How Teacher Free Agency Can Revolutionize Student Success

The Problem: An Outdated System That Ignores Market Realities 

Recent discussions on decentralizing education policy and funding reignite the question: Will eliminating  the Department of Education (DOE) empower states to develop more effective policies, or will it create  disparities that hinder progress? 

Despite record-high education spending over the past two decades, student achievement has steadily  declined. A 2023 Edunomics Lab study found that states with the highest spending increases failed to see  corresponding gains due to misallocated funds and insufficient oversight (Edunomics Lab, 2023).  

According to NAEP data, math and reading scores have dropped to early 1990s levels despite billions in  increased funding. Oregon, for instance, increased spending by 80% over a decade, yet reading and math  scores fell. Meanwhile, Mississippi’s strategic investment in teacher training and accountability led to a  top-ten national ranking in reading. 

The central question remains: Does increased spending translate to better student outcomes?  Eliminating the DOE would allow states to direct resources where they’re needed most—into classrooms  and teacher salaries rather than bureaucratic waste. 

Regardless of the DOE’s fate, one undeniable truth remains: our education system stagnates because it  ignores free-market principles that drive success in professional sports, business, and higher education. 

The Case for Teacher Free Agency

College athletes can transfer schools and negotiate contracts reflecting their market value. Yet, teachers  remain locked into rigid pay scales that fail to reward excellence. If students and families have school  choice, why don’t teachers? 

A shift toward free agency in education—modeled after Florida’s performance-based teacher pay and  Mississippi’s data-driven approach—would allow teachers to negotiate salaries, move between schools  based on demand, and leverage their expertise more effectively. Policymakers can mitigate risks like  budget constraints and union resistance by piloting programs, ensuring sustainable compensation, and  offering incentives for educators in high-need schools. 

For example, Arizona’s open enrollment policy allows teachers to work across district lines, while charter  networks like Success Academy in New York reward teachers based on performance rather than tenure.  Schools can implement these market-driven structures by adopting performance-based pay scales,  competitive contracts, and professional growth pathways that reward high-impact teaching. 

The Teacher Pay Problem: Lack of Market Incentives 

Currently, U.S. teachers earn an average of $66,397, with Mississippi at $45,574 and New York at  $91,000. These disparities persist despite the DOE’s $79 billion budget, much of which is consumed by  administrative overhead. 

Key Market Realities: 

• 40% of education funds are spent on “non-instructional” functions (Census.gov, 2017). 

• High-performing teachers earn the same as underperforming ones due to tenure-based pay  structures (EdWeek, 2022). 

• Teachers cannot negotiate salaries based on market demand (EdWeek, 2019). 

Between 2013 and 2022, per-pupil revenues in U.S. public schools increased by nearly 25%, yet student  performance declined. Oregon, for instance, spent an unprecedented $17,100 per student, but test  scores fell across all demographics (Willamette Week, 2025). In contrast, Mississippi’s focus on teacher  training, accountability, and data-driven reforms led to measurable student gains, demonstrating the  effectiveness of performance-based compensation. 

Math Performance Trends

Reading Performance Trends 

A Call to Action: Rethinking Education Policy 

The evidence is clear: more money doesn’t guarantee better results. Instead of increasing funding  without accountability, we must introduce free-market pay structures that reward teachers based on  performance, specialization, and demand—just as in sports and business. 

Tennessee’s Innovation Zone (iZone) initiative provides additional support and incentives for educators in  struggling schools, leading to measurable improvements in student outcomes. Similarly, North Carolina’s  Advanced Teaching Roles (ATR) initiative and Texas’ Teacher Incentive Allotment (TIA) program reward  top-performing educators with significant salary increases based on student success. 

By reallocating existing education budgets, prioritizing classroom impact over administrative costs, and  leveraging public-private partnerships, states can fund performance-based teacher pay models. Pilot  programs can refine these models before broad adoption, ensuring financial sustainability without  negatively impacting current salaries. 

Steps Policymakers Should Take: 

• Reallocate education funds to reward high-performing teachers. 

• Create pilot programs in select districts to test performance-based pay. 

• Partner with private-sector organizations to develop incentive structures. 

• Implement transparent accountability systems like Florida’s school grading model and  Tennessee’s TVAAS system. 

• Reduce bureaucratic inefficiencies to keep funding focused on classrooms.

The Time for Change is Now 

Teacher Free Agency is a critical key to transforming education. By allowing educators to negotiate  salaries, choose schools based on demand, and be rewarded for their impact, we create a system where  excellence is incentivized, and students benefit from top talent. 

Performance-based teacher pay, streamlined funding to classrooms, and holding schools accountable for  measurable outcomes will create a competitive, results-driven education system. Proven models like  North Carolina’s ATR initiative and Texas’ TIA program show that aligning teacher compensation with  performance improves student success. Florida’s school grading model and Tennessee’s TVAAS system  further illustrate how transparency ensures funding leads to meaningful improvements. 

The longer we delay, the more students suffer from declining performance, ineffective policies, and the  loss of high-quality educators. By embracing Teacher Free Agency, we empower educators, elevate  student achievement, and ensure education operates on the same market-driven principles that drive  success in every other industry. 

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Sources: 

Edunomics Lab. Measuring ROI: A national and state-by-state look over time. 2024.  https://edunomicslab.org/roi-over-time/ 

Census.gov. More Than Half of School Expenditures Spent on Classroom Instruction. 1997.  census.gov/newsroom/press-releases/2017/cb17-97-public-education-finance.  

EdWeek. Teachers and Performance Pay. 2022. https://www.edweek.org/teachers-and performance-pay 

EdWeek. Should Teachers Be Able to Negotiate Their Own Contracts? 2019. 

https://www.edweek.org/leadership/should-teachers-be-able-to-negotiate-their-own contracts/2019/04 

Willamette Week. Dramatic Increases in School Spending Have Not Improved Outcomes for Oregon  Students. 2025. Wweek.com/news/schools/2025/02/05/dramatic increases-in-school-spending-have-not-improved-outcomes-for-oregon-students 

Tennessee Department of Education. Innovation Zone (iZone) Initiative. n.d. teachmemphis.org/izone. 

North Carolina Department of Public Instruction. Advanced Teaching Roles (ATR) Program. n.d.  https://www.dpi.nc.gov/atr. 

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About the Author 

Dr. Manuel Ferrer is a two-time Teacher of the Year, education entrepreneur, and founder of EdSales Pro.  A former public school teacher turned multi-million-dollar sales leader, he advocates for free-market  reforms to improve student outcomes. 

For media inquiries, visit www.breakingthebell.com or contact DrManny@breakingthebell.com