RecommendationstotheHaroldK.L.

CastleFoundation OntheDevelopmentofa PublicEducationReform GrantmakingStrategy

October2005

AlexHarris EducationalConsultant

ExecutiveSummary Background InOctoberof2005,theHaroldKLCastleFoundation (Castle)engagedaprivateconsultanttoexaminethe grantmakingprogramandofferrecommendationsregardingtheFoundationsfuturegrantmakingstrategyto encouragepubliceducationreform.Towardthisend,interviewswereconductedwithfifteenstakeholders representingabroadcrosssectionacrossthesectorsofphilanthropy,education,nonprofit,business,and government.Aliteraturereviewwasalsoconductedtodeterminebestpracticesemployedbyotherfoundations involvedinpubliceducationreform.TheFoundationsgrantmakinghistory,mission,vision,andother documentswerealsoreviewed.Thisdocumentsummarizesfindingsandrecommendationsresultingfromthe analysis. RecommendationsonGoals&Strategies Stakeholderswidelyagreedwiththemissionofpubliceducationreform.Specificgoalsinvolveallstudents enteringthirdgradeasproficientreadersandexitinghighschoolcollegeready.Underlyingtheseacademic goalsshouldbeathirdgoal theDOEsystemhastheperformancecapacitytoensuretheseacademicgoalsare met. Withineachofthesegoalareas,Castleshouldadoptathreeprongedstrategyto1)enhanceinstitutionalchange efforts,2)stimulatenewreformsthatchallengethesystem,and3)targetinvestmentsinhighneed,high leverageareas.CastleshouldseektobeviewedbytheDOEandothersasapartnerinchangeeffortsthat consistentlyavoidsspecialintereststoadvocateonbehalfofchildrenandfamilies. Successwillrequiresignificantpoliticalcapital,financialresources,andstayingpower.Castleleadershipmust havethedisciplinetofreeupthenecessarycapitalandremaincommittedtopubliceducationreformforatleast ageneration.Aconservative,backoftheenvelopesketchshowsthesestrategieswillcostbetween$35million overthenextcoupleofyears.Thiscostmayalsorequirereducinginvestmentsinotherprogramareas.The volumeandcomplexityoftheseinvestmentswilllikelyrequireadedicatedstaffmembertomanage. Continuallearningoughttooccur throughoutallFoundationactivities.Suggestionsincludedevelopinga rigorousevaluationstrategytodetermineprogress, supplementingtrusteeknowledgeby observingan accreditationvisitatanelementaryschool,andevenconsideringthecreation ofaFoundation advisoryboard comprisedofparents,children,andeducators. Developingaclearcommunicationsstrategytoconvey Foundation goals,strategiesandareasofprogrammatic grantmakingisalsoofutmostimportance.

