Greater Cleveland’s Economy and a Skilled Workforce Raymond Hart

Seminar Overview Skilled Workforce Need Skilled Workforce Need Economic Growth Indicators Economic Growth Indicators Adult Education Cost-Benefits Analysis Adult Education Cost-Benefits Analysis Economic Impact of Adult Education Programs Economic Impact of Adult Education Programs Questions & Answers Questions & Answers

Skilled Workforce Need 34.1% of tested applicants lacked basic skills needed for job performance 34.1% of tested applicants lacked basic skills needed for job performance 84.6% of testing firms did not hire skill- deficient applicants 84.6% of testing firms did not hire skill- deficient applicants 3.5% hired skill-deficient applicants and provided/assigned remedial training 3.5% hired skill-deficient applicants and provided/assigned remedial training 3% hired skill-deficient applicants and recommended voluntary training 3% hired skill-deficient applicants and recommended voluntary training 8.2% Other 8.2% Other Source: American Management Association, American Management Association Research Survey: Corporate Concerns. American Management Association, New York, 2001 as cited in the National Institute for Literacy Workforce Education Fact Sheet retrieved June 2, Web site:

Skilled Workforce Need 51.8% Cleveland Municipal School District students currently graduate 51.8% Cleveland Municipal School District students currently graduate Cleveland currently 82 of 86 large cities in economic growth (Inc.com report of Bureau of Labor and Statistics Data, Cleveland currently 82 of 86 large cities in economic growth (Inc.com report of Bureau of Labor and Statistics Data, 14.3% of Cleveland residents 25 and over hold a Bachelor’s Degree Completion (Rank 65 of 68) 14.3% of Cleveland residents 25 and over hold a Bachelor’s Degree Completion (Rank 65 of 68) 73.3% of Cleveland residents 25 and over hold a high school diploma (Rank 58 of 68) 73.3% of Cleveland residents 25 and over hold a high school diploma (Rank 58 of 68) * Source: 2007 analysis of Bureau of Labor and Statistics data retrieved June 2, 2007 from Inc.com. Web site: **Source: U.S. Census Bureau, American Community Survey 2003

Income Gains by Education Level Lifetime difference in earnings between a high school dropout and high school graduate: $260,000. Lifetime difference in earnings between a high school dropout and high school graduate: $260,000. Difference in state and federal income tax contribution: $60,000. Difference in state and federal income tax contribution: $60,000. Difference in local income tax contribution Difference in local income tax contribution (assuming 2.5%) : $6500. (assuming 2.5%) : $6500. Rouse, C.E. (2005 October). The labor market consequences of an inadequate education. In H.M. Levin (Chair). The social costs of inadequate education. Symposium conducted at the meeting of the Campaign for Educational Equity at the Teachers College, Columbia University.

Reduction in Public Costs by Education Level Lifetime difference in public costs between a high school dropout and high school graduate (or equivalent): $127,000. Lifetime difference in public costs between a high school dropout and high school graduate (or equivalent): $127,000. Levin, H., Belfield, C., Muennig, P., & Rouse, C. (2007 January). The costs and benefits of an excellent education for all of America’s children. Retrieved June 2, 2007, from Center for Benefit-Cost Studies of Education at Teachers College, Columbia University. Web site:

Financial Impact of Adult Education Program on Anytown, USA GED Program Graduation GED Program Graduation –43 GED graduates $16,641,000 million in lifetime earned income $16,641,000 million in lifetime earned income $2,580,000 million in lifetime federal and state taxes $2,580,000 million in lifetime federal and state taxes $279,500 in local taxes $279,500 in local taxes Total almost $20 million improvement in the lives of students and the community in one year Total almost $20 million improvement in the lives of students and the community in one year

Questions, Answers, & Discussion Thank You Contact:Raymond Hart 526 West Aurora Road, #129 Sagamore Hills, OH Phone: (330) Fax: (216)