Here is a chart comparing how scores changed between the first and second rounds of the Race to the Top competition on each of the criteria used to evaluate applications for New York and the averages for all the other finalists in each round.

After New York finished out of the money (15^th out of 16 finalists) in the phase one competition for Race to the Top funding, some critics blamed the state’s failure to raise its cap on charter schools, or proposals to use the grant to make extravagant furniture purchases.

In a post back then, we argued that the truth was more complicated.

Now, some have suggested that New York could have still won in phase two without raising the charter school cap.

Again, reality is more complicated.

In our earlier post, we noted that although charter school legislation and furniture purchases got blame for the phase one failure, in fact New York was furthest behind the winning states (Delaware and Tennessee) in two other areas – building a data system to track student progress, and using teacher and principal evaluations to inform key decisions.

New York was 14 points behind the two phase one winners in the data system category, and trailed both by seven points in using teacher and principal evaluations to inform key decisions.

In contrast, New York was only four points behind second place Tennessee in the charter school category.

We also noted, however, that although New York was close to the winning states on the charter school item, it was one area with a large number of points still available to be gained, since New York received 27 out of 40 on this criterion.

Our chart illustrates how scores changed between phase one and phase two for New York and the average of all the other finalists.

In phase one, New York received a total of 409 points.  The highest ranked non-winning state in phase two earned 438 points.

With the advantage of 20-20 hindsight, this indicates that New York needed to gain around 30 points to be in the phase two winners’ circle.

In fact, New York picked up 56 points.

New York’s biggest gains were as follows:

• Implementing a longitudinal data system:  +14 points
• Using evaluations to inform key decisions:  +11 points
• Ensuring successful conditions for high performing charter schools and other innovative schools:  +9 points.

A total of 15 additional points was gained in scattered criteria grouped under State Success Factors, Standards and Assessments, Turning Around the Lowest Performing Schools, and a General category.

Summing up, New York won a Race to the Top grant by strengthening — at least in the eyes of federal reviewers — the two weakest areas in its phase one application (data systems and using evaluations in personnel decisions) and by picking up points on one of the two criteria with the most points available to be added after phase one — ensuring successful conditions for charter schools.  (There were 13 points remaining to be gained on the charter school critierion; 14 for data systems).

State legislation was enacted in all three areas — providing capital funding for the data system, mandating the consideration of student performance data and other changes in personnel evaluation, and raising the charter school cap.

It is mathematically possible that New York could have gained enough points to win a phase two grant without raising its charter school cap, but that would have been a risky strategy, gambling that reviewers would find enough improvements in scattered areas to gain the necessary points, and that continued inaction on charter schools would not bias their reactions to other elements of the state’s plan.

As I’ve written, the Race to the Top grant potentially provides an otherwise unattainable boost for improving the state infrastructure that schools rely on — standards, assessments, curricula, systems for preparing and evaluating teachers and school leaders, and turning around low performing schools.  The direct financial benefit for most districts is very modest.  And for some districts, the financial impact of more charter schools will vastly and permanently exceed whatever funds they directly receive from the Race to the Top grant.

The short answer is I don’t know and it will likely take some time to resolve.

A longer answer might begin, “We all have other things to focus on while the financial details of the Race to the Top grant get worked out.”

As we tried to indicate to school district leaders considering whether to sign memoranda of understanding in support of the state’s application in January and again in June, the primary reason for doing so should be that the grant would provide financial support for valuable state-level initiatives not available from any other foreseeable source, not for its impact on district finances.

Here are some observations:

• The $696 million grant which the state won is to be received over a four year period.

• The state must still negotiate some details of the grant with the U.S. Education Department over the next 90 days.

• By law, states must allocate one-half their grant amount to local education agencies (LEAs — school districts and charter schools) according to shares under the federal Title I, Part A program.

• The $348 million required to be allocated to LEAs looks like a big number, but in the world of statewide school district finances it is not so big – the cut in state-funded School Aid this year was more than three times as large.

