FIFTH EDITION THE ECONOMICS OF1hlp161d4zqn27aufu3ikxut-wpengine.netdna-ssl.com/wp...Between January...

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THE ECONOMICS OF FIFTH EDITION

Transcript of FIFTH EDITION THE ECONOMICS OF1hlp161d4zqn27aufu3ikxut-wpengine.netdna-ssl.com/wp...Between January...

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THE ECONOMICS OFF I FTH ED IT ION

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EDUCATION I S KEY TO GEORGIA’S

ECONOMIC GROWTH AND PROSPERITY

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In 2004, the Georgia Partnership for Excellence in Education and Georgia Chamber of Commerce combinedefforts for the inaugural report, the Economics of Education, which identified key education issues related tobuilding a robust economy for the state.

Today, the core message of that first report is more critical than ever:

It’s clear from the data that economic prosperity in an increasingly competitive national and global environmentdepends in large part on Georgia’s education system.

Ultimately, whether that system is successful is not up to state leaders alone. Businesses need to join the effort tomake Georgia a model for excellent education, along with a variety of nonprofit institutions and organizations.

Perhaps most importantly, individuals need to work together to help strengthen local schools in order to assurethe vitality of their communities.

When everyone plays a part in whatever way they can, the future economy of Georgia and the citizens of thestate will reach their full potential.

“Investing in public education is essential to future economic success for individuals, communities, businesses, and the state.”

1

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THE CONTEXT –

GEORGIA’S ECONOMIC FUTURE

2

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EarlyChildhood

Post-Secondary

Work andCareer

K-12System

HealthyBirths

StrongFamilies

SuccessfulAdult

HealthyCommunity

THE HEALTHY ECONOMIC LIFECYCLE

� A healthy birth supports preparation for strong early learning and K-12 experiences, which in turn supports. . .

� Successful transitions to post-secondary education and a career.

� With the ability to earn proper wages, successful adults build strong families and make investments in their communities, thereby. . .

� Providing more opportunities and increasing the probability that the next generation will be even more successful.

In terms of economic well-being and growth:

THE HEALTHY ECONOMIC LIFECYCLE

3

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GEORGIA’S ECONOMIC OUTLOOK

Polk

� 2016-26: 87 counties are projected to lose jobs

� 75% of the 352,000 jobs projected to be addedwill be located in the Metro-Atlanta area

� Only 8% of new jobs will be located in ruralGeorgia counties, lower than their expectedpopulation growth of 15%

Compiled by Georgia Chamber of Commerce 2030, JobsEQ Analysis

* Hub is a county with more than 65,000 jobs.

U.S. ...................6.5%

GA.....................7.6%

Atlanta ............11.6%

Hub* .................9.4%

Rural .................1.6%

Growth

Minimal Growth

Loss

4

Job Growth 2016-2026

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CURRENT ADULT POPULATION – Critical Factors Impacting Economic Investment and Growth

Polk Polk

Less than 20%

20% to 25%

Greater than 25%

Less than 35%

35% to 45%

Greater than 45%

5

Adults Without a High School Diploma Adults Not Working, Ages 25-64

U.S. .................13.3%

GA...................14.6%

Atlanta ............10.8%

Hub.................14.1%

Rural ...............19.0%

STATE RANK.....41

U.S. .................28.2%

GA...................30.8%

Atlanta ............26.1%

Hub.................32.9%

Rural ...............35.7%

STATE RANK.....40

Compiled by Georgia Chamber of Commerce 2030, ACS 2015 5-Year estimates

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GEORGIA’S ECONOMIC DEVELOPMENT PLANS

6

The High Demand Career Initiative (HDCI), established by Governor Nathan Deal to address Georgia’s future workforce challenges and solutions, surveyed employers across Georgia regarding the workforce issues they are facing and the ones they foresee in thefuture. The employers focused on critical need areas.1 Some examples:

1. Introducing STEM at a Younger Age Employers reported that science, technology, engineering, and mathematics (STEM) career fields need to be introduced to studentsat a younger age as a key part of the curriculum. Educators can play a large role in the appeal of STEM fields to young students.

2. Shortage of Local Skilled Trades Workers Employers conveyed interest in talent from Georgia for their openings but stated they are forced to recruit from out-of-state. This was expressed across many of the industries, but it was especially prevalent in the industries that require skilled workers, such asmanufacturing and entertainment.

