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Pennsylvania’s Best Investment:The Social and Economic Benefits
of Public EducationDavid Baker, Ph.D. Professor of EducationPennsylvania State University
Baruch Kintisch. J.D. Staff AttorneyEducation Law Center
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Contact information:
David Baker, Ph.D. Baruch Kintisch, J.D.Professor of Education Staff AttorneyPennsylvania State University Education Law Center310A Rackley 1315 Walnut Street, #400University Park, PA 16802 Philadelphia, PA 19107(814) 863-0955 215-238-6970, ext. [email protected] [email protected]
THE FULL REPORT WITH CITATIONS IS AVAILABLE ON LINE AT
www.elc-pa.org
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THREE FUNDAMENTAL QUESTIONS
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Q: How much is (or should be) invested in public education?
THREE FUNDAMENTAL QUESTIONS
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Q: How much is (or should be) invested in public education?
Q: What are the potential benefits of this investment?
THREE FUNDAMENTAL QUESTIONS
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Q: How much is (or should be) invested in public education?
Q: What are the potential benefits of this investment?
Q: Are these benefits actually realized?
THREE FUNDAMENTAL QUESTIONS
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Public education is the biggest
initiative undertaken by
many governments around the world.
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• Developed nations around the world invest an average of ____ of their gross domestic product (GDP) in systems of public schooling.
Public education is the biggest initiative.
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• Developed nations around the world invest an average of 5.1% of their gross domestic product (GDP) in systems of public schooling.
Public education is the biggest initiative.
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• In the United States, _____ percent of GDP is invested in public education.
Public education is the biggest initiative.
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• In the United States, 3.9% percent of GDP is invested in public education.
Public education is the biggest initiative.
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• State governments in the U.S. contribute an average of _____ of this overall cost.
Public education is the biggest initiative.
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• State governments in the U.S. contribute an average of 47% of this overall cost.
Public education is the biggest initiative.
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• State government in Pennsylvania contributes 35.3% of the overall cost of public education.
Public education is the biggest initiative.
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• The 2007 Costing-out Study commissioned by the General Assembly found that the state should raise its investment in public education by $4.3 billion.
Public education is the biggest initiative.
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Pennsylvania Public Education Costs (2005-06) (Data from Pa. Dept. of Ed.)
Contrary to common expectations, most funding for public education comes from local sources.
Total annual costs from all sources = $20.96 billion
From local revenue sources = $12.39 billion (59.1% of total)
From state revenue sources = $ 7.41 billion (35.3% of total)
From federal revenue sources = $ 0.86 billion (4.1% of total)
From other sources = $ 0.30 billion (1.4% of total)
Public education is the biggest initiative.
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What is the purpose of public education?
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• Education is primarily a way to train children in the skills they will need as adults to find good jobs and live well.
What is the purpose of public education?
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• Education also has broader social and economic benefits for individuals, families, and society at large.
What is the purpose of public education?
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• Benefits are received even by people whose relationship to public schools does not extend beyond “taxpayer.”
What is the purpose of public education?
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• Education serves a vitally important role as a long-term investment in a strong labor force, strong families and strong, safe, and healthy communities.
What is the purpose of public education?
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Social and economic benefits of public education include:
• _____________• _____________• _____________• _____________• _____________• _____________• _____________
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The Efficacy of Education – How it Works
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• PREMISE: Schools produce broad social and economic gains through the education of individual children.
The Efficacy of Education
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• The fundamental outcome desired for education is that it will pass on to each child the information and skills they will use throughout their lifetime.
The Efficacy of Education
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• Schooling increases the facts known and understood by students in academic subjects.
• More importantly, education improves decision-making ability and reasoning skills.
The Efficacy of Education
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• The cumulative impact of these academic benefits helps individuals to have more options for and to make better decisions about their lives.
The Efficacy of Education
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• Improved options and decision-making include better choices about work, better risk assessment concerning deviant or criminal behavior, and better personal health choices.
The Efficacy of Education
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• Thus, the cognitive-intellectual gains that children and youth make in school contribute to the social and economic benefits derived from education for all members of society.
The Efficacy of Education
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• As economist Milton Friedman wrote, “the education of my child contributes to other people’s welfare by promoting a stable and democratic society”.
The Efficacy of Education
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Education and Employment
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• The expansion of universal high school education in the U.S. between 1915 and the 1950s explains beyond any other factor the economic dominance of the U.S. in the 20th century.
Education and Employment
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• High school dropouts are more than twice as likely to be unemployed than people who have attended college.
Education and Employment
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• The ripple effect of dropouts costs the nation billions of dollars in lost tax revenue and in welfare, unemployment, and crime prevention programs.
Education and Employment
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• From a national perspective, decreasing the number of high school dropouts by half would produce $45 billion per year in net economic benefit to society.