• Because of the requirement to allocate these funds according to Title I shares, New York City could receive about 70 percent of the half that must be distributed to LEAs.  A preliminary, “ballpark” estimate of a grant for an individual district might be derived by multiplying its Title I, part A grant by 30 percent. Actual grants might be somewhat higher, because not every district signed a memorandum of understanding agreeing to implement provisions of the state Race to the Top plan.  Here is a link to a table of estimated Title I allocations for 2010-11.

• Whatever a district’s grant figure, it is the total amount the district will be eligible to receive over the four year period.  Districts would NOT receive that grant amount each year for four years.

• Here is an excerpt from SED’s Q&A issued with its June MOU request to districts:

“Grant funds will be distributed to participating LEAs using the standard grant process employed by NYSED for all federal grants (i.e., the FS-10/25/10F process). This process enables LEAs to draw down funds as needed to pay program costs while minimizing the time that elapses between the draw and disbursement by the subgrantee. Participating LEAs will be accountable for meeting annual performance goals and timelines. USED will award RTTT Phase 2 funds to states in September 2010. States will then have a four-year project period from the time of the award in which to implement their plans and spend their grant money. A similar timeframe will apply for participating LEAs.”

• The funds will only be allowed to be used to support initiatives in the state’s Race to the Top plan, not general ongoing operating costs.

• New York’s application promised that the state would use $129 million from its half of the grant to make additional grants to LEAs for specific initiatives. These funds will be allocated primarily through competitive processes and so no district funding estimates are possible at this time. Districts not receiving Title I, part A funds could receive funding through these initiatives.

• While the $348 million required to be allocated to districts is modest when measured against annual swings in School Aid, the $219 million to be used for direct state purposes is comparatively huge.  The Education Department now receives only $42 million in state tax dollars to support its operating budget (staff salaries, travel, equipment, supplies, and contractual services).  The part of the grant to be retained for direct state purposes exceeds the entire budget from all funding sources for SED’s office handling preschool through high school.

As we suggested in our statement on the state’s winning application, the Race to the Top grant provides an “otherwise unobtainable boost” to efforts to update and improve the infrastructure of the state’s education system – standards, assessments, curriculum, training for teachers and school leaders, data systems to track student progress, and programs to turn-around chronically struggling schools.

Details on the planned expenditures from the state’s grant are available here, starting on the page numbered “348 of 449″ or page 353 of the “PDF.”

New York will receive the maximum grant possible, just under $700 million, to be used over a four-year period.

New York achieved the second highest score among the winning states.  Massachusetts had the highest score.

The funds must be used to implement systemic reform initiatives in four areas, as outlined in the state’s winning application:

• Adopting internationally-benchmarked standards and assessments that prepare students for success in college and the workplace
• Recruiting, developing, retaining, and rewarding effective teachers and principals
• Building instructional data systems that measure student success and inform teachers and principals how they can improve their practices
• Turning around the lowest-performing schools

Race to the Top funds cannot be used to fund basic, ongoing operations — to avert layoffs, or offset local taxes.

The federal program requires each winning state to allocate at least half its grant among school districts and charter schools which have signed agreements to implement its plans.  New York’s application calls for using part of the state’s half to make additional grants to local school systems to support specific reform initiatives.

Here is a link to the statement released by the State Education Department.

Here is the statement the Council released:

FOR IMMEDIATE RELEASE:    August 24, 2010

CONTACT:        Robert Lowry Ÿ 518/449-1063 or 518/435-5996 (cell)

E-mail:  boblowry@nyscoss.org

NYS School Superintendents Congratulate State Education Leaders on Race to the Top Win

“Today’s news that New York is among the winning states for federal Race to the Top funding will give an otherwise unobtainable boost to our efforts to improve learning opportunities for all schoolchildren.

“The federal grant will help our state to update and improve the foundations of our education system – standards, assessments, curriculum, training for teachers and school leaders, data systems to track student progress, and programs to turn-around chronically struggling schools.

