Public Education & Business Coalition (PEBC), a Denver-based national education nonprofit, announced today that it has received commitments for more than $1.4 million in investments for a first-of-its-kind Pay for Success financing to scale its Teacher Residency program. The PEBC Teacher Residency trains high-quality, new teachers at a time when school districts are facing a growing teacher shortage.
Northern Trust, based in Chicago with offices in Colorado, the Gates Family Foundation, and a donor-advised fund established at The Denver Foundation have committed to fund the PEBC Teacher Residency program to train new teachers who will be retained in their districts. The investment, facilitated by Social Impact Solutions, helps to address a severe statewide teachers’ shortage by expanding the pipeline of high quality teachers and by incentivizing teacher retention.
The PEBC Teacher Residency Pay for Success (PFS) initiative, along with complimentary funding from the Colorado Department of Education, will train 335 new licensed teachers over the next three years in partner districts including Aurora Public Schools, Durango 9-R school district, and multiple additional rural districts in Southwest Colorado. Funding from the PFS financing, CDE, and revenue from school districts will pay the upfront costs of training the teachers. The school districts will repay the PFS funding only if the program participants:
- Complete the program,
- Become licensed teachers, and
- Remain in the PFS partner district for three years (their residency year and two additional years of teaching).
“An investment in training good teachers is an investment in Colorado’s future and a critical workforce investment,” said Sue Sava, President and CEO of PEBC. “The PEBC Teacher Residency is committed to bringing excellent new teachers into Colorado’s classrooms. We are grateful to Northern Trust, the Gates Family Foundation and The Denver Foundation for recognizing the significant impact of the PEBC Teacher Residency and making this critical contribution to Colorado’s economy. We’ve now created a replicable model, which can allow us to scale our educator preparation program to new geographies and content areas.”
“Investing in teachers and finding innovative ways to support them as they enter the profession was a key driver of our investment in this transaction,” said John Couzens, President of Colorado for Northern Trust. “We look forward to the positive outcomes from this innovative finance tool.”
PEBC piloted its Pay for Success model at Aurora Public Schools and five small rural districts during the 2021-22 school year with an investment from the Boettcher foundation. During the pilot, PEBC trained 27 new teachers who have committed to continuing to teach in their districts.
“Recruiting and retaining high-quality teachers is a priority – and challenge – for every superintendent,” said Rico Munn, Superintendent of Aurora Public Schools. “Our partnership with PEBC has helped us bring in exceptionally high-quality and diverse teachers to our classrooms, who are committed to breaking down barriers and serving our community.”
Frequently Asked Questions
- What is Pay for Success?
Public sector funding is typically allocated to pay for specific activities – including hiring program staff, providing services, or buying equipment. Alternatively, the Pay for Success funding model pays for outcomes: Investors provide funding to run a program, and they receive a return on their investment if the program achieves the desired outcomes.
- What is the PEBC Teacher Residency?
The PEBC Teacher Residency is the oldest and largest teacher residency in the state of Colorado. Started as the Boettcher Teacher Residency Program, and merged with Stanley Teacher Prep, the program is modeled after medical residencies, and provides supportive hands-on training and coaching to participants as they work toward a teaching license.
In this one-year program, Residents work side-by-side in a classroom in apprenticeship with a mentor teacher or, for those with significant classroom experience, as the sole teacher in their classroom. Residents earn their Colorado teacher license upon completion of the program. Residents also have the option to work toward a master’s degree from one of seven institutes of higher education.
- How can my school partner with PEBC on its Pay for Success program?
To learn more about becoming a Pay for Success partner school district, email Evan Kennedy at [email protected].
- How can I train to become a teacher in Colorado with PEBC?
PEBC’s Teacher Residency is currently accepting applications for the 2023-2024 school year. To learn more and apply for the Residency Program, visit www.pebc.org/teacher-preparation.
PEBC believes that each and every child is worthy of a great educator. We are a nonprofit organization that works in Colorado and across the nation to prepare outstanding new teachers, help practicing educators become exceptional, and shape policies that foster vibrant growth and lasting student success. Learn more at www.pebc.org.