District Buying Power 2007: curriculum spending: third of a series: curriculum is a top purchasing priority for 69 percent of K12 districts.

AS THE MAGAZINE OF EDUCATION leadership for top-level decision makers in K12 education, DISTRICT ADMINISTRATION reaches key executives in virtually every school district in the United States, including superintendents, business officers, technology managers, curriculum directors, library/media center directors and funding administrators. Certainly no one is better qualified to comment on current district spending than the readers of this magazine.

While DISTRICT ADMINISTRATION publishes annual spending reports to provide insights into school markets, this year is different since we commissioned the independent research organization Martin Akel & Associates to conduct an extensive buying survey of our readers. Random samples of subscribers were drawn from districts across the country, and each individual received a questionnaire on purchasing activities and expenditures over a four-year period. Although the information focused on the 2006-2007 academic year, the researchers also compiled trend data for the two preceding years and projections for the two succeeding years.

DISTRICT ADMINISTRATION targets district-level administrators in the K12 market, and the study found that our readers are heavily involved in brand and product decisions. Virtually all DA readers--97 percent--have leadership responsibilities in purchasing products and services, and 83 percent of subscribers are involved in the final decisions. Nine out of ten are opinion leaders, sought out by others and influencing them in making purchases; nine out often--93 percent--are involved with teams/committees that determine purchases for their districts; and three-quarters--72 percent--have team management responsibilities. Buying decisions are team efforts.

The readership survey projected that the total 2006-2007 expenditures for purchasing goods and services across nearly 15,000 districts reached by DISTRICT ADMINISTRATION magazine is $33.3 billion, which represents an enormous market. The first article in this series--in the September 2007 issue--summarized the buying power of K12 executives and school districts, the second focused on technology, and this month we look at curriculum products and services, which 69 percent of districts cite as a purchasing priority.

K12 BUYING POWER RESULTS AT-A-GLANCE

97% DA readers who have a leadership role in purchasing decisions.

93% DA readers who participate on teams/committees to determine purchases.

96% "Brand Builders": DA readers whose decisions led to purchasing a specific vendor's products within the past two years.

93% "Brand Burners": BA readers whose decisions led to rejecting a specific vendor's products within the past two years.

$33.3 billion Projected yearly expenditures on goods and services across all districts reached by DISTRICT ADMINISTRATION magazine.

$4.32 billion Projected yearly district expenditures on technology.

$2.95 billion Projected yearly district expenditures on curriculum.

$23.77 billion Projected yearly district expenditures on construction/renovation.

$1.17 billion Projected yearly expenditures on security.

Curriculum buying decisions are team efforts.

K12 DISTRICT CURRICULUM PRODUCTS AND SERVICES

U.S. districts spent $2.95 billion in 2006-2007 on curriculum products and services, and the average district spent $423,500. This included purchasing textbooks, supplemental resources, educational software, testing materials and professional development across the K12 content areas of language arts, math, reading, science and social studies. Subscribers were asked to indicate their district's curriculum usage and planned purchase activities, and the results are summarized in the chart below.

Usage and Planned Purchases

Every K12 school district currently uses textbooks, and almost
every district has purchased testing/evaluation products and
services, and supplementary materials such as workbooks
and enrichment materials. Nine out of ten districts made
purchases in the last two years and will continue to
make such purchases in the next two years, which indicates
a robust and thriving market.

                                        Currently Use      Purchased
                                         or May Use     in Last 2 Years

* Textbooks                                 100%              96%
* Supplemental curriculum materials          99%              97%
* Testing and assesment                      0%               86%
* Software/ Web--based content               96%              79%
* Music equipment                            95%              77%
* Special education service                  95%              86%
* Professional development                   87%              66%
* Vocational education material              87%              0%
* Instructional management system            85%              50%
* Supplemental education services            83%              56%

                                         Will Purchase
                                        in Next 2 Years

* Textbooks                                   95%
* Supplemental curriculum materials           96%
* Testing and assesment                       83%
* Software/ Web--based content                81%
* Music equipment                             73%
* Special education service                   85%
* Professional development                    72%
* Vocational education material               69%
* Instructional management system             55%
* Supplemental education services             65%

CURRICULUM PURCHASE DECISIONS

The survey also investigated the approval process for purchasing curriculum products and services and found that 85 percent of readers are involved in those processes. In addition, the study examined the categories of staff members involved in making selections and the reasons given for the prevalence of team decision-making.