“Given the state’s budget woes, there is no way this crucial work could proceed without the help from Washington.  With it, we will be able to better ensure that our schools are giving all students the skills and knowledge they will need to thrive in life beyond school.

“We congratulate Board of Regents Chancellor Merryl Tisch and Commissioner David Steiner for their leadership of our state’s successful effort.  The application they developed won widespread endorsement from education leaders across New York.  Over 90 percent of the state’s school districts submitted agreements signed by their superintendents supporting the state’s application.”

Robert J. Reidy, Ph. D
Executive Director
New York State Council of School Superintendents

###

See here and here for example.

UPDATE:  Education Week and other sources are saying it has been confirmed that second round Race to the Top winners will be announced tomorrow

New York is among the 18 states and the District of Columbia competing as finalists this time around.

Also, last week, gothamschools.org reported on how New York State’s August 10 presentation to Race to the Top reviewers went, in the eyes of the state’s team.

The team included Regents Chancellor Merryl Tisch, Commissioner David Steiner, State Education Department Senior Deputy Commissioner John King, New York City Schools Chancellor Joel Klein, and New York City teacher union president Michael Mulgrew.

GothamSchools reported Chancellor Tisch said that “no surprises” came from the judges during the state’s 90-minute presentation and question-and-answer session two weeks ago and that she added, “I just thought it was a very fair, frank conversation.”

No details are available yet on individual district allocations; presumably those will be forthcoming very soon.

It is expected that the aid will be allocated primarily on the same basis as the state budget restoration for School Aid approved by the Legislature but vetoed by Governor Paterson.  That approach would reduce each district’s lump sum total aid reduction (the Gap Elimination Adjustment) by an equal percentage.

The federal law does permit state governments to retain 2 percent of the grant for administrative purposes.  There were also discussions exploring whether this federal aid could help restore funding for Teacher Centers.

By signing the letter promising to enact state legislation needed to allocate and expend funds, the Governor and Assembly and Senate Leaders seek to avoid the necessity of having the Legislature return to Albany before the start of the school year.

The expectation has been that the Legislature would not return until after the September 14 primary elections.

Also Governor Paterson has threatened to call the Assembly into special session in October, closer to the general election, to increase pressure on that chamber to approve his proposal for a property tax cap on school districts and local governments.

The agreement announced yesterday will permit the state to tell districts their allocations before the start of the school year.  However, the state will not be able to make actual payments until the Legislature and Governor approve an appropriation of the money.

Last Friday, the U.S. Education Department released initial formal guidance on how Education Jobs Fund money may be used.

That guidance makes clear that federal law permits school districts to use the aid in 2011-12, not just the current school year.

Although the Department expects and encourages districts to use Jobs Fund aid in the current school year, districts have until September 30, 2012 to “obligate” the money.  When used to pay employees (as the Jobs Fund money must be used), federal aid is obligated when the work is performed.

Yesterday, the New York Times reported on the worries of school districts around the nation for their fiscal prospects beyond the coming school year.

Over the weekend, the Buffalo News published an article covering many of the questions arising from the federal aid.

Also, last week Syracuse superintendent Dan Lowengard and I discussed the initiative on the statewide Capitol Pressroom radio show.

The U.S. House of Representatives approved legislation creating the fund today; it was passed by the Senate last week.

New York State’s share of the $10 billion authorized nationwide is $607 million.

The Senator’s estimates are unofficial; the state must adopt an allocation scheme.  There are reports that the State Assembly and Senate could be called back next week to take actions necessary for the state to expend the federal aid.

You can see the Senator’s estimates here.  Again they are unofficial.

The Senator presumes that the state would use the methodology which the State Legislature used to allocate its proposed state budget restoration to School Aid — reducing each district’s Gap Elimination Adjustment (GEA) as proposed by Governor Paterson by an equal percentage.  Senator Schumer’s estimates assume each district’s GEA would be reduced by 43.055 percent

Senator Schumer’s news release says that the estimates were prepared with the assistance of New York State United Teachers.