Introduction:Environment,Mission&Capacity Thisisamomentofsingularopportunitytoimprovepubliceducation,andinsodoing,permanentlyalter the lifetrajectoriesofthousandsof Hawaiischildren.Thismomentisduetofactorsrangingfrom determined businessleadership,political pressurecausedby thefederalNoChildLeftBehindAct,dramaticchangesin stateeducationpolicy,andaleadershipteam withintheDepartmentofEducation (DOE) thatechoesthe urgencyforchange. AnchoredinvaluesofsocialjusticeandaconcernoverHawaiisfuture,Castlesleadershiphasembracedthe boldmissionofpubliceducationreform,withafocusuponearlyliteracyandcollegepreparedness.Thesegoals mirrorthoseoftheDepartmentofEducation.TheFoundation seemstounderstandandembracethelongterm engagementneededtoachievepubliceducationreform. Asaprivatelyendowedcharitablefoundation,Castleisshelteredfromthechangingforcesofpoliticsand publicfinance.TheFoundation possessesotherassets,suchasboardleadershipthatspansbusiness,politicsand education,asizeableassetbase,experiencedexecutiveleadership,significantpoliticalcapital,andastated willingnesstotakerisks.Atthesametime,thereareareasofconcernnamely,limitedstaff capacity anda grantmakinghistory thatrevealsthestatedmissiondoesntnecessarilycorrespondwithinvestments. Thus,Castlesworktakesplaceinapoliticalauthorizingenvironmentripeforchange,benefitsfromaclear missionrootedinstrongvalues,butsuffersfromlimitedoperationalcapacity andunclearstrategy.Infact, a conservativeestimateofgrantmakingoverthepastfiveyearsshowsrelativelyfewresourcesdedicatedtopublic educationreform.Oftheapproximately$25millioninvestedbroadlyineducation,72percentwenttoprivate education,14percenttouniversityeducation,andonly13percent,or$3,301,100tosupportpubliceducation reform. Affectingpubliceducationreformwillrequiremoredisciplinedandsizeablegrantmaking. Goals&Strategy ConversationswithCastlestaffandboardleadershiprevealabroadmission welleducatedcitizenswhocan findmeaningfulwork.Whiletherewasuniversaladmirationandsupportforbecominginvolvedinpublic educationreform,moststakeholderscouldnotidentify Castlesgoalsorstrategies.Thefollowingthreegoals offerfocusandseemcriticalifCastleistoachievethismission: Allchildrenreadproficientlybygradethree Allchildrengraduatecollegeready Thereisasystemstructureandcapacitytoachievetheseacademicgoals(systemcapacity) AllthreegoalsmirrorthoseoftheDOE.Forperhapsthefirsttimeindecades,thismajorpublicinstitution appearscommittedtoreform.ThealignmentofgoalssuggeststhatCastlepursueasupportiveandencouraging strategyinthenearterm.Asapartnerinchange,CastlecanleveragetheDOEscommitmentbyidentifying investmentopportunitiesthatwillhasten,deepen,andenhanceinstitutionalchangeefforts. Italsoseems appropriatetocontinueworkingonstructuralissuessuchasgovernanceandcollectivebargainingthatoften impedeneededchange.

Systemchangeisanimportantfocusofthisstrategy.Atthesametime,thereareadditionalopportunitiesto providetargetedinvestmentsinareasthataresubstantiallyunderresourcedandofferhighreturns,suchasearly childhoodeducation. Likeanyinvestmentportfolio,however,certainstrategiesmustbeconsideredtohedgeagainstlongertermrisks suchasbureaucraticinertiaorpoliticalinaction.TheDOEsorganizationalcultureneedsanexternalchallenge toitsmonopoly.Castleshouldthereforedeployassetstonurturethenascentcharterschoolmovementasamid termstrategy.Castleoughttoalsobepreparedtoenactamoredrasticapproachtoshock thesysteminthe eventtheDOEfailstoreorganizeandperform.Itseemsappropriatetoquietlyexplorealegalstrategyto challengeeithercharterschoolfinancingorthelegalbasisforaJuniorKindergartenprogramthatonlyserves childrenbornincertainmonths. Enhanceinstitutional changeefforts

Children & Communities

Provideexternal challengestosystem Targetedinvestmentsin highleverageareas

Increasetransparency,knowledge,andaccountability Key Observations Aclearwindowofopportunityexistsduetoalignmentinpoliticalpressure,policyideas,keypeopleand clearlyidentifiedproblems Forperhapsthefirsttimeindecades,thepublicschoolsystemisawillingpartnerinchangeefforts Withinfluencebridgingtheeducationsector,businesscommunityandphilanthropicworld,Castleis uniquelypositionedtoinitiatechangeefforts Successwilllikelyrequirealargeinvestmentofresourcesandevengreateroutlayofpoliticalcapital Theprimary roleoftheCastleFoundationisnottocreatenewprograms,buttoidentifyandnurture leversforsystemchange Totheextentthatprogrammaticresourcesareneeded,theyshouldfocusuponWindwardOahu 1 Anyschoollevelinterventionmustfitwithin theDOEsComprehensiveStudentSupportSystem ,be alignedwith system goals,andnotaddan undueworkloadforschoolleadership

TheCSSSisacollaborativeeffortinvolvingtheDepartmentofEducation,thefamily,andthecommunitythatprovidesresources andassistancesoeachchildwillmeettheeducationalstandardsforhis/hergradelevel(see http://doe.k12.hi.us/programs/csss/)

2 TheoryofChange:BuildingSystemCapacity Thissectionhighlightssystemlevelstrategiestoimprovethecapacityandperformanceofthesystem infrastructure.

