The Alt Comp Dialogue

Background

Public school teachers in California are compensated almost entirely based on the number of years they have been teaching and the postgraduate credits they have earned. This formula-driven system prevents gross discrimination in compensation practices, but it is blind to expertise, effectiveness and market conditions. Half of all new teachers leave the profession within five years for varied reasons including compensation, working conditions and professional dissatisfaction.

Is there a better way? Teacher pay is by far the largest element of our investment in public education. Currently, there is little discernable correlation between teacher pay and student learning; is there a way to make the system better at promoting practices that work? More pointedly, can such alignment improve the results for both students and teachers?

Outside California, changing pay systems for teachers is a megatrend. Districts including Denver, Minneapolis, New York, Toledo, Houston, and Little Rock are pioneering varying approaches, and in the process they are driving key learning about the opportunities and hazards of differentiated pay options for teachers and principals. In 2006, Congress gave the topic a big push forward by funding $94 million in competitive grants through the Teacher Incentive Fund. States such as Minnesota, Texas and Florida have invested funds to further accelerate the work.

Big changes involve risk, particularly if they are not sufficiently discussed and thought through. California can ill afford to ignore this megatrend.

Full Circle Fund Role

In 2006, Full Circle Fund initiated the Alt Comp Dialogue to foster and support substantive and collaborative local conversations about alternative compensation models. The project, supported by the Hewlett Foundation, is formally called The Alt Comp Dialogue: California Dialogue on Alternative Compensation Options for Educators. The grant term was extended for a second year, through 2008-2009.

Our Alt Comp Dialogue team seeks to develop grassroots expertise regarding alternative teacher compensation structures. The project engages the interested parties - notably district leaders, union leaders, and school board members - in a small number of districts in the greater Bay Area in a serious exploration of the ideas and options. Full Circle Fund members facilitate and support these efforts in collaboration with Julia Koppich, a frequently-cited expert on the subject of teacher compensation.

If these districts were to implement alternatives on a pilot or permanent basis, what would they include among their priorities? What issues and challenges loom largest based on their local needs? What practical considerations seem most important? How could changes in compensation structures support efforts to improve student learning and teacher working conditions?

In addition to local engagement to help districts confront these questions, the Alt Comp Dialogue project also includes a state engagement workstream. Our work in this area seeks to reduce risks of misunderstanding from state organizations and to remove obstacles that impede districts from acting on their insights and convictions.

Sources:
National Education Association, 2006.

Further Reading:
All Teachers Are Not the Same, Julia E. Koppich for Education Next, 2005.

NAME: Alt Comp Dialogue
GRANT TERM: 2006-2008
TEAM LEAD: Stephen Dodson

"It's been an amazing experience to be able to work on this project, helping districts and teacher unions explore alternative compensation structures. Full Circle Fund has taken lead in California on this difficult, but important, topic, and it's been an honor to be part of the team doing it."

Stephen Dodson

Chief Operating Officer, Parnassus Investments