Florida: Hillsborough County Schools Loses Both Gates Money and Financial Reserves

In November 2009, the Bill and Melinda Gates Foundation awarded the Hillsborough County (Florida) Public Schools a $100 million grant as part of its “Empowering Effective Teachers” effort:

Hillsborough County Public Schools

Date: November 2009
Purpose: to support Hillsborough County as part of a cohort of Intensive Partnership Sites to improve teacher effectiveness to transform outcomes for low-income, minority students
Amount: $100,000,000
Term: 80
Topic: College-Ready
Regions Served: GLOBAL|NORTH AMERICA
Program: United States
Grantee Location: Tampa, Florida
Grantee Website: http://www.sdhc.k12.fl.us/

The grant was to be paid in 80 installments; if such installments were monthly, then the grant would be paid over roughly seven years, with the final payment made at the end of the 2015-16 school year.

Of course, Gates had some ideas about how this “teacher effectiveness” business should work. The report linked above has as its second sentence, “A teacher’s effectiveness has more impact on student learning than any other factor under the control of school systems, including class size, school size, and the quality of after-school programs.” When pro-corporate-reform organizations toss around such statements, they never seem to follow it with the fact that factors external to the classroom hold far more sway that does the teacher. (In analyzing the proportion of teacher influence captured via value-added modeling– VAM– the American Statistical Association notes that teacher influence accounts for between 1 and 14 percent of variance in student test scores. Thus, between 86 and 99 percent of a student’s test score is out of the teacher’s control.)

Nevertheless, ignoring that the teacher controls so little of student outcomes in the form of market-driven-reform-loving test scores, in its efforts to try to purchase higher student test scores, the Gates Foundation offered ten school districts nationwide the multi-million-dollar-funded opportunity to prove that teachers could indeed be cajoled into producing better “student achievement” (i.e., ever-higher test scores) when such teachers were measured by their students’ test scores and offered more money for “raising” said scores.

As a 2009 winner of an Empowering Effective Teachers grant, Hillsborough was thrilled (“We’ll be a national model!”). A December 21, 2015 archive of Hillsborough schools’ “Empowering Teachers” webpage includes a number of enthusiastic responses regarding the newly-acquired, $100 million Gates grant. Front and center in these celebratory public statements is then-Hillsborough superintendent, MaryEllen Elia (Then-Governor Charlie Crist: “I commend Superintendent MaryEllen Elia and the Hillsborough County School District for their enthusiasm and commitment to working with the Bill and Melinda Gates Foundation during the next seven years to improve student academic performance through rewarding high quality teachers both professionally and monetarily. The foundation’s generous grant award of $100 million will greatly enhance the work the district has already done in this area.”)

However, part of the Hillsborough-Gates agreement involved Hillsborough’s ponying up money of its own– which ended up eating into the Hillsborough schools’ reserves and threatening its bond rating. As reported in the August 04, 2015, Tampa Bay Tribune, the Empowering Effective Teachers initiative is not the only financial stressor affecting the Hillsborough bond rating, but it is nevertheless noteworthy:

In 2013, the school district was heading into the fourth year of a seven-year grant from the Bill and Melinda Gates Foundation to help raise the bar among its teaching staff — a major factor, the foundation maintains, in student success.

Under its partnership with the foundation, the district needed a new salary schedule that tied raises more closely to a new system of evaluations — a change adopted statewide soon afterward.

Teachers in their first, second or third year on the job automatically switched to the new scale, which ties raises to evaluations, and those on their fourth year or higher chose whether to move to the new scale or stay on the old one. Because those changes were made mid-year, after the school board receives its yearly budget presentation, the school board never saw the financial effect of moving thousands of teachers to a new pay schedule, [new Superintendent Jeff] Eakins said.

About 10,000 school district employees moved to the new schedule, which meant their paychecks increased from $5,000 to $15,000 that year. The new scale averaged out to a 4 percent raise for each teacher. Last June, the school district used money in the reserve fund to make payroll several times near the end of the school year, Eakins said.

