Principal-Agent Theory to the Implementation of Florida’s Third Grade Retention Policy

Policymakers have aimed to increase early reading skills for decades, yet in recent years state governments have placed particular emphasis on the mastery of reading proficiency by the third grade – a pivotal year in a child’s education since it is typically when students shift from learning to read to reading to learn (Hernandez 2011). Research provides mixed results as to whether retaining students based on the results of a state standardized test will benefit the student in the long run. This study utilizes principal-agent theory and street-level bureaucracy theory to better understand the ways in which school district teachers and administrators, as street-level bureaucrats, respond to a state-mandated test-based third grade retention policy in Florida. While both policymakers and practitioners may have the same end goal – to increase third grade reading proficiency rates – evidence from regression analyses suggest that street-level bureaucrats use their informational advantage to pursue means other than retention to achieve this end. For example, street-level bureaucrats may be able to shirk around the policy by providing students with exemptions from the state-mandated policy. Thus, while it appears as though a certain percent of students are proficient on the third grade reading exam, these statistics may distort the actual scenario and our understanding of the policy effects. By providing more students with good cause exemptions, these students ’ FCAT scores are not included in the interpretation of the increase in third grade reading proficiency levels. Rachel S. White is a doctoral student and Dean’s Scholar in the education policy program at Michigan Stat