Pinching Pennies with Good Results.

Superintendents Explain Their School Districts' Low-Spending, High-Performing Status

When Elizabeth Logan, superintendent of the Solanco School District in Quarryville, Pa., was asked to talk about Solanco's selection as one of the nation's low-spending, high-performance school districts, she graciously agreed to an interview.

Logan promptly returned a reporter's phone call, patiently answered numerous questions, and thoughtfully talked about how the district had achieved its enviable ranking. But after about 40 minutes, she became a bit uneasy. Logan's frugal side had begun to emerge. "I'm beginning to wonder how much this telephone call is going to cost," she says.

At a time when local public schools are expected to operate more like businesses and less like charities, Logan's penny-pinching approach to running her district is more popular than ever. Consider that students in her district score among the best in the country on their SATs, and her star rises even higher.

While most K-12 educators recognize that money does impact the quality of school programs and services, some school districts are achieving great results at bargain-basement prices. SchoolMatch, a Columbus, Ohio-based research firm, delved into its extensive data base to identify nine such districts for American Demographics (see related story, page 10.)

The nine districts were highlighted by the magazine in a story titled "Great Schools, Cheap." The districts ranked at or above the 81st percentile in student performance, as measured by SAT and ACT scores, and at or below the 39th percentile in per-pupil spending.

The study was based on 1990-91 data. Those spending the least were educating their students at roughly one-half of the national average, which at the time was about $5,300 per pupil.

Demographics Matter

Clearly, the results of the study--the first of its kind according to its authors--need to be put in perspective. For one thing, the analysis should be viewed as a snapshot of a moment in time. "True, it doesn't necessarily reflect what's going on today," William Bainbridge, president and chief executive officer of SchoolMatch, says of the study.

The superintendents, all of whom expressed surprise at being included on the list, know their fame might well be fleeting. "Our day in the limelight may be over," says Charles Cagno, who heads up the Valley Grove School District in Franklin, Pa. "We've been frugal, there's no question about that. We've watched our dollars very carefully. But over a period of time that will catch up with one."

Student achievement, too, has a fickle quality, says Jack Crain, superintendent of the West Independent School District in Texas. "Some years we do really well. But then a class comes along that's not as great."

Beyond that, not every school district in the country is in a position to reap the same results from the steps taken by the nine districts. None are large urban districts struggling to educate tens of thousands of poor, minority students mired in the seemingly intractable problems of poverty and violence. Quite the opposite is true. Most of the districts showcased as low spending/high performing enjoy some advantages that their superintendents readily admit make their jobs easier.

With few exceptions, the districts are located in small to medium-sized, largely white communities that boast a higher-than-average quality of life. Although not wealthy, the communities generally have stable economies and attract relatively well-educated, middle and upper-middle-class residents who value education, instill that value in their children, and support the public schools. Those who serve on the school board do so without apparent political agendas.

The districts themselves are small with enrollments ranging from 1,280 students in the Valley Grove schools to 11,300 students in Idaho Falls, Idaho, School District 91. That means superintendents can operate with relatively small administrative staffs, an effective way to cut costs. The superintendents also get to know many, if not all, of the district's teachers personally, a move that can pay big dividends in terms of teacher commitment and loyalty to a school system.

All the superintendents say they are lucky in that they enjoy good relations with their teachers' unions. Logan, of the Solanco, Pa., district, says that good relations not only minimizes salary demands, but also "helps keep down legal costs and increases productivity." Several district leaders are in the enviable position of not having to negotiate teachers' salaries.

While all schools encounter some disruptive and unmotivated students, such problems are considered relatively minor in the nine districts. In fact, many of the superintendents rave about highly motivated and hard-working students.

Everyone agrees that these characteristics provide significant advantages. "Could the Chicago Public Schools or some other district with more disadvantaged youngsters and lower educational levels of parents achieve these results?" asks Bainbridge, the head of SchoolMatch. "Probably not."

Still, it would be just as unfair to say these nine districts are succeeding only because of their demographics. As Bainbridge points out, thousands of other U.S. school districts that don't do as well have demographics similar to the nine identified in the study. The fact is, something else is going on here: These superintendents strongly embrace--with actions as well as words--a set of educational principles proven essential to creating effective schools.

Fiscally Tight

When it comes to spending, several superintendents admit to being strongly influenced by community cultures that place a high value on frugality. In Solanco, located in Pennsylvania's Amish country, "Efficiency is a way of life," Logan says. "People in southern Lancaster County are frugal and hardworking. And they are willing to forego certain conveniences if they know they are saving money."

For example, classroom lights and other electrical equipment no longer are turned on simultaneously in Solanco--a situation that had created a local power surge. In return, the local utility company rewards the district with lower rates for electricity. Logan said that unlike other communities where parents are accustomed to--and willing to pay for--"a lot of extras" for their schools, Solanco residents expect school officials to hold down costs.

