K-12 EDUCATION AND THE EDUCATION INDUSTRY

Transcription

1 State of the K-12 Market 2015 K-12 EDUCATION AND THE EDUCATION INDUSTRY Part I

2 State of the K-12 Market 2015 Part I: K-12 Education and the Education Industry Published by MDR A D&B Company 6 Armstrong Road Shelton, CT All rights reserved. No part of this report may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system, except as may be expressly permitted by the 1976 COPYRIGHT ACT, or in writing by MDR, 6 Armstrong Road, Shelton, CT MDR and its agents have exercised reasonable efforts in gathering and preparing data and information published in State of the K-12 Market 2015: K-12 Education and the Education Industry. MDR does not assume and hereby disclaims any liability for any loss or damage caused by errors or omissions resulting from negligence, accident, or other causes.

3 State of the K-12 Market 2015 Part I: K-12 Education and the Education Industry Written by Anne Wujcik, MDR Edited by Karen Greenwood Henke, Education Consultant Data and Analysis by Kathleen Brantley, MDR Stephanie Burdick, Consultant Ann Busbey, Consultant Alessandro Lopes, MDR Deirdre Martel, MDR Chuck Romans, Education Consultant Acknowledgements Colleen Galligan, Moira McArdle, and Aggie Mingolello of the MDR Team Thanks to the many people in the industry who generously gave their time to share their thoughts with the author and the editor.

4 Table of Contents Chapter 1: Introduction...1 How to Use This Report...3 Chapter 2: Methodologies....4 National Surveys of Decision-Makers...4 The Sample Universe...5 Education and Industry Data...10 Chapter 3: The K-12 Education Landscape The K-12 Universe...11 Public School Districts...13 Public Schools...22 Public School Staffing...25 The Charter School Sector...29 Organization of the Charter School Sector Trends in Student Enrollment...33 Sources of Education Funding...34 Federal Budget Process...35 State Funding...37 Estimates of School Expenditures...39 Categories of Spending...40 The Structure of Decision-Making Who and Where Decisions Are Made Expanding Role for Teachers Chapter 4: National Education Initiatives Reauthorization of the Elementary and Secondary Education Act (ESEA)...45 ESEA Flexibility...46 Preschool Programs Remain a Priority Preschool for All Preschool Development Grants...50 Action Moves to the States Common Core State Standards (CCSS)...51 Educator and Parent Support for the Common Core Softens...52 The Common Core in Spring A New Generation of Assessments...55 Consortia Activity Focus...56 Current Consortia Membership...57 Opt-Out Movement Gains Strength...58 A Challenging Outlook...59 i State of the K-12 Market 2015: K-12 Education and the Education Industry

5 Connectivity Is Key...60 ConnectED...60 E-Rate Seizes the Spotlight...61 E-Rate History E-Rate Modernization Student Data Privacy...64 Federal Privacy Legislation...64 Updating FERPA...65 Student Digital Privacy and Parental Rights Act of Other Privacy Initiatives Key Takeaways: National Education Initiatives...72 Chapter 5: Professional Development...75 Introduction Types of Professional Development...75 Types of Providers...77 Developments Affecting the Professional Development Market...78 Personalized PD...79 PD Gets Social...80 District Use of Professional Development...81 District Budgets for Professional Development...81 Frequency of Use of Professional Development Formats...86 Use of Online Learning...87 PD to Support STEM...89 Key Takeaways...90 References Appendix A: Data Tables... A1 Appendix B: Survey Materials...B1 State of the K-12 Market 2015: K-12 Education and the Education Industry ii