1 For a full list of findings, see: http://www.georgia.org/wp-content/uploads/2014/04/HDCI-Report.pdf

4,569,058

2015 2025

New: 387,086

Replacement:1,151,228

JOB CHANGE 2015-2025 TOP GROWING INDUSTRY SECTORS

Compiled by Georgia Chamber of Commerce 2030, JobsEQ Analysis

HEALTHCARE

+109,357 Jobs+19%

PROFESSIONAL,SCIENTIFIC, TECH

+51,461 Jobs+17%

2015-2025 PROJECTIONS

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THE TALENT GAP

7

� From 2010 to 2015, Georgia employer job postings grew 154%, compared to 142% growth nationally.2

� Between January 2011 and December 2014, Georgia added nearly 400,000 new private sector jobs.3

� However, even with the growth in jobs statewide, in March 2017 Georgia had the 7th highest unemployment rate of any state in the United States.

� While Georgia is experiencing an increasing number of jobs, a significant number of potential workers are reporting they are unemployed or underemployed.

Georgia is experiencing a talent gap. This talent gap is a mismatch between degreesand skills needed by employers versus the degrees and skills of the population.

� 60% of job postings require at least an associate’s degree.

� Approximately 38% of Georgia’s adult population has at least that level of education.4

Georgia’s current pipeline of future employees does not meet the need set by thestate’s economic development plans.

2 Metro Atlanta Chamber of Commerce. (2016). Georgia - Your Talent Your Future, Educators and Policy Makers Report. Atlanta: Metro Atlanta Chamber.

3 Hunt, A. (2015, February 3). Claims About Job Creation under Deal Accurate. Politifact Georgia.

4 Carnathan, M. (2016, October 12). Georgia and Metro Atlanta Demographics and Education. Education Policy Fellows Monthly Colloquium Presentation. Atlanta, GA: Atlanta Regional Commission.

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THE PROBLEM –

BARRIERS TO ECONOMIC SUCCESS

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HealthyBirths

StrongFamilies

SuccessfulAdult

HealthyCommunity

THE POVERTY LIFECYCLE

When students and individuals do not successfully complete the K-12 system and move on to post-secondaryeducation, their own economic trajectory is compromised. When enough people within a concentrated area fallout of the healthy economic lifecycle, the prosperity of their neighborhood, community, and state are also at risk.Thus, it is less likely the next generation of children will realize success, creating intergenerational poverty.

SchoolDropout

Low Birth Weight

EarlyChildhood

Post-Secondary

Work andCareer

K-12System

Higher Unemployment

Lower Income

Less Health Insurance

Less Home Ownership

ImpoverishedCommunities

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THE POVERTYLIFECYCLE

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POVERTY BY EDUCATIONAL ATTAINMENT

10

35%

30%

25%

20%

15%

10%

5%

0%Less than High School

Graduate

28.9%

High School Graduate(Includes Equivalency)

16.3%

Some College orAssociate’s Degree

Bachelor's or Higher

11.2%

4.9%

Compiled by Cross Channel Initiatives from 2015 American Community Survey data.

POVERTY RATES IN GEORGIA FOR POPULATION 25 YEARS AND OLDERBY LEVEL OF EDUCATIONAL ATTAINMENT

Nearly 1 in 3 Georgians age 25 and older whonever finished high school lived in poverty in thepast 12 months compared to only 1 in 20 living inpoverty who have a bachelor’s degree or higher.

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POVERTY IN GEORGIA

11

Polk Polk

Less than 20%

20% to 25%

Greater than 25%

Less than 20%

20% to 25%

Greater than 25%

All Ages Under 18 Population

U.S. .................15.5%

GA...................18.4%

Atlanta ............15.4%

Hub.................21.1%

Rural ...............20.7%

STATE RANK.....40

U.S. .................21.7%

GA...................26.0%

Atlanta ............22.3%

Hub.................30.5%

Rural ...............28.8%

STATE RANK.....43

59 of Georgia’s 159 counties have greater than 25% poverty � Lowest Poverty Rate – Forsyth and Oconee (7%) � Highest Poverty Rate – Calhoun and Clay – 42% of the residents are below the official poverty threshold

