WHITE PAPER Evolved Thinking Putting Brands to Work to Advance Public School Education
Since the American public education system began forming in the 17 th century, the intent has always been to create an environment where students can develop critical thinking skills, gain mastery of subjects and prepare to contribute to society at large. While school policy may have evolved over time, policymakers and school administrators have continuously sought opportunities to advance the standard of American education. Despite policymaker and educators best intentions, today s unprecedented budget crisis has stretched their adaptive abilities beyond measure. Public education budgets have always been tight, but have declined precipitously since 2008 when the country slipped into recession. School districts have learned to surgically cut their budgets in an effort to maintain educational standards. But now, coffers have run dry and districts are out of options. Consider that between 2008 and 2011 nearly 300,000 U.S. teacher jobs have been lost, or stated in another way, 54 percent of all job losses in local government. These job cuts have directly impacted core curriculum, the arts, physical education, special education and support functions. The tough choices continue. Schools are eliminating educational mainstays such as foreign language programs, librarians and sports programs. The impact of these challenges will be felt for generations and the extent of the repercussions is unknown. This is the new reality for US public education. As is typical of school administrators, they will strive to create the best opportunities for students even in the face of mounting challenges. It comes as no surprise, then, that administrators across the country are seeking means to bridge the worst funding gap ever to confront the American school system. Administrators are looking beyond traditional sources of funding to maintain programs and enrich their learning environments. To defy today s odds, administrators realize that revolutionary thinking is required to create solutions. Forward- thinking school districts are thinking in earnest about corporate partnerships to generate much needed revenue. While the concept causes distress to some and the idea is often summarily dismissed as an ads in schools play that brings in paltry sums, new models are emerging whereby responsible brands are supporting education to not only do the right thing, but to invest in the next workforce generation and long- term US economic security. 2 The notion of brands in schools began decades ago. Several brands have co- existed in education for so long that they have become part of the educational fabric. Some brands such as Scholastic are centered on reading and augment
While these well- intentioned small business initiatives often catalyze communities around schools for ad hoc expenses, they don t present sustainable solutions for addressing the deep and widening budget gaps or set the stage for a new, district- desired model of long- term public- private partnerships. literacy initiatives through school- based fundraisers that provide a small revenue share back to participating schools. Others, such as Sally Foster, offer non- education based items such as gift wrap, magazines, and edibles, as part of fundraising efforts through which individual schools receive a modest revenue share. Make no mistake these are for- profit companies that partner with schools while seeking to drive revenue, improve margins and create shareholder value, all the while leveraging parents as an extension of their sales force and students as their feet on the street. Schools have expanded the revenue- generating model to include local businesses that sponsor school sports venues and spirit days. A local hospital might support a homecoming parade. The local yogurt shop might offer student discounts and provide a portion of proceeds to fund a school trip. While these well- intentioned small business initiatives often catalyze communities around schools for ad hoc expenses, they don t present sustainable solutions for addressing the deep and widening budget gaps or set the stage for a new, district- desired model of long- term public- private partnerships. This white paper outlines the continued challenges in funding the public school system, an organized approach for connecting responsible brands to forward- thinking school districts, and the standards required from each to advance this model as a viable solution for maintaining and advancing American education. THE EDUCATION BUDGET CRISIS AND FUTURE IMPLICATIONS Policymakers, administrators and educators agree: the ongoing school budget crisis is a chronic, long- term problem that will not be solved by federal or state governments, through grants and donations or with a turnaround in the housing market that increases property taxes. School districts continue to face a triple whammy of economic factors. First, consider the dwindling local revenues from property taxes and the continued slow recovery in real estate values. Second, there are severe reductions in state budgets along with increased costs of mandated services such as Medicaid. Third, there are cuts in federal funding to local school districts. For most, this represents the new normal with administrators left to determine how to maintain educational standards. In many districts, schools have turned to parents who now pick up the tab for core services and curriculum. Bussing, basic technology and essential school supplies such as paper are increasingly considered premiums that are no longer part of the educational package. Sports haven t gone untouched either. In many districts, sports are pay to play with parents increasingly having to fund the cost of equipment, transportation and more. 3
