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Education Subsector

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Katie Harvey

on 21 January 2014

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Transcript of Education Subsector

Main differences between
public, private and for-profits
Philanthropy in Higher Education
Primary & Secondary Education in the US
1642 Massachusetts Bay Colony
Old Deluder Satan Act
1749 Academy of Philadelphia
1790 Pennsylvania Constitution Public Schools for poor children
1821 Boston English High School
Colonial & Post-Revolution Era
1827 Massachusetts passes law making public school open to all and free.
Horace Mann, Secretary of the Board of Education in MA, assures Protestants that the public schools will use the Protestant Bible in class.
US 1850 census data reveal that only 1 in 10 people identify themselves as illiterate in the 1850 census - half a century before public school attendance was common
Early 1800's
1855 - More than 6,000 private academies (high schools) exist in the US, with an enrollment of 263,000 students
1852-1913 - More than 6,000 private academies (high schools) exist in the US, with an enrollment of 263,000 students.
1862 - First Morrill Act
1944 - Servicemen's Readjustment Act (GI Bill)
1965 - Elementary and Secondary Education Act
1980 - The U.S. Department of Education is elevated to Cabinet level status.
Mid-1800's - 1980
Between 1982 and 1992, 32 states change their compulsory attendance laws to specifically allow homeschooling.
In the 1980s, the first charter schools are set up in Minnesota.
1990-2000 Minnesota, Arizona, Florida, Wisconsin, and Illinois pass various laws that give funds to families to choose their school, be in public, private or charter.
2002 - No Child Left Behind
2009 Race to the Top Program
Federal Department of Education
State Governor & Legislature
Local Mayor
School Boards
School Leadership
Public School Governance
Board of Directors

Head of School/President

School Administrators
Private School
Regulatory freedom and autonomy from state and local rules (in terms of staffing, curriculum choices, and budget management). *Varies state to state

Most states require internal nonprofit board governance.
Charter Schools
Educatiom Subsector in Israel
Educatiom Subsector in Israel
Educatiom Subsector in Israel
Public School
Number of Schools - 98,706 out of 132,565 (74%)
Enrollment - 49,266,000 out of 55,235,000 (89%)
*Source: The Center for Education Reform
*Source: The Center for Education Reform
*Source: The Center for Education Reform



Private School
Number of Schools - 28,220 out of 132,565 (21%)
Enrollment - 5,165,280 out of 55,235,000 (9%)
Charter School
Number of Schools - 5,714 out of 132,565 (5%)
Enrollment - 1,941,831 out of 55,235,000 (4%)
Charter School Debate
Venture Philanthropy & Education
Private Support
Voluntary Associations
Serve on governing or volunteer boards
Early American Colleges and Religious Sector
History and Policy
Harvard, William and Mary, and Yale each had charters with religious references
Yale (3rd college) was founded in 1701 by a group of ministers as a school "wherein youth may be instructed in the arts & sciences, who through the blessing of Almighty God may be fitted for publick employment, both in church & civil state" (Hostadter and Hardy, 4)
Formative Years: 1890-1940
Emergence of American Research University
Increased in scale
Universities widened scope by adding specialized departments (economics, business schools, etc.)
Professional schools shifted to being embedded in universities
Future Challenges
Higher Education Today
Rise of for-profits and distance education
Mostly set at the state level
Federal legislation that shaped US higher education system
Morrill Act of 1862
GI Bill of 1944
Brown vs. Board of Education - 1954
Higher Education Act (HEA) of 1965
1972 HEA Reauthorization
Higher Education Policy
Differences in revenue mix

State Appropriations
Now rely on public funding (revenue from student aid and sponsored research) and private funding (revenue from research activities, tuition and fees)
For example, only 18% of Indiana University's funding came from state of Indiana; compared to 50% two decades ago
All receive government funding
Revenue from Tuition
Public: 19%
Private: 33%
For-Profit: 91%

Publics and Privates: similar student background differences
Larger differences between students entering public two-year and public four-year instiutions
Publics: serve wide variety of students; lower tuition permits affordable access to the masses
For-profits: serve a large fraction of minority, disadvantaged and older students; independent students and low-income households
Student Populations Served
Degree Programs Offered
For-profits: typically offer training for a vocation or trade (nursing, accounting and real estate)
Education Subsector in Israel
Pre-State: (Ottomans, British Mandate)
Supplemental. “autonomous operation”
Statehood, 1948 and formative 50s, 60s:
Education fully assumed by the State
1970s: Yom Kippur War
Interest groups versus collectivity
Supplemental with adversarial dimension
1980s-1990s: Budget cuts, Privatization, sensitivity to diversity
Blossom of NGOs, Establishment of Diaspora private foundations
Supplemental, adversarial, complementary networks (ORT)
79% Public State Schools (100% of Gov. Allocation per child)
60% State secular, 19% State religious

17% Recognized-but-not-official (75% of Gov. Allocation PC )
Majority private ultra-orthodox with core curriculum
Democratic, parents associations

4% Exempt (55% of Gov. Allocation PC)
Private Ultra-Orthodox, no core curriculum

75% public funding
K-12 Structure
6120 independent registered NGOs (2006)
Poor results in International Testing
Market Failure of the Periphery (Gov / Businesses/ Third Sector)
Lack of Government Regulations
Chaos: Parents, private foundations, “business philanthropy” competing for public funds
Growing emphasis of supply-side
Supplemental, complementary, adversarial
39% - Enrichment
40% - Values (1995, Rabin Assassination –civic education)
13% - Closing Educational Gaps (and growing/Partnerships/Innovative)
4% - Special Needs, 4% - Teacher Training
Scope & Characteristics
Who defines the national agenda?
Who defines priorities for funding?
Who is accountable for achievements?
Does Third Sector threaten perception of State Authority?
Increasing partnerships with Government – decreasing adversarial mode
Increased regulations –preference to large foundations versus small grass roots organizations.
Public Education/Religion debate
NGOs closing or widening educational gaps?
Gap in Educated Workers
Increased enrollment with fewer resources
Higher tuition and increased student loan debt
For-profit fraud/unethical recruiting practices
Educated Citizens:
Boost economy - Milken Institute Study (2002)
The single factor with the greatest power to explain differences in per capita income between states is the percentage of college graduates"
People learn how to learn in higher education and grow as the world and jobs constantly change
Increase in Civic Engagement
Exposure to Cultural and Artistic Events
Privates: more autonomy in setting selective criteria and pre-established targets (religiously affiliated institutions, women's or men's colleges, and other private colleges that seek uniformity in their student body based on a particular ideology or socioeconomic background)
Major difference between public and private:
privates have more autonomy to set and modify their missions, to limit clientele, and to narrow program offerings for specific purposes.
Why the three
failure theories?
Government failure
Voluntary failure
Contract failure
 The Brazilian effect
Limited industry specific training
 One-size fits all
“Parents considers teacher quality, discipline, school safety and religious instruction”
(cited Carrie Lip. 2011)
 Poor quality of education
“Handicapped” parents
Student debt
 Poor student achievements
Lack in public accountability
“The merchandizers of commercial-style school reform may even wind up selling government-funded research products back to the people whose taxes paid for them in the first place.”
(Kapland, 1996, p10)
Sell government funded research and products
 Fail to reach disabled students or those with special needs
John Holloway cites research by Molar (2001) in the Research Link and confirm that “for-profit companies cannot educate students for less money than is already spent on public education.”  
“…although for-profit schools pledged to educate students with disabilities, they educate a smaller percentage of these students – and a substantially smaller percentage of students with highly complex disabilities” (JH Holloway, p84)
 Poor quality teachers
 Failure to choose for academic purposes
Comply with alumni needs rather than current student needs
“103 nonprofits operated schools in 25 states in 2008-9 and that the primary growth in schools involves existing organizations managing additional schools, rather than new organizations entering the field.” (cited in Bulkley and Burch.2012. p242)
Few new non-profit institutions are entering the education market
Voucher system and tax cuts
Quality control
Supply & Demand-sides
More leeway in teacher/ employer contracts
Adopt research based curriculum
Success in job placements
Job related skills
Provide flexible, work-friendly schedule
“Saying to us, I have all these kids who are not making the grade
in mathematics, I have all this funding from Title I or whatever,
I don’t have any idea of how to reconcile the problem with the funding.
I have all these racist issues. What can I do to customize the solution
to Johnny coming from his particular environment will be able to read.”
(as cited in Burch, 2009, p33)
Provide solutions , particularly to schools
Access to minority groups
Provide activities not covered by tuition
Ensure poor is not left behind
Venture philanthropists
Create niche markets in the education sub-sector
Use direct instruction and progressive approaches
Student education is the priority rather than profit
Fund-raising expertise
Encourage community and parent involvement
*The Center for Education Reform
*The Center for Education Reform
Current Government Funding for Higher Education
Most funding comes from the state level
Federal Student Aid (student loans and Pell Grants
INSERT 2010-2011
% of students received federal aid
Pell Grants help the neediest undergraduate students (awarded to over 9 million students, totaling $35,676,927,369 in 2010-2011)
Source: nces.ed.gov
Class Discussion:
Who should be responsible for funding higher education?
Post Secondary/Higher Education in the US
Private Colleges and Universities

Fall 2010 Enrollment
Total students: 3,881,906
4-year: 3,822,683 (98.5%)
2-year: 44,060 (1.1%)
< 2-year: 15,163 (0.4%)
Importance of Higher Education
19 million undergraduate and 3 milion graduate students enrolled in fall 2010
3.3 million full-time (in order to receive federal financial aid)
Total Enrollment
For full-time, first time undergraduate students receiving grant aid, differences in average price of attendance before aid and net price:
Public 4-year institutions, average price before aid was approximately $16,900 and net price was about $10,200
Private 4-year institutions, average price before aid was roughly $32,700 and net price was about $16,700;
For-profit 4-year institutions, average price before aid was approximately $27,900 and net price was about $23,800 (table 13).
Public Colleges and Universities

Fall 2010 Enrollment
Total students: 15,280,273
4-year: 7,924,813 (51.9%)
2-year: 7,284,613 (47.7%)
< 2-year: 70,847 (0.5%)
For-Profit Colleges and Universities

Fall 2010 Enrollment
Total students: 3,881,906
4-year: 3,822,683 (98.5%)
2-year: 44,060 (1.1%)
< 2-year: 15,163 (0.4%)
Cost of Attendance
Education Subsector

Source: nces.ed.gov
1. Formal oversight (boards and state/regional/national agencies)

Trustees provide oversight:
Campus leadership
Financial Aid
2. Campus leaders and faculty
K-12 School Funding
Full transcript