How IDEA can help close the college-graduation gap in Texas. September 2011
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- Gertrude Caldwell
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1 How IDEA can help close the college-graduation gap in Texas September 2011
2 IDEA will expand to become the largest producer of low income college graduates in Texas IDEA Public Schools has proven that students from underserved communities can apply, matriculate, and succeed in four-year colleges and universities In next phase of growth from IDEA will expand to serve 38,000 students in 54 schools in the Rio Grande Valley, as well as in regions outside of the valley, principally San Antonio IDEA s five-year initiatives to support growth include building leadership capacity, enhancing the primary and secondary models, improving teacher recruitment and retention, and developing a powerful high school culture When fully built out, 1,500+ low income IDEA alumni will graduate with a four year degree every year 2
3 IDEA Public Schools Mission IDEA Public Schools prepares students from underserved communities for success in college and citizenship, and is committed to developing students with the academic, social, and leadership characteristics to apply, matriculate, and succeed in a four-year college or university 3
4 IDEA is successful in achieving its mission IDEA has achieved outstanding results for students, while building an efficient, sustainable organization, and growing at an average annual rate of 28% in terms of student enrollment In , IDEA received the Texas Education Agency rating/designation of an Exemplary district for the second year in a row 100% of IDEA graduates have enrolled in a four-year college or university 92% of IDEA students who entered college are still enrolled (or have graduated), dramatically outpacing national averages 4
5 IDEA dramatically outperforms the state and region in college readiness indicators IDEA college readiness rate has exceed that of the State of Texas every year since 2007 College-ready graduates (in both ELA and Math), Percent College-ready graduates (Hispanic), Percent IDEA Region 1 Texas IDEA Region 1 Texas 63% 67% 61% 69% 29% 27% 37% 44% 34% 35% 47% 27% 26% 25% 33% 32% 34% 35%
6 The need remains significant and IDEA can be even bigger part of solution Graduation rate in TX ranks #42 in the nation HS Graduation Rate (2009) US avg = 70% Hispanic college readiness gap is 32%... TX College Readiness Rates (2009) Hispanic enrollment growing rapidly Hispanic Students in TX (in millions) % of total Students 50% 65% IDEA is an important part of the solution 6
7 IDEA s vision of game-changing impact includes closing the college achievement gap and reaching significant scale Now 2018 On track to be largest single producer of lowincome college graduates in the Rio Grande Valley ~ By 2018: Operate a total of 54 schools, which will enable us to become Texas largest single producers of low-income college graduates with 1,500+ annually at full scale IDEA closes the gap in college degree attainment in its focus communities (primarily low income, Latino communities). In doing so, IDEA demonstrates quality at scale by becoming America s largest producer of low-income college graduates 7
8 Implications of this goal IDEA closes the gap in college degree attainment in its focus communities (primarily low income, Latino communities). In doing so, IDEA demonstrates quality at scale by becoming America s largest producer of low-income college graduates IDEA graduates ~5,000 low income students from college each year, which is more than NYC public schools (~4,800 low-income college grads) To accomplish this, IDEA operates ~153 schools In each community it enters IDEA will build a deep presence, increasing the proportion of low income college graduates by at least 50% over time Schools are located in primarily Latino communities and actively target low income students Through its focus, IDEA will put pressure on local ISDs, partner where possible to impact surrounding ISDs, and conduct advocacy to align policy Faced with this proof point of success at scale, parents, policy makers and communities demand the same of all education options 8
9 2 IDEA will ensure college success for students across Texas with a more focused model than traditional ISDs IDEA can dramatically increase the college graduation rate in the regions it serves with a comparatively small number of enrolled students because of its success in getting students to matriculate to and graduate from college Houston ISD largest producer of low-income college grads in TX Annual High School Entrance to College Graduation Funnel 9 th graders (15,764) 12 th graders (9,435) High School Grads (4,623) College entrants (2,631) Annual IDEA High School Entrance to College Graduation Funnel 9 th graders (3,259) 12 th graders (2,667) High School Grads (2,667) College entrants (2,400) College grads (1,473) College grads (1,800) 9 At completion of strategic growth plan, IDEA will be the largest single producer of college grads in the RGV (and in Texas) with 1,800 grads annually, enrolling a 9 th grade that is 20% the size of the 16K student 9 th grade that it takes to graduate 1,500 college grads in Houston 9
