This document presents an innovation and investment plan called Prosperity 2020 to strengthen Utah's economy through improving education. It was created by Utah business leaders in response to concerning education trends like lower test scores and graduation rates. The plan calls for strategic investments totaling $73.3 million in 2013 to meet goals like 66% of Utahns having postsecondary degrees by 2020. It analyzes economic warning signs in education and lays out revenue options to fund improvements in areas like K-12, higher education, and technical training. The business community aims to partner with legislators and educators to enhance Utah's competitive advantage through a well-educated workforce.
2. Dear Legislators:
Thank you for your dedication and service. Your leadership is key to Utah’s
strength in the global marketplace. Utah’s fiscal responsibility, collaborative spirit
and forward-thinking actions position us favorably among states. We want to
keep it that way. And we want to strengthen our standing.
In 2009 Utah business leaders got a sobering report on Utah education from a
trusted educational advisor. We learned about the lack of a cohesive education
plan. Tradition-bound practices, troubling test scores, low graduation rates,
devoted teachers with low morale, and increasing racial and ethnic diversity,
combined to inspire a call to action.
Recognizing a critical need, the business community organized Prosperity 2020:
a call to action for Utah education. Prosperity 2020 is a statewide, research-driven
and collaborative movement.
Business leaders call for the following actions:
n Innovation—Utilize best-in-class technology to more effectively and
efficiently educate Utahns
n Accountability—Measure performance and hold individuals accountable
n Investment—Enhance Utah’s education funding effort
Education is a multi-billion dollar enterprise. It employs 148,000 Utahns directly
and pays millions of dollars in wages and salaries. More than one in three Utahns
attend or work at a school each day. We all depend on Utah schools and post-
secondary institutions to nurture and train productive, law-abiding adults who
vote and volunteer and raise families.
This prospectus presents an innovation and investment plan to build the
strongest economy in the nation. It lays out the economic context, education
warning signs, visions and goals, and 2013 priorities. We will partner and
collaborate with you and educators to enhance our economy by improving
educational outcomes.
Prosperity 2020. It starts with education.
Sincerely,
Mark Bouchard Randy Shumway
Chair Vice chair
3. A n i n n o v at i o n a n d i n
The UTAH Economy
Education is the path to enduring prosperity. The Utah that once was, is increasingly no more. And
Decades of research consistently show that a person’s our economy, as it melds with the forces of globalization,
earnings and a society’s wealth are tied to educational is picking winners and losers. Countries, states and
achievement. And the premium paid for educational individuals that don’t lead change will be left behind.
achievement has never been greater. Prosperity follows
Leading change requires planning and action. In a
those with knowledge and skills now more than ever.
globally competitive and rapidly changing economy,
The stakes are high. Utah is in the midst of an complacency is a recipe for decline. We must plan
unprecedented economic, demographic and cultural purposefully for Utah’s economic future.
transformation. We are growing and diversifying rapidly.
Fortunately, Utah has a lot going for it. The Beehive
State boasts the fifth-fastest growing economy and
sixth-lowest unemployment rate among states. Major
international companies like Goldman Sachs, Adobe,
Twitter, eBay, American Express and Wells Fargo all have
a significant presence here. More consider relocating or
expanding here every day. If you want to do business in
a state with low business costs, modern transportation
infrastructure, fiscally responsible government and high
quality of life – Utah is the place.
But there is a stark reality that Utah decision makers
must face. Poor educational outcomes are economic
warning signs. The combination of skilled labor
shortages, disappointing educational outcomes and
rapid growth in racial/ethnic populations requires action.
In the 21st Century, economic opportunity flows
to centers of knowledge and innovation. Case
in point – Austin, Texas, home of the nation’s This prospectus presents
fifth-largest university. Apple recently announced
a new $304 million operations center, along with an innovation and
3,600 jobs. Further north, Raleigh, North Carolina
boasts three great universities and companies like investment plan to
IBM and GlaxoSmithKline. Raleigh ranked as the
fourth fastest-growing metro area in the nation from build and sustain
2000-2010. Boston, Seattle, Phoenix and others have
all been labeled “the next Silicon Valley.” And for
good reason. In the information age it pays to
the strongest economy
be a tech capital. in the nation.
4. n v e s t m e n t p la n t o bu
Warning Education
Signs
Rapidly diversifying population
By 2050 nearly one-third of Utah will be comprised of racial and ethnic Innovation
minorities1. We are diversifying faster than virtually any other region. In many Utah classrooms, things are
A diverse population requires early intervention to position students still done the way they were 100 years
for success. ago. Educators must embrace disruptive
Test scores lower than peer states innovations to achieve success.
