Course Purpose and Goals
For this activity, you will consider per unit cost of schooling and cost some tradeoffs to improve educational outcomes for students.
Asking the most of each education dollar should be a top priority at current spending levels and when considering infusion of new resources.
Introduction
Dr. Marguerite Roza emphasizes that the single most important step that school systems can take to make more informed decisions is to calculate costs on a per-unit basis. This skill is particularly useful in helping formulate creative solutions and comparing multiple alternate approaches. Being able to calculate and compare expenses on a per-unit basis enables much more informed decision-making around spending education dollars in a way that improves student outcomes and can help reduce existing inequities.
Let's get started
In this activity you will use sample data to calculate and evaluate a series of financial tradeoffs for a lump sum of money. The activity instructions will walk you through different calculations to break down a lump sum into a per-unit basis. Using this approach, you will begin to understand how breaking costs down in terms of the production you will realize makes for a much more well informed decision making process.
Next Step
Activity 1 Instructions
The principal at Cedar Elementary just received a call from the district’s chief financial officer (CFO) saying the school would now have an additional $85,000 for the coming school year. The CFO wants to know which of the option below the principal prefers. Use the sample data on the right to calculate the following costs.
Question 1
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Learn More
Breaking Down School Budgets: Following the Dollars into the Classroom
This analysis by Marguerite Roza published by Education Next examines ways in which per-pupil spending in high schools varies by subject and course level, and demonstrates how isolating spending on discrete services can 1) identify the relationships between priorities, current spending, and outcomes; 2) clarify both relative spending on discrete services and the organizational practices that influence how resources are deployed; and 3) establish the current cost of providing high school services as a necessary precursor to identifying whether there are better ways to provide some services. Read this article
Calculations
$85,000 annual teacher cost / 170 work days = $500 per day
Question 2
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Rethinking Class Size to Expand Access to Best Teachers and Raise Pay
In this presentation given at the 39th annual conference of the Association for Education Finance and Policy Suzanne Simburg and Marguerite Roza shared the findings of an Edunomics Lab study exploring cost neutral options to raise teacher pay and provide more students with access to the best teachers. Read this presentation
Calculations
Option A is $150 more per day
Check your thinking
Next Step
Activity 2 Instructions
The principal chooses Option B and offers four weeks’ worth of stipend per teacher to prepare for and deliver a four week half-day prep school in August for lower performing students. Use the previously provided data and calculate the following costs.
Question 1
Calculations
20 workdays / $350 stipend = $7,000 per teacher
Question 2
Calculations
$7,000 per teacher / $60,000 salary = 11.7% more than the average salary
Question 3
Calculations
$85,000 additional money / $7,000 per teacher = 12 teachers could participate
Check your thinking
Next Step
Activity 3 Instructions
The principal offers 7 days’ worth of stipend (per student) for some of the best teachers to take on additional students. Use the previously provided data and calculate the following costs.
Question 1
Calculations
7 workdays * $350 stipend = $2,450 stipend per student
$2,450 stipend per student * 3 extra students = $7,350 to take 3 additional students
Question 2
Calculations
$85,000 additional money / $2,450 for each student moved = 34 students could be moved
Check your thinking
Next Step
Activity 4 Instructions
A principal of a nearby high school was offered the same options. Her vice principal suggests using the money to pay each student $50 at the end of each month when the student’s attendance was over 90%. The principal recognizes that attendance is lowest for seniors where the higher dropout rate has been a consistent problem at the school. In this scenario, calculate the following costs based on the data given.
Question 1
Calculations
If all 200 seniors achieved the attendance requirement the cost would be $10,000/month.
Given not every student is likely to reach the goal each month this plan could work.
Check your thinking
Next Step
Reflections
Use this section to write your thoughts or reactions to these activities. Consider what numbers you might get using data from your own system, is there a team member you want to connect with to contemplate options in your school community.
Next Step
Overview
For this activity, you will consider per unit cost of schooling and cost some tradeoffs to improve educational outcomes for students. Asking the most of each education dollar should be a top priority at current spending levels and when considering infusion of new resources.
Activity 1
The principal at Cedar Elementary just received a call from the district’s chief financial officer (CFO) saying the school would now have an additional $85,000 for the coming school year. The CFO wants to know which of the option below the principal prefers. Use the sample data on the right to calculate the following costs.
Q1
If the principal chooses Option A, what is the cost per day of the FTE?
Your answer: {no answer}
Q2
How does that compare to the cost per extra day for option B?
Your answer: {no answer}
Activity 2
The principal chooses Option B and offers four weeks’ worth of stipend per teacher to prepare for and deliver a four week half-day prep school in August for lower performing students. Use the previously provided data and calculate the following costs.
Q1
How much would each participating teacher earn? (Teacher would use the other half of each paid day to prepare, etc.)
Your answer: {no answer}
Q2
In percentage terms, how much more would those teachers earn compared to the average annual salary?
Your answer: {no answer}
Q3
How many teachers could participate?
Your answer: {no answer}
Activity 3
The principal offers 7 days’ worth of stipend (per student) for some of the best teachers to take on additional students. Use the previously provided data and calculate the following costs.
Q1
What’s the total stipend per teacher taking on 3 additional students (given a class size limit of 26)?
Your answer: {no answer}
Q2
How many students could be moved into classrooms with stronger teachers?
Your answer: {no answer}
Activity 4
A principal of a nearby high school was offered the same options. Her vice principal suggests using the money to pay each student $50 at the end of each month when the student’s attendance was over 90%. The principal recognizes that attendance is lowest for seniors where the higher dropout rate has been a consistent problem at the school. In this scenario, calculate the following costs based on the data given.
Q1
There are 200 seniors. Does the math work to offer this plan to all seniors? What assumptions did you make?
Your answer: {no answer}
Reflections
Use this section to write your thoughts or reactions to these activities. Consider what numbers you might get using data from your own system, is there a team member you want to connect with to contemplate options in your school community.
Leave a comment
Your comment: {no comment}
