The Economics of Education

1Examine the Data for Education in Georgia 2Economic Impact of Georgia Non-Graduates 3Strengthening the Birth to Work Pipeline 4What Can We Do? The Economics of Education

Examine the Data for Education in Georgia

Academic Achievement Milestones School Readiness Literacy by 3 rd Grade Numeracy by 8 th Grade High School Graduation Workforce and/or College Ready

Percent of Children Age 3-5 Enrolled in Early Education, 2008 Source: The Annie E. Casey Foundation, KIDS COUNT Data Center. Georgia 63% United States 61%

NAEP th Grade Reading At or Above Basic Source: National Center for Education Statistics Georgia 63% United States 65%

NAEP th Grade Math At or Above Basic Source: National Center for Education Statistics United States 71% Georgia 67%

SAT 2009 Scores – All States Source: College Board, 2009 College-Bound Seniors, State and National Reports. United States 1509 Georgia 1460

SAT 2009 Scores – States with Participation Rate At or Above 25% Source: College Board, 2009 College-Bound Seniors, State and National Reports. United States 1509 Georgia 1460

SAT 2009 Scores – States with Participation Rate At or Above 60% Source: College Board, 2009 College-Bound Seniors, State and National Reports. United States 1509 Georgia 1460

Source: NCES (2010). Public School Graduates and Dropouts: School Year United States 74.9% Georgia 65.4% High School Graduation Rates: State-by-State Rankings

Georgia High School Graduation Rates Source: The Governor’s Office of Student Achievement, State Report Cards. Year High School Graduation Rate Number of High School Non-Grads %29, %28, %27, %23,567 Total109,550

Economic Impact of Georgia Non-Graduates

Education Pays Source: U.S. Bureau of Labor Statistics. Earnings & unemployment for full-time workers age 25 & older, not seasonally adjusted. Data given are 1 st quarter 2010 averages. EDUCATIONAL ATTAINMENT & EMPLOYMENT Unemployment RateApril 2010 Median Wkly Earnings (& approx. annual) 15% 10%5%0% Bachelor’s Degree & Higher $1,140 ($59,280) 8.1 Some college/ Associate Degree $738 ($38,376) 10.5 HS Graduates, No College $624 ($32,448) 14.5 Less than a High School Diploma $448 ($23,296)

Unemployment Rates by Education Level Source: U.S. Bureau of Labor Statistics, February 2010.

Unemployment Rates by County, Feb Source: Georgia Department of Labor

State Service Delivery Regions

Economic Impact of High School Non-Completion How much could YOUR region benefit from this additional income currently being foregone? Source: Isley, P. & Hill, J. “Updated Economic Impact of High School Non-Completion in Georgia: 2005 Estimate,” Georgia Southern University. April *According to GSU study, totals may not add due to rounding. Region 1$2.2 billion Region 2$1.2 billion Region 3$4.2 billion Region 4$1.1 billion Region 5$1.1 billion Region 6$1.0 billion Region 7$1.1 billion Region 8$0.9 billion Region 9$0.9 billion Region 10$2.0 billion Region 11$1.0 billion Region 12$1.1 billion TOTAL$18 billion*

Compounded Impacts of High School Non-Completion Source: Levin, H., et al., (2007). The Costs and Benefits of an Excellent Education for All of America’s Children. INDIVIDUALSTHE COMMUNITY Lower Lifetime Earnings Reduced buying power & tax revenues; less economic growth Decreased health status; Higher mortality rates; More criminal activity Higher health care & criminal justice costs Higher teen pregnancy rates; Single motherhood Higher public services costs Less voting; Less volunteering Low rate of community involvement

Strengthening the Birth to Work Pipeline

KEY ISSUE #1 Early Life Experiences KEY ISSUE #2 Academic Achievement K-12 KEY ISSUE #3 Transitions to Work or College

Family Income Affects School Readiness Source: National Center for Education Statistics. (2004). Early Longitudinal Study, Kindergarten Class of Achievement Gap as Children Enter Kindergarten

Disparities in Early Vocabulary Growth Source: Hart, B. and Risley, T. R. (2003). “The Early Catastrophe: The 30 Million Word Gap by Age 3.” Professional Families 1,116 words Working Class Families 749 words Welfare Families 525 words

Economic Benefits of Early Education: Perry Preschool Study Source: Schweinhart, L.J., et al. (2005). Lifetime effects: The High/Scope Perry Preschool study through age 40.

