© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, 2007 BRAIN POWER PUBLIC SCHOOLS AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Mission: To promote world class schools through research, advocacy, and public policy for the benefit of students and the economic vitality of the region.

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, urban and suburban public school districts in SE Wisconsin 240,000 students enrolled in SWSA schools 30% of the total public school enrollment in Wisconsin

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, How public schools drive the New Economy in Southeastern Wisconsin

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1,

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Research shows that education impacts: Income Level Economic Vitality Social Costs Quality of Life

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, EVOLUTION OF ECONOMIC PROSPERITY IN THE UNITED STATES 19 th Century – Bigger and Better Farms 20 th Century – Bigger and Better Factories 21 st Century – Bigger and Better Ideas

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, THE NEW ECONOMIC EQUATION IN A KNOWLEDGE-BASED ECONOMY BRAIN POWER EARNING POWER =

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, MEDIAN EARNINGS BY EDUCATIONAL ATTAINMENT 2005Median Earnings Some High School, No Diploma $ 21,268 High School Graduate $ 30,316 Some College, No Degree $ 33,956 Associate Degree $ 36,348 Bachelor’s Degree $ 48,724 Master’s Degree $ 58,708 Doctorate / Professional Degree $ 72,500 Source: U.S. Department of Labor, Bureau of Labor Statistics

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, LIFETIME EARNINGS GAP* Bachelors Degree vs. High School Graduate Advanced Degree vs. High School Graduate +$1,102,500 +$2,224,824 * Note: People working to age 67 No HS Diploma vs. High School Graduate -$443,352

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, MEDIAN FAMILY INCOME BY EDUCATIONAL ATTAINMENT Source: U.S. Census Bureau Education = Earning Power

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, MEDIAN FAMILY INCOME BY EDUCATIONAL ATTAINMENT Source: U.S. Census Bureau Education = Earning Power Bachelor’s Degree Some College High School Graduate 9 th -12 th Grade, No Diploma 15% 5% - 12% - 31%

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, How educational attainment affects a state’s economy

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, PER CAPITA INCOME 2005IncomeRank Educational Attainment Rank Minnesota$ 37, Illinois$ 36, United States$ 34,495n/a Wisconsin$ 33, Michigan$ 32, Iowa$ 31, Source: U.S. Department of Commerce, Bureau of Economic Analysis

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Wisconsin has not slipped (or improved) in rank in the last 40 years because of: 1. A diversified economy 2. Better retention of manufacturing jobs 3. A boom in capital goods and exports PER CAPITA INCOME

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Per Capita Income Rank Manufacturing Intensity Rank* Michigan Indiana Iowa Wisconsin Minnesota Source: U.S. Department of Commerce, Bureau of Economic Analysis EDUCATION / ECONOMIC DECLINE WHAT COULD HAPPEN TO WISCONSIN * Percentage of State’s Non-Farm Employment in Manufacturing - Source: U.S. Census Bureau

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, TOTAL PERSONAL INCOME GROWTH IS TIED TO EDUCATIONAL ATTAINMENT County % Change in Personal Income from % College Educated (2005 Estimate) Milwaukee43%26.4% Waukesha67%37.2% Dane76%43.7% Wisconsin60%25.0% Wisconsin (all counties except Milwaukee, Waukesha, & Dane) 61%21.1% Source: Bureau of Economic Analysis Regional Economic Accounts

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1,

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, The Economic Role of SWSA Public Schools: Economic Impact Human Capital Impact

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, SWSA Region Public Schools Staff Spending School Operations Visitor Spending Direct Economic Impact  

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Direct Economic Impact in : $2.22 billion Spending benefits Main Street businesses and jobs. SWSA REGION PUBLIC SCHOOLS

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Multiplier Effect: Direct spending multiplies its impact as businesses reinvest and their employees buy goods and services.

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, SWSA Region Public Schools Staff Spending School Operations Visitor Spending Direct Economic Impact Economic Multiplier Total Economic Impact    

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Total Economic Impact in : $4.26 billion By comparison, the economic impact of UW-Madison was $4.7 billion in SWSA REGION PUBLIC SCHOOLS

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Jobs: Actual Public School Employment of SWSA Region Public K-12 Schools 30,537 Jobs

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, SWSA Public School spending generates an additional 42,407 Jobs* * Full time equivalent jobs

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Total jobs related to the economic impact of SWSA Public Schools: 72,944 Jobs* * Full time equivalent jobs

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1,

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Human Capital Impact: SWSA public schools’ most important role – Educating students Building human capital

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, The higher the education level, the higher the quality of life. Educated people: Are more productive Live longer Are healthier Earn higher wages Contribute more to their communities QUALITY OF LIFE

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, To compete in the New Economy, SE Wisconsin needs more brain power and human capital. BUILDING BRAIN POWER IN SOUTHEASTERN WISCONSIN 2005 Graduates of SWSA Schools 18,219 - On to 4 Year College 9,893 - On to 2 Year College 4,207 - On to the Military % of graduates Source: Wisconsin DPI

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Source: CollegeBoard BUILDING BRAIN POWER - WI PUBLIC SCHOOL ADVANCED PLACEMENT PARTICIPATION Public schools help students earn college credit while in high school.

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Growth Areas in the SE Wisconsin Economy: Medical imaging, research, technology and software Financial services and software Money management services Advanced manufacturing technologies GE Medical Johnson Controls Harley Davidson FiServ Metavante Northwestern Mutual Baird Artisan Nicholas Heartland BUILDING BRAIN POWER Modine Manufacturing

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Education: Action to Support the New Economy Regional Initiatives State Initiatives MPS/GMC Strategic Plan M-7 - Regional Economic Plan CESA 1 - Learning for the 21 st Century SWSA - Economic/Human Capital Impact Legislative Efforts The Wisconsin Covenant BUILDING BRAIN POWER Second Chance Program Project Lead the Way

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, THE LIFETIME ECONOMIC COST OF NO HIGH SCHOOL DIPLOMA $425,256 Lost Income $127,000 Costs (Lost tax revenue, higher health, safety and welfare costs) $552,256 Per Person Source: NorthStar Economics, Inc., Teachers College, Columbia University

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, THE ANNUAL ECONOMIC COST OF NO HIGH SCHOOL DIPLOMA 144,383 People in SE Wisconsin* without a high school diploma $10,553 Annual cost per person $1.5 Billion Total Annual Economic Cost / Drag Source: United States Census Bureau, American Community Survey (2005) x * Residents over the age of 25 of Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington, & Waukesha Counties

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1,

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, What SE Wisconsin needs for a prosperous future: Brain Power Highly skilled / educated workforce Accelerated economic growth Strong schools, colleges, and universities

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, What public schools can do to boost the SE Wisconsin economy: Increase the number, preparation and success of students attending post-secondary institutions Continue to increase high school completion rates

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, The Linkage: The economic future of SWSA public schools depends on a strong SE Wisconsin economy. A strong SE Wisconsin economy depends on strong public schools.

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, The Challenges Ahead: Strong public support for public schools Public school/business partnerships to build brain power in SE Wisconsin Education for students, teachers, and the public on the continually changing New Economy

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Investing in public education yields: Direct economic benefits A more competitive regional economy and The brain power for a productive SE Wisconsin workforce

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1,

© Copyright 2007, NorthStar Economics, Inc. All rights reserved. BRAIN POWER: PUBLIC SCHOOLS, AND THE ECONOMIC FUTURE OF SOUTHEASTERN WISCONSIN June 1, Research provided by: David J. Ward, Ph.D., President Web: