Dr. Michelle Miller-Adams Associate Professor, Grand Valley State University Research Fellow, W.E. Upjohn Institute for Employment Research April 14, 2014

The Kalamazoo Promise Announced November 2005, to continue in perpetuity Funded by anonymous private donors First-dollar program (before other financial aid) Place-based: Kalamazoo Public Schools Covers % of tuition and fees at any in-state, public post-secondary institution for KPS graduates Minimum 4-year residency & enrollment requirement Universal: Every graduate is eligible Students have 10 years in which to use funding

Promise Programs as Tools for Community Transformation Promise programs seek to change the culture of a community, not simply award scholarships. They are: Place-based – focus on a geographically bounded community Universal or near-universal – everyone has a stake; broad buy-in throughout the community Long-term – allow time for people to make choices based on the program’s benefits

The Promise movement takes off… Since the Kalamazoo Promise was announced, more than 30 other communities have created Promise programs, with more in the works. Annual PromiseNet conference draws representatives from 50+ communities. Promise programs exist in all parts of the country, in communities of all sizes and types. Goals include expanding higher education opportunities, creating a college-going culture in K-12 system, and economic/community development or revitalization.

Promise programs are not all alike… Models vary by: Student eligibility Universal (all graduates eligible) or merit-based(usually 2.5, some 3.0,plus attendance requirement); a few needs-based Eligible post-secondary institutions Funding First- or last-dollar Private, philanthropic, public (tax-based financing) * Universal approach most likely to achieve economic development goals.

Economic Development Rationale Education → Productivity → Economic Growth Higher skilled workforce leads to faster rates of income growth, benefits even less educated workers Higher rate of college-educated workers has a positive effect on a community’s employment growth Strength of Urban Core → Regional Economic Vitality Importance of a healthy central city Interdependence of cities and suburbs Quality education system essential for business investment and in-migration by residents

Education and Economic Growth - Results Students across all demographic groups are using the Kalamazoo Promise at roughly equal rates High-school graduation rates in Kalamazoo are rising relative both to the past and to other urban districts Promise recipients outpace the national average in college-going, retention, and completion Highest-achieving students are shifting to in-state, public institutions in line with incentives provided by scholarship Two-thirds of Promise recipients use scholarship to attend local institutions

Taken together, these trends suggest that the Kalamazoo Promise is having a positive impact on human capital development in the region. Question: Where will these better educated residents choose to live and work as adults? Future research needed on workforce participation and earnings by Promise recipients. Education and Economic Growth - Results

Strengthening the Urban Core - Results Enrollment growth in Kalamazoo Public Schools 25% increase since 2005 Fastest growing urban district in Michigan Has brought school district: New financial resources (est. $28 million) New school construction (est. $30 million) New hiring (est. $11 million) Imp roved perceptions → virtuous circle Sales and recruitment tool for realtors and businesses

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Changing Perceptions of the Public Schools – results of a media content analysis

Improving school district at center of region is strengthening perception of Kalamazoo regionally and nationally Question: How can benefits be directed to urban core when school district extends beyond the City of Kalamazoo and encompasses some suburban areas? Future research needed on impact of Kalamazoo Promise on housing market, population, juvenile crime, downtown development, and more. Strengthening the Urban Core - Results

Challenges of Assessing Economic Impact Time frame for economic development impacts to unfold Difficulty of determining causality Absence of a good counterfactual example Difficulty of quantifying effects on civic culture Community alignment around education Catalyst for other, broader efforts

Upjohn Institute Resources Stakeholder consultation In-person or virtual Review of best practices Landscape assessments Feasibility, design, and impact studies Cost estimates Proprietary model developed through work with more than a dozen communities Evaluation

Additional Resources Questions or comments: W.E. Upjohn Institute - Kalamazoo Promise Research Special Topics: Kalamazoo Promise Promise Research Consortium Future PromiseNet conferences