Education and Employment
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• For example, when the benefits of increased tax revenue are added to reduced welfare spending, investment in quality pre-kindergarten programs return up to $17 for every dollar spent.
Education and Employment
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Education and Employment U.S. Unemployment Rates by Educational
Attainment (Jan. 2008)
Unemployment is much higher for students not completing high school.
U.S. overall 4.9 %
High school dropouts 7.7 %
High school graduates 4.6 %
Some college 3.6 %
College graduates 2.1 %
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Education and Crime
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• Education provides the best opportunity to reduce crime and its cost to society by helping children to gain knowledge, skills, and character that help them avoid criminal activity.
Education and Crime
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• The lack of quality education or incomplete education are major contributors to unemployment, crime, and incarceration.
Education and Crime
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• The overall “price tag” for crime includes:
Education and Crime
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• The overall “price tag” for crime includes:
oTangible and intangible costs to victims
Education and Crime
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• The overall “price tag” for crime includes:o Tangible and intangible costs to victims
oCourt costs associated with the prosecution of crime
Education and Crime
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• The overall “price tag” for crime includes:o Tangible and intangible costs to victimso Court costs associated with the prosecution of crime
oCosts of incarceration (infrastructure, staff, housing and food, counseling, prisoner education programs)
Education and Crime
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• The overall “price tag” for crime includes:o Tangible and intangible costs to victimso Court costs associated with the prosecution of crimeo Costs of incarceration (infrastructure, staff, housing and food,
counseling, prisoner education programs)
oIndirect economic costs associated with productivity and wages lost to both victims and offenders
Education and Crime
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• The overall “price tag” for crime includes:o Tangible and intangible costs to victimso Court costs associated with the prosecution of crimeo Costs of incarceration (infrastructure, staff, housing and food,
counseling, prisoner education programs)o Indirect economic costs associated with productivity and wages lost to
both victims and offenders
oDecreased opportunities available to those with a prison record
Education and Crime
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• The National Institute of Justice estimates that these costs total $450 billion annually, or $1,800 for each U.S. resident.
Education and Crime
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• Roughly 41% of all federal, state, and local prisoners in 1997 had not completed high school or received a GED, while that was true of only 18% of the general population age 18 or older.
Education and Crime
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• The main reasons that well-educated people are less likely to engage in criminal activity are related to their employment status and their perception of their own employability.
Education and Crime
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• Studies have found significant connections between graduation rates and the reduction of crime.
Education and Crime
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• The social and economic benefits of a 1 percent increase in male graduation rates (from reduced crime alone) would have amounted to $1.4 billion.
Education and Crime
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Education and Crime
Pennsylvania Crime Statistics
The level of crime and its cost are very high in PA.
•955,725 crimes were reported in PA in 2005.•Nearly 1 in 4 of those arrested were under age 18.•The cost of incarceration is $31,900/year/person.•In 2001, there were 37,105 individuals under state custody, which cost $1,203,219,000. (This level of expenditure places PA behind only NY among northeast states for total expenditures, and seventh in the nation.)
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Education and Health
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• People with higher levels of education tend to live longer, healthier lives and depend less on government-funded health programs than people with less education.
Education and Health
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• Adults who dropped out of high school are more likely than graduates to die prematurely from cardiovascular disease, cancer, infection, injury, lung disease, and diabetes.
Education and Health
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• Better education also produces better decision-makers and better gatherers of information, allowing individuals to make better choices about health care for themselves and their families.
Education and Health
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• People who drop out of high school are six times more likely to abuse alcohol or drugs than people with a college degree, and twice as likely as people who start but do not finish college.
Education and Health
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• More education also makes individuals more employable, and more likely to keep well-paid jobs (with health insurance) for longer.
Education and Health
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• Better educated people are also more likely to seek preventative care. Preventative care reduces expenditures by heading off costly illnesses and by lowering emergency room use.
Education and Health
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• In 2007, half of the visits to Pennsylvania emergency rooms did not actually require immediate health care, costing roughly $232 million.
Education and Health
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• People with less education are more likely to enroll in public health assistance programs like Medicaid (17% vs. 7% of college graduates).
Education and Health
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• The average high school dropout consumes $2,700 in public health insurance cost per year, the average high school graduate, $1,000, and the average college graduate, just $170.
Education and Health
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• Over 1.8 million PA residents – 15% of all residents – receive public health insurance (Medicaid). The state spends over $12 billion on public health insurance each year.
Education and Health
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• Nationally, if every high school drop-out in 2004 had graduated, the savings in total health costs to the public would have been $41.8 billion dollars over their lifetime.
Education and Health
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Education and Civic and Political Participation
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• Improved educational opportunity and attainment have been found to strengthen social engagement in many ways.
Education and Civic & Political Participation
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• Education increases voter participation, participation in volunteer organizations, and personal tolerance of different viewpoints.
