IMPROVING SERVICE
PROVISION IN THE PUBLIC
SECTOR
The Impact of Choice and Competition in BC
Friday April 3, 2009
Neha Bang...
SCOPE OF STUDY
Investigate whether increased choice
increases competition, and whether related
policies provide better qu...
CONTENTS
1. Choice and Competition
2. BC Education System
3. Methodology
4. Criteria
5. Policies
6. Evaluation
7. Conclusi...
CHOICE AND COMPETITION
 Applies quasi-market concepts to public
service
 Examples in health, education and
services for ...
BC EDUCATION SYSTEM
Three Key Policy Developments
1. Partially fund group 1 & 2 independent
schools
2. Publicize results o...
INDEPENDENT SCHOOL FUNDING
Independent
School
Provincial
Funding*
Schools in BC
Group 1 50% 251
Group 2 35% 65
Group 3 - 1...
FSA TESTING
Implemented in 1999
Administered annually to grade 4 and 7
students
First time in BC history individual stu...
OPEN BOUNDARIES POLICY
Implemented in 2002
Allows students to attend out-of-catchment
area schools
Presently 25% of stu...
METHODOLOGY
9
METHODOLOGY
 Literature
Review
 Case Studies
 Key Informant
Interviews
10
LITERATURE REVIEW 1
Increase in choice of movement increased students’
math and reading test scores and their level of
ed...
LITERATURE REVIEW 2
Competition invoked by improving quality of a few
schools and not others led to a significant increas...
LITERATURE REVIEW 3
Equity
Increasing gap in social composition of schools.
Poorly performing schools are geographically...
KEY INFORMANT INTERVIEWS
Respondent Issue Key Comments
Rick Davis
Status Quo
•Choice and competition is sufficient as it i...
INTERVIEWS CONTINUED
Doug McArthur
Advocated
status quo with
an increase in
quality of
resources
provided to
teachers.
•Ma...
CASE STUDIES 1
Case Study Results
Alberta:
Charter
Schools
•Increase parental choice through specialized programs
•Numerou...
CASE STUDIES 2
Case Study Results
Milwaukee:
Voucher System
•Voucher students scored lower than MPS students during the fi...
POLICIES
18
POLICIES
 Status Quo
 Charter Schools
 Voucher Program
 Collaborative Assessment Policy 19
CHARTER SCHOOLS
Charter
Describes the unique educational service the school
provides
Choice
Users have opportunity to cr...
VOUCHER PROGRAMS
Voucher
Government issues education coupons to parents
Choice
Allows users the option to enter private ...
COLLABORATIVE ASSESSMENT POLICY
(CAP)
School rankings will be done as long as FSA
results are published
Collaborates wit...
CRITERIA
CRITERIA 1
Criteria Definition Measure
Cost Cost to implement Transitional costs and operational
costs as compared to the ...
CRITERIA 2
Criteria Definition Measure
Political
Feasibility
Stakeholder acceptability Acceptability of parents and
studen...
EVALUATION
EVALUATION OF STATUS QUO
Although parents can choose between
schools, only 25% choose to do so
BC schools have very high...
EVALUATION OF CHARTER SYSTEM
More choice and competition
Test scores and high school completion predicted to
decline
So...
EVALUATION OF VOUCHER
SYSTEM
 Case studies show an exodus of the
middle class from public to private schools
 Very unpop...
EVALUATION OF COLLABORATIVE
ASSESSMENT POLICY
Increases user choice through additional
information on individual school p...
Evaluation Outcomes
*Measured on a scale of 1 to 5
31
EVALUATION OUTCOMES 1
Criteria Measure Status Quo Charter Voucher CAP
Effectiveness Inputs
Parental
Choice
3 4 4.5 3.5
Com...
EVALUATION OUTCOMES 2
Criteria Measure Status Quo Charter Voucher CAP
Political
Feasibility
Parents and
students
3 3.5 3.5...
CONCLUSIONS
34
CONCLUSIONS
Public Education
BC students performing well on international
standardized tests and high school completion r...
OTHER PUBLIC SECTORS
Crucial to balance preferences of
different stakeholders
Lack of concrete data supporting the
effec...
THANK YOU
We invite your questions
PISA SCORES
Testing Category BC Average
Score
National Average National Ranking International
Ranking
Combined
Sciences
53...
HIGH SCHOOL COMPLETION
Provinces “No certificate, diploma
or degree” (Ages 20-24)
Population (Ages
20-24)
“Drop Out” Propo...
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Improving Service Provision in the Public Sector: The Impact of Choice and Competition in BC

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  • Applied in 1977. Group 1 schools receive 50% school districts per pupil operating grant. Group 2 schools receive 35%. Schools house approx 65 000 students in 316 schools.
    2 FSA testing begins in 1999. First time individual student results are made available to parents with descriptors “meeting, exceeding or not meeting expectations”. Have been used to rank schools
    3 Legislation passed in 2002. Allows students to attend out of catchment area schools
  • Effectiveness: offers more information, increases choice, will create some competition.