Yes, Hillsborough has a new superintendent. In January 2015, Elia was terminated via a school board vote of 4-3. The drain on Hillsborough’s reserves– down from $360 million to $152 million in about the past five years– happened on Elia’s watch– and allegedly without the knowledge (much less the approval) of the Hillsborough school board:

“The school board had no idea,” chairwoman Susan Valdes said. “We instructed the former superintendent not to touch the fund balance.”

Elia, selected by her peers as one of the top four superintendents in the country, was hired as commissioner of education for the state of New York. Her office said Tuesday she is traveling and could not be reached.

Elia is now in New York, where she runs the risk of jeopardizing her position with parents in New York’s growing opt-out movement. Elia publicly called opting out of standardized testing “unreasonable” and asserted that teacher encouragement of opting out is “unethical.”

But back to Hillsborough and its “Empowering Effective Teachers” Gates grant:

The August 04, 2015, Tampa Tribune article notes, “Next year is the final year of the $100 million Gates Foundation grant, called ‘Empowering Effective Teachers.’” Thus, it appears that Hillsborough believes Gates will follow through on its entire $100 million commitment during the full term of the grant.

Alas, it is not to be.

On September 21, 2015, the Tampa Bay Times reports that the Gates Foundation has only paid $80 million of the $100 million.

The Gates Foundation maintains that it did not agree for certain to fund the entire $100 million:

…Records indicate the relationship between Gates and the district has had some bumps.

Late in the process, the foundation rejected several of the district’s funding requests for Empowering Effective Teachers, which involves evaluating teachers using specially trained peers and bumping their pay with the idea that it would boost student performance.

“Each of the proposals were robustly outlined and presented,” a district report said.

But Gates officials responded by pointing to language in the original agreement saying the foundation had promised “up to” $100 million, not necessarily the whole amount, according to the report.

The district picked up the unpaid costs.

It is not unusual for a nonprofit like the Gates Foundation to require reports of how the grant project is proceeding in order to decide to continue to fund a project. However, a notable issue in this case appears to be “a change in Gates’ philosophy”:

Much of the disagreement [about funding the entire $100 million] amounted to a change in Gates’ philosophy, Brown said. “After a few years of research,” she said, “they believed there was not enough of a connection between performance bonuses and greater student achievement.” …

Gates spokeswoman Mary Beth Lambert said that while the decision on bonus pay is final, the two sides could agree on another funding opportunity later in the year. “It’s an ongoing conversation,” she said. “The door is still open.” [Emphasis added.]

So. The winds have changed. Gates no longer believes in a pay for performance. But there is another notable issue, and it concerns the original terms of the Hillsborough-Gates agreement– terms that Hillsborough schools did not follow through on: Mass firing of teachers, and no pay at all for seniority. As the September 21, 2015, Tampa Bay Times reports:

Since 2009, key components of the Gates program have changed.

The original proposal and a 2010 timeline called for the district to fire 5 percent of its teachers each year for poor performance. That would amount to more than 700 teachers. The thinking was they would be replaced by teachers who earned entry level wages, freeing up money to pay the bonuses for those at the top.

But the mass firings never happened. While an undetermined number of teachers resign out of dissatisfaction or fear that they will be fired, only a handful of terminations happen because of bad evaluations.

Also, while the initial proposal sought to pay teachers based on performance instead of seniority, the actual pay plan does both. Teachers receive pay bumps at three-year intervals and, if they score highly in the ratings system, they get bonus pay.

Evaluators were supposed to serve two-year stints, then cycle back to the classroom. Instead, many stay three and four years.

What strikes me is that Elia and others were so enthusiastic about a grant “opportunity” that would require firing five percent of teachers each year.  (Read Elia’s et al. enthusiastic May and August 2009 letters to all employees here.)

Elia’s cheerleading about a Gates grant requiring constant churn via teacher firings reminds me of something Shirley Jackson would have written in one of her short stories.

As Hillsborough faces the issue of $20 million less from Gates for a grant that initially agreed to fire five percent of teachers per year, Elia is in New York, where the cowering Board of Regents on September 16, 2015, approved Governor Andrew Cuomo’s push to increase teacher evaluation based on test scores to as much as 50 percent— and where numbers of students opting out could well serve as a catalyst for– dare I write it– *empowering* teachers.

However, it is not likely that Gates will take any interest in funding any parent, student, or teacher empowerment that works by defying standardized testing.

Go figure.

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