"The majority of the community wants to hold the line, unless spending is shown to be essential," she says. That's why a recent effort to decrease class size was defeated. "There was no strong academic evidence that students in small classes performed better," Logan says.

If it's true that the person at the top of an organization is largely responsible for its corporate culture, then Superintendent Charles Adair deserves some credit for the Harrison, Ark., Public School District's spot on American Demographics' "Great Schools, Cheap" list.

The descendant of homesteaders who farmed in the Harrison area in the mid-19th century, Adair was brought up to value self-sufficiency. So do his neighbors, many of whom were born and raised in or near Harrison. Adair describes himself as "very conservative as far as spending is concerned." And although some use stronger language, describing him as downright "tightfisted," he's quick to add, "I don't think I'm cheap."

Adair does, however, believe that "little savings add up." And so he turns off the lights whenever he leaves his office ("Why pay for something you aren't using?"); renovates rather than reconstructs facilities (the district saved $200,000 by renovating the 81-year-old administration building in 1993 after a roof cave-in); and buys used buses from a neighboring district and used computers from the local Wal-Mart. "I'm all for trying to take advantage of opportunities like that," he says.

Another community that values frugality is West, Texas, an agricultural area 17 miles north of Waco in the eastern part of the state. Crain, the superintendent, professes to being "very, very careful about how we spend money." His district, for example, pays teachers the minimum required by the state. "I'm not proud of that," Grain says, "but it keeps our personnel costs down."

West Independent also is part of a consortium of districts that provides special education and transportation services at lower costs than the district could on its own. One area in which the district has invested is classroom computers. Grain says the move has boosted student achievement and writing skills and helped enhance the school system's reputation. The latter, he says, helps attract and keep good teachers despite the district's below-average salaries.

In the Rock Island-Milan, Ill., School District 41, officials have had no choice but to keep costs down. "The reason we run very lean is because we've had to," says Superintendent William Mitchell. Located in the so--called Rust Belt of the upper Midwest, Rock Island was hit hard when several local factories that manufactured farm equipment closed in the early 1980s. Total assessed valuation dropped significantly and, despite signs of economic recovery, is still below what it was in 1981.

Spending Caps

But even districts without Rock Island's economic woes find themselves restricted in their spending. In the case of Webster Groves School District in suburban St. Louis, the state has capped expenditures. "We've had to look at a fixed revenue source and come up with creative ways of delivering the same or better program," says Superintendent William Gussner. He cites the school system's popular early retirement program for helping attract good teachers while delivering service in a more cost-effective manner. Under the program, teachers with more than 15 years in the district may retire with guaranteed health insurance benefits for 10 years.

"It was what the staff said they wanted," Gussner says. "And we can replace people at the top of the salary schedule with those earning less." He also has replaced some salaried assistant principals and central-office administrators with administrative interns. The moves have cut personnel costs without compromising service.

The Sierra Vista, Ariz., Unified School District 68 also is struggling under state-imposed spending limits. "We can't just spend anything we want," says Sierra Vista's Jon Lokensgard. "Money has been fairly tight for the last four or five years, and we have had to be pretty creative to keep things rolling."

One answer: site-based budgeting, put in place several years ago. Lokensgard believes the move has brought about more effective spending. "It's not a ton of money, but at least we feel it's being spent in the best way possible," he says.

The rural district, located 70 miles southeast of Tucson, also is relying more heavily on the generosity of the community. A total of $18,000 in science lab equipment and supplies was purchased for the district's middle school with money raised by a PTA magazine sale. "That was money we just didn't see in our budget," Lokensgard says. Another windfall was the donation of 75 new computers by nearby Fort Huachuca, home of the U.S. Army's Intelligence Center. "What they considered surplus was very usable for us," he says.

Lokensgard also benefits from not having to negotiate teachers' salaries. In the last four or five years, for example, teachers haven't gotten much in the way of raises.

Another district that doesn't have to negotiate wages is the Decatur, Ala., City School District. Still, Superintendent B.L. Davis describes his district's salary schedule as "competitive for the area." Cagno, in Valley Grove, says his teachers are "not a demanding group of people ... very cooperative--not militant whatsoever." They also earn less than their peers teaching, in two adjacent districts. But Cagno says teachers in his district were more interested in talking about educational goals than steps on the salary schedule. He believes that because teachers are given a say in the development of those goals, "they're willing to give a little more and ask a little less."

The Tradeoffs

To be sure, tradeoffs exist when running a school district on a shoestring. "There's a downside to being cheap" is how Rock Island's Mitchell puts it. In his district, years of low capital costs have taken a toll: deteriorating school buildings and a minimum of technology in the classrooms.