    Political Feasibility: Parents and students will like the additional information. BCTF will be strongly against it.
    Cost: Cheap implementation and maintenance costs as compared to other options.
    Equity: All in all improving information will not create losers as compared to the SQ.
  • Improving Service Provision in the Public Sector: The Impact of Choice and Competition in BC

    1. 1. IMPROVING SERVICE PROVISION IN THE PUBLIC SECTOR The Impact of Choice and Competition in BC Friday April 3, 2009 Neha Bangar, Allison Prieur, Bhar Sihota, Laura Spencer, Burke VanDrimmelen
    2. 2. SCOPE OF STUDY Investigate whether increased choice increases competition, and whether related policies provide better quality service Examine the impact of policies used to introduce increased choice and competition on the BC Primary School system 2
    3. 3. CONTENTS 1. Choice and Competition 2. BC Education System 3. Methodology 4. Criteria 5. Policies 6. Evaluation 7. Conclusions 3
    4. 4. CHOICE AND COMPETITION  Applies quasi-market concepts to public service  Examples in health, education and services for people who have disabilities  Choice can increase competition 4
    5. 5. BC EDUCATION SYSTEM Three Key Policy Developments 1. Partially fund group 1 & 2 independent schools 2. Publicize results of standardized testing 3. ‘Open Boundaries’ legislation 5
    6. 6. INDEPENDENT SCHOOL FUNDING Independent School Provincial Funding* Schools in BC Group 1 50% 251 Group 2 35% 65 Group 3 - 18 Group 4 - 12 6 * Provincial funding based on percentage of school districts per pupil funding
    7. 7. FSA TESTING Implemented in 1999 Administered annually to grade 4 and 7 students First time in BC history individual student and school results are publicized Results are used to rank schools by institutions 7
    8. 8. OPEN BOUNDARIES POLICY Implemented in 2002 Allows students to attend out-of-catchment area schools Presently 25% of students attend out-of- catchment area schools Barriers to student enrolment remain 8
    9. 9. METHODOLOGY 9
    10. 10. METHODOLOGY  Literature Review  Case Studies  Key Informant Interviews 10
    11. 11. LITERATURE REVIEW 1 Increase in choice of movement increased students’ math and reading test scores and their level of educational attainment Use of voucher programs and charter schools led to gains in school productivity. The structure or design of the program is what makes a voucher or a charter program effective. Public schools can respond positively to competition11
    12. 12. LITERATURE REVIEW 2 Competition invoked by improving quality of a few schools and not others led to a significant increase in test scores of students. School responsiveness to increased competition is greater in more educated neighbourhoods When parents picked schools by consulting school performance tables schools competed for students. 12
    13. 13. LITERATURE REVIEW 3 Equity Increasing gap in social composition of schools. Poorly performing schools are geographically concentrated. Vouchers coupled with tuition constraints can help in inducing competition without stratification of socio- economic classes *Rouse, 1998; Epple & Romane, 2008; Bradley & Taylor, (2002); Bayer and McMillan, 2005; Hoxby, 2000, 2002,2003 13
    14. 14. KEY INFORMANT INTERVIEWS Respondent Issue Key Comments Rick Davis Status Quo •Choice and competition is sufficient as it is today •Against any performance testing and ranking Jane Friesen Advocated status quo •Status Quo is the strongest option. BC is doing well •All other options lack empirical evidence to justify the costs 14
    15. 15. INTERVIEWS CONTINUED Doug McArthur Advocated status quo with an increase in quality of resources provided to teachers. •Many parents just desire more quality •"Socioeconomic factors will be a factor parents take into account” •Ranking may not be objective in CAP •Voucher schools will not work, as they will result in several schools that pick and choose they also have low stakeholder acceptability •Charter schools have already been discouraged by the current government due to low stakeholder acceptability John Richards Ranked Options •Collaborative Evaluation- School ranking is going to happen regardless. Doing it in a more sophisticated way is a good idea. •Charter Schools- There is a role for charter schools, so long as they continue to stress the basics (reading, writing arithmetic). •Voucher System- Less sympathetic, sees it as a red flag for teachers unions. 15
    16. 16. CASE STUDIES 1 Case Study Results Alberta: Charter Schools •Increase parental choice through specialized programs •Numerous "alternative programs" added to public schools •Charter school provincial standardized test scores similar to provincial averages •Stakeholder acceptance low due to lack of support from the teacher and school board unions Chile: Voucher System • Increased school choice, as over 1000 private schools immediately entered the market • Deficits were avoided by extra funding when needed (soft budgets) • Performance in international science and math competitions has not improved • Parents choose schools based on SES 16
