The Cost of Class Size Reduction: Advice for Policy Makers

Abstract

Abstract : Class-size reduction (CSR) in California was a popular, rapidly implemented reform that improved student performance. This dissertation provides information to state-level policy makers that will help them avoid two implementation problems seen in California's CSR implementation. The first problem was with flat, per student reimbursement scheme did not adequately cover costs in districts with larger pre-CSR class-sizes or smaller schools. To help policy-makers understand the relationship between existing conditions at schools, policy choices, and costs, four simple rules of thumb were created through analysis of a simulation of CSR in seven Florida school districts. At a classroom cost of $53,000, the rules of thumb per student cost for CSR is a $435 for reduction to 20, double for reduction to 17 and triple for reduction to 15 when existing class size is 24. These rules of thumb and three other reimbursement strategies are evaluated for their ability to adequately estimate reimbursements for the cost of CSR. The strategy used in California, of a flat per student reimbursement, was the least efficient. Strategies using district information on costs, class sizes, and enrollments are adequate for reimbursing districts. The rules of thumb was the most robust strategy for reimbursing schools. A second problem seen in California was a decrease in the qualification level of the kindergarten through third teacher workforce. The largest decrease were in schools with higher concentrations of low-income or minority students. Modeling the flow of K-3 teachers during the first year of CSR shows within district transfers create more vacancies in schools with more minority students. Vacancies were then more likely to be filled with unqualified teachers. Potential policy responses to this problem are to not fill classrooms created by CSR with transfer teachers, and to provide incentives for teachers to remain in schools that are difficult to staff.