NC principals want to change how test scores affect pay. Some legislators are skeptical.

North Carolina’s principals want to change the way they’re paid to reduce the impact of test results and to take into account factors such as how many low-income students they have.

Since 2017, the state has paid principals based on how many students are at their school and whether their state test scores met or exceeded growth expectations. This week, the N.C. Association of School Administrators presented to state lawmakers a plan to keep the use of performance pay but add in “complexity factors” to the formula.

The principals said the current system needs to change because it’s discouraging people from wanting to become principals or to lead low-performing schools.

“We need the most effective principals in the highest needs schools instead of the reality right now ... that most of these schools are being led by newly hired principals,” said Ashley Faulkenberry, principal of Trent Park Elementary School in New Bern.

Paying principals based on test results

Previously, the state paid principals mainly on their years of education experience and whether they had advanced degrees. Lawmakers increased principal salaries in exchange for including the use of performance pay.

A principal’s salary jumps 10% if their school meets growth on state exams and 20% if they exceed growth. The use of test results means salaries can go up or down by as much as $18,000 per year.

Faulkenberry said you were nearly 5x more likely to exceed growth on state exams last school year if you led a school with low poverty than a school with high levels of poverty.

Additionally, she said nearly twice as many schools with high poverty populations did not meet growth as compared to high poverty schools that exceeded growth.

While the annual turnover rate for North Carolina principals is close to 25%, it’s 30% in high-poverty schools.

“Principals who serve more complex schools have unique challenges to overcome to accomplish similar results to schools located in more affluent areas across the state,” Faulkenberry told legislators.

She said only 7% of principals surveyed agreed that the current pay plan encourages high-performing principals to move to low-performing schools.

Paying principals for their experience

Under the new model proposed by the principals, salaries would only change by 5% if a school met growth and another 5% if it exceeded growth.

The principals also want to use more than just the number of students at a school to set salaries. They’d also include what they call “complexity factors,” such as how many students are economically disadvantaged or special education.

Principals would be paid more if they’re at a school with higher “complexity factors.”

The group also wants principals to be paid a retention supplement if they’ve been a principal for at least five years. For instance, a person who has been a principal for at least 15 years would get $6,000 a year.

This is different from the old model where a principal was also paid for their years of experience as a teacher.

“We’re not here asking for a significant pay increase,” said John Lassiter, principal of Hertford Grammar School in Perquimmans County. “We’re asking to redeploy some of the resources so that there is more stability in pay.”

Skepticism from lawmakers

The plan met with some skepticism at Monday’s meeting of the state House Committee on Education Reform.

“It just seems to me that it just simply gets you higher pay for having a tough situation but doesn’t necessarily mean you’re effective in that role,” said state Rep. Hugh Blackwell, a Burke County Republican.

Rep. Jason Biggs, a Randolph County Republican and committee co-chair, said he doesn’t necessarily agree with all parts of the proposed new formula. But Biggs said he recognizes that not all principals have the same challenges.

“We’ve got to look at this because a lot of principals that are in tough situations are superstars but they’re not getting paid like they’re superstars because of the situation that they’re put in,” Biggs said.

Rep. John Torbett, a Gaston County Republican and committee co-chair, said he’s asked legislative staff to run the cost figures for the new model.