In Solanco, officials have been able to maximize the district's transportation reimbursement, which is based on the number of students per bus, by extending bus routes. But that means students spend more time each day riding buses. In Rock Island, a compact 33-square mile district with 12 elementary schools, Mitchell says the district saves money--and headaches--by exercising a 120-yearold provision in its state charter that exempts it from having to bus students. The downside is that parents must provide for their children's transportation, typically by using local public transit or contracting with a private bus company.

Gussner, of Webster Groves, may save money when his district's early retirement program prompts some of his most expensive teachers to leave the district. In the same breath, he admits, "Some of your most experienced teachers are some of your best teachers." As a result, he is extra diligent when hiring new teachers.

Joseph Murphy, chairman of the Department of Educational Leadership at Vanderbilt University, finds value in identifying school districts that educate students well at a low cost. "We'd be foolish not to try to learn from those districts," he says. However, he cautioned: "Let's not jump to the conclusion that money does not matter. Particularly in central cities, where for a variety of reasons the job is harder, more resources are helpful."

Guiding Principles

If the nine districts differ in how and why they've come to be "cheap," their superintendents attribute the "great" part to a set of similar beliefs and practices. They all talk about hiring excellent administrators and teachers and giving them the freedom they need to do their jobs. Building principals are expected to be educational leaders. Teachers are considered the single most important component of the district's operation.

In addition, the superintendents endorse the view that all students can learn and meet high expectations. They constantly review and evaluate the curriculum, making changes carefully. And when it comes to spending, they plow every penny they've saved back into the classroom. Often that means finding ways to reward -- and retain -- good teachers.

In Rock Island and Harrison, the incentive comes in the form of salaries that are at the high end of the pay scale for their regions. "We're not looking to save money there," says Harrison's Adair. "Teachers are key to the whole thing." T.C. Mattocks, superintendent in Idaho Falls, places a high value on teacher longevity. And so in his district, salaries are particularly high for experienced teachers.

Other districts have found alternative ways to support teachers. In Sierra Vista, after conferring with teachers, officials used money that would have gone for teacher raises to maintain smaller classes and an extensive array of teacher specialists. Logan says Solanco's 1990 strategic plan called for boosting teachers' job satisfaction as well as community support for teachers. The effort seems to have paid off: the district ranked above average in teacher morale on a recent statewide survey.

In Decatur, teachers are given the tools they need to ensure all students learn. That means offering in-service programs that teach teachers how to work with students with different learning styles. Teachers also have access to a computer training center Davis considers the best in the state. In Valley Grove, officials pride themselves on their "no-nonsense" approach to disciplining students who misbehave. They say teachers appreciate the support, and as a result, are better able to do their jobs.

Community Backing

But whatever the tactics, the superintendents say they should not be given all the credit for the successes of their districts. "It's not some magical thing I've come here and done," says West Independent's Crain, echoing the sentiments of many of his peers. "It's the teachers, the students, and the community working together to make the schools good."

Building partnerships with parents and the business community, they say, is critical. The effort pays off in many ways: increased volunteerism, more generous donations, and a student body more willing to work hard because they know their parents are interested in and aware of what's happening in the classroom.

Idaho Falls' Mattocks believes creating effective partnerships is essential. "You just have to start by doing something that makes people want to trust you," he says. "Show them that you're prudent with money, or that test scores--as flawed as they are--are high, or at least rising. And over time, you'll reap the rewards." Says Decatur's Davis: "When people believe you're spending their money well, they're willing to support the schools and pay for education. And if a district has the support of its community, it's going to be good."

Don Davies, co-director of the Boston-based Center on Families, Communities, Schools, and Children's Learning, believes those collaborations may be the single most important reason for the nine districts' success. "I give them a lot of credit for having the practical sense to build community support and use community resources," he says, adding, "The talents, expertise, equipment, time that will come back to them shouldn't be sold short."

Priscilla Pardini is a free-lance education writer in Shorewood, Wis.

The Makeup of Nine

Here are thumbnail sketches of the nine school districts identified as low spending/high performing and the communities where they are located, along with their SchoolMatch percentile rankings.

* Decatur, Ala., City School District: Located in the Tennessee Valley near Huntsville in the northern part of the state, the district enrolls roughly 8,900 students, about 71 percent of whom are white. The district's residents include a large number of well-educated scientists and computer technologists who work at area chemical plants or across the Tennessee River NASA's George C. Marshall Space Flight Center or the Redstone Arsenal, a U.S. Army base. The district scored at the 85th percentile in student performance and 18th percentile in per-pupil spending.

