Lakota Schools Compensation Study prepared by Executive Service - - PowerPoint PPT Presentation

Lakota Schools Compensation Study

prepared by Executive Service Corps of Cincinnati University of Cincinnati Economics Center January 28, 2013

Executive Service Corps of Cincinnati

• All volunteer organization with 130 members
• Provide business expertise and experience to

area nonprofits

• Founded in 1995
• Jerry Lewis

– Procter & Gamble – 33 years – ESCC – 12 years

University of Cincinnati Economics Center

• Founded in 1977 - a leading source of economic

information and resources for educators, businesses, and the community.

– Julie Heath, Ph.D., Economics Center Director – Michael Jones, Ph.D., Director of Research – Stephen Samuels, Director of Business Development

Study Objectives

• Understand the current Lakota wage, salary

and benefit data relative to other similar districts (Part 1)

• Understand the Return on Investment per

student for similar districts (Part 2)

Why this Study?

• Lakota’s teacher labor market draws from

regional schools.

• Lakota salaries must be competitive to find

additional teachers and retain current teachers.

• This study will understand Lakota’s position

relative to the ODE 20 like districts and the selected regional schools.

Part 1

Sources of Data

• Ohio Department of Education (ODE)

– Reporting School District Revenue and Spending per Pupil

• Formerly the Expenditure Flow Model

– District Profile Report

• Also know as the Cupp Report

– 2011 is the most recent data available – Web site: ODE – FY2011 District Profile Report

Key ODE Definitions

• Expenditures per Pupil – All Administrative, Operations, Staff

Support and Pupil Support

• Revenue per Pupil – All local sources (property taxes, incomes

taxes*, fees, etc.), state sources (state foundation payments, property tax allocations, state grants, etc.) and Federal grants

• Total Average Daily Membership (Students) – The number of

students served by a district. Note: calculated using the first full school week during the month of October.

*Note: Lakota does not have an income tax

ODE Similar Districts w/Lakota

Lakota Hillard Dublin Mason Worthington Centerville Westerville Beavercreek Gahanna-Jefferson Pickerington Sylvania Medina Forest Hills Olentangy Perrysburg Stow-Munroe Strongsville Scion Milford Springboro Twinsburg

Labor Market for Lakota Teachers

Lakota Cincinnati Princeton Sycamore Mason Olentangy* Fairfield Oak Hills

* Located north of Columbus, OH

Socioeconomic Status

70% 59% 29% 16% 16% 15% 8% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cincinnati Princeton Fairfield Sycamore Like Districts Lakota Olentangy Oak Hills

Economically Disadvantaged - Student Percentage

Revenue and Expenses ($MM)

$466 $150 $143 $97 $82 $77 $76 $71 $62 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Cincinnati Lakota Olentangy Mason Like Districts Sycamore Fairfield Princeton Oak Hills Revenue Expenditures

Lakota teaches the largest number of students in the area, outside of CPS.

41966 18335 15970 10734 9315 5290 10123 5382 8078 5000 10000 15000 20000 25000 30000 35000 40000 45000 Cincinnati Lakota Olentangy Mason Like Districts Sycamore Fairfield Princeton Oak Hills

Revenue and Expenditures per Pupil

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Cincinnati Lakota Olentangy Mason Like Districts Sycamore Fairfield Princeton Oak Hills Revenue per pupil Expenditures per pupil Lakota has the lowest revenue except for Fairfield which just approved a levy

Salaries and Benefits as a % of Operating Expenditures

50.6% 79.0% 85.5% 88.1% 85.5% 85.5% 84.0% 84.7% 88.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

Cincinnati Lakota Olentangy Mason Like DistrictsSycamore Fairfield Princeton Oak Hills Lakota has the lowest level of all schools except Cincinnati (only urban school included)

Administrator Average Salaries

$70,000 $75,000 $80,000 $85,000 $90,000 $95,000 $100,000 Cincinnati Lakota Olentangy Mason Like Districts Sycamore Fairfield Princeton Oak Hills Lakota has one of the lowest averages

Number of Administrators per 1000 Students

3.97 4.42 4.4 4.55 4.81 4.85 5.14 5.17 6.42 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 Lakota Fairfield Cincinnati Olentangy Mason Similar Districts Oak Hills Sycamore Princeton

Administrators per 1000 students

Classroom Teacher Average Salary

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Cincinnati Lakota Olentangy Mason Like Districts Sycamore Fairfield Princeton Oak Hills Lakota’s average is equal to most schools

