1 choice, charters, and change. 2 how choice policies are affecting michigans education system

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CHOICE, CHARTERS, AND CHANGE

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How Choice Policies Are Affecting Michigan’s Education

System

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• The story in numbers– Where are charter schools located?– Who takes advantage of interdistrict choice?

• Limited impact on public schools• Evidence of innovation• How is the education system changing?

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Number of Charter Schools and Pupils in Michigan, 1995-99

SchoolYear

Number ofSchools

Number ofStudents

% of AllMichiganK-12 students

Estimated StateSpending (000)

1995-96 43 5,500 0.3 $31,091

1996-97 79 12,047 0.8 $72,600

1997-98 105 20,477 1.3 $119,500

1998-99 138 30,000 1.9 $183,00

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Aggregate Participation in Michigan’s Interdistrict Choice Program

1996-97 1997-98Number of interdistrict choicestudents

8,285 10,825

Percentage of state K-12 enrollment 0.5 0.7

Percentage of districts acceptingnonresident students

36.8 45.2

Percentage of transactions involvingless than 5 students

65.4 60.2

Percentage of transactions involvinggreater than 20 students

6.2 9.5

Note: A “transaction” is the transfer of students from one district toanother through interdistrict choice.

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Charter School Location by Community Type, 1997-98

CommunityType

Number ofschooldistricts

Numberof charterschools

Percent ofdistricts withat least onecharter school

Charter schoolenrollment as %of host districtenrollment

Locationquotient

Central City 23 44 57 2.8 2.10

High –income 28 5 11 0.5 0.41

Other MSA 295 40 10 0.9 0.74

Outside MSA 209 16 7 0.8 0.66

TOTAL 555 105 11 1.3 1.00

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Charter School Location by Host District Racial Composition, 1997-98

Percent BlackEnrollment

Number ofschooldistricts

Number ofcharterschools


Locationquotient

< 1.0% 348 25 0.7 0.52

1 to 5 % 127 19 0.6 0.49

5 to 33 % 51 13 1.1 0.87

> 33 % 28 48 3.4 2.64

TOTAL 554 105 1.3 1.00

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Charter School Location by Host District MEAP Test Performance, 1997-98

% satisfactory7th grade mathMEAP

Number ofschool districts

Number ofcharter schools


Locationquotient

0 to 30% 19 8 2.3 1.77

30 to 60% 187 49 1.8 1.38

60 to 80% 269 41 1.0 0.77

80 to 100% 65 7 0.6 0.45

TOTAL 540 105 1.3 1.00

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School District Participation in Interdistrict Choice by District Characteristic

Percent of districts participating

School districtscharacteristic

Number ofdistricts

1996-97 1997-98

Location/type *

Central city 23 34.8 43.5

High-income 28 25.0 32.1

Other MSA 295 33.9 40.7

Outside MSA 209 42.6 53.6

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Percent of districts participatingSchool districtscharacteristic

Number ofdistricts

1996-97 1997-98

% black enrollment

0 to 1% 348 38.5 48.0

1 to 5% 127 30.7 37.0

5 to 33% 51 39.2 49.0

33 to 100% 28 39.3 42.9

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Number ofdistricts

1996-97 1997-98

% change enrollment1993-98 * *

< -2% 177 44.6 54.8

-2 to 2% 72 44.4 48.6

2 to 10% 173 31.2 38.7

> 10% 132 29.5 39.4


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Number ofdistricts

1996-97 1997-98

% satisfactory 7th

math MEAP

0 to 30% 19 42.1 42.1

30 to 60% 187 40.1 50.3

60 to 80% 269 35.3 41.3

80 to 100% 65 29.2 47.7


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School districtscharacteristic

Number ofdistricts

1996-97 1997-98

Median householdincome * *

Less than $36,000 102 47.1 59.8

$36,000 to $54,000 234 41.0 50.8

$54,000 to $76,000 144 29.9 37.5

Greater than $76,000 74 23.0 23.0


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School districts characteristic Number ofDistricts

1996-97 1997-98

Median household income,excluding districts outside MSAs *

Less than $36,000 32 38.2 41.3

$36,000 to $54,000 119 40.8 50.7

$54,000 to $76,000 126 30.4 39.4

Greater than $76,000 69 25.0 25.0

State 554 36.8 45.2

*Group means are significantly different at 95% confidence level Group means display linearity at the 95% confidence level


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Educating district minus resident district(mean value of difference for students transfers)

District Characteristic Statewide Excluding Detroit Transfers entailing>20 students

Math 7th grade % satisfactory 5.1 6.9 7.6

Reading 7th grade % satisfactory 3.2 5.1 4.5

Graduation Rate 9.4 6.6 14.0

Drop-out Rate -3.6 -2.2 -5.4

Pupil-teacher Ratio 0.3 -0.1 0.5

Expenditures per pupil -$230 -$315 -$334

Mean teacher salary $1,692 $300 $2,841

District enrollment -15,571 -1,562 -24,359

% change enrollment1993-98

2.7 3.6

% free/reduced lunch -9.8 -10.9 -15.0

Median Income $6,335 $6,726 $9,947

% black students -12.2 -8.4 -18.6

Valid N (listwise) 9,850 8,930 6,151

Difference in Characteristics of Educating versus Resident Districts for Interdistrict Choice Students

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Limited Impact At School Level

• Limited market penetration• Low “signal to noise” ratio

– Student turbulence– Other policy initiatives

• Preference versus performance• Administrative and financial insulation

– Fiscal centralization– Restricted administrative autonomy

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Limited Impact At School Level cont.

• Greater impact at district level– Evidence of innovation– Increased attention to marketing– Responsiveness to parents

• No systematic differences across districts

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Evidence of Innovation

• Still early--more talk than action• Competitive response is now emerging

– Lansing• all-day kindergarten• Star Institute• Wexford Community School• CLASS and collaboration

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Evidence of Innovation cont.

• Detroit– proposal for “alternative” charter schools

• Kent County– Superintendents’ Task Force

• Intermediate School Districts– entrepreneurialism and economies of scale– encouragement for cooperation and innovation

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How is the Education System Changing?

• Social sorting• Market segmentation• Emergence of management companies

– Edison Project– New Heritage Academies– Others

• Impact on other actors– Private and religious schools– Independent charter schools

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Emerging Issues• Limited market penetration

– Remove current restrictions on choice– Provide start-up funding for charter schools

• Insufficient regulation and accountability– Oversight by MDE and chartering agents– Monitor access and equity

• special education• free and reduced lunch

• Legislative rules matter

1 choice, charters, and change. 2 how choice policies are affecting michigans education system

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