Press Release

August 27, 1999

For Immediate Release

STUDENT ACHIEVEMENT LINKED TO TEACHER PAY IN TENTATIVE, THREE YEAR CONTRACT ANNOUNCED TODAY

The Denver Board of Education and the Denver Classroom Teachers Association today announced a tentative agreement on a three-year deal that links teacher pay to student achievement.

The proposed deal, the first of its kind for a major urban school district in the country, calls for two years of trial implementation of a pay for performance plan. Prior to the third year of the contract, teachers will vote whether to continue with the concept.

"This contract represents an opportunity to build a new partnership with teachers around accountability," said Board of Education member Laura Lefkowits, who led the district's negotiating team. "This will serve as a catalyst for improving student achievement and rewarding teachers for their successes. Pay for performance is an idea whose time has come and we believe public school teachers will find it refreshing. At the same time, we know it will keep teachers and schools focused on the bottom line, and that's increased student achievement."

"We're pleased with the pilot study and test," said Andrea Giunta, President of the Denver Classroom Teachers' Association. "It will provide critical information about whether performance pay is an effective tool for producing quality education. Since a study like this has never been done, the results will benefit not only Denver, but other school districts that are trying to introduce innovative management techniques."

"The teachers should be complemented on their willingness to take a risk in trying this new approach," said Denver Superintendent Chip Zullinger. "As a community we all need to come together around student achievement and this represents a significant step in that direction. Without a doubt we are doing something nobody else has done and it's very exciting."

For the 1999-2000 school year, all teachers will receive a 2.56 percent salary raise as a cost-of-living adjustment. If voters approve the district's request to hold onto all state funds that it is eligible for under the School Finance Act, 2.56 percent is the projected percentage increase that the district will receive in state funding. The vote is November 2.

Teachers who are eligible will also receive raises for additional years of service and earned educational credits.

In addition, teachers in a minimum of 12 elementary schools and three middle schools will be eligible to volunteer in the first year of the trial run of the pay for performance plan. In all, it's anticipated that about 450 of the district's 4,300 teachers would participate in the first year.

Schools would become eligible to participate when 85 percent of the faculty agrees to enter the trial implementation phase. Each teacher would receive a $500 stipend for participating.

Teachers would then work with their principals to develop and agree upon two objectives for the school year. The two objectives would each be linked to improving student achievement. Said Giunta, "By comparing the student achievement results from this pilot, we will better understand the complex relationship between teacher reward and student success."

For accomplishing the two objectives, each teacher would be granted an additional $1,000 at the end of the school year.

Under the terms of the tentative proposal, two administrators and two teachers would manage the trial implementation. With the assistance of independent experts, this Design Team will direct training of participants, develop a process for resolving disputes, and plan for the second year of the trial period (the 2000-2001 school year).

The proposed agreement anticipates that two high schools would be added during the second year of the trial implementation.

The Design Team will also assign schools involved in the trial implementation to try one of three objective-setting models.

Teachers in one-third of the schools will develop and test the use of teacher objectives that measure academic achievement based on the Iowa Tests of Basic Skills. Another one-third of the schools will develop and test teacher objectives based on teacher-developed criterion referenced tests or other teacher-developed measures of academic achievement. Another one-third of the schools will develop and test measures based on increases in teacher knowledge and skill to improve student achievement and behavior.

All three models ultimately will be evaluated based on their ability to improve student achievement as measured by the Iowa Tests of Basic Skills.

"Ultimately in this contract," said Giunta, "we've created a total package that will help create an environment that enhances the growth of students and teachers alike. It's a win for all stakeholders in Denver Public Schools and the educational field as a whole."

Prior to June 15, 2001, the DCTA membership will be asked to accept or reject a proposed pay for performance plan. The plan will be based on what is learned during the two-year trial run. If approved, pay for performance would be implemented system-wide with the 2001-2002 school year.

Once fully implemented, teachers would move onto a new salary schedule that would provide a $30,000 base salary for beginning teachers and a new maximum salary of $60,362. That salary range would lead all metro Denver districts if implemented today.

As proposed, the cost of the teachers' contract for the 1999-2000 school year is an estimated $8.9 million.

Of this, $3.8 million will be needed for teachers who are eligible for raises based on additional years of service and earned educational credits. An additional $3.8 million would fund the 2.56 percent cost-of-living increase.

If all 450 teachers successfully meet their performance objectives, an additional $700,000 would be needed. And, finally, the cost to design and administer the trial implementation is estimated at $600,000.

The adopted 1999-2000 school year budget, approved in June, includes funding for additional years of service and educational credits. If ratified by both the Denver Board of Education and the DCTA, the district would need to identify program cuts to not only fund the additional costs of the contract for teachers but also for any salary increases approved for other district employees.

The Board of Education has until October 15 to adopt an amended budget for the new school year.