10 Why Grow? IDEA will open 4-6 schools per year, rapidly increasing enrollment Cur New Schools Enrollment at full scale* 11K 14K 17K 21K 25K 30K 34K 38K 10 New school growth will be inside of Rio Grande Valley and in expansion region *Assumes that a fully-enrolled school is 1400 students Note: Includes schools in the Rio Grande Valley and elsewhere in Texas 10
11 Where To Grow? We assessed regions for growth against criteria related to need, demand, and sustainability 1. Needs Assessment Education and demographic landscape Over 75% of Texas students concentrated in six highest need regions RGV, San Antonio, and El Paso are highest need areas across demographic categories; Austin is relatively lower need 2. Market dynamics High performing charter supply and demand Low charter school penetration in regions of focus and very few are high performing El Paso, RGV, Austin, and San Antonio emerge as best regions to consider for expansion from a market dynamics perspective 3. Sustainability and Support Human Capital, fundraising and political Dallas, Austin, and Houston have robust human capital pipelines, fundraising potential, and potential for increased political awareness RGV and El Paso most difficult from sustainability and support perspective while San Antonio presents moderate opportunity 11
12 Where To Grow? San Antonio demonstrates high need, has favorable market dynamics, enables human capital access All regions demonstrate significant need to improve quality of education for kids and opportunity for further charter growth There is more to do in RGV o IDEA already has a footprint and market is not saturated; more demand will likely be created in continuation of in-region growth o RGV is the neediest of regions across all factors For expansion, San Antonio is most favorable region for IDEA s growth o With high percentage of Hispanic and free and reduced lunch students, market is complementary to current IDEA RGV demographic o Very low student performance and high dropout rates o Presence of high performing charters in region is very low o Reasonable access to Human Capital Austin is attractive from some lenses but more analysis required about demand for charters o Advantages for sustainability (human capital) and support (financial and o political) Indications that building significant presence there could be difficult because waiting lists are low and other CMOs have had trouble filling seats El Paso is interesting because of very high need similarity to the Valley; however, lack of TFA presence problematic Although many regions would benefit from IDEA presence, in the near term we will focus on San Antonio and the Rio Grande Valley 12
13 How To Grow? To support this growth, IDEA will focus on 5 organizational priorities over the next 5 years 1. Leadership Capacity Building Invest in building the capacity of our leaders at every level within the organization 2. Scalable secondary model Enhance secondary school model to support greater quality and consistency while scaling rapidly 3. Teacher recruitment and retention 4. High school culture Recruit and retain outstanding teachers for every classroom Augment student retention and college readiness through a powerful high school culture on every campus 5. Implement Hybrid Primary Model Refine and improve the new primary school model, which increases personalization through hybrid learning, improves IDEA hiring needs and increases sustainability 13
14 Network Growth Model Key financial metrics/assumptions that we will monitor throughout the plan timeframe Historical levels of per-pupil revenue from the state (taking into account planned cuts in fiscal years 2012 and 2013) Student enrollment/ada/persistence meets or exceeds plans Stable teacher salaries and staffing levels (e.g., number of teachers as outlined in plan), diligence in discretionary spending (every dollar fights for its life) Access to the capital markets and at acceptable interest rates Exceeding Additional Bonds Test ratio 14
15 Network Growth Model IDEA s central office (HQ) provides four core areas of support to its schools Design of core academic program with implementation support HQ provides system-wide tools to support the implementation of the program and to measure academic achievement and overall school effectiveness. HQ provides a common curricular framework, student assessment system and the training needed for effective implementation New School Start-Up Services HQ assists with building relationships with community stakeholders, training school leaders, student recruitment, and processing the charter application or expansion request Operational Support IDEA schools benefit from the support of centralized operations, and the focus on instruction that is enabled by HQ managing many school-based operations. HQ provides services for cafeteria, transportation, textbooks, materials and equipment purchasing, information technology infrastructure, and information management systems Financial Support and Oversight All financial accounting is performed by HQ. School leaders are given flexibility and autonomy through a discretionary budget line that allows them to make local program decisions 15
