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ERIC Number: ED516495
Record Type: Non-Journal
Publication Date: 2010-Jul-28
Pages: 26
Abstractor: ERIC
Reference Count: 0
Shifting Risk to Create Opportunity: A Role for Performance Guarantees in Education. Working Paper 2010-02
Hassel, Bryan C.; Doyle, Daniela
American Enterprise Institute for Public Policy Research
Despite the growing role of nontraditional providers and school operators, many school districts remain reticent, if not resolutely opposed, to turning over schools or even school functions like human resources to outside providers. Limiting the use of nontraditional providers, especially those with demonstrated effectiveness, hampers a district's ability to supplement or substitute existing school services and bars schools from reaping the potential gains in faculty productivity, student outcomes, and cost-effectiveness. Given today's tight budgets and shrinking staffs, this is a problematic state of affairs. It is especially so when it comes to school turnarounds, when many districts are struggling to deliver performance on their own but are also hesitant to farm matters out to an external provider--especially to those who may have limited skin in the game or those who may have thin records of success. In this report, the authors point out that uncertain results, political dangers, and unmapped responsibilities make the risk of partnering with new providers simply too great for many districts to take on. To address these challenges, they suggest a variety of performance guarantees such as warranties, bonds, and contracts that can be adapted for the case of nontraditional education providers. These tools can help spread risk and thereby facilitate partnerships as they have done in other sectors. (Contains 1 table, 2 figures and 18 endnotes.)
American Enterprise Institute for Public Policy Research. 1150 Seventeenth Street NW, Washington, DC 20036. Tel: 202-862-5800; Fax: 202-862-7177; Web site:
Publication Type: Reports - Evaluative
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: American Enterprise Institute for Public Policy Research