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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.
Education
Economy
Two Peas in a Pod
We believe or at least want to believe that our Governor
and Legislature share this perspective.
Education
Economy
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 and
 Enhancing 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
CTE
96%
89%
96%
Az Avg.
76%
70%
75%
2013 Grad Rate
2013 AIMS Math
2013 Aims Reading
On the Rise
ASU 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 Costs
The Facts
By The Numbers: High School Dropouts
Donna 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!
$35,000
Minimum 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 Development
The Facts
Post Secondary Transitions
The 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
Invest in what works
Divest from what doesn’t
CTE Works
Some Specifics on the CTE
Funding Cuts
Reduction to State Aid for JTEDs
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
2010-11 2015-16 2016-17
State 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 Action
The 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

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Responding to Budget Cuts

  • 1. An Economic & Education Crisis In The Making
  • 2. 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. Education Economy
  • 3. Two Peas in a Pod We believe or at least want to believe that our Governor and Legislature share this perspective. Education Economy
  • 4. 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
  • 5. Arizona has taken: A big step backwards in supporting Education Quality and  Enhancing the fiscal health of the state
  • 6. 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
  • 7. High School Graduation and Academic Performance The Facts
  • 8. CTE 96% 89% 96% Az Avg. 76% 70% 75% 2013 Grad Rate 2013 AIMS Math 2013 Aims Reading
  • 9.
  • 10. On the Rise ASU 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
  • 11. 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
  • 13. By The Numbers: High School Dropouts Donna 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!
  • 14. $35,000 Minimum 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
  • 16.
  • 18.
  • 19. A less robust economy • Workforce • Social costs A lower quality educational system The facts are clear. Less students in CTE means….
  • 20. Benson School District We Should Expect The Opposite to be True
  • 21. Invest in what works Divest from what doesn’t CTE Works
  • 22. Some Specifics on the CTE Funding Cuts
  • 23. Reduction to State Aid for JTEDs 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 2010-11 2015-16 2016-17 State Aid State Aid
  • 24. 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
  • 25. JTEDs will enter a death spiral
  • 26. Where do the cuts fall? 1.Satellite CTE/JTED Programs sustained DEVASTATING cuts. 2.Central CTE/JTED Program sustained SIGNIFICANT cuts
  • 28. Call To Action The 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

Editor's Notes

  1. This data is provided by the Arizona Department of Education in their annual Data Snapshot report. Note that the 76% statewide graduation rate includes ALL students including CTE students. Imagine how significantly that number would drop if CTE students were not included.
  2. This is current Arizona data based on an independent study that shows a direct correlation between CTE participation and a dramatic reduction in dropout rates in the two largest districts in the state. Please note that Tucson Unified Data included no central campus students. Mesa data does include both Central and Satellite students.
  3. Return of Investment makes funding CTE a bargain. Remember, the cost of educating a student is borne once but the benefits repeat every year up to retirement.
  4. Research shows that 81% of all students that drop out of high school would have stayed if they had only found high school to be relevant and interesting. We know that most of the 30% who drop out would have stayed had they found the relevance they were seeking in high school. If that 30% who dropped out were added to the 32% of students who are planning on entering an associate degree program or advanced training, then we come closer to closing the skills gap in Arizona.
  5. College with a purpose!
  6. Does this look like 7.5% cut? If you have specific questions on how a “7.5%” cut translates into a 48% satellite cut and a 7.5% Central cut, we have the data and would gladly share it with you.