16 Network Growth Model IDEA Regional Support will ensure the successful expansion of the organization to San Antonio Regional Support at scale ( ) Regional Vice President Regional support structure during year 0/1 of student enrollment Executive Principal(s) Launch Director/ Regional Ops Coordinator Director of Individual Giving Coordinator of Professional Development Special Ed/ Program Coordinator Initially, team will include only Regional Vice President, Launch Director/Regional Operations Coordinator, and Program Team support (e.g., Special Education) At scale, team will have a matrix reporting structure, co-managed by leaders at HQ and the Regional Vice President (who will report directly to IDEA CEO) Local team lead by the Regional Vice President will develop and manage relationships with local community stakeholders, manage student recruitment, support staff recruitment, and manage non-construction contracts An executive principal in the new region will provide day-to-day management and instructional support for principals Note: Instructional coaches are included as part of school-level staffing 16
17 Network Growth Model IDEA shows long term sustainability of network growth model By Year 6 of enrollment, New schools in RGV and San Antonio are sustainable after debt service New School Sustainability Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Deficit? Yes Yes Yes Yes Yes Yes No Grades served Enrollment School Staff By 2015/16, Headquarters is sustainable off of CMO Fee contributed by schools HQ Staff Note: Total staff figures rounded to the nearest 1 when considering 0.5 FTEs 17
18 Network Growth Model Full organization fundraising gap is $52MM, of which $14MM has already been raised Millions of Dollars Headquarters 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Total Gap Total Deficit $2.5 $1.5 $0.6 $ $6.1 New Schools - RGV Total Deficit $2.5 $2.1 $2.2 $2.3 $2.3 $2.0 $ $ 13.6 New Schools - New Region Total Deficit - $3.0 $4.6 $5.5 $6.4 $7.0 $4.0 $1.8 $0.4 $ 32.6 Annual Gap $5.0 $6.6 $7.4 $9.2 $8.7 $9.0 $4.3 $1.8 $0.4 $52.4 Note: Assumes that funds are raised for discrete pieces of the organization 18
19 There are risks we must acknowledge, address, and monitor throughout the growth plan Internal Risk Factors Producing College Ready Results Creating a Sustainable Human Capital Pipeline Balancing Strategy with Opportunity External Risk Factors Creating and Maintaining a Charter Friendly Environment Equitable Funding and Access to Capital Mitigating Factors Fidelity to our core values and focus on continuous improvement will mitigate these risks. Heavy initial investment in pipeline (i3) and program will guide our growth and impact Mitigating Factors Senior leaders & board must (1) advocate for IDEA and high performing charters and (2) build a broad coalition of supporters to enhance the charter brand with thought leaders. Advocacy must become a key strategy that allows us to continue our core business. 19
20 We look forward to continuing this journey with your support! Sincerely, Tom Torkelson (CEO), IDEA Chief s Team and Board of Directors 20
21 Backup 21
22 Leadership of IDEA Organization Chief Executive Officer Tom Torkelson Chief of Schools JoAnn Gama Chief Program Officer (Interim) Dolores Gonzalez Chief Human Assets Officer Audrey Hooks Chief Operating Officer Irma Munoz Chief Financial Officer Wyatt Truscheit Chief Development Officer Susie Crafton Chief Growth Officer Matthew Randazzo Regional Vice President (starting 2012) Office Executive Schools Program Human Assets Operations Business/ Finance Growth Development Description Casts vision for organization and approves the work of Chiefs and Regional Vice President Responsible for supporting the leadership teams in all IDEA schools as they implement the instructional program Provides direct support to the campuses around curriculum, assessment, instructional resources, instructional coaching and support for special populations Directs the organization s human capital strategy and provide training, tools and support for district managers Oversees several functions: IT, data, performance management, campus operations, and marketing and communications Manages Finance and HR Administration, Transportation, Facilities, Child Nutrition, New Construction and Textbooks Management Identifies mission-aligned communities for expansion, selects school sites, manages external and community relations with donors, elected officials, government agencies, and is ultimately charged with growing the network of schools from 20 to 54 by 2017 Responsible for generating and managing much of the revenue that comes to IDEA including federal, state, and foundation grants, as well as local fundraising Note: Actual school launch is matrix managed centrally by Growth, Operations, and Finance teams with school design sitting with the Growth, construction with Finance team, and student recruitment/enrollment with Operations team 22
23 Where To Grow? Needs Assessment Consistent with this, lowest TAKS performers are San Antonio, El Paso, and RGV Math Commended rate (2010) ELA Commended rate (2010) However, TAKs commended rates are low across Texas, with high need in all six regions Note: The above applies to percentage of test takers that passed indicated unit of TAKS test Source: Texas Education Agency 23
