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Arizona’s Performance Based Compensation

National Conference on Teacher Compensation and Evaluation Chicago, IL November 21-22, 2002 Penny Kotterman, President Arizona Education Association. Arizona’s Performance Based Compensation. The Arizona Picture: Major Legislative and Policy Initiatives. Setting the Context.

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Arizona’s Performance Based Compensation

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  1. National Conference on Teacher Compensation and Evaluation Chicago, IL November 21-22, 2002 Penny Kotterman, President Arizona Education Association Arizona’sPerformance Based Compensation

  2. The Arizona Picture: Major Legislative and Policy Initiatives

  3. Setting the Context • Right to Work State • Local bargaining in the public sector is discretionary • Public Schools • 226 School districts, 300+ Charter Schools • 900,000 students • 50,000 teachers • Average Salary $35,000

  4. Key Elements • Sales Tax Revenue: $275 million in first year PLUS • School Lands Trust: $13 million first year supplemental PLUS • Inflation increase: 2% over prior budget year PLUS • Student population growth: Per pupil increase in base funding each year

  5. Teacher Compensation • Estimated increase of $3,500 per teacher • Traditional Salary (base salary) is estimated at 92-98% of total salary • Performance Based compensation is estimated at 2%-8% of total salary

  6. Provisions and Premises • All districts and all schools are required to have Performance-based Pay • Specified funding can only be used for Performance-based Pay • Districts with Career Ladders meet provisions • Participation in plan by individuals is optional - either procedurally or structurally • Performance-based Pay plans may supplement current salary schedules

  7. Arizona Career Ladder Provisions • Established a multi-level system of teaching • Provides opportunities for continued professional advancement • Requires: • Improved or advance teaching skills • Higher level instructional responsibilities • Demonstration of pupil academic programs • Ensures placement is based on multiple measures of teacher performance • Requires teachers to be involved and supportive of the process

  8. Performance-based Pay Goals • Performance-based pay as one of several mechanisms to affect instruction and student academic progress • Clearly defined goals and expectations • Provides teachers with opportunities for clear feedback • Provides opportunities for the development of knowledge and skills • Rewards teachers who develop knowledge and skills needed to meet organizational goals and expectations

  9. Outcomes • Strengthen the teaching profession • Raise teacher salaries • Insure quality teachers in every classroom

  10. Performance Based Compensation -What’s Happening Now? • Developed and approved at the local district level, or Charter School level • Experiences range from arbitrary and contentious to cooperative and collaborative • Plans are built off of base salary and most have site incentives as the key component • (www.arizonaea.org, Issues, Prop 301 Update, District PBP Plans)

  11. Non-Classroom Expenditures • Building maintenance and operation 12.5% • Administration - 10.8% • Combined =Over 1/2of all non-classroom expenditures

  12. Factors associated with higher Classroom Spending • District size • Teacher Salaries • Teacher Experience

  13. Where does the Money Go? • 76% of all Classroom instruction $ = Base Contract Teacher salaries • For every $1000 paid to teachers annually 0.3% increase in Classroom $

  14. What does the Future Hold? • Economic downturn has created enhanced skepticism • Shortfalls in current revenues have delayed or reduced payments in some instances • ’03 budget is unsettled and includes some education cuts to make up the $1 billion shortfall • Passage of legislation, member and community support could set groundwork for enhanced revenue in the future • Economic impact studies of long term cost • Formation of the Arizona Business Education Coalition • Political environment is uncertain

  15. Key AEA Initiatives/Activities • Public Policy and Community Engagement • Legislative advocacy, partnerships with the ADE, business groups, and community groups • Quality Teaching and Learning • Focus on the connection to Arizona Learns and ESEA (Priority Schools and Accountability) • E3 -- Professional Development and Teacher Evaluation Instrument

  16. Performance-based Payin theMesa Public School District Ann Rifleman, Teacher Mesa Public Schools

  17. Mesa’s Performance-based Pay • What have we developed so far? • What have we learned? • What changes are we contemplating for the future?

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