* Harrison, Ark., Public School District: The district draws its students from a traditional, middle-class community nestled in the rural Ozark Mountains of northern Arkansas. Small town Harrison enjoys low unemployment and a stable population, and takes pride in its conservative, religious values. The 2,900-student district, 99 percent white, ranked at the 95th percentile in student performance and at the 5th percentile in per-pupil spending

* Idaho Falls, Idaho, School District 91: Located in the Midst of some of the best ski country in the United States, the district counts among its 11,300 students many whose parents work at the nearby Idaho National Engineering Lab. "The rocket scientist really does live next door," says superintendent T.C. Mattocks. With that kind of well-educated, cosmopolitan parent base, education in general and the school district in particular are highly valued. The district, which is 94 percent white, ranked at the 91st percentile in student performance and at the 15th percentile in per-pupil spending.

* Rock Island-Milan, Ill., School District: The most diverse of the nine districts, Rock Island is located 155 miles west of Chicago on the Mississippi River. It enrolls about 7,000 students, 28 percent of whom are African American and 5 percent of whom are Hispanic. The largely blue-collar community from which it draws its students is still recovering from a sharp economic downturn in the 1980s. Its citizens consider the schools a focal point in the community and a source of pride. The district ranked at the 85th percentile in student performance and at the 39th percentile in per-pupil spending.

* Sierra Vista, Ariz., Unified School District 68: This district of 7,200 students not far from the Mexican border reaps the benefits of its proximity to Fort Huachuca, a U.S. Army intelligence center. The center attracts a highly educated work force, men and women whose children value the importance of good schooling. Many remain in rural, scenic Sierra Vista after retiring from the military to teach at Buena High School. The district, with a relatively high minority population of 32 percent, ranked at the 81st percentile in student performance and at the 13th percentile in per-pupil spending.

* Solanco School District, Quarryville, Pa.: Situated in the southeastern corner of the state, Solanco benefits from the area's conservative, rural tradition and a community ethic that values hard work and frugality. Yet it is

School Districts

close enough to New York City and Washington, D.C., to be able to recruit teachers and administrators from a large pool of qualified candidates. The 4,260-student district, 97 percent white, ranked in the 85th percentile in student performance and at the 17th percentile in per-pupil spending.

* Valley Grove School District, Franklin, Pa.: Classified by the state as a poor, rural school district, Valley Grove enrolls 1,280 students, 97 percent of whom are white. The small town of Franklin, in the northwestern corner of Pennsylvania, is struggling with relatively high unemployment and economic uncertainty as major employers migrate south. Yet the small, closely knit community rallies behind its schools and its teachers, many of whom are now teaching the children of their former students. The district ranked at the 97th percentile in student performance and at the 15th percentile in per-pupil spending.

* Webster Groves, Mo., School District: A suburb of St. Louis, Webster Groves is economically and racially diverse. About 16 percent of its residents are African American, and its residents represent a mix of blue-collar workers and college-educated professionals. The school district, with 4,300 students, has a minority enrollment of 25 percent, due to a voluntary integration program under which central-city students from St. Louis are bused to Webster Groves schools. The district prides itself on strong partnerships between schools and families. Webster Groves ranked at the 96th percentile in student performance and at the 12th percentile in per-pupil spending.

* West, Texas, Independent School District: This small, agricultural community in east Texas takes pride in its Czech and German heritage that espouses strong family values and a good work ethic. Those attitudes carry over into the schools, where students take academics seriously and work hard. Residents are proud of the schools, willingly volunteer their services, and support district fundraisers. The district, with 1,425 students, 89 percent of whom are white, ranked at the 94th percentile in student performance and at the 10th percentile in per-pupil spending.

How Districts Were Picked

When American Demographics magazine wanted to know which school districts in the country were getting the best results at the lowest cost, it turned to SchoolMatch, a 12-year-old educational research firm based in Columbus, Ohio.

SchoolMatch maintains databases on every public school district and every public high school in the country, and 14,000 accredited private elementary and secondary schools. The firm tracks school performance for corporations scouting out sites for new facilities, relocating employees, and law firms engaged in child custody litigation. The data is also available to educational vendors.

The firm's cost rankings for the "Great Schools, Cheap" study were based on an analysis of both total per-pupil spending and per-pupil spending for instruction, adjusted for local cost-of-living indicators. Rankings for student performance were based on a district's scores on the SAT and ACT, and the number of national merit finalists it produced. The figures were adjusted for the percentage of students taking the tests.

The districts showcased by American Demographics ranked at or above the 81st percentile in student performance and at or below the 39th percentile in per-pupil spending.

Bainbridge, formerly a district superintendent in Virginia and Ohio and an assistant to the state school superintendent in Ohio, said his firm identified those districts with the greatest differentiation between expenditures and test scores.

"We wanted to know which districts had the greatest spread between national percentile rankings on expenditures and test results," he said.