    17. 17. CASE STUDIES 2 Case Study Results Milwaukee: Voucher System •Voucher students scored lower than MPS students during the first two years of implementation and higher during the third •Milwaukee ranked 3rd lowest in terms of high school completion in the 50 largest US markets New Zealand: Charter Schools •The gap between the declining schools and high performing schools widened •Some schools were overpopulated and others were under populated •Government costs increased in order to fund under-populated schools •After implementation in 1989, the charter school system was revoked in 1997 17
    18. 18. POLICIES 18
    19. 19. POLICIES  Status Quo  Charter Schools  Voucher Program  Collaborative Assessment Policy 19
    20. 20. CHARTER SCHOOLS Charter Describes the unique educational service the school provides Choice Users have opportunity to create schools Competition Encourages public schools to provide innovative programs 20
    21. 21. VOUCHER PROGRAMS Voucher Government issues education coupons to parents Choice Allows users the option to enter private schools Competition Public and private schools compete to maintain enrollment levels 21
    22. 22. COLLABORATIVE ASSESSMENT POLICY (CAP) School rankings will be done as long as FSA results are published Collaborates with stakeholder groups (BCTF, School Boards) to determine meaningful and effective ranking scheme Schools will be ranked with proper weighting put on pertinent socio-economic factors 22
    23. 23. CRITERIA
    24. 24. CRITERIA 1 Criteria Definition Measure Cost Cost to implement Transitional costs and operational costs as compared to the status quo Equity Transitional: Who is affected during reform? Identifiable winners and losers Vertical: How new technique affects different socio- economic classes Impact on low-income students Horizontal: Direct effects within socio-economic classes Impact on rural versus urban low- income students 24
    25. 25. CRITERIA 2 Criteria Definition Measure Political Feasibility Stakeholder acceptability Acceptability of parents and students Acceptability of the BC Teacher’s Federation Effectiveness Impact on educational performance • Parental choice • Level of competition • Scores on standardized tests • High school completion rates 25
    26. 26. EVALUATION
    27. 27. EVALUATION OF STATUS QUO Although parents can choose between schools, only 25% choose to do so BC schools have very high PISA test scores and secondary school completion rates Low income, Aboriginal and rural students are more likely to attend schools with lower performance 27
    28. 28. EVALUATION OF CHARTER SYSTEM More choice and competition Test scores and high school completion predicted to decline Some parents benefit and BCTF strongly oppose Implementation and operation Costs are higher Negatively effect low-income and rural children 28
    29. 29. EVALUATION OF VOUCHER SYSTEM  Case studies show an exodus of the middle class from public to private schools  Very unpopular with providers, who object to any system where they could be hired and fired at will  With increased choice, schools may start to pick and choose based on SES 29
    30. 30. EVALUATION OF COLLABORATIVE ASSESSMENT POLICY Increases user choice through additional information on individual school performance Greater emphasis on FSA scores may increase school competition Only beneficial to users in high density urban centres Potential for increased stakeholder acceptance 30
    31. 31. Evaluation Outcomes *Measured on a scale of 1 to 5 31
    32. 32. EVALUATION OUTCOMES 1 Criteria Measure Status Quo Charter Voucher CAP Effectiveness Inputs Parental Choice 3 4 4.5 3.5 Competition 2 4.5 2.5 3 Outputs Test Scores 4.5 3 3 5 High School Completion 5 2 2.5 5 Cost Public Expenditure per student 4 2 1 3 32
    33. 33. EVALUATION OUTCOMES 2 Criteria Measure Status Quo Charter Voucher CAP Political Feasibility Parents and students 3 3.5 3.5 4 BCTF 3 1.5 1 4 Equity Vertical 2 2.5 2 2.5 Horizontal 2 3 2 2 Transitional 5 3.5 3 4 Total 33.5 29.5 25 36 33
    34. 34. CONCLUSIONS 34
    35. 35. CONCLUSIONS Public Education BC students performing well on international standardized tests and high school completion rates Increase in school choice does not directly lead to improved school performance Recommendation BC Ministry of Education should maintain the status-quo and attempt to work collaboratively with key stakeholder groups to construct a meaningful school ranking system 35
    36. 36. OTHER PUBLIC SECTORS Crucial to balance preferences of different stakeholders Lack of concrete data supporting the effectiveness of choice and competition in improving service provision 36
    37. 37. THANK YOU We invite your questions
    38. 38. PISA SCORES Testing Category BC Average Score National Average National Ranking International Ranking Combined Sciences 539 534 2nd place behind Alberta 4th place, leader Finland at 563 Reading 528 527 3rd place behind Alberta and Ontario 6th place, leader Korea at 556 Mathematics 523 527 4th place behind Ontario, Alberta and Quebec 12th place, leader Chinese Taipei at 549 38
    39. 39. HIGH SCHOOL COMPLETION Provinces “No certificate, diploma or degree” (Ages 20-24) Population (Ages 20-24) “Drop Out” Proportion (Ages 20-24) BC 27825 264725 11% Alb 43490 250115 17% Sask 12200 66770 18% Man 16655 77315 22% Ont 92375 794440 12% Que 71440 470660 15% NB 5515 44260 12% NS 7275 56340 13% PEI 925 8590 11% NFL 5335 31235 17% Canada 283035 2064450 14% 39

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