6 List of Tables and Figures Tables 1.1 Number of Districts and Student Enrollments: Districts With Enrollments of at Least 1, Types of Schools in the United States Number of Students in the United States Number of Administrators in American Public School Systems Number of Teachers in American Public Schools CMO Characteristics Appropriations History and FY2016 Budget Request for Major K-12 Programs (In Millions) Estimates of K-12 Expenditures for (In Thousands) Distribution of Current Expenditures for Public Elementary and Secondary Education by Function, Degree of Involvement in Ed Tech Procurement Process...43 A1.1 Number of Districts and Student Enrollments by District Size... A1 A1.2 Number of Districts and Student Enrollments in the U.S. and in Surveys by District Size... A1 A1.3 Number of Districts and Student Enrollments in the U.S. and in Surveys by Region... A1 A1.4 Number of Districts and Student Enrollments in the U.S. and in Surveys by Metropolitan Status... A2 A1.5 The Education Market... A3 A1.6 School Types by Grade Level... A4 A1.7 School Types by Region... A4 A1.8 School Types by Metropolitan Status... A4 A1.9 Student Enrollments in School Types by Region... A5 A1.10 Average Student Enrollments in School Types by Region... A6 iii State of the K-12 Market 2015: K-12 Education and the Education Industry

7 A1.11 Student Enrollments in School Types by Metropolitan Status... A7 A1.12 Average Student Enrollments in School Types by Metropolitan Status... A8 A1.13 Districts and Students by State... A9 A1.14 School Districts by District Size and Region... A9 A1.15 School Districts by Region and Metropolitan Status... A10 A1.16 School Districts by District Size and Metropolitan Status... A10 A1.17 School Districts by Free and Reduced-Price Lunch Program and District Size... A10 A1.18 School Districts by Free and Reduced-Price Lunch Program and Region... A11 A1.19 School Districts by Free and Reduced-Price Lunch Program and Metropolitan Status... A11 A1.20 Districts by Special Education Enrollment and District Size... A11 A1.21 Districts by Special Education Enrollment and Region... A12 A1.22 Districts by Special Education Enrollment and Metropolitan Status... A12 A1.23 Districts by Limited English Proficiency (LEP) Enrollment and District Size... A12 A1.24 Districts by Limited English Proficiency (LEP) Enrollment and Region... A13 A1.25 Districts by Limited English Proficiency (LEP) Enrollment and Metropolitan Status... A13 A1.26 Public and Charter Schools by Grade Level... A13 A1.27 Public and Charter Schools by Region... A14 A1.28 Public and Charter Schools by Metropolitan Status... A14 A1.29 Public and Charter Schools by Free and Reduced-Price Lunch Program... A14 A1.30 Budget Outlook for Professional Development by District Size, Metropolitan Status, and Region... A15 State of the K-12 Market 2015: K-12 Education and the Education Industry iv

8 A1.31 Technology Budget Outlook: All Districts... A15 A1.32 Technology Budget Outlook: All Districts... A16 A1.33 Technology Budget Outlook: Small Districts... A16 A1.34 Technology Budget Outlook: Medium Districts... A16 A1.35 Technology Budget Outlook: Large Districts... A17 A1.36 Technology Budget Outlook: Rural Districts... A17 A1.37 Technology Budget Outlook: Town Districts... A18 A1.38 Technology Budget Outlook: Suburban Districts... A18 A1.39 Technology Budget Outlook: Urban Districts... A18 A1.40 Technology Budget Outlook: Northeastern Districts... A19 A1.41 Technology Budget Outlook: Midwestern Districts... A19 A1.42 Technology Budget Outlook: Western Districts... A19 A1.43 Technology Budget Outlook: Southern Districts... A20 A1.44 Types of Professional Development Used Frequently: All Districts, A20 A1.45 Major Barriers Preventing Wider Use of Online Professional Development: All Districts... A21 A1.46 District Actions That Support STEM by District Size... A21 A1.47 District Actions That Support STEM by Metropolitan Status... A22 A1.48 District Actions That Support STEM: All Districts... A22 Figures 1.1 Percentage of Districts and Distribution of Student Enrollments by District Size Student Enrollment Distribution in the U.S. and in Survey Districts by District Size Percentage of Districts in the U.S. and in Surveys by District Size Student Enrollment Distribution in the U.S. and in Survey Districts by Region...8 v State of the K-12 Market 2015: K-12 Education and the Education Industry