Infusebestpractices Employ accountability data Engageconsumers Reducebarrierstoreform Empowerprincipals Nurtureexternal pressure

Greaterefficiency Reflectivebehavior Midcoursecorrections Partnershipgrowth Strongerschoolleaders Alternativeed.options

Increase chancesfor successful systemreform

Tactics 1) Increaseapplicationofdata/researchtoinformconsumersandfinetuneinterventions o JustfortheKids(HawaiiBusinessRoundtable) o CommissioncasestudyofAct51creation o EvaluateimpactofAct51implementation 2) SupportAct51implementation o RecruitandtraincommunityandbusinessleaderstoserveonlocalSchoolCommunityCouncils (ContractChamberofCommerceorAlohaUnitedWay) o Deepenfocusonprincipalleadership OngoingfundingofPrincipalsLeadershipAcademy ChangeLeadershipGroupproject(HawaiiEducationalCouncil) Pilotstipendprocessforteacherstoimplementprincipaldrivenreforms(CAPE) Createpoolofretiredprincipalstocoachchangeeffortsinlowperformingschools(CAPE) 3) Encouragesystemicchange o Streamlineteacherhiringandretentionprocess AssessandimproveDOEHRprocess,explorealternativecertification(TheNewTeacher Project,TeachforAmerica) o Encouragelabor/managementpartnership FundteamtraveltoToledo,OHtostudypeerreviewprocessandDenver,COtostudy performancecompensation o Removecaponcharterschoolcreationandreducefinancialinequities MovecharteringauthoritytoUniversityofHawaii Fundscholarshipsforentrepreneurstoresearchandwritecharterapplications Justification CastlesworkmustbalancesupportforongoingDOEreformswiththecreationofnewreformopportunities andneedtodriveexternalchangeeffortsthroughvehicleslikecharterschoolcreation.Throughout,the Foundation shouldhelpconsumersactivelyparticipateinthereform process. TherearecertainleverswithintheDOEsystemwherearelativelysmallinvestmentoughttoleadtosignificant returns.Forexample,fundingarecognizedchangeagentsuchasTheNewTeacherProjecttoconsultonthe DOEshumanresourcesystemwillleadtoabetterhiringprocessandultimatelygreaternumberoftalented
2

ShadedareasrepresentcurrentorongoingHaroldK.L.Castle Foundationinvestments

candidates.MuchalsohingesonhowwellSchoolCommunityCouncilscanguideschoollevelinterventions. Thus,anappropriatestrategyistoensurethesegroupsarepopulatedwithstrong,experiencedindividuals. Similarly,whileprincipalsnowreceivetrainingthroughthreeseparateefforts,theyfaceseriousimplementation barriersattheschoollevelsuchasrestrictedteachertimeandlackofcoaching.Creatingastipendfundfor teacherstoimplementreformwillsupportprincipalsandincreasechancesforsuccess.Likewise,formingapool ofretiredprincipalstoserveascoacheswillofferneededschoollevelsupportatacriticaltime. Atthesametime,theworkmustbeconnectedtoabroaderstrategythatexaminessomeofthebarriersfacedby schoolleaderswhentryingtoimplementchangenamely,collectivebargainingconstraints.National examples ofsuccessfullabor/managementpartnershipsexistthatsupportandholdnewteacherhiresaccountable(Toledo PlanpeerreviewprograminToledo,OH),andfinanciallyrewardteachersforexemplaryperformance (ProComp,Denver,CO). ForexternalpressuretosuccessfullypushtheDOEsorganizationalculture,consumersneedaccesstoconcise informationandmeaningfulalternatives.ParentsandpolicymakersoughttoknowwhetherAct51s implementationismakingadifferenceforteachingandlearning.Parentsshouldbeabletoevaluatethe performanceofsimilarschoolsagainsteachother,whichwillsoonoccurthroughJustfortheKids.Parents shouldalsobeabletochoosefromarangeofschools,whichiswhythecaponcharterschoolsmustbelifted andeducationentrepreneursprovidedupfrontseedmoneytodeveloptheirown charterconcept.Castleshould alsostrongly advocatemovingthecharteringauthoritytotheUniversityofHawaiisystem,whichhasfewer conflictsofinterestthantheBoardofEducation. Changesatthesystemleveloughttoresultinconditionsattheschoollevelthatpromote measurable increasesinstudentachievement.Theimpactwillbeparticularlyfeltinschoolswithstrongprincipal leaders,involvedcommunityandasoundinstructionalstrategy.

