Bill Gates on how to get more value from our education dollars

Bill Gates wrote in the Washington Post:

Over the past four decades, the per-student cost of running our K-12 schools has more than doubled, while our student achievement has remained virtually flat. Meanwhile, other countries have raced ahead. The same pattern holds for higher education. Spending has climbed, but our percentage of college graduates has dropped compared with other countries.
To build a dynamic 21st-century economy and offer every American a high-quality education, we need to flip the curve. For more than 30 years, spending has risen while performance stayed relatively flat. Now we need to raise performance without spending a lot more....

Schools keep doing things that don't work.

The United States spends $50 billion a year on automatic salary increases based on teacher seniority. It's reasonable to suppose that teachers who have served longer are more effective, but the evidence says that's not true. After the first few years, seniority seems to have no effect on student achievement.
Another standard feature of school budgets is a bump in pay for advanced degrees. Such raises have almost no impact on achievement, but every year they cost $15 billion that would help students more if spent in other ways.
Perhaps the most expensive assumption embedded in school budgets - and one of the most unchallenged - is the view that reducing class size is the best way to improve student achievement. This belief has driven school budget increases for more than 50 years. U.S. schools have almost twice as many teachers per student as they did in 1960, yet achievement is roughly the same.

One proposal is similar to the "Gold Star Teacher" idea:

What should policymakers do? One approach is to get more students in front of top teachers by identifying the top 25 percent of teachers and asking them to take on four or five more students. Part of the savings could then be used to give the top teachers a raise. (In a 2008 survey funded by the Gates Foundation, 83 percent of teachers said they would be happy to teach more students for more pay.) The rest of the savings could go toward improving teacher support and evaluation systems, to help more teachers become

When he addressed the National Governors Association a few days ago, Bill Gates gave copies of Stretching the School Dollar: How Schools and Districts Can Save Money While Serving Students Best to audience members.  Many of the ideas are here.