9 1.5 Percentage of Districts in the U.S. and in Surveys by Region Student Enrollment Distribution in the U.S. and in Survey Districts by Metropolitan Status Percentage of Districts in the U.S. and in Surveys by Metropolitan Status School Types by Grade Level Geographic Regions of the U.S School Districts by District Size and Region School Districts by Region and Metropolitan Status School Districts by District Size and Metropolitan Status School Districts by Free and Reduced-Price Lunch Program and District Size School Districts by Free and Reduced-Price Lunch Program and Region School Districts by Free and Reduced-Price Lunch Program and Metropolitan Status Districts by Special Education Enrollment and District Size Districts by Special Education Enrollment and Region Districts by Special Education Enrollment and Metropolitan Status Districts by LEP Enrollment and District Size Districts by LEP Enrollment and Region Districts by LEP Enrollment and Metropolitan Status Public and Charter Schools by Grade Level Public and Charter Schools by Region Public and Charter Schools by Metropolitan Status Public and Charter Schools by Free and Reduced-Price Lunch Program Sources of Funding for Public K-12 Schools, State of the K-12 Market 2015: K-12 Education and the Education Industry vi

10 1.27 Percentage Distribution of Current Expenditures for K-12 Public Education by Function, (FY2012) Professional Development Budget Outlook by District Size Professional Development Budget Outlook by Metropolitan Status Professional Development Budget Outlook by Region Technology Budget Outlook: All Districts Teacher Training Technology Budget Outlook by District Size Teacher Training Technology Budget Outlook by Metropolitan Status Teacher Training Technology Budget Outlook by Region Types of Professional Development Used Frequently, Major Barriers Preventing Wider Use of Online Professional Development: All Districts Districts That Trained Teachers on Instructional Methods to Support STEM...89 vii State of the K-12 Market 2015: K-12 Education and the Education Industry

11 Chapter 1: Introduction State of the K-12 Market 2015 is the sixth annual report from EdNET Insight, Market Data Retrieval s research-based decision support service. It provides current data about elementary and secondary education in the United States, together with analyses and commentary about important trends and developments that influence the education market. The first section of the report provides an overview of the K-12 education landscape, while the remaining sections present comprehensive discussions of educational materials and technology issues. The report also includes an extensive appendix presenting additional relevant data tables. Much of the data presented throughout this report is drawn from district-level research. As its title implies, the State of the K-12 Market 2015 report reflects on what is happening in schools today and details districts plans for the near-term future. This databased view can be especially useful for anyone seeking solid, market-based information about K-12 education. Much ongoing discussion in the media, and even among policymakers, about K-12 pedagogy, policy, and market trends is awash in emotion, long on opinion, and short on facts. While opposition to the adoption and implementation of the Common Core State Standards still simmers in some locales, it is opposition to testing that has taken over the spotlight. Membership in the Common Core Assessment Consortia has dwindled, states have moved to push back by several years any consequence associated with test scores, and parents have rallied over the issue of just too much testing. Schools technology infrastructure has benefitted from efforts to ensure the presence of enough devices and access to sufficient bandwidth to support the spring 2015 administration of the Common Core assessments, supplemented by relatively widespread adoption of programs that allow students to bring and use their own technology devices in classrooms. The search for Common Core-aligned resources, digital resources, and classroom-appropriate apps continues to prove challenging, complicated by the sheer volume of potential content and services and too little time and too few internal resources to conduct in-depth reviews, slowing decision-making and product procurement. Implementation of new instructional models flipped classrooms, blended learning, and competency-based models is still relatively limited, requiring shifts in the role of the teacher and the structure of the school day that may be slow in coming. Certainly, access to good data is key to the success of these new models, but concerns over student data privacy have begun to sweep the nation, with new data privacy legislation under consideration in a number of states and parental pushback causing schools to reexamine their policies and practices around the collection and use of student data. The nation s economy is finally back on track, though anxiety lurking just below the surface makes for continued volatility. Following the Republican Congressional victories in the 2014 election, party leaders pledged a return to regular order. Though there State of the K-12 Market 2015: K-12 Education and the Education Industry 1