TheoryofChange:Allchildrenreadproficientlybythirdgrade Thissectionpresentsrecommendationsthattargetinvestmentsinhighleverageareas.Additionalsystemic changesnecessaryforsuccesswerepresentedintheprevioussectiononBuildingSystemCapacity. Involveparentsandcommunities Enrichearlychildhoodopportunities Easetransitionstokindergarten Targetcurriculumtoneeds Usedataforcontinuousimprovement Rewardbehavior

Schoolready keiki Caringcommunity Improvedinstruction Clearincentives

Allchildrenin Windwardschools readproficiently rd by3 grade

Tactics 1) TargetresourcestosupportWindward,Oahuthroughfiveyearcommitment ExpandKamehamehaSchools08InitiativeinWaimanaloandKoolauloa Expandcommunitybasedparent/childinteractiveprogramstoallWindwardelementaryschools ExpandsummertransitionprogramstoallWindwardelementaryschools 2) PilotK3ReadingIncentivePlan 3) Creategrowthstrategytoincreaseaccesstoearlychildhoodprograms Fundtraining/technicalassistancetocreateP3programsinDOEandcharterschools,expand existingprivateprogramswithsolidbusinessmodel(HookakooCorporation,GoodBeginnings Alliance,orPATCH) 4) Thoughtfullyevaluateimpact(KamehamehaSchoolsorGoodBeginningsAlliance) 5) Sustainefforts WorkwithDOEtosupportongoingeffortsbyrefocusingtheirReadingFirstfunds WorkwithDHStofundeffortsusingChildCareDevelopmentBlockGrant Justification 3 Improvingearlyreadingskillsisafundamentalandchallenginggoal thatcangalvanizeacommunity .Efforts mustbeginattheearlystagestoinvolveparentsastheirchildsfirstteacher,increaseaccesstorichearly childhoodopportunities,easetransitionstokindergarten andfinally alter(andreward)behavioratthe elementaryschoollevel.ApprovedsupportfortheKamehamehaSchools08InitiativeandtheK3Reading IncentivePlan arecriticalpiecestothisstrategy.Sadly,afragile,fragmentedfieldmeansthatuniversalPreK strategymaynotbeawiseinvestmentunlesssignificantpoliticalcapitalisalsoexpended. AstheHawaiiStateSchoolReadinessAssessmentshows,roughly 6outofevery10childrenenterschool prepared.Thisiswheretheacademicachievementgapbegins.TheCastleFoundation shouldpursueamore modesttwopartstrategy by fundingparent/childinteractiveprogramsandexpandingcenterbased opportunitiesforHawaiisyoungestkeiki.LimitedresourcesdictatethatinitialeffortstargetWindwardOahu.A minimumofafiveyearcommitmentislikely requiredtodetermineapayoffinperformanceand testscores. Parent/childinteractiveprograms(oftentermedplay/learngroups)areaneffectiveprogrammaticstrategyto involveparentsintheirchildsdevelopment.GroundedintraditionalHawaiianapproachestolearning,
3 rd TheKennewick,WAschooldistrictmobilizedtheirentirecommunity tohelp90percentoftheir3 gradersreadongradelevel, resultinginafamouscasestudy,The90percentreadinggoal.