Purchase Approval Levels

More than half of the K12 districts--57 percent--require
that all expenditures for curriculum products and services be
approved at the district rather than the school level. However,
most of the others have a relatively low threshold at which
expenditures must receive district approval.

                                         % Respondent

All expenditures, regardless of amount         56%
Expenditures more than $500                  10.1%
Expenditures more than $1,000                 9.3%
Expenditures more than $5,000                15.5%
Expenditures at other levels                  8.5%

Note: Table made from pie graph.

U.S. districts spent $2.95 billion in 2006-2007 on curriculum products and programs.

Team/Committee Purchase Decisions

Nine out of ten districts-93 percent-use a team/committee
approach to decide on purchasing new curriculum products
and services. The main reasons given are because a team
approach provides a broader range of insights (78 percent, a
team approach with varied expertise leads to better solutions
(78 percent, and because this type of decision affects multiple
areas in the district (71 percent)

                                              % Respondents

* A team provides a broader range                      78.4
  of insights into our needs
* A team with varied expertise                         78.4
  often leads to better solutions
* Decisions affect multiple                            70.9
  areas (academics, admin., etc.)
* Achieving objectives often                           56.0
  depends on teamwork
* Different educational disciplines                    46.3
  are often interdependent
* Need to standardize on brands                        40.3
  across the district
* Financial investments are of                         36.6
  substantial size
* Teams enable us to assign members                    20.1
  to different projects
* Products change quickly; a team                      20.1
  may know more options

SUBTOTAL
Use a team approach                                    93.3
Do not use a team approach                              6.7

District-Level Managers
Involved in Selections

For major purchases of curriculum products and services,
on average there are 4.3 different types of district-level
administrators involved in the selection process. School
principals with district-level responsibilities, curriculum
directors and superintendents typically lead these
selection teams.

                                                        % Respondents

Superintendents                                                  55.8
Assistant superintendents                                        35.5
Business/finance/purchasing directors                            23.9
Curriculum/subject area directors                                80.0
Technology/IT directors                                          47.8
Federal fund administrators                                      32.6
Library/media center directors                                   32.6
School principals with district-
  level responsibilities                                         86.2
School board presidents                                          10.9
Other                                                            20.3

85 percent of DA subscribers are involved in purchasing and approving curriculum products and services.

WORKING WITH VENDORS

Vendors of curriculum products and services selling to the K12 market must focus a large part of their efforts at the district level, because the majority of districts require approval at that level. Plus, as shown earlier, district administrators not only approve purchases but are heavily involved in the initial stages as well. It is also important to note that virtually all districts use a team/committee approach in selecting curriculum products and services, with an average of four different types of professionals involved. Vendors must therefore contact each of these key players to properly brand their products.

The study found that most DA subscribers are responsible for selecting or rejecting brands of products, services and equipment, which we refer to as "brand building" and "brand burning," respectively. Of these, 96 percent of readers were involved in decisions that led to the purchase of specific brands, and 93 percent were involved in decisions that led to brands being rejected. For example, in a one-month snapshot, nearly 49 percent built a brand and 39 percent burned a brand.

SHARING CURRICULUM EXPERTISE

As your go-to source for up-to-date and accurate information on curriculum products and services for K12 school districts, DISTRICT ADMINISTRATION offers various ways to keep you informed. In addition to an extensive new products section in each issue, we also provide a rapidly expanding products guide on our Web site with more than 1,500 examples to view. And early in 2008 we will publish a special "thirteenth issue" devoted entirely to products that will name the "Readers' Choice Top 100 Products of 2007." Visit our online database often to select your favorite products in the categories of hardware, software, Internet, books and materials, using our new star rating system to let us know what works best in your district.

www.DistrictAdministration.com/Products

Odvard Egil Dyrli, [e-mail], is editor-in-chief of DISTRICT ADMINISTRATION and emeritus professor of education at the University of Connecticut.