Economic Benefits of Early Education: Perry Preschool Study Source: Schweinhart, L.J., et al. (2005). Lifetime effects: The High/Scope Perry Preschool study through age 40.

Strengthening the Birth to Work Pipeline KEY ISSUE #2 Academic Achievement K-12

6 th Grade Outcomes Can Predict Failure to Graduate High School Source: Balfanz, R. (2007). Preventing Student Disengagement and Keeping Students on the Graduation Path in Urban Middle-Grades Schools: Early Identification and Effective Intervetions. Flag in Sixth Grade Percent with this flag who… Attended ≤ 80% Failed Math Course Failed English Course Suspended Out of School Un- satisfactory Behavior Graduated on time Did not graduate

Cost of Student Retention in Georgia 61,642X$8,909= More than $549 million Georgia students retained in 2009 Average annual cost of education per student Total cost of student retention in 2009 for Georgia Source: Georgia Department of Education; Partnership Calculation. *For assistance in calculating the cost of retention in your local system, contact the Georgia Partnership. Example for Fulton County School System*: 2,824X$9,594=$27,093,456

Essential Building Blocks of High Performing States Higher Standards Rigorous Curriculum Clear Accountability System Statewide Student Information System Leadership Training

3 rd Grade Reading Achievement in Georgia: Closing the Gaps Source: Georgia Department of Education. % of Students Meeting or Exceeding Standards

8 th Grade Math Achievement in Georgia: Closing the Gaps Source: Georgia Department of Education. % of Students Meeting or Exceeding Standards

High School Graduation Rates in Georgia: Closing the Gaps Source: Georgia Department of Education.

Strengthening the Birth to Work Pipeline KEY ISSUE #3 Transitions to Work or College

Source: U.S. Department of Labor. Bureau of Labor Statistics The Demands of America’s New Economy The number of jobs for workers with a bachelor’s degree or higher will increase from 38 million in 2006 to 43 million by 2016 – a growth rate of nearly 15 percent. 12 of the 20 fastest growing occupations require an associate degree or higher.

Are They College Ready? Source: Nat’l Center for Education Statistics. “The Condition of Education: Student Effort & Educational Progress.” 2004 Educational Attainment of Remedial Coursetakers

Source: College Board, “The 6 th Annual A.P. Report to the Nation: Georgia Supplement,” Participation & Performance in AP Courses

Source: National Skills Coalition, “The Issues.” Middle-Skills Gap Between Jobs & Workers Persistent shortages of middle-skill workers inhibit industry growth and U.S. competitiveness

What Can We Do?

Aligning Educational Strategies Aligned Acts of Improvement Random Acts of Improvement GOALS

Insulating the Birth to Work Pipeline LEARNING & SOCIAL SUPPORTS Childcare Providers Afterschool Programs Academic Supports Job Training Civic Opportunities EarlyChildhood K – 12 System PostSecondary Work &Career ESSENTIAL COMMUNITY SERVICES Transportation Health Housing Financial Source: The Forum for Youth Investment

Education in Georgia: Past, Present, Future

PAST Milestones in Georgia education policy PRESENT Portrait of our schools & students today FUTURE Dynamic forces impacting education EDUCATION IN GEORGIA

Through the Lens of Students in the Class of 2012:

Starting PreK today at a Georgia public PreK program!

According to a new federal law, all my teachers must be highly qualified.

All students in my school and system are taking a new test, the CRCT, this year.

My friend failed the 5 th grade CRCT. He’s not being promoted to 6 th grade with the rest of us.

We are learning a new curriculum in most grades & subjects. I met with the new graduation coach today.

Starting high school! The state made some policy changes. I’ll have to take 4 years of math and science to earn my diploma.

My friend enrolled in a private school this year after her family received a state voucher.

Starting my junior year. At my school, 18 teachers lost their jobs. I can no longer take AP Physics. The state cannot fund my PSAT.

PRESENT Portrait of our schools & students today EDUCATION IN GEORGIA

Georgia Enrollment by School Type Source: Georgia Department of Education Enrollment Reports Home Schools 2.2% Private Schools 6.0% Public Schools 91.8%

Changing Face of Georgia’s Public Schools Source: Governor’s Office of Student Achievement. Note: Graph shows selected race categories; totals for each year may not add to 100.

