This book by the Commission on the Skills of the American Workforce is well written in clear terms with summaries and simple graphics. It is a must read for anyone interested in the future of the US economy. The Commission points out the risks of our poor pre-university education to the US economy. India and China are now competing with the US in the high skilled labor market (not just low skilled) and at lower wages. With the Internet, many jobs can be done anywhere, and companies will hire the best at the lowest cost (Indian engineers make $7500 annually with the same qualifications as US engineers who make $45,000).
The Commission describes how US universities continue to be the best in the world, but grade schools and high schools have fallen behind. In the 20th century the US pioneered universal education, and received an influx of talent, from scientists fleeing Germany before World War II to a more recent influx of Asian students, who stayed and worked here. But now, other countries have passed us in pre-university education and many foreign students are going back to their own countries after graduating.
"A Nation at Risk" came out in 1983, saying "If an unfriendly foreign power had attempted to impose on America the mediocre education performance that exists today, we might well have viewed it as an act of war." The Tough Choices Commission points out that since then we've had a more than doubling of spending on education (inflation adjusted) with only modest improvement. The Commission concludes that the main improvement, standards testing, turns out to be misguided because it is multiple choice, not essay, and thus doesn't teach the creative, out of the box thinking needed for the US to maintain its lead. Multiple choice tests are by definition "in the box" tests.
"A Nation at Risk" proposals in 1983 for merit pay for teachers were resisted, and teachers continue to come from the bottom 1/3 of University graduates. The Commission proposes merit pay for new teachers, with an opt-in choice for existing teachers, combined with higher salaries made possible by eliminating pensions and using 401Ks instead, like other professions. Other proposals include universal pre-school, school choice with funding following students, less bureaucracy and more independence for individual schools, adult education coordinated with the business community, and inter-city schools and supporting social services being coordinated under one person, such as the mayor. Finally, partial funding can be found by reducing the number of students in the last 2 years of high school by allowing board testing at the 10th grade, with those passing going to community college then a university, directly to trade school, or directly to work.
I have separately read that having funding follow the student to encourage competition among schools has been implemented successfully at the city level in San Francisco. The Commission shows that if pensions and vacation time are included, current teacher salaries are actually somewhat competitive. But talented young people prefer money now, and don't know that they would stay in teaching long enough to earn a pension. Thus, pension money could be moved to up front salary and portable 401Ks, with existing teachers having the option of opting in or staying with their pensions.
The proposal to coordinate social services with schooling to help the disadvantaged, such as by putting all under a mayor has been done in New York recently, with great success. By providing programs for kids until 5 PM, and help to their families, the disadvantages of a poor home situation can be addressed. The US economy is healthy because of the waves of immigration it has had over the past 15 years, and we can't afford not to train those immigrants so our business have a talented labor pool to draw on.
The board exams proposed at the end of the 10th grade will provide badly needed motivation to students, since they can get out of school earlier if they work harder, rather than marking time.
To cut bureaucracy, the commission proposed principals be given free reign on how to spend the money they get (which is based on the number of students). Also, school boards would not run schools, but would contract with others (such as private companies, groups of teachers, etc.). The school boards would then become performance contract managers.
Finally, the report proposes training of people in the workforce, since these people will be the largest part of our workforce for some time, and will need more advanced and creative skills.