An Economic & Education Crisis In The Making

Two Peas in a Pod  Our economy thrives when it has a robust, high quality education system.  Education is more likely to be resourced appropriately when the state’s economy is strong. Education Economy

Two Peas in a Pod We believe or at least want to believe that our Governor and Legislature share this perspective. Education Economy

 Every citizen of our state should support efforts to get our fiscal house in order.  Doing this requires policy makers to make tough choices.  Business people understand the process of aligning revenue with cost and protecting margin. Across the board cuts are usually not the answer. You have to invest in what works. A Strong State Economy

Arizona has taken: A big step backwards in supporting  Education Quality and  Enhancing the fiscal health of the state

 The legislature cut funding for Career and Technical Education (CTE) by 50% this year on top of a similar cut in  The result will be dramatically less students in CTE.  The predictable outcome of less students in CTE is – Lower high school graduation rates Lower academic performance Reduced post-secondary transitions Reduced workforce development Increased social costs Few young people achieving economic independence

High School Graduation and Academic Performance The Facts

CTE 96% 89% 96% Az Avg. 76% 70% 75% 2013 Grad Rate 2013 AIMS Math 2013 Aims Reading

On the Rise ASU Morrison Institute for Public Policy The analysis of data from Tucson Unified School District and Mesa Public Schools found: 1. The hazard of dropping out was reduced by 70% for Mesa students and 50% for Tucson students who had taken 2 or more CTE courses 2. Taking two or more CTE courses reduced absenteeism by 3 days for CTE students in Tucson. Compared to students who shared the same socio- economic and academic characteristics but did not take CTE Source: On The Rise report,

If Arizona’s 2012 HS-graduation rate had been 90% instead of 72% Estimated benefits to the state’s economy would be:  $164 million in increased annual earnings  $128 million in increased annual spending  $324 million in increased home sales  $17 million in increased auto sales  1,500 new jobs  $225 million in increased annual gross state product  $11 million in increase annual state/local tax revenue  $25 million in increased annual federal tax revenue Source: Alliance for Excellent Education

Social Costs The Facts

By The Numbers: High School Dropouts Donna Krache, CNN Earnings: median earnings for full time workers age 25 and older who did not have a high school diploma $24,300 vs. $33,800 with H.S. diploma Poverty and crime: 1. Dropouts make up almost half the heads of households on welfare. 2. High school dropouts commit about 75% of crimes in the U.S. (and prison beds in AZ?) Let's put Arizona to Work!

$35,000 Minimum earning threshold for family of four to be considered middle class 81% Of high school dropouts earn less than $35,000 per year by mid-career

Workforce Development The Facts

Post Secondary Transitions The Facts

 A less robust economy Workforce Social costs  A lower quality educational system The facts are clear. Less students in CTE means….

 Benson School District We Should Expect The Opposite to be True

Invest in what works Divest from what doesn’t CTE Works

Some Specifics on the CTE Funding Cuts

Reduction to State Aid for JTEDs

What Does the Loss of Funding Mean to CTE/JTED? A. Insufficient funding to maintain programs at industry standard level B. In the first year of cuts it is projected that 30% of CTE teachers will be let go. Those programs will close C. As programs close, enrollment will drop generating less ADM so more programs will close the following year

JTEDs will enter a death spiral

Where do the cuts fall? 1. Satellite CTE/JTED Programs sustained DEVASTATING cuts. 2. Central CTE/JTED Program sustained SIGNIFICANT cuts

Perception of Double Dipping

1.There is no double dipping. 2.There are various definition of double dipping but no definition applies to the JTED funds for CTE that were cut. 3.CTE costs 4.Of the 135,000 students in CTE in Arizona high schools only about half receive additional funds for CTE through the JTEDS due to factors like no more funds for ninth graders, if you are taking two CTE courses you only get funded for one, etc. 5.Specifically: a.No double dipping for a student taking multiple CTE courses. Satellite CTE programs in the school districts only receive the additional JTED funds for one course regardless of how many CTE courses they are taking. b.A school district only gets ADM for a student once including CTE students. c.JTED funding for satellite programs is.25 for the CTE ADM in those programs. You should know that a JTED like Pima and most others passes on the majority of those funds to the local districts in the JTED while EVIT keeps it all which is the only one doing that and of course you can imagine how those participating districts feel about that. For centralized CTE programs offered by the JTED’s they can receive up to an additional.75 for those programs based on the cost of delivery. But the.25 is not doubled up as it is either the.25 for satellites or up to.75 for centralized.

Call To Action  The cut made by the legislation to CTE have to be reversed  Contact the Governor and your legislator and insist they take action to reverse this decision because it hurts the state economy and the quality of our education system

Questions & Discussion