The Intangible Assets of Public Schools

By Christopher Hale

Currently, there is a national effort focused on implementing a standardized assessment of teaching and learning. In the assessments that are currently being discussed, teachers, principals, and thereby entire schools are going to be assigned a value based on growth in math and reading scores, which themselves are the key element of what is known as the “Common Core.”

In addition to other factors, growth in students’ reading and math achievement scores counts a significant amount towards teachers’ and principals’ performance rating. The hope is that all other subjects, from history to physical education and music, will incorporate elements of this Common Core into their daily lessons, thus reinforcing Math and Reading and hopefully elevating the rating of the school.

This is a high-stakes game. Federal funding, state funding, and at times a school’s very existence depend on maintaining and elevating math and reading scores. The proponents of such a plan often compare the results-based assessment of schools to realities of the private sector, where if businesses do not meet their bottom line, there are serious consequences for the people who work there.

If you are to subscribe to the wisdom of this, which many do not, then the larger picture must be considered. Schools, just like businesses, hold significant intangible assets, which should play a major role in determining the school’s value.

As a comparison, let us use what is possibly the world’s most popular brand at the moment: Apple, Inc.. Apple is the world’s most valuable corporation, and a poster child for success in the United States. Apple is currently worth $560 Billion on the open market, but the “book value” of Apple is $85 billion. A look at their balance reveals that of this $85 billion, Apple holds $4.4 billion of goodwill and intangible assets. This includes the iconic Apple brand, the consumer loyalty built up over time, and intellectual property. These assets are not things that can be held in your hand or physically represented, but they are a huge part of what makes Apple as successful as they are.

Like Apple, schools hold a great deal of value in their “Intangible Assets.” There are teachers who stay after school and specialize in working with the troubled and disabled youth. There are the Friday night football games and the Thursday afternoon girls’ basketball games.

Schools often times safeguard the very identities of the communities they serve. Schools can be vibrant art and music communities, with art shows and evening concerts throughout the year. There may be chess club, math club, aviation and horticulture club, as well as the Future Business Leaders of America and the Reserve Officers Training Corps that support our nation’s military.

The list can go on and on, but the fact is simple: There is a lot of value in our nation’s schools that is currently being left off of the balance sheet. This is something that politicians, parents and taxpayers should consider when making decisions about the future of our schools.    

Looking back 30 years from now, let us see that we have served them well by supporting, rather than eliminating these programs that form the core of the student experience. After all, when looking at the value of our schools it is crucial that we stay focused on the bottom line: our nation’s children, who with their character, creativity and skills must lead us to a brighter future.

Christopher Hale is currently a high school music teacher of 8 years in East Meadow, NY. He is also president-elect of the Nassau Music Educators Association.