Story worse when we look at children living in poverty � 112 of Georgia counties have 25% or HIGHER of children living in poverty � Highest rate is Stewart, where 525 out of 850 children are in poverty � Terrell has 1,344 of its 2,257 children in poverty – 60%

ACS 2015 5-year estimates/Kids Counts Data Center

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GROWING PERCENTAGE OF GEORGIA’S POPULATION IS LIVING IN POVERTY

12

30%

25%

20%

15%

10%

5%

0%% Total Population

13%

18%

% Children

20%

2008 2015

Among all persons living in poverty, Georgia was:

15th highest in the nation in 2008

10th highest in the nation in 2015

Among children living in poverty, Georgia was:

15th highest in the nation in 2008

9th highest in the nation in 2015

Source: ACS 2015 5-year estimates

Impact of Children Living in Poverty � Children born into the bottom fifth of the income distribution

have a 40% chance of remaining there into adulthood.5

� A child raised by a poor, single mother has a 50% risk of

remaining poor, and that percent rises to nearly 60% if that

child does not finish high school.

� The odds of working out of poverty are also complicated by

factors of race, with the contrast particularly stark between

African American and white children.

� Over half (51%) of all African American children born into the

lowest income strata remain there, as opposed to just 23% of

their white counterparts.6

5 Reeves, R. (2014). Saving Horatio Alger – Equality, Opportunity, and the American Dream. The Brookings Essay. Washington, DC: The Brookings Institution.

6 Ibid.

26%

% Georgia Population Living in Poverty

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THE BENEFITS OF EDUCATION FOR STUDENTS, FAMILIES, AND COMMUNITIES

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The impacts of not completing high school versus going on to sometype of post-secondary education compound, and ultimately affect theirability to earn a living, and the prospects of prosperity and vitality oftheir community.

Educational Attainment and Employment2.4%

3.8%

4.6%

6.4%

Unemployment Rate*

$66,560

$41,123

$36.504

$26,624

Approx. Annual Earnings**

Bachelor’s Degree & Higher

Some College/Associate’s Degree

HS Graduate, No College

Less than a HS Diploma

June 2017

Source: * U.S. Bureau of Labor Statistics Table A-4. Employment status of the civilianpopulation 25 years and over by educational attainment.** U.S. Bureau of Labor Statistics Table 5. Quartiles of usual weekly earnings of full-timewage and salary workers.

Compounded Impacts of High School Non-CompletionsINDIVIDUALS THE COMMUNITY

Lower lifetime earningsReduced buying power and tax revenues;Less economic growth

Decreased health status; Highermortality rates; More criminal activity Higher health care and criminal justice costs

Higher teen pregnancy rates;Single motherhood Higher public services costs

Less voting; Less volunteering Low rate of community involvement

Source: Levin, H., et al. (2007) The Costs and Benefits of an Excellent Education for All ofAmerica’s Children.

Successfully completing high school and some form of post-secondary education, and engaging in the healthy economiclifecycle, all benefit individuals and their families. These individualbenefits then add to the health of the communities in which theylive and ultimately accrue benefits across the state.

Source: Alliance for Excellent Education’s “The Graduation Effect,” withsupport from State Farm; http://impact.all4ed.org/

Annual EarningsIncrease

$400Million

State/Local Tax

Revenue Increase

$39Million

Annual Gross State Product

Increase

$600Million

Home SalesIncrease

$700Million

Annual SpendingIncrease

$300Million

AutoSales

Increase

$44Million

Federal Tax Revenue Increase

$65Million

New Jobs

3,850

If the graduation

rate of the Class of 2013 had been

90%(37,650 more graduates)...

The Economic Benefits of Increasing the High SchoolGraduation Rate for Public School Students in Georgia

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FACTORS IN BREAKING THE POVERTY CYCLE –

THE DEVELOPING WORKFORCE

14

JOBS

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GEORGIA’S DEVELOPING WORKFORCE

15

A strong educational system is a necessary component to support the state’s economic vision. The success of our publiceducation system is a leading indicator of Georgia’s economic and social success. To accurately monitor how well Georgia’sfuture workforce is being prepared, multiple milestones must be met along the entire birth-to-work pipeline.

