1. Kalamazoo Promise
Purpose: Kalamazoo Promise will pay up to 100% of a
child’s tuition for 4 years of college if the student
graduated from a public school in the City and if he
attends a state public university or junior college.
Program started in November 2005.
Percentage of the tuition paid: depends on
how long the student attended a Kalamazoo public
school. All other expenses must be paid by someone
else.
Length of Attendance......Benefit
K-12.....................................100%
1-12.......................................95%
2-12.......................................95%
3-12.......................................95%
4-12.......................................90%
5-12 ......................................85%
6-12.......................................80%
7-12.......................................75%
8-12.......................................70%
9-12.......................................65%
10-12.......................................0%
11-12.......................................0%
12.............................................0%

2. Kalamazoo Promise
Estimation of what this will save if Child starts in
Kindergarten.
Year Investment
1 -$2,725
2 -$2,725
3 -$2,725
4 -$2,725
5 -$2,725
6 -$2,725
7 -$2,725
8 -$2,725
9 -$2,725
10 -$2,725
11 -$2,725
12 -$2,725
13 -$2,725
14 $13,598
15 $14,414
16 $15,279
17 $16,195
NPV @ 6% -$66
Assumptions
1. Rate on investment 6.00%
2. Assumes today's tuition is 5,000 per year with 8% increases
This chart calculates the cash flow
needed for a student in kindergarten,
graduating from high school in 13 years
and attends college for a 4 year degree
It further assumes that the cost of tuition
is $5,000/yr. and rises by 8%/yr. The rate
of return on the funds invested is 6%.
The result is the fund needs to invest
$2,725/yr. For the initial 14 years.

3. Kalamazoo Promise
Results:
High School test scores improved four years in a row.
A higher percentage of African American girls graduate
than any other part of the State. 90% of high school
graduates go on to college.
High school test scores have improved four years in a
row.
Suburban flight stopped after program was introduced.
Through August 2012 Kalamazoo Promise has paid out
$35-million for post secondary study for 2,500 students.
On average $4,000 was spent on each student per
semester.
In the first year of the Promise added an additional 1,000
students enrolled in Kalamazoo Schools. Through fall of
20012 student population increased by 24% or 2,450
students.
39% of students are white and 44% are black.