Technology can extend and personalize
Utah 8th graders achieve above the national average on standardized
education. It can bring the best
math and reading tests, but last compared to states with similar income,
teachers to students everywhere. Utah
parents’ education and ethnic diversity.2
business leaders endorse innovations
Improve college completion in Utah’s education system to improve
In the last two decades, Utah has lost the advantage it once held of accountability, efficiency and quality:
being among the most highly-educated states in the nation.3 • Computer adaptive testing
High school graduation rates 32 in nation nd • Performance-based compensation
• Online courses
Utah’s high school graduation rate is in the bottom half of the country.
• Concurrent enrollment
Only 76 percent of ninth graders graduate from high school. One in four
• Instructional technology
young adults don’t have a diploma. Results are worse with minorities –
• Competency-based education
fourth lowest in the country for Latinos, with 57 percent graduating,
• STEM advancements
and tied for second lowest among Asian/Pacific Islander students.4
Investment Utah’s K-12 education funding effort ranks 29th among states
Education revenues per $1,000 personal income
Utah was once a leader in $60 -
educational investment, U.S. Average
$50 -
but we are now 29th among
states in public education $40 -
spending per $1,000 of
$30 -
personal income. We
spend less per pupil than $20 -
any other state. Money
$10 -
isn’t everything, but it
8 9 8 7 11 11 12 16 17 19 20 29 25 22 32 33 24 26 29
is an important part of 0-
the equation to improve 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
National Rank
outcomes. Sources: Census, Bureau of Economic Analysis, Utah State Office of Education,
Governor’s Budget Summaries. Calculations by Utah Foundation
1. Utah’s Demographic Transformation, Pamela S. Perlich, David Eccles School of Business, University of Utah, January 2010.
2. School Testing Results: How Utah Compares To States With Similar Demographics,” Utah Foundation, September 2010.
3. Utah Higher Education 2020 Plan 2010 Executive Summary.
4. U.S. Department of Education, Nov. 2012
5. i l d t h e s t r o n g e s t e c
Our
and Goals
Innovation, Accountability and Investment
The largest population of young people in the country will be deployed as the
best educated work force, propelling Utah to enduring prosperity.
1
By 2020...
Goal
66 PERCENT of Utahns with postsecondary
certificates or degrees
Some 66 percent of Utah jobs will require postsecondary training by 2018,
according to an economic study by Georgetown University’s Center on Education
and the Workforce. The projections were refined and adopted by the Utah
Department of Workforce Services.
Where are we now? 43 percent of Utahns have post-secondary certificates or degrees.
Goal
2 90 PERCENT of elementary students
proficient in reading and math
All students deserve a strong start. Dropping out begins in early grades
if students don’t have basic skills to keep up with their peers.
Where are we now? Currently, approximately 75–80 percent of Utah students meet this goal.
Goal
3 STEM TOP TEN CENTER for
technology jobs & businesses
We can do it. Our large population of scientists and
engineers, numerous technology jobs and university
research spinoff all position the Wasatch Front to
be a technology leader.
Where are we now? Utah ranks 11th in the nation for technology jobs
as a share of total employment, but 36th among
states for technology jobs and businesses.
6. o n o m y i n t h e n at i o n
The Plan
2013 Legislative Priorities
n Pass a joint resolution in the Utah Legislature calling Higher education – Strategic investment = $20 million
for 66 percent of Utah adults to have postsecondary • STEM and health profession investment
certificates or degrees by 2020. • More online courses
• More concurrent enrollment
•
n Make strategic investments toward measurable goals:
Increased use of instructional technologies
Public education – Strategic investment = $43.6 million
• Computer adaptive testing Technical education – Strategic investment = $9.75 million
•
• Early intervention and programs for children at risk Triple number of Utahns with postsecondary
• ACT testing for every high school student certificates by 2020
• Promising STEM priorities
• Integrated arts and academics
Revenue Options Prosperity 2020 business leaders deem the following mix of one-time and ongoing
revenue options appropriate for serious gubernatorial and legislative discussion.
Option FY2014 Revenue* Notes
Tap new growth $321 million The first priority should be to tap a significant portion of new revenue from
Utah’s near best-in-the country economy.
Modernize $10–$35 million The passage of Constitutional Amendment A presents an ideal opportunity to
severance tax modernize Utah’s severance tax system. The Legislature should evaluate and
system improve the efficiency, equity and revenue sufficiency of the severance tax,
including an examination of the base, rates, deductions and exemptions.
Adjust motor $71–$100 million The buying power of the motor fuel tax has declined by 40 percent since 1997.
and special fuel In addition, vehicles are more fuel-efficient and cause more wear and tear
tax to keep pace per gallon. The state should consider an immediate per gallon increase that is
with inflation indexed over time to keep pace with inflation.
Tap mineral $25 million The Community Impact Fund has typically not been used to fund educational
lease revenues facilities. We recommend devoting a significant portion of new mineral lease
revenues to educational capital facility needs in both public and higher education.