Teacher Salary Comparison Salary Schedule

ODE 20 Similar districts and Lakota Labor Market Schools

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000

$31,841 $37,492 $40,784

Teacher Salary Comparison First Step on Salary Schedule Cincinnati Area Schools

Base Salary

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

$50,150 $57,269 $68,005

Teacher Salary Comparison Masters with 10 years experience Cincinnati Area Schools

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000

$64,383 $83,982 $93,408

Teacher Salary Comparison Final step on salary schedule Cincinnati Area Schools

Maximum Salary

Part 2

Return on Investment (ROI)

• Standard Measure of Financial Accountability

– Annual Expenditures per Pupil =

𝐹𝑦𝑞𝑓𝑜𝑒𝑗𝑢𝑣𝑠𝑓𝑡 𝑂𝑣𝑛𝑐𝑓𝑠 𝑝𝑔 𝑄𝑣𝑞𝑗𝑚𝑡

• This measure does not consider performance
• An ROI measure evaluates costs AND benefits

– Expenditures per Graduating Pupil = 𝐹𝑦𝑞𝑓𝑜𝑒𝑗𝑢𝑣𝑠𝑓𝑡 𝑞𝑓𝑠 𝑄𝑣𝑞𝑗𝑚 𝐻𝑠𝑏𝑒𝑣𝑏𝑢𝑗𝑝𝑜 𝑆𝑏𝑢𝑓 – Note: a lower number indicates that fewer dollars are being spent in order to graduate a pupil.

ROI Example

• District A: Expenditures per Pupil = $10,000

Graduation Rate = 100%

– Expenditures per Graduating Pupil =

10,000 100% = $10,000

• District B: Expenditures per Pupil = $10,000

Graduation Rate = 50%

– Expenditures per Graduating Pupil =

10,000 50% = $20,000

• District B spends twice the amount of money to

graduate the same number of pupils.

Expenditures per Graduating Pupil

$9,562 $9,648 $10,159 $10,423 $10,460 $11,620 $16,280 $18,645 $23,367 $0 $5,000 $10,000 $15,000 $20,000 $25,000 Fairfield Olentangy Lakota Oak Hills Mason Similar Districts Sycamore Princeton Cincinnati

Expenditures per Proficient 3rd Grader

$9,995 $10,042 $10,449 $10,524 $10,653 $11,681 $15,792 $18,852 $19,982 $- $5,000 $10,000 $15,000 $20,000 $25,000 Olentangy Fairfield Mason Lakota Oak Hills Similar Districts Sycamore Princeton Cincinnati Total Exp per Reading Proficient 3rd Grader Total Exp per Math Proficient 3rd Grader

Expenditures per Proficient 10th Grader

$9,436 $9,668 $9,717 $10,269 $10,537 $11,121 $15,175 $16,530 $17,902 $- $5,000 $10,000 $15,000 $20,000 $25,000 Fairfield Olentangy Lakota Mason Oak Hills Similar Districts Sycamore Cincinnati Princeton Total Exp per Reading Proficient 10th Grader Total Exp per Math Proficient 10th Grader

ROI Quadrant

High ROI

Above Average Graduation Rate / Below Average Expenditures

High Investment

Above Average Graduation Rate / Above Average Expenditures

Low Investment

Below Average Graduation Rate / Below Average Expenditures

Low ROI

Below Average Graduation Rate / Above Average Expenditures Median Graduation Rate = 89.7%; Median Expenditures / Pupil = $9,565

Median Graduation Rate = 89.7%; Median Expenditures / Pupil = $9,565 Note: Graph is not to scale

Median Graduation Rate = 89.7%; Median Expenditures / Pupil = $9,565

Expenditures per Student Graduation Rate Quadrant Lakota $9,387 92.40% High ROI Olentangy $9,465 98.10% High ROI Fairfield $8,606 90.00% High ROI Princeton $15,270 81.90% Low ROI Cincinnati $14,067 60.20% Low ROI Mason $10,125 96.80% High Investment Oak Hills $9,652 92.60% High Investment Sycamore $14,750 90.60% High Investment Similar Districts $10,715 92.21% High Investment

Conclusions

What does the data tell us?

• Lakota is doing a very good job of managing the

resources ($) they have relative to other districts while maintaining an Excellent Academic rating.

• Lakota is carefully balancing the resources available,

given the competitive labor market for high quality teachers.

Specific Conclusions

• Lakota has

– demonstrated a consistent and superior ROI. – one of the lowest revenue and expenditures per pupil of any selected schools. – lowest salary + benefit % spending of all of the schools. – one of the lowest Administrator average salaries. – one of the fewest administrators per pupil ratios. – teacher average salaries equal to most other schools. – a teacher salary schedule for first step in the middle of the similar schools. – a teacher salary schedule for Masters plus 10 years as one

• f the lowest.