Financial modelling for Impact Schools

A basic financial model for Democracy Prep charter schools  At a recent meeting hosted by Centre for Development  and Education in Johannesburg, we meet Seth Andrew, former superintendent and founder of the Democracy Prep Public Schools.

One of the areas that interests members of the South Africa Extraordinary Schools Coalition is financial modelling for the low fee, high quality initiatives like the Impact Schools. Seth Andrew, from charter school network : Democracy Prep Public Schools kindly shared their approach to the application of funding.

For readers outside the Charter School structures in the USA it is important to know that an allocation of funding per child for each year is a given as long as the school maintains its charter status (which is performance related) .
Seth shared an example of the funding allocation model that is "from this learner" upwards and not from "top down" when allocating funding.

Our theoretical school will have 25 students per class, where each child has $10 000 provided by the government for their education. This is all operational funding that will amount to $250 000 available for each class.

Given a classroom full of learners the first element that must be right is the allocation of a great teacher. Democracy Prep will hire an outstanding teacher following a thorough selection process and offer him or her an above market compensation package.

Hire a great teacher ( offer $75 000 plus benefits approx $100 000)

The school believes in the value of great educators and so a second teacher is brought in for the same class. The two teachers will share the teaching time 50-50 and therefore have a lot more time to plan for the lessons and student needs appropriately.

Hire a second teacher (offer $75 000 plus benefits approx $100 000)

Once the right educators are financed, Democracy Prep will dedicate funding to materials, both technology and non-technology based tools.

Books and materials (ipads, books can feature here = $10 000)

The class funding balance at this point is now approximately $40 000. A combination of activities, support functions and special elements ( such as programmes and facilities for learners with disabilities are catered for with a collation of this remaining funding in a school or a through the network of schools.

Its is also important to note that in this model teachers can earn more than principals and support functions such as front office staff, janitors driver are very limited.