24 Where To Grow? Needs Assessment Lowest graduation rates in San Antonio, Houston, and Dallas, but interestingly, high college readiness in San Antonio High School Graduation Rate (2006) 70% 65% 60% 55% 50% 45% 40% 35% 30% 57% 55% 52% 52% 49% 48% 65% Struggling high school students in San Antonio may be dropping out before college and career readiness assessments, inflating region s success Note: Dallas/ Fort Worth includes Richardson and Fort Worth; Source: Texas Education Agency; graduation rates are from High School Graduation in Texas from Editorial Projects in Education Research Center 24
25 Where To Grow? Market Dynamics San Antonio, Austin, and El Paso appear to have greatest need for more high performing charter schools Dallas/ Fort Worth Houston San Antonio Rio Grande Valley Austin El Paso Total charter schools in region Charter penetration % 2.9% 3.2% 3.7% 2.5% 1.7% 1.7% 2.4% % of charters that are highperforming Overall TX 42% 52% 24% 52% 32% 44% 40% Note: High performing charter schools are defined as exemplary and recognized; Dallas/ Fort Worth includes Richardson and Fort Worth Educational Service Centers Source: TEA 25
26 Where To Grow? Needs Assessment 76% of Texas student population is concentrated in 6 regions; we focused our analysis here We assessed relative need within these six areas We included El Paso despite smaller size because of its demographic similarities to the Valley Note: Dallas/ Fort Worth includes Richardson and Fort Worth; Source: Texas Education Agency; 26
27 Where To Grow? Needs Assessment RGV, San Antonio, and El Paso are highest need areas across demographic and student performance; Austin is relatively lower need Region High projected growth rate Demographic factors Large student enrollment High Hispanic penetration High % Penetration FARM Student performance factors Low TAKS commended Low Graduation Rate Low College Readiness rates Rio Grande Valley 25 San Antonio El Paso Dallas/ Fort Worth 20 Houston Austin Note: FARM rate includes economically disadvantaged Source: Texas Education Agency Very high Legend High Med Low See backup for detail 27
28 Where To Grow? Market Dynamics El Paso, RGV, Austin, and San Antonio emerge as best regions to consider for expansion from a market dynamics perspective Region Low charter penetration Charter School Supply and Demand Low number of charter schools Absence of high performing charter schools* (other than IDEA) Significant waiting lists (as % of regional charter market) El Paso Rio Grande Valley Austin San Antonio Dallas/ Fort Worth Houston *Exemplary and recognized Source: Texas Education Agency Very high Legend High Med Low See backup for detail 28
29 Where To Grow? Sustainability RGV and El Paso most difficult from human capital perspective However, note that Austin has U-Teach and high percent of TFA alumni in area Source: American Community Survey 5-year census estimates 2009, TFA site research 29
30 Where To Grow? Sustainability RGV and El Paso most difficult from sustainability and support perspective Region Sustainability Support Dallas/ Fort Worth Presence of TFA, U. Teach, other HC pipelines Percent of adults in region that are college graduates Probable Fundraising Support Enables broader political awareness Houston Austin San Antonio El Paso Rio Grande Valley Very high Legend High Med Low See backup for detail 30
31 How To Grow? Organizational Priorities 1 Invest in building the capacity of our leaders at every level within the organization We have developed a comprehensive Leadership Development Continuum to demonstrate the path to leadership at IDEA SR LEADERS SCHOOL LEADERS RISING LEADERS Assistant Principals, Instruction Assistant Principals, Operations Counselors TEACHER LEADERS Grade Team Leaders Content Team Leaders TEACHERS new developing proficient - master 31
32 How To Grow? Organizational Priorities 2 Enhance secondary school model to support greater quality and consistency while scaling rapidly Goals of Secondary Model College matriculation and graduation Across the first five IDEA graduating classes we have achieved our goal of 100% college matriculation. 92% of our graduates are in college still today or have graduated from college Academic Rigor The number one factor that will determine whether our graduates make it to and through college is their level of academic preparation. Our goal is that 90% of graduating seniors will achieve a composite score of 19 or higher on the American College Test (ACT) and 75% of seniors will achieve 24 or higher on ACT Student persistence IDEA campuses must retain at least 90% of their students each year, and 80% of a freshmen cohort over four years. Currently we retain ~65% of a cohort over four years, and we find that this statistic improves on each campus as it matures 32