parent/childinteractiveprogramsofferanalternativetocenterbasedpreschools.Manyofthehardesttoreach familiesaremorecomfortableinthesesettings.Programscanthenintroduceinformationanddirectparentsto additionalresources,suchasHeadStart.Locatingtheprogramson thecampusof elementaryschoolswill also connectparentstotheirchildseventualschool.Anaturalextensionof parent/childinteractiveprogramsisa threetofourweeksummertransitionprogramwithintheelementaryschoolforstudentslackingpreschool experience.INPEACEcurrentlyconductsasimilartwopartstrategyalongtheLeewardCoast,andNaKamalei sponsorsparentchildprogramsinKoolauloa. Whileastatesponsoredstrategyforearlychildhoodisultimatelyneeded,therearegrowthopportunitiesthatan intermediaryorganizationcouldnurtureby providingfocusedtraining/technicalassistancetothoseprograms interestedinformingapreschoolorexpandingoperations.Giventheincreasinginterestinearlychildhood education,thisstrategyseemsaprudentshortterminvestmentthatoffersconcretereturns.Ifsuccessful,itis alsosustainablebyredirectingtwosizeablepublicfundingstreams. TheoryofChange:Allstudentsgraduatecollegeready Thissectionpresentsrecommendationsthattargetinvestmentsinhighleverageareas.Additionalsystemic changesnecessaryforsuccessarepresentedinthesubsequentsectiononBuilding SystemCapacity. Schoolspecific Challenging,relevantcurriculum Highqualityteachers Clearexpectations&standards Datausedforcontinuousimprovement Studentspecific Broaderhorizons Caringadultinlife Levelplayingfield Cultureofachievement

Studentsgraduatecollegeready Tactics 1)Restorevaluetothehighschooldiploma ReviewHawaiistandards,courseworkandgraduationrequirements(contractwithAmerican DiplomaProject/Achieve,Inc) Advocateforrequiredcollegepreparatorycurriculumforall 2)Ensurelowperformingstudentshaveacaringadultintheirlifeandarepreparingforcollege FoundationforExcellentSchools(FES) ExploreexpandingGEARUPHawaiitoWindwardschoolsthatservegrades712 Justification ImprovingHawaiishighschoolswilltakeenormouseffortfrom allinvolved.Comparedtotheneededchanges inpolicyandpractice,highschoolspresentrelativelyfewgrantmakingopportunitiestomakeadeepandlasting difference.Givinghighschoolstudentstheexcellentprincipalsandteacherstheydeserve,providingconsumers withclearinformation,extendingcharterschoolopportunities,andrecruitingcommunityvolunteerstoserveon theSchoolCommunityCouncilsareall systemicstrategiestocreatelastingimpactsinhighschool.Whilethese strategieshavebeenexploredinthesectiononsystemchange,thereare twospecificareasthatcouldbenefit greatly fromoutsidereviewandadditionalresources. 8

Highpercentagesofunpreparedhighschoolgraduatesdemandthatthevalueoftodayshighschool diplomabe restored. Untilthen,highschoolofferingswillcontinuetobedisconnectedwithcollegeorworkforce expectations.Amultistateeffort,calledtheAmericanDiplomaProject,iscurrentlyunderwaytoassessthe standards,courseworkandgraduationrequirementsandcontrastthemtospecificpostsecondarybenchmarks. Thisreviewculminatesinaspecificactionagendaforthestatetoimproveitspublichighschools.Hawaii shouldbegin withthisreviewtoprovideacommonsetof agreementsandunderstandingaboutneededpolicy changes.Itmayalsoprovideinroadswiththefunder,theHewlettFoundation. Whilesystemchangeeffortswill taketime,studentneedsareboth currentandurgent. Importantefforts,suchas FES,worktoensurelowperformingstudentshaveacaringadultandarefocuseduponcollege.TheCastle FoundationmayconsiderhedgingitsinvestmentinFESby providingadditional fundingto theUniversityof HawaiibasedGEARUPprogramtoextentitseffortstoall Windwardschoolsservinggrades712. AdditionalRecommendations ThissectionpresentsrecommendationsforareasinwhichtheFoundationshouldconsiderdiscontinuing operationsduetolimitedcapacity,otherinvestors,oruncertainsocialreturns. Curriculum:WhileconceivablethataFoundationcouldfundthecreationandevaluationofcreativenew curricula,thisrequiressubstantialknowledgeinaspecificfield.Itisalsoanareathathasarelativelyhealthy DOEbudgetandsupportiveinfrastructurededicatedtopurchasingcurricula,linkingtostandards,providing professionaldevelopment,andevaluatingresults. Smallschools:Helpingtoformsmallschoolsofferssignificantleverageandpotentialreturnstoa Foundation. Yet,threecriticalelementstosuccessaremissinginHawaii:theDOEhasnotcommittedtopursuethiscourse ofaction,theCastleFoundationlacksthepersonnelinfrastructuretomanagethesubstantialvolumeofwork, andHawaiilacksasingleintermediaryorganizationwithcompetencyinthisarea.Forthesereasons,itis recommendednottopursuethiscourseofaction. TeachforAmerica:Ifthepurposeofthisinvestmentisasustainableincreaseinthepooloftalentedteachers workinginHawaii,thereislikely amoreeffectivestrategy toachievethisoutcome.ImportingTFAtoHawaii willlikelyfocusattentionontheinadequateteachercandidatepool,butitmayalsoexacerbateinsider/outsider tensions.Furthermore,itmaynotaddresslongtermsystemicissuesintheDOEsOfficeofHumanResources, norwillitaddlongtermflexibilitytothoseseekingalternativeroutestoteaching.Awiserinvestmentmaybeto partnerwith TheNewTeacherProject,whichwillhelpreformtheteacherrecruitmentandapplicationprocess itself whilehelpingsteerlocal professionalsintoteachingbycreatinganalternativecertificationprogram. FacilitiesrequestsforprivateandpublicP12schools:TheinfrastructureofmanyDOEschoolsis crumbling,privateschoolenrollmentsareincreasing,charterschoolsneedhousing,andthegrowthofearly childhoodprogramsisconstrainedbyinadequatefacilities.Yet,makingasizableimpactinthisareawillrequire assetsmuchmoresubstantialthanCastles.Donatingtoprivateschoolsandearlychildhoodprogramssimply enablesthosefortunatefewtoavoidchargingthetruecostofoperationstotheircustomers.Thestateneedsa thoughtfulstrategyforincreasingearlychildhoodcapacity,andprovidingfacilitiesforpublicK12andcharter schools.Privateschoolsneedtopassthetruecostofoperationsontoparents.OneexceptionwheretheCastle Foundation canoffersignificantimpactusingfewresourcesiscontinuingtosupportHawaii3Rsproject.A

