Education

Spending Tips

February 18, 2004 1 min read

The Committee for Economic Development recommends the following actions to overhaul how schools are financed:

Effective Allocation of Resources

  • Expand principals’ budget authority, but hold them to standards of “good managerial practice and school-based accountability for student learning.”
  • Create every school’s budget based on the educational needs of students.
  • Develop data systems that indicate the best ways to spend money.

Changes in Teacher Compensation

  • Replace the single-salary schedule with one that reflects “the realities of the teacher labor market,” using differential pay scales to attract teachers in areas where their expertise is most needed.
  • Change pension and transfer policies that “penalize mobile teachers, further handicapping districts facing difficulties attracting job candidates.”

Inentives for Improved Performance

  • Link “some portion” of teachers’ pay to their students academic outcomes.
  • Create “more equitable financial policies ... to give charter schools a fair opportunity to succeed.”

Costs of Standards-Based Education

  • Policymakers need to “provide sufficient funding for schools and students to meet the new requirements” of standards-based education.

SOURCE: “Investing in Learning,” Committee for Economic Development