33 How To Grow? Organizational Priorities 3 Recruit and retain outstanding teachers for every classroom To maintain our record of hiring strong faculty, we will implement or improve upon the following strategies: Build capacity & expertise among centralized talent recruitment specialists Broaden pipeline by diversifying our recruitment sources (in addition to local teachers and Teach For America Corps) Improve predictability of selection process Principals and other campus leaders play a particularly important role in teacher retention: Improve leadership capacity at campus level Focus on developing skills of experienced and able teachers Consider implementing innovative pay options 33
34 How To Grow? Organizational Priorities 4 Why is secondary culture a priority over the next five years? What is the current situation? We have an incredibly strong and powerful IDEA culture at our Academies and in our College Prep Middle Schools Secondary culture could be better differentiated between middle and high school students at our College Prep Schools Secondary culture could be more uniformly adopted and displayed across IDEA campuses What are the expected outcomes? Develop a powerful and uniform IDEA culture for grades 9-12 that will: Improve student retention in grades 9-12 Prepare students for the independence of college via a gradual release of responsibility Students will feel part of a warm, powerful atmosphere with caring adults and consistent expectations and will be better prepared for real life when they graduate from IDEA 34
35 How To Grow? Organizational Priorities 4 We will phase in the elements of differentiated secondary culture over the next two years This year (examples) 1)Uniforms 2)Transitions 3)Core Values 4)Team Meetings 5)Commitment to Excellence Future Years 1)Paychecks, School Store 2)Focus on traditions (pinnings, uniforms, etc.) 3)Field Lessons 4)New student/new teacher camps for culture 35
36 How To Grow? Organizational Priorities 5 Refine and improve the new primary school model The Better IDEA model is revolutionizing our approach to primary school and promises to deliver breakthrough results in student outcomes. This approach is a significant change it impacts the role of our teachers, the staffing model, technology choices and even facilities infrastructure Continue to evolve our primary teacher development and support to account for the specialization of teachers by literacy and math Monitor the rapidly changing landscape of technology-enabled instruction products to ensure that we are using the most advanced technology to provide each student with a truly individualized learning experience Develop greater sophistication in the ways that data from the learning lab is used to inform the teacher s instruction in the classroom 36
37 Network Growth Model School-based leadership and responsibilities (Primary) An IDEA principal is an instructional leader and is ultimately responsible for all academic goals for all students at their school Principals own their staffing and budget decisions, and are empowered to alter their staffing plan to meet their needs with the input and approval of HQ All positions on a campus leadership team report to the school principal or designee IDEA Primary School Structure Principal (1) Admin Staff Support Staff (all 0.5, shared w/ CP) Teaching Staff Co-Teachers Assistant Principal (1) Admin Assistant Core Teachers (18) Classroom (5) Director of Operations (0.5, shared w/ CP) Receptionist Special Ed Teachers (1) Learning Lab (1) Fully enrolled Primary School leadership teams consist of one principal, an assistant principal for academics, an assistant principal for operations (shared with secondary schools), and an academic counselor SIS Coordinator Registrar Business Clerk Library Aide Phys Ed Teachers (1) Reading Lab (1) Phys Ed (1) Health Services CNA Note: School principal is directly managed and supported by an Executive Principal 37
38 Network Growth Model School-based leadership and responsibilities (Secondary) IDEA Secondary School Structure Principal (1) Admin Staff Support Staff (all 0.5, shared w/ AC) Teaching Staff Co-Teachers Assistant Principal (2) Admin Assistant Core Teachers (26) Classroom (2) Director of Operations (0.5, shared w/ AC) Receptionist Special Ed Teachers (2) Learning Lab (1) School Instructional Coach (0.5) SIS Coordinator Elective Teachers (12) Phys Ed (1) Counselors (4) Registrar Secondary fully enrolled school s leadership teams consist of one principal, two assistant principals (one for middle school, 6-8, and one for high school, 9-12), an assistant principal of operations (shared with primary schools), an academic counselor and three college counselors Business Clerk Library Aide Health Services CNA Note: School principal is directly managed and supported by an Executive Principal 38
39 Millions Network Growth Model Overall IDEA organization revenue will grow to $320MM IDEA Public Schools Revenue ( ) $350 $300 $250 $200 $150 $100 $50 $- Number of Schools Open $7 $ /12 Total Public Funding $9 $ /13 $10 $ /14 $9 $ /15 Private Funding (incl fundraising gap) $9 $ /16 $9 $ /17 $4 $ /18 $2 $ /19 $0 $0 $305 $ / /
40 Millions Network Growth Model Overall IDEA organization expense will grow to $300MM IDEA Public Schools Expenses ( ) $350 Total schools expenses Total HQ expenses $300 $250 $200 $150 $100 $50 $0 $13 $ /12 $14 $ /13 $15 $ /14 $16 $ /15 $13 $ /16 $12 $ /17 $8 $7 $236 $ / /19 $6 $6 $283 $ / /21 Number of Schools Open
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