An Economic & Education Crisis In The Making

Two Peas in a Pod

Our economy thrives when it has a robust, high quality education system.

Education is more likely to be resourced appropriately when the state’s economy is strong.

EducationEconomy

Two Peas in a Pod

We believe or at least want to believe that our Governor and Legislature share this perspective.

EducationEconomy

Every citizen of our state should support efforts to get our fiscal house in order.

Doing this requires policy makers to make tough choices.

Business people understand the process of aligning revenue with cost and protecting margin. Across the board cuts are usually not the answer. You have to invest in what works.

A Strong State Economy

Arizona has taken:

A big step backwards in supporting

Education Quality andEnhancing the fiscal health of the

state

The legislature cut funding for Career and Technical Education (CTE) by 50% this year on top of a similar cut in 2010.

The result will be dramatically less students in CTE.

The predictable outcome of less students in CTE is –

• Lower high school graduation rates• Lower academic performance•Reduced post-secondary transitions•Reduced workforce development• Increased social costs•Few young people achieving economic independence

High School Graduation and Academic Performance

The Facts

CTE96%89%96%

Az Avg.76%70%75%

2013 Grad Rate

2013 AIMS Math

2013 Aims Reading

On the RiseASU Morrison Institute for Public Policy

The analysis of data from Tucson Unified School District and Mesa Public Schools found:1. The hazard of dropping out was reduced by 70%

for Mesa students and 50% for Tucson students who had taken 2 or more CTE courses

2. Taking two or more CTE courses reduced absenteeism by 3 days for CTE students in Tucson.

Compared to students who shared the same socio-economic and academic characteristics but

did not take CTE

Source: On The Rise report, http://morrisoninstitute.asu.edu/products/rise-role-career-and-technical-education-arizonas-future

If Arizona’s 2012 HS-graduation rate had been 90% instead of 72%

Estimated benefits to the state’s economy would be:  $164 million in increased annual earnings $128 million in increased annual spending $324 million in increased home sales $17 million in increased auto sales 1,500 new jobs $225 million in increased annual gross state product $11 million in increase annual state/local tax revenue $25 million in increased annual federal tax revenue

Source: Alliance for Excellent Education

Social CostsThe Facts

By The Numbers: High School DropoutsDonna Krache, CNN

Earnings:1. 2008 median earnings for full time workers age 25

and older who did not have a high school diploma $24,300 vs. $33,800 with H.S. diploma

Poverty and crime:1. Dropouts make up almost half the heads of

households on welfare.2. High school dropouts commit about 75% of crimes

in the U.S. (and prison beds in AZ?)

Let's put Arizona to Work!

$35,000Minimum earning threshold for family of four to be considered middle class

81%Of high school dropouts earn less than $35,000 per year by mid-career

Workforce DevelopmentThe Facts

Post Secondary TransitionsThe Facts

A less robust economy•Workforce• Social costs

A lower quality educational system

The facts are clear. Less students in CTE means….

Benson School District

We Should Expect The Opposite to be True

CTE Works

Some Specifics on the CTE Funding Cuts

Reduction to State Aid for JTEDs

2010-11 2015-16 2016-170

10,000,00020,000,00030,000,00040,000,00050,000,00060,000,00070,000,00080,000,00090,000,000

100,000,000State Aid

State Aid

What Does the Loss of Funding Mean to CTE/JTED?

A. Insufficient funding to maintain programs at industry standard level

B. In the first year of cuts it is projected that 30% of CTE teachers will be let go. Those programs will close

C. As programs close, enrollment will drop generating less ADM so more programs will close the following year

JTEDs will enter a death spiral

Where do the cuts fall?1.Satellite CTE/JTED Programs

sustained DEVASTATING cuts.

2.Central CTE/JTED Program sustained SIGNIFICANT cuts

Perception of Double Dipping

Call To ActionThe cut made by the legislation to CTE have to be reversed

Contact the Governor and your legislator and insist they take action to reverse this decision because it hurts the state economy and the quality of our education system

Questions & Discussion