In some districts, the implications are far worse. With budgets sliced to the bone, districts have no choice but to eliminate or cut back key academic and enrichment programs. The news is dire. Maryland schools are slashing math and science initiatives. North Carolina schools are axing art, music and vocational classes. Colorado and California schools have reduced the number of instructional days as a way to trim budgets. Additionally, districts across the country are closing neighborhood schools and increasing class sizes to save money. These are seen as permanent solutions instead of short- term savings measures. While budgets run in cycles, there are no signs that the crisis will abate. One must ask: Can public schools overcome these challenges to compete in a world of increased competition from private, parochial and charter schools, and voucher programs? With these continued cuts how will our public school system prepare children to compete in an increasingly global economy? How will we assure the United States future leadership when we neglect to invest in our future leaders? Where will we find new sources of revenue to stop the educational backslide? Without a competitive education, the current generation of students will fail to compete. American businesses will suffer great consequences with a future workforce that lacks not only technology skills but core knowledge skills, including basic reading, writing and math. For example, the US ranks 25 th among industrialized nations in math and 21 st in science. It s time to evolve our thinking. THE ROLE OF RESPONSIBLE BRANDS IN SUPPORTING EDUCATION The trend of in- school advertising began decades ago. Scores of US school districts introduced the concept of signage in exchange for funds in the late 1980s. In the early 90s, Channel One entered the education arena with school- focused news paid for by advertising. This approach drew fire from critics who saw advertising- laced programming shown to a captive student audience that borrowed from classroom time. Schools also quietly cultivated local business advertising opportunities over time to generate funds while emphasizing external placement locations such as stadiums, fields and marquees. School buses, athletic venues, and even rooftops have become part of prime school inventory for generating funds. 4 Many of these efforts essentially amount to dipping a toe into new waters to see what s possible and appropriate. Many districts realize that pure advertising- based programs are neither lucrative enough to affect overall budgets or create lasting impact, nor do they respect the educational
institution and learning environment. Many brands agree with that concern. Leading companies that seek to invest in schools have principled intentions to nurture educational environments that go beyond simple branding efforts. For the first time, carefully vetted corporations can strategically build their brands with education audiences seamlessly across the nation while introducing appropriate, significant and sustainable sources of revenue into school districts. Picture high- tech computer labs sponsored by a leading computer manufacturer, music education sponsored by a Silicon Valley leader and healthy school lunch choices funded by an insurance company. The model provides companies an opportunity to support their current customers and future workforce while improving brand perception and building affinity with students, their next generation of customers. For districts, it introduces new sustainable funding sources without sacrificing district control over which brands can participate and how dollars are re- invested in educational programs. Parents support this new model as well. According to a recent cause marketing study by Cone, 75% of consumers think companies should address education while 80% of Americans are likely to switch to a brand that supports a cause. It s worth noting that companies are already picking up the tab to train workers for high- tech and specialized jobs, especially in the technology and manufacturing sectors. During the next decade, the demand for additional training of American workers will grow significantly, creating a unique challenge for businesses both large and small. Today, leading corporations have an unprecedented opportunity to shape the future of their workforces and enhance the economic security of the United States through marketing sponsorships in public school districts. The confluence of market conditions and corporate community investment programs along with inspired marketing initiatives have given rise to more sophisticated programs that allow companies to invest in areas that matter to both corporate survival and the country s success. Companies are directing their attention and dollars toward high- impact areas including technology literacy, arts programs, health and wellness, sports, dropout prevention and workforce readiness. For many years, these programmatic areas have depended on individual and corporate philanthropy. By stepping up, marketers inherently understand that they can do well by doing good. Education Funding Partners was founded in 2010 to link corporate social responsibility and marketing objectives with educational needs. Education Funding Partners also supports school districts in evaluating corporate sponsorships to ensure an appropriate fit based on school culture and educational objectives. In all partnerships, school district administrators maintain control over every corporate partner as well as program content and messaging. 5 It s a critical time in American education and a strategic, well- orchestrated and broad approach is required to support public education at its time of
greatest need. Allowing carefully chosen brands in public schools can help to ensure a better future for our students and sustain our economy in the years to come. It s time to recognize the reality of our long- term education funding crisis and welcome credible Fortune 500 companies into public schools to create a meaningful, enduring and lasting positive change. ABOUT EDUCATION FUNDING PARTNERS Education Funding Partners puts the power of Fortune 500 marketing resources to work for public education by linking carefully selected brands and forward- thinking school districts to build successful partnerships. Leading companies are seeking new marketing channels to connect with millions of students, parents and teachers while districts impacted by the ongoing budget crisis need sustainable funding solutions. Through a national school district network built by EFP, brands invest in K- 12 students by preserving educational and enrichment programs. EFP is a certified B- Corporation, a for- profit company, guided by comprehensive social performance standards. 1626 Cole Blvd Building 7, Suite 300 Golden, CO 80401 info@edufundingpartners.com www.edufundingpartners.com 6