12 is still a fair amount of partisan posturing, legislation has begun to move through Congress, and thus far, the budget process is proceeding according to schedule. The bad news is that with no real Congressional support for measures that might bring in more revenue and strong interest, especially in the Republican-dominated House, in increasing defense-related spending, there is little possibility of any growth in nondefense discretionary spending. Both the House and Senate Budget Resolutions abide by the sequester cap for non-defense discretionary spending in FY2016, which means there will be no extra money for anything. The good news under this scenario would be flat education funding for FY2016, which would keep the federal share of overall K-12 funding at roughly 10%. State budgets continue to improve, and many governors proposed increases in K-12 spending for FY2016, the state fiscal year that begins on July 1, School spending is returning to normal levels, and interest in technology and digital formats is high. There are still residual effects from the extended economic downturn, however, and schools will continue to be quite selective about discretionary spending. This report s solid intelligence about schools current spending outlook and their instructional and technology priorities should help publishers and suppliers as they make tactical and strategic decisions in this marketplace. This report relies on a range of both quantitative and qualitative research to provide a balanced and informed picture of the K-12 market. In addition to primary research based on surveys of curriculum and technology decision-makers at the district level, EdNET Insight analysts conduced in-depth research using a number of secondary resources, including government and foundation studies and education market reports. Additional information is drawn from MDR s National K-12 Education Market Database that includes detailed information about over 114,000 schools and more than 13,000 school districts. Supplementing the numerous tables and figures incorporated throughout the body of the report are extensive appendices with additional relevant data. The report is organized in four major sections: Part I provides background and general context, including an overview of the K-12 education landscape (policies, funding sources, and national education initiatives), data on the characteristics of public schools and school districts in the United States, and information on school management organizations, as well as a brief overview of professional development. Part II focuses on educational materials instructional materials, assessment and test prep, and online learning. Data are presented on district expenditures on instructional materials, budget allocations and outlooks, instructional priorities, and new instructional models. Developments affecting this market segment are discussed in detail. 2 State of the K-12 Market 2015: K-12 Education and the Education Industry

13 Part III covers educational technologies, including hardware (personal computing devices and classroom technologies) and software (SIS, LMS, and other enterprise management systems), as well as developments affecting this market segment. An Executive Summary pulls together significant data and related understandings from all three parts, providing a handy overview of the entire report. It reviews the major developments, trends, and issues influencing the K-12 marketplace and includes highlights from MDR s national surveys of K-12 curriculum and technology leaders. It concludes with a high-level synopsis of the Key Takeaway topics discussed by the reports authors. How to Use This Report The purpose of this report is to provide education industry leaders with timely and actionable market intelligence to inform decisions related to their core business functions: sales, marketing, business development, product development, and strategic planning. How the report is used will be determined, to some extent, by the experience level and intent of the user. For example, individuals who are new to the K-12 market may find it helpful to review the entire report to gain an overview of the structure and dynamics of the market. More experienced readers may read only sections of the report in which they have a particular interest or keep the report handy as a reference to use when they need to find specific information points. Marketing directors will find information to help determine resource allocation, prioritization of customer segments, and development of effective messaging for particular audiences. Executives responsible for business development will find useful background against which to evaluate potential partnerships, new capabilities, product line expansions, etc. Data from current surveys of district-level curriculum and technology decisionmakers provide essential information to inform product development efforts so that new products have the functionality to meet customer requirements. The entire report contains invaluable resources to use in evaluating a variety of strategic decisions. State of the K-12 Market 2015 builds on the 2014 report, with school data, policy directions, market trends, and education industry information updated to reflect the current situation. Where appropriate, the 2015 report references research findings from prior reports and points out trends and discontinuities. As a benchmark study of the marketplace, this report provides valuable points of reference for understanding an organization s performance vis-à-vis competitors and overall industry trends. State of the K-12 Market 2015: K-12 Education and the Education Industry 3

14 EdNET Insight is the K-12 education industry s premier information and consulting service, combining the proven power of research and analysis with recognized industry experts to deliver an insightful, comprehensive view of the trends and influences that are shaping the education market today and tomorrow. State of the K-12 Market 2015 provides an insightful overview of the K-12 education market based on large-scale surveys of instructional and technology decision-makers at the district level and authored by highly regarded industry analysts. This report is essential reading for a thorough and up-to-date understanding of the K-12 education market.