1. What Does the Congress and President Obama Have in Mind for the preK-12 Markets? Steven Pines, Executive Director Education Industry Association September 18, 2009

2. About the Education Industry Association (EIA) The leading trade association for private providers of preK-12 education services, products, curricula and technology.  Advocacy and public relations  B2B ventures, networking, professional development  Special interest groups –SES tutoring, Drop out Prevention; Online Learning; Special Education

3. No Child Left Behind (NCLB) Created/Expanded Markets for Private Sector Supplemental Educational Services (SES) Professional development for teachers, principals and teacher retention support Assessment and curricula Comprehensive school reform Special/Alternative Education School restructuring Drop-out prevention/recovery Technology Data and student information systems

4. Today’s Weather Forecast in PreK-12 A mix of: Red skies in the morning, sailors take warning, and Red skies at night, sailors delight

6. Rising Opportunities in K-12 Charter school management School turn-around Professional development-principals/teacher Assessment Instructional content Drop-out prevention/recovery services Special education services On-line instruction/schools Services that Extend Learning Time (Tutoring) Test Prep Devices that individualize assessment/instruction at classroom

7. ARRA-Race to the Top $4.3 Billion Competitive Grants to Governors who agree to: –Adopt high standards/assessments –Reward effective teachers – Create student data systems to improve instruction –Turn-around lowest performing schools Phase I application Fall, 2009, Phase II “early” 2010 50% of funds received by a state, sub-granted to districts by T-1 formula Proposals shall be comprehensive, integrated, and involve partnerships Opportunities for vendors to team Software developed may be “open-source” and not protected

8. ARRA- Investing in Innovations $650 Million competitive grants to districts and non- profits in partnership with a district or school Spur Innovation or Scale Evidenced-based Excellence of: –Student achievement, matriculation, graduation and career/ college readiness Application late Winter, 2010 Likely to go to areas that did NOT get RttT $ Opportunities for vendors to team.

9. ARRA-School Improvement Grants $3.5 Billion in T-1 Formula Grants to States –Discretionary sub-grant to Lowest Forming Districts –For 2010 SY (most likely) Districts choose among 4 Models: Turnarounds: Replace the principal and at least 50 percent of the staff and also adopt new or revised instructional strategies. Re-starts: Close the school and re-open it under the management of a charter organization or an education management organization. Closures: Close the school. Transformations: Strategy replaces leadership, rewards teacher effectiveness; adopts comprehensive instructional programs; extends time for students; offers community services;

10. Cautionary Flags for Private Sector Miller’s 2007 “Discussion” draft of NCLB with restrictions on vendors-as potential template for ESEA re-authorization Less bi-partisanship in House; Rep. Kline ranking minority new to committee Sen. Harkin as HELP Chair brings uncertain leadership; strong on IDEA and chairs Approp’s Ed. subcomm. Duncan’s bias for non-profits; exclusion of for-profits as eligible i-3 grantee Dept of ED waivers on SES/Choice for ARRA $ under banner of “freedom” and “flexibility” for districts Congressional Democrats/staff cynical about private sector in public education Increased political clout of teacher unions

11. ESEA Reauthorization ARRA Funding Contains Hints of New Priorities: –Common and high internationally-benchmarked state standards –Turn-around worst schools –Teacher performance incentives –Student data-driven instruction –Charters and school management –Incentives vs sanctions for “struggling schools” –Drop-out prevention/recovery Impact of Health Care Vote in 2009 Mid to late 2010 ?? Low-level activity is already underway

12. What You Can Do?  Evidence-based Innovation and Scaling What Works are the new mantra  View public schools as partners, not customers  Perform at highest standards: ethics and program quality  Engage Members of Congress and Ed Dept. with the message that you deliver help results for students and schools  Join a trade association to amplify the industry’s message. EIA has launched $500 million Campaign to Pr Education Industry Association www.educationindustry.org www.educationindustry.org 800-252-3280