READY FORKINDERGARTENHealthy Births

High Quality Early Learning

K-12Literacy by 3rd Grade

Numeracy by 8th GradeHigh SchoolGraduation

POST-SECONDARYCredential Completion

2- and 4-year Completion

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READY FOR KINDERGARTEN

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Nothing is more foundational to a child’s success than entering the world healthy and on time. Being bornprematurely increases a child’s risk of morbidity, developmental delays, intellectual deficits, and academic difficulties.Prematurity rate is a leading indicator of maternal and child health in a given population.

Per 1,000 Births: Infants Born Preterm (<37 weeks)Average medical

costs for healthy baby

$4,389

Average medicalcosts for

premature baby

$54,194

10%of births inGeorgia arepreterm

0 to <87.387.3 to <101.1101.1 to <116.3116.3 to <135.1135.1 to <285.7

Source: Get Georgia Reading – Georgia Campaign for Grade Level

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READY FOR KINDERGARTEN

17

Polk

Quality Rated status and facility locations are current as of May 1, 2017

Source: Georgia Department of Early Care and Learning

* Participating facilities are eligible programs that are in process of receiving a star rating.

One key element for kindergarten readiness is participation in a high quality early learning program. Quality Rated was launched inJanuary 2012 and uses 1, 2, and 3 stars to indicate programs that meet defined quality standards beyond state licensing requirements.

1 Star (476)2 Star (598)3 Star (197)

0% (5)

1% – 25% (4)

26% – 50% (52)

51% – 75% (70)

76% – 99% (18)

100% (10)

75% or more Rated (4)

QUALITY RATING

% OF ELIGIBLE PROGRAMSIN A COUNTY PARTICIPATINGIN QUALITY RATED

Georgia Quality Rated � 5,008 Total Eligible Facilities

� 2,884 Total Participating Facilities (58%)*

� 1,271 Total Star Rated Facilities (25%)

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K-12

18

NAEP 4th Grade Reading - % At or Above Proficient NAEP 8th Grade Math - % At or Above Proficient

20th State

U.S.

Georgia

The National Assessment of Educational Progress (NAEP)* is the only nationally representative and continuing assessmentof what America’s students know and can do in various subject areas.

Source: National Assessment of Educational Progress

* NAEP is considered the ‘Nation’s Report Card, because it provides a common measure that allows for comparisons of achievement to the nation and among states.It is administered in the 4th and 8th grades every two years.

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GEORGIA ACHIEVEMENT GAPS BY RACE AND INCOME

19

State Average 35% 31%

IINCOME

RACE/ ETHNICITY

17%Economically Disadvantaged 22% Not Economically Disadvantaged 58% 50%

46% 44%22% 14%

White African American Hispanic 26% 23%

Georgia Achievement Gaps by Race and Income

Source: National Assessment of Educational Progress

2017 4th Grade Georgia NAEP

Reading - % At or Above Proficient

2017 8th Grade Georgia NAEP Math - % At or

Above Proficient

In Georgia, as in the rest of the nation, poor and minority students are less likely to read ongrade level by 3rd grade and be proficient in math by 8th grade.

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GEORGIA’S 4-YEAR ON-TIME HIGH SCHOOL GRADUATION RATE TRENDS

20

Georgia’s overall graduation rate has shown improvement over time, and minority and low-income students are closingthe gap in high school graduation rates. However, if Georgia’s fastest growing sub-groups (Hispanic and low-income) aregraduating at lower rates than the state average, it will be difficult to continue to increase the percentage of graduatesprepared to enter post-secondary education or the workforce.

80%

75%

70%

65%

60%

55% 2012 2013 2014 2015 2016

Source: Governor’s Office of Student Achievement K-12 Public Schools Report Cards

All Students African American Hispanic Low-Income

Georgia High School Graduation Rates, 2012-2016

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POST-SECONDARY

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Levels of Education for Georgia Residents, Ages 25-647

Highest Post-Secondary Credential Earned Five Years After HS Graduation

5% – Associate’s1% – Other Credential

20% – Bachelor’s

2% – Certificate

18% – No Post-SecondaryCredential/Not Enrolled

54% – No Post-SecondaryCredential/Currently Enrolled

TOTAL5,327,538

Less than 9th grade 233,001 4.37%

9th to 12th grade, no diploma 451,780 8.48%

High school graduate (including equivalency) 1,456,675 27.34%

Some college, no degree 1,159,688 21.77%

Associate’s degree 405,927 7.62%

Bachelor’s degree 1,034,598 19.42%

Graduate or professional degree 585,869 11.00%

Estimatedattainment ofcertificates:

8%

Source: U.S. Census Bureau, 2014 American Community Survey

Note: The accompanying pie chart does not account forresidents who have earned high-value post-secondarycertificates. The percentage above – admittedly, anestimate – aims to fill that gap. To calculate thispercentage, labor market experts at the GeorgetownUniversity Center on Education and the Workforce usedSurvey of Income Program Participation 2008 Wave 12data (2012) and data from the Integrated PostsecondaryEducation Data System (IPEDS) 2014.

