-CIO)
  • The 1997-98 National Survey of Salaries and Wages in Public Schools, reports $64,653 as the mean of the average salaries paid elementary school principals and $68,740 paid middle school principals in the school systems reporting. High school principals averaged $74,380 according to the survey. (Source: Educational Research Service)
  • A recent National Catholic Education Association study reports that 92 percent of Catholic school staff members are lay personnel. The average salary for a lay elementary school principal is $37,403, and $21,882 for a lay teacher. (Source: Education Week, June 10, 1998)
  • Teacher union state NEA affiliates have given thumbs up or down in the following manner on NEA/AFT merger which requires a two-thirds vote of union delegates at the NEA July 1-7 convention in New Orleans:
    Pro-merger -- CA, WI, WA, FL, MN, NY, OR, GA, MO, NE, NV, MT, MS, RI, NM, WY. Total=32.3%
    Anti-merger -- NJ, MI, IL, MA, VA, IN, IA, CT, ME, LA, WV, NH. Total=31.5%
    No position -- PA, OH, AL, NC, TX, TN, MD, KY, CO, AZ, OK, KS, UT, AK, DE, VT, SD. Total=33.0%
    Unknown -- AR, HI, SC, ID, ND. Total=3.1% (Source: Education Intelligence Agency Communique, June 15, 1998)

See File

Copyright 1998
Education Policy Institute, PMB 294, 4401-A Connecticut Ave., NW, Washington, DC 20008-2322 202/244-7535, Fax 202/244-7584 http://www.educationpolicy.org