longertermsolutionworth consideringmaybeprogramrelatedinvestmentloansor thecreationofaspecific facilitiesloanfund. Other Recommendations:One BoldApproach Iamconcernedthatthebusinesscommunitysremarkableinvolvementinreformingpubliceducationmaynot last.Oneapproachtosustainthiseffortisthecreationofaventurecapital fundforpubliceducation.Doingso willtiethebusinesscommunitysactiveinvolvementtocapital thatenablestheDepartmentofEducationto fundnecessary reforms.Castlecouldcreateandseedsuchafund,whilecontinuingtoactivelyseekother investmentpartners. OneexampletostudyistheChicagoPublicEducationFund.Guidedbyactivelyengagedgroupofbusinessand civicleaders,theFundexiststochannelideasanddollarsintoventurespromisingexcellentreturnsthrough innovationandsolidimplementation.In[this]case,thatpromisingreturnoninvestmentisimprovedschool leadershipandstudentachievementinChicagospublicschools.(www.cpef.org) OtherRecommendations:CommunicationStrategy ThelackofexternalclaritysuggestsathoughtfulcommunicationscampaigntospecifyCastlesgoals, strategies,andaccomplishmentsinthefieldofpubliceducationreform.Ataminimum,thisshouldtakethe formofarevampedwebsitewithcleargrantguidelines,andcollateralprintmaterials. Whatmight successlooklike? Goal SystemCapacity Outcomes Alternativeeducationoptions Increasedsupporttoschools Strongerschoolleadership Improvedschoolreadiness PerformanceMeasures %ofstudentsinneworconversioncharterschools %ofschoolswithworkingfinancialandacademicplans %ofprincipalswhograduatefromaleadershipprogram %childrenservedinearlychildhoodprograms %ofstudentsschoolready %schoolsready rd %whoenterKatrisk&readongradelevelby3 grade rd HawaiiStateAssessment:3 gradereading

rd 3 GradeReading

Improvedperformance

CollegeReady Graduates

Diplomahasmeaning Graduatesarecollegeready

Iscollegeprepcurriculumdefault? %studentstakingcollegeprep/APcourses %whoapplyandareacceptedintocollege %ofUHstudentsthatrequireremediation %passingapprenticeshipexam

10