Education and Civic & Political Participation
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• Just a 1-year increase in median education level is associated with more than a 13 % jump in voter turnout.
Education and Civic & Political Participation
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• People with a college education participated in the 2004 presidential election at three times the rate of high school dropouts.
Education and Civic & Political Participation
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• In addition to the cognitive benefits of schooling, a good educational climate allows children to practice civic activities in the classroom.
Education and Civic & Political Participation
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• Public schools represent a crucial opportunity for the development of social cohesion in American communities, especially between diverse groups.
Education and Civic & Political Participation
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• The PA Supreme Court found in 2003 that individuals of color, with low income, and low levels of educational attainment are under-represented on most juries.
Education and Civic & Political Participation
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Breaking the Community-School Cycle of Inequality
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• Achieving the extensive and diverse benefits of public education proven by experience and research depends on ______
The Community-School Cycle of Inequality
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• Achieving the extensive and diverse benefits of public education proven by experience and research depends on having quality schools in all communities.
The Community-School Cycle of Inequality
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• Having quality schools in all communities depends on ______
The Community-School Cycle of Inequality
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• Having quality schools in all communities depends on providing the educational resources and conditions that allow children a fair chance to succeed.
The Community-School Cycle of Inequality
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• Providing the necessary educational resources and conditions depends on ________
The Community-School Cycle of Inequality
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• Providing the necessary educational resources and conditions depends on providing funding at appropriate levels based on school and student needs.
The Community-School Cycle of Inequality
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• Providing funding at appropriate levels based on school and student needs depends on _____
The Community-School Cycle of Inequality
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• Providing funding at appropriate levels based on community, school and student needs depends on federal, state, and local support.
The Community-School Cycle of Inequality
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In Pennsylvania:• Local Support = 59.1% of total
• State Support = 35.3% of total• Federal Support = 4.1% of total
The Community-School Cycle of Inequality
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• So in PA, funding, educational resources, quality schools, and the resulting social and economic benefits are overly dependent on local wealth.
The Community-School Cycle of Inequality
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• Excessive dependence on local wealth is the spark that starts the community-school cycle of inequality.
The Community-School Cycle of Inequality
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The Community-School Cycle of Inequality
Low academic
achievement in ONE
generation
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The Community-School Cycle of Inequality
Low academic achievement
in ONE generation Low academic
achievement in THE NEXT generation
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The Community-School Cycle of Inequality
Low academic achievement
in ONE generation Low academic
achievement in THE NEXT generation
Persistent local poverty
and economic disadvantage
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The Community-School Cycle of Inequality
Low academic achievement
in ONE generation Low academic
achievement in THE NEXT generation
Persistent local poverty
and economic disadvantage
High cost to meet the needs
of disadvantaged
children
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The Community-School Cycle of Inequality
Low academic achievement
in ONE generation Low academic
achievement in THE NEXT generation
Persistent local poverty
and economic disadvantageHigh cost to
meet the needs of
disadvantaged children
Insufficient local wealth to afford the
needed school resources
![Page 90: Pennsylvania’s Best Investment: The Social and Economic Benefits of Public Education](https://reader036.vdocuments.us/reader036/viewer/2022081419/56813b25550346895da3e2c5/html5/thumbnails/90.jpg)
The Community-School Cycle of Inequality
Low academic achievement
in ONE generation Low academic
achievement in THE NEXT generation
Persistent local poverty
and economic disadvantageHigh cost to
meet the needs of
disadvantaged children
Insufficient local wealth to
afford the needed school
resources
High property taxes drive
away businesses
and residents
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• Ironically, the wealthiest school districts can often afford to spend up to twice as much per student as districts with more complicated and expensive academic challenges.
The Community-School Cycle of Inequality
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• With new and increased resources from the state, the cycle of inequality can be broken. Educators know how to achieve better outcomes for disadvantaged students.
The Community-School Cycle of Inequality
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• Most families, schools, and communities caught in the community-school cycle of inequality are unable to overcome these circumstances without outside assistance.
The Community-School Cycle of Inequality
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• It is ultimately in the best interest of the state to ensure that resources and support are available to provide quality schools for all children, regardless of where they live.
The Community-School Cycle of Inequality
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• The 2007 Costing-out Study commissioned by the General Assembly found that the state should raise its investment in public education by $4.3 billion.
Public education is the biggest initiative.
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• The social and economic consequences of failing to make this investment would affect every taxpayer and resident in Pennsylvania.
The Community-School Cycle of Inequality
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• The future social and economic well-being of PA will benefit if these choices are based, not on politics, but on objective evidence about where educational investment will have the greatest return.
The Community-School Cycle of Inequality
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• This means that the state must maintain the new system for funding public education adopted in 2008, providing for adequacy, equity, accountability, predictability, and efficiency.
The Community-School Cycle of Inequality
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“You can pay me now.” or
“You can pay me later.”
The Community-School Cycle of Inequality