Source: Governor’s Office of Student Achievement – High School Graduate Outcomes Report

To meet its economicdevelopment needs,

Georgia has set a goal toincrease the number of

post-secondary graduates by

250,000 by the year 2025.

Examining Post-Secondary Trends

� The college enrollment rateamong those who graduatedhigh school in 2010 was nearly70%.8

� Five years after graduation, 72% did not have any post-secondary credential ordegree.

7 Lumina Foundation. (2016). A Stronger Nation – Georgia. Indianapolis: The Lumina Foundation.8 Governor's Office of Student Achievement. (2016, November 2). High School Graduate Outcomes Report. Retrieved from State Education Data.

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SUPPORTING THE FACTORS –

STRENGTHENING THE BIRTH-TO-WORK PIPELINE

22

Best practice research shows that high performing states and nations all have some essential elements in place that support and strengthenthe birth-to-work pipeline. While there is considerable variability in many approaches to the details of education policy and workforcedevelopment strategies (depending on a state’s demographic make-up, population needs, economic priorities, natural resources, etc.), thestates that produce the highest performing students all have these basic elements, or building blocks, in common.

FOUNDATIONS FOR LEARNING

QUALITY TEACHING

QUALITY LEADERSHIP

ADVANCED INSTRUCTIONAL SYSTEMS

PATHWAYS TO POST-SECONDARY SUCCESS

SUPPORTIVE LEARNING ENVIRONMENTS

ADEQUATE AND EQUITABLE FUNDING

� Supports for healthy births� Supports for families with young children

� Recruitment� Retention

� School level � District level

� High standards� Aligned assessments

� Career Tech� Move on When Ready/Dual Enrollment

� School climate� Social-emotional learning� Out-of-school time

� Sufficient funding and resources� Targeted to close achievement gaps

� Quality early learning experiences

� Professional development and support� Compensation

� State level

� Innovation and technology� Personalized instruction

� AP/ IB� Post-secondary supports

� Engaged communities� Child physical and mental health

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WHAT CAN YOU DO?

COMMUNITY SUPPORT FOR SCHOOLIMPROVEMENT AND ECONOMIC INVESTMENTS

LEARNING AND SOCIAL SUPPORTS

ESSENTIAL COMMUNITY SERVICES

Childcare Providers Afterschool Programs Community Engagement Academic Support Job Training

Transportation Health Housing Financial

EarlyChildhood

Post-Secondary

Work andCareer

K-12System

HOW WILL YOU INSULATE THE BIRTH-TO-WORK PIPELINE?

Communities can study their local data, do a root cause analysis around areas where theyare weak, and formulate a strategic plan to insulate the pipeline.

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20

Interested in developing a community action plan to support improvement initiatives?It is difficult for a school to outperform its community. What can you do to help your school, your community, and the future workforce?

� The Georgia Partnership for Excellence in Education seeks to encourage and assist communities as they develop and implement plans to support their schools’ improvement efforts.

� Share this report and help share the message that economic prosperity depends directly oneducation quality and the vitality of local schools.

� Get involved with your local chambers of commerce, local government officials, and local schools to see how you can help. Reach out and play an active role in helping improve and strengtheneducation where you live.

� The data in this report are a snapshot in time. Visit www.gpee.org to download the most currentinformation as well as examples of other communities’ educational improvement initiatives across Georgia.

� Invite Georgia Partnership staff to visit with you and your community’s business and civic leaders toexplore what the situation looks like where you live and what can be done to help your local schools.

It’s time for communities across Georgia to convene...connect...commit to helping improve our schools andensure a successful future for our young people.

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270 Peachtree Street, Suite 2200 Atlanta, Georgia 30303404-223-2280 | www.gpee.org