
I saw
Confessions of a Shopaholic recently. I know that I'm a bit behind, but it really wasn't worth seeing in the theaters. In fact...well, let's just leave it at that. However, as a finance geek, I started thinking about the underlying message (you mean there was one??) of cost and value. I've always applied those principles to my personal financial decisions. I also tried very hard to implement those principles when I managed the finances of a large charter school. So, as I began to think about the way we managed our school and the way most teachers are paid in districts, I realized that there are some real upsetting things about the way that districts spend money on teachers (probably on a lot of other things too, but what I don't know won't hurt me, right?).
When we look at cost and value, we think about a strategic decision. When we go to buy a pair of Prada shoes (I know I do), we have think about how much money we have, how we plan to wear them and what the benefit will be. If we have nearly unlimited resources, then the other two questions aren't really that important. However, for the average person, those last two questions are absolutely important to good financial decision making. We want a pair of shoes that fits our needs, and we don't want to pay more than we have to. We don't want to pay for too much fluff. We want to get what we pay for. We don't determine what to pay based on what the shoe salesperson or the shoe store needs to survive.
Now, let's imagine that a school district wants to buy things based on what created strategic value for the students (stop laughing,
it could happen). What would that pay system look like? Would it look like the current step and lane system that unions continue to prefer?
Would you buy a pair of shoes at a given price just because someone said you have to? In other words, let's say that there are four pair of shoes. I'll use men's shoes because that's what I know. One pair is a nice pair of Teva sandals. The next pair is a comfortable pair of Rockport casual shoes. The third pair is a pair of Allen Edmonds dress shoes. The fourth pair is a pair of synthetic material Rockport knock offs. It's pretty clear that the value of each of these choices is highly dependent on the intended use of the shoe. If you are planning on a Hawaiian vacation, you probably will prefer the sandals, even if they are more expensive than the others (probably not more than the Allen Edmonds, but you get the point). I don't have to run through the uses of all four pairs of shoes for you to understand how to buy a pair of shoes.
So, now let's imagine that we have four teachers. Let's even make it easy and say that they all teach high school science. The first has ten years of teaching experience and is an adequate teacher. However, he doesn't want any AP courses and doesn't work overly hard at engaging students, but there are no complaints from students or parents. He really doesn't do well teaching physics courses. The second teacher can teach the full range of science courses, but is not very engaging at all. Again, there have been no major complaints. This teacher has twenty years of teaching experience and a master's degree. The third teacher engages students and loves to find new ways to engage students. She has an adequate knowledge of all of the sciences and is certified in all of the sciences for AP teaching. She has three years of experience. Our fourth teacher only teaches chemistry and general sciences, but is an outstanding teacher. He has six years of experience and has sent previously under performing students to MIT. Twelve of his students have won science awards at the state and national level. He defines teaching.
Now, let's talk cost and value. In most single salary schedules, the second teacher is making by far the most money, but what is the value to the school, to the students, to the taxpayers? Let's say that in my community this teacher would likely be making $70,000. That's probably not exactly right, but it's close.
The first teacher provides a bit more value, but not much, and is likely making about $55,000.
The third teacher creates a lot more value, but is likely only making about $42,000.
The fourth teacher creates even more value, but is likely only making about $46,000.
While all of those salaries are estimates, the gaps are not far off. If this were a personal finance example, we would all laugh at those who were paying $70,000. In fact, if this were a business, we would laugh at the business. If we worked at that business, we would complain about Henry down the hall in the corner office, who doesn't do anything, but still makes more than all the rest of us, and Henry would laugh all the way to the bank every Friday.
The really funny (or sad) thing is that in education this is normal, and we like it! In this way districts display all of the characteristics of a shopaholic. Even though some teachers provide far less service and quality than is being paid for, districts continue to buy. Every year that same teacher is bought again and, not at the same price, at a higher price.
So, next time a district official claims that he or she is being efficient with district resources, ask them to take a second look. In the movie, the main character and her shopaholic friends solve the problem by holding a huge clearance sale of all of their mistaken purchases. They then reform themselves (at least the main characters does), and choose to purchase only what provides value. Perhaps school districts should learn a lesson.
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By the way, to read a young teacher's opinion on this subject, click
here.