Governor Paterson vetoed the Legislature’s School Aid restoration and other additions to his proposed budget when Legislators initially failed to approve a contingency plan for addressing a feared shortfall in federal Medicaid funding for the state.

Last week the Legislature did approve a contingency plan which provides for equal percentage across-the board reductions in most areas of state spending, including School Aid, in the event federal Medicaid is less than assumed in the state budget.

The same federal legislation creating the Education Jobs Fund also authorized continuation of some additional Medicaid help for states.  This action reduced but did not eliminate New York’s projected Medicaid funding shortfall, leaving a gap of about $280 million.

Given School Aid’s share of state spending subject to the contingency plan reductions, schools could face current year reductions in state aid totaling in excess of $100 million, partly offsetting the benefit of the federal school jobs money.

The federal statute provides that districts may use the jobs money

“…only for compensation and benefits and other expenses, such as support services, necessary to retain existing employees, to recall or rehire former employees, and to hire new employees, in order to provide early childhood, elementary, or secondary educational and related services.”

Also, schools are prohibited from using the aid for, “…general administrative expenses or for other support services expenditures as those terms were defined by the National Center for Education Statistics…”

Schools may not put their allocations in reserve to save jobs in next year’s budget, nor may the state put any of the aid into a “rainy day” fund.

UPDATE:  The U.S. Education Department is now saying that while districts would be expected and encouraged to use Education Jobs Fund money in 2010-11, federal law would permit districts to use it in 2011-12.

States are prohibited from putting any of the aid into a “rainy day fund,” or using it to pay down existing state debt.

Our scheduled topics were the federal Race to the Top initiative and the Education Department’s recent change in cut scores for the grade 3 through 8 assessments.

Several of the callers were teachers expressing opinions about “teaching to the test” and merit pay plans to link compensation and student performance.

You can listen to the hour-long show here.

Host Alan Chartock told us the program is heard in six states.

Yesterday, however, there was a breakthrough in the U.S. Senate, which approved an amendment continue some of this additional federal aid.  The same legislation also authorizes an “Education Jobs Fund,” to help school systems create or maintain positions in the current school year.

The U.S. House of Representatives is expected to pass corresponding legislation early next week.  The House has previously approved similar initiatives, so passage is deemed certain.

I estimated that the state’s contingency plan for handling the federal Medicaid shortfall could have translated into a $300 to $400 million current-year reduction in School Aid, based on its share of total state spending subject to the reductions.

The timing and amounts of additional Medicaid help are not completely clear, but it appears the state can count on at least $800 million in its current fiscal year.  This would reduce the need for across the board reductions by more than 70 percent.

As noted, the legislation also includes funding for a long-discussed “Education Jobs Fund.”  It is estimated that New York would receive over $600 million from this initiative for use in the current school year.

School districts would be required to use the funds

…only for compensation and benefits and other expenses, such as support services, necessary to retain existing employees, to recall or rehire former employees, and to hire new employees, in order to provide early childhood, elementary, or secondary educational and related services.

Schools would be prohibited from using the aid for, “…general administrative expenses or for other support services expenditures as those terms were defined by the National Center for Education Statistics…”

The funding is to be allocated among districts according to the “…primary elementary and secondary funding formulae or based on local educational agencies’ relative shares of funds under part A of title I of the Elementary and Secondary Education Act of 1965…”

I am reputed to be one of the handful of people in our state who understand New York’s School Aid formulas.  I am at a loss to identify what are now “the state’s primary elementary and secondary funding formulae.”

The legislation includes some complicated requirements for states related to maintaining their effort in funding education and higher education, and meeting various assurances concerning education reform efforts.  It also prohibits states from placing the aid into “rainy day funds” or using it to reduce state debt.

The state is required to submit an application for the funding within 30 days after it is enacted into law.

At this moment my assumption is that the Legislature will need to reconvene to approve an appropriation and an allocation method.

Here is a report from the Associated Press on the legislation.

More on this to come…