Education Funding

Cash Drew Contractor Expertise—and Controversy

By Lauren Camera — July 08, 2014 4 min read
  • Save to favorites
  • Print

When Congress approved Race to the Top as part of the federal economic-stimulus package in 2009, it created a $4 billion fund states could tap—if they put together winning competitive-grant applications.

At the time, the recession was at its worst. Desperate for an injection of cash, states scrambled to draft applications that reviewers for the U.S. Department of Education would deem worthy. But most states lacked the expertise or capacity to craft a strong proposal themselves, so they hired consulting firms to do it for them.

“It was a huge influx of dollars that states were able to chase,” said Frederick M. Hess, the director of education policy studies at the American Enterprise Institute, a Washington think tank. “It created a need for consultants to figure out how to write the application and gather all the required materials.”

Tennessee hired Seattle-based Education First Consulting to help design its Race to the Top application, which eventually netted the state a $500 million award, but its state department of education and governor’s office played a more significant role in the process than did those in many other states.

Race to the Top competitor New Jersey, for example, paid Wireless Generation, a New York City-based company, more than $500,000 to craft what ultimately were two failed bids for a grant.

Philanthropic organizations that supported the policies the competition encouraged also got in on the action. Nine of the 12 winning applicants were given $250,000 each by the Bill & Melinda Gates Foundation to support the crafting of their proposals.

“It also meant that a lot of what got proposed wasn’t necessarily anything states were truly excited about, but something that consultants told them would play well in Washington,” said Mr. Hess, who writes an opinion blog for Education Week‘s website.

Courting Philanthropies

Applications that played well in the nation’s capital were those that most closely aligned with the Obama administration’s education agenda—a market-based approach that favored tougher, common academic standards, the elimination of charter school caps, revamped teacher-evaluation and -compensation models tied to student test scores, and state-of-the-art data systems to track student progress.

But state education departments had already been struggling under the mandates of the federal No Child Left Behind Act. Suddenly, they were asked to promise to implement new policies, some of which they had no experience with. Applications flooded in with proposals to partner with foundations and other nonprofit organizations.

All but three Race to the Top-winning states referenced the Gates Foundation in their applications. Tennessee’s also outlined a partnership with Battelle Memorial Institute to plan its entire science, technology, engineering and math, or STEM, programs.

Tennessee also leaned heavily on the State Collaborative on Reforming Education, or SCORE, a Nashville-based nonprofit founded by former U.S. Sen. Bill Frist, R-Tenn. Specifically, SCORE organized a coalition to educate parents about the Common Core State Standards and the lower test scores that would likely result when Tennessee adopted new tests aligned with the tougher standards. It also helped the state with research and stakeholder engagement regarding the new teacher- and principal-evaluation systems.

Contracting with nonprofits and philanthropic organizations isn’t a new idea in education. But Race to the Top made more money available for such partnerships and types of initiatives than ever before. The budget overview in Tennessee’s Race to the Top application set aside $134.3 million for contractual purposes, second only to the amount available to districts as subgrants, which accounted for half the $500 million pot.

Pushback

The swift application process, combined with the short timeline states had to complete several difficult policy overhauls, left many local education leaders feeling pushed aside.

“They just came in and did everything,” Keith Williams, the president of the Memphis-Shelby County Education Association, said of such outside players. “We didn’t even know who they were, but they were hiring and firing, … setting policy, and determining salary schedules.”

Mr. Williams said that collaboration with the various players was productive at the beginning, but that the partnership aspect was short-lived.

“It has been like trying to fight a giant,” he said. “These people would come in with connections from the top, and we were just amazed at the reach of power that they had.”

Tennessee Commissioner Kevin Huffman rejected that assertion in an interview, but has himself recently been attacked as having a brash, non-inclusive leadership style.

Mr. Williams’ account is particularly troubling for critics of the Obama administration’s education priorities, who argue that many of what they see as corporate-style education policies asked of states through Race to the Top, and later the NCLB waiver program, have yet to be fruitful.

A version of this article appeared in the July 10, 2014 edition of Education Week as Cash Drew Contractor Expertise—and Controversy

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
Smarter Tools, Stronger Outcomes: Empowering CTE Educators With Future-Ready Solutions
Open doors to meaningful, hands-on careers with research-backed insights, ideas, and examples of successful CTE programs.
Content provided by Pearson
Reading & Literacy Webinar Supporting Older Struggling Readers: Tips From Research and Practice
Reading problems are widespread among adolescent learners. Find out how to help students with gaps in foundational reading skills.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
Improve Reading Comprehension: Three Tools for Working Memory Challenges
Discover three working memory workarounds to help your students improve reading comprehension and empower them on their reading journey.
Content provided by Solution Tree

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding ‘Terminated on a Whim’: The AFT Sues Trump’s Ed. Dept. Over Funding Cuts
The AFT and a Chicago-area nonprofit argue the cuts happened without following required procedures.
Randi Weingarten speaks at a press conference at Murrell Dobbins Career & Technical Education High School in Philadelphia, Pennsylvania on September 2, 2025.
Randi Weingarten, the president of the American Federation of Teachers, speaks at a press conference in Philadelphia on Sept. 2, 2025. Weingarten says that cuts to federal education funds by the Trump administration "are only hurting young people."
Rachel Wisniewski for Education Week
Education Funding School Mental Health Projects Canceled by Trump Might Still Survive
The end of funding could still be days away, but a new court order offers some hope for grantees.
6 min read
Reducing, removing or overcoming financial barriers, financial concept : US dollar bag on a maze puzzle.
William Potter/iStock
Education Funding 'A Gut Punch’: What Trump’s New $168 Million Cut Means for Community Schools
School districts in 11 states will imminently lose federal funds that help them cover staff salaries.
10 min read
Genesis Olivio and her daughter Arlette, 2, read a book together in a room within the community hub at John H. Amesse Elementary School on March 13, 2024 in Denver. Denver Public Schools has six community hubs across the district that have serviced 3,000 new students since October 2023. Each community hub has different resources for families and students catering to what the community needs.
Genesis Olivio and daughter Arlette, 2, read a book in one of Denver Public Schools' community hubs in March 2024. The community hubs, which offer food pantries, GED classes, and other services, are similar to what schools across the country have developed with the help of federal Community Schools grants, many of which the U.S. Department of Education has prematurely terminated.
Rebecca Slezak For Education Week
Education Funding Federal Funds for Community Schools Fall Victim to a New Round of Trump Cuts
The latest round of grant cuts hits a program that helps schools provide more social services on site.
6 min read
Parents attend a basic facts bee at Stevenson Elementary School in Southfield, Mich., on Feb. 28, 2024.
Parents attend a "basic facts" bee at Stevenson Elementary School in Southfield, Mich., on Feb. 28, 2024. The school has been a recipient of a federal Full-Services Community Schools grant that has allowed it to add an on-site health clinic, a parent-resource room, a therapy dog, and other services parents would otherwise have to seek elsewhere.
Samuel Trotter for Education Week