Managing in Times of Fiscal Uncertainty: An Interview with Tom Payzant

Written by Joseph Scherer

In this edited interview with DMC's Dr. Joseph Scherer, Dr. Tom Payzant reflects on his superintendency, managing through good times and bad, and offers his insights about dealing with this current fiscal crisis. Payzant calls for a focus on the district's core mission and work, urging school leaders to communicate a sense of optimism and to focus on delivering results for students. 

Currently a professor at Harvard University's Graduate School of Education, Tom Payzant served as a superintendent to various districts for over 35 years.  Under the Clinton Administration, he was appointed the assistant secretary for Elementary and Secondary Education within the Department of Education.

Given the seriousness of the current financial crisis, what will be the immediate and long-term impact on school districts?  And, how does the current situation differ from the past?

The current economic crisis certainly will have a much broader and deeper impact than other downturns as this crisis is a global crisis.  But as I think about my more than thirty-five years in the superintendency, there are always cycles that we must weather.  One of the biggest challenges of running a public school district during a downturn is that 80% of most school district budgets are in people, with the highest percentage of that 80% going to teachers and principals and other adults working in the schools.  If you have to make reductions, you can only go so far in cutting the other 20%.   The bottom line is that when school opens, you need to have a teacher in every classroom.  The number of students who are coming to school doesn't change just because there is a recession; in fact, in my opinion, we are likely to see an increase in public school enrollment.  People argue that you can have larger class size, but in many states, such as Florida, there are caps on class sizes.  If this is the case, it creates a real limit to your options as a manager.

"As you review your options, the focus has to remain on the classroom and the core work.  We have to hold that sacred as long as we can without paring away there."

Having said that, in 2003-2004 in Boston, we had to make deep cuts - $85 million in cuts over two years.  There was no way to make that level of cost cuts without cutting a significant number of positions.  We had to cut 700 positions; 400 of those were teaching positions and 300 were comprised of cuts at the central office and other areas.  There are no easy answers.  But, as you review your options, the focus has to remain on the classroom and the core work.  We have to hold that sacred as long as we can without paring away there.