Enact quarterly $170 million Utah and Idaho are the only states with an individual income tax that
income tax (one-time) allow taxpayers to remit taxes for non-wage, non-withheld income on an annual
payments basis. Utah can use this one-time acceleration of funds to address important one-
time needs. Utah could take a giant step by “gifting” this funding to education.
Restore sales $150 million The policy to reduce the sales tax on food diminished the tax base, added
tax on food complexity to the system and did a poor job of targeting Utahns in need. A better
to full rate approach would be to restore the full rate and provide a more direct subsidy to
low income Utahns. This could be done in a revenue neutral way for the first year.
Remote sales $10 million Utah should continue to aggressively pursue sales tax revenue from remote sales
(and grows over time) as a matter of fairness and revenue sufficiency.
Federal lands unavailable Utah should work productively with federal partners to maximize school revenue
from public lands.
* Estimated The Prosperity 2020 Public Finance team is available to share additional revenue options.
7. Questions
Q: What is Prosperity 2020?
A: The largest business-led movement to enhance education in state history.
Seventeen chambers of commerce and industry associations from
throughout the state support Prosperity 2020 and more organizations
sign on every year.
Q: Who leads Prosperity 2020?
A: Utah’s major businesses, business associations and many small businesses
have organized the Business Executive Leadership Council and Founders
Council. The Salt Lake Chamber serves as the backbone organization.
Q: Why is Prosperity 2020 important?
A: In a globally competitive, information-based economy, education is the
path to enduring prosperity. The jobs of the 21st Century will flow to centers
of knowledge and innovation. Prosperity 2020 seeks to enhance Utah’s
competitive advantage with a well trained and educated workforce.
Frequently
Asked
Q: Why focus on 66 percent?
A: A seminal study conducted at Georgetown University projected that by
2018, 66 percent of the jobs in Utah will require post-secondary education.
To fulfill this economic potential as a state we must increase degrees and
certificates awarded each year by four percent. Success begins early. Utah
business leaders desire to have 90 percent of third, sixth and eighth graders
proficient in reading and math by 2020.
Q: What are Utah businesses doing to help
achieve the 66 percent goal?
A: Business leaders launched the Prosperity 2020 Business Promise to deploy
20,200 volunteers in Utah classrooms and raise millions of dollars for
scholarships.
8. Business Executive Leadership Council
Chair: Mark Bouchard, CBRE Kem Gardner, The Gardner Company
Vice Chair: Randy Shumway, Cicero Group David Golden, Wells Fargo
Alan Hall, MarketStar
Key advisors:
Gordy Haycock, Grant Thornton
Gary Carlston, public education
Mary Ann Holladay, Holladay & Associates
Paul Thompson, higher education
Carol Hunter, Rocky Mountain Power
Jana Scott, coordinator
Clark Ivory, Ivory Homes
Vicki Varela, communications
Ron Jibson, Questar Corporation
Jeff Alexander, Alexander’s Print Advantage David Layton, Layton Construction Company
Scott Anderson, Zions Bank Richard Linder, Coherex Medical
Lane Beattie, Salt Lake Chamber Tom Love, Love Communications
Bruce Bingham, Hamilton Partners Brent Low, MediaOne of Utah
Matt Bowman, Demand Generation Bob Marquardt, Management & Training Corporation
Jake Boyer, The Boyer Company Rich McKeown, Leavitt Partners
Roger Boyer, The Boyer Company Andrea Moss, American Express
Mona Burton, Holland & Hart Jeff Nelson, Nelson Laboratories
Keith M. Buswell, Wadman Corporation Scott Parson, Staker Parson Companies
Lori Chillingworth, Zions Bank Ray Pickup, WCF
Wilford Clyde, Clyde Companies Patricia Richards, SelectHealth
Lew Cramer, World Trade Center Utah Kelly Sanders, Rio Tinto | Kennecott Utah Copper
Jeff Edwards, Economic Development Corporation of Utah
Rick Folkerson, Ken Garff Automotive Group
Founders Council
Citizens for Educational Excellence Lehi Area Chamber of Commerce
Economic Development Corporation of Utah Moab Area Chamber of Commerce
Friends of Utah Higher Education Murray Area Chamber of Commerce
Governor’s Office of Economic Development Ogden/Weber Chamber of Commerce
Junior Achievement of Utah Park City Chamber
United Way of Salt Lake Richfield Area Chamber
Utah Foundation Salt Lake Chamber
Utah Technology Council Sandy Area Chamber of Commerce
World Trade Center Utah South Jordan Chamber of Commerce
Brigham City Area Chamber of Commerce South Salt Lake Chamber of Commerce
Cedar City Area Chamber of Commerce St. George Area Chamber of Commerce
ChamberWest Utah Valley Chamber of Commerce
East Valley Chamber of Commerce Wayne County Business Association
Davis Chamber of Commerce
Prosperity2020.com