“Smart Money”:The Links between Education and Economic Development

Gary W. RitterDirector, Office for Education Policy

“Smart Money”: The Links between Education and Economic Development

A compelling body of research links primary and secondary education to economic development and growth.

Schooling increases “human capital”

Improved human capital - health, skills, and knowledge - benefits economy through increased productivity.

Enhanced economy leads to greater investments in education and training

How Does AR K-12 Fare? Arkansas has historically been viewed

as both economically and educationally backward compared to most states.

Yet in recent years the state has shown dramatic improvement in both economic development and student performance.

In terms of the latter, the data confirm Arkansas’ educational progress

Education ImprovementsOver the past decade, Arkansas has

witnessed…

Rising test scores, rising graduation rates Increases in AP participation Education reforms

Rigorous curricula (Smart Core, EOC exams, one of only 3 states to mandate Algebra II)

Accountability measures Incentive-based reform (e.g. performance pay) Approximately $1 billion invested into K-12

education

In terms of expenditures, Arkansas is annually spending almost $10,000 per student

And Arkansas teachers earn more than ever before

Signs of Progress in Early Grades Increases in NAEP Scale Scores Fourth-Grade Reading

1998 to 2005

Source: National Center for Education Statistics/Arkansas Department of Education Significant increases

data not available

DEMD

NAEP Grade 4 Math – Closing the Gap

*

Source: Arkansas Department of Education

Out of 100 ninth-grade students in Arkansas ...

74 became high school graduates

Four-Year Graduation Rate From High School2005-06

U.S. Graduation Rate: 68%

Arkansas High School Graduation Rates

Challenges and Solutions

Challenge 1: We do well graduating students from HS, but are they prepared for college?

Arkansas and National Graduation Rates Compared, 2005-2006

68%

40%

18%27%

100%

74%

15%

27%

42%

100%

0%

20%

40%

60%

80%

100%

120%

Begin 9thGrade

GraduateHigh School

StartCollege

Persistthrough 2nd

Year

EarnCollegeDegree

United States Arkansas

Challenges and Solutions

Challenge 2: Recently, we have done the important work of

increasing standards and increasing resources. This has likely influenced the gains we are

witnessing. Now that the resources and standards are in

place, the challenge to our policymakers is to develop and implement thoughtful strategies to employ these resources well to benefit students throughout the entire state.

This is a big challenge as innovation often creates contention.

Potentially Effective Reforms Differentiated Pay for Teachers

Critically important to draw talented teachers to difficult to staff areas (geographic and subject areas)

Merit Pay, or Performance Bonuses Little Rock Achievement Challenge Pilot

Project State legislation on merit pay Teacher Advancement Program

Challenge = Inertia

The Effects of Incentive-based Pay in Little Rock

And More Challenges

Avoid complacency The settlement of Lake View is not the end of reform Must be willing to try new initiatives (e.g. merit pay) Must continue on with rigorous standards (exit exams)

Keep the Focus School and district decisions must be based on

Academics and Students (LRSD?) Policy and curricular decisions must be based on what

has the best chance of working … Focus on the Evidence as compared to “this is how

we’ve always done it.”

Office for Education Policy

For more information contact:The Office for Education Policyhttp://www.uark.edu/ua/oep

(479) 575-3773