Rise in Low-Income Student Population Source: Governor’s Office of Student Achievement. Graph shows every other year.

FUTURE Dynamic forces impacting education EDUCATION IN GEORGIA

Budget: The Grim Reality 2/2009 Stimulus bill provides $100 billion for education “Very likely” the recession has ended 10/2009 4/ st monthly increase in GA state revenue since 11/08 U.S. recession begins 12/2007 At least 30 states & DC have cut education spending Today

Budget: The Grim Reality

GA Public School Revenue by Source, FY09 Source: Georgia Department of Education. “Local, State, and Federal Revenue Report.”

GA’s Public Schools: Change in Revenue Source Over Time STATE LOCAL FEDERAL Source: Georgia Department of Education Revenue Reports.

Reductions in State Education Funds Source: Georgia Department of Education; Governor’s Office of Planning & Budget.

Georgia’s Race to the Top $4.35 billion competitive grant fund Largest amount of discretionary funding for K-12 education reform in history Phase 1 winners: Tennessee ($500 mil) & Delaware ($100 mil) Applications for Phase 2 due June 1

Race to the Top: Phase 1 Results StateRank Final Score (Out of 500) Delaware Tennessee Georgia Florida Illinois5423.8

Georgia’s RTTT: Scores by Category SELECTION CRITERIA Points Possible Points Awarded State Success Factors Standards & Assessments Data Systems to Support Instruction Great Teachers & Leaders Turning Around Lowest-Performing Schools General5550 Emphasis on STEM15 TOTAL

Standards & Assessments Students with similar academic skills, but residing in different states, are being educated to different standards and held to different expectations for success in reading and mathematics. Source: National Center for Education Statistics.

Standards & Assessments 2004: Georgia Performance Standards adoption began 2010: Adoption of Common Core Standards (July: Item for GA State Board Action) 2011: Implementation of CCS in classrooms

Standards & Assessments  What more does Georgia need?  At what cost?  For what purpose?

Great Teachers & Leaders A well-qualified highly-effective teacher workforce is the single most influential school-based factor for improving student achievement.

Great Teachers & Leaders 2009: House Bill 280 (math/science salary supplements) 2009: House Bill 455 (unused leadership degrees) 2009: $3.5 million Transition to Teaching Grant

Turning Around Schools  5 % of America’s public schools are on track for Restructuring  2,000 high schools produce half of America’s dropouts  In 2009, 14 % of Georgia’s schools failed to make AYP

Turning Around Schools Of these: 119 are NI-3 or above 45 are NI-5 or above Of these 45: 40 are Title I Georgia Public Schools in Needs Improvement

Turning Around Schools Turnaround ModelRestart Model Transformation ModelSchool Closure

A shifting landscape, but an unchanging goal: What do we need to get there? Access for all youth to high-quality public schools that provide the opportunity for obtaining a meaningful diploma.

Who Decides What? The Changing Dynamics of School Governance

The Shifting Roles Local role has shrunk considerably as the state and federal roles have expanded Expectations of local boards changed as a result –From ensuring compliance with rules and regulations to –Implementing standards-based accountability and –Performance-based management for all

Federal Role The federal role in education has changed dramatically Three general philosophies of federal role –Funder –Enforcer –Influencer

Take the money and do good First Elementary and Secondary Act (ESEA) 1965 Created Title I funding for poor students

Take the money and do as I say Improving America’s School Act (1994 ESEA) added requirements Adequate yearly progress (AYP) Standards Assessments No Child Left Behind (2002 ESEA) added consequences

If you want the money… Competitive grants to states and districts Charter school funding Reauthorization expected to reflect lessons learned

State and Local Role Ideally partnersSometimes critics

Defining “State” State role is played by several entities: –Governor –General Assembly –State Board –Office of Student Achievement –Professional Standards Commission

State Role Big picture level It defines the “what” –Statewide standards –Minimum graduation requirements Monitors Progress Provides targeted assistance Defines consequences for not meeting standards

Local Role Ground zero Elected board appoints and evaluates Superintendent It defines the “how” –Develops strategic plan to meet state standards –Ensures regular review of progress toward goals –Sets calendar based on instructional needs –Can add requirements to state minimums