What does Georgia gain. by investing in its

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1 What does Georgia gain by investing in its colleges and universities

2 2

3 A tremendous return: More economic prosperity. Less government spending. A stronger competitive advantage. A higher quality of life. And much more

4 ECONOMIC PROSPERITY The more you learn, the more you earn. 78,440 Georgia Average per Capita Personal Income by Education Level People with college degrees average 58,460 39,260 higher personal incomes. People 36,320 without college degrees are more 27,590 likely to be unemployed. 18,410 Less than HS HS Graduate Some College Associate s Bachelor s Master s or Higher 5.9% 5.2% 4.2% 2.6% 1.2% 8.5% Georgia Unemployment Rate by Education Level 4 Source: 2000 Census Public Use Microdata Sample

5 Get a degree, start a company. New businesses are good for the economy. New businesses are more often started by people with college degrees than people without a degree. ECONOMIC PROSPERITY Percentage of Georgians Who Incorporated a Business by Education Level 4.4% 5.7% 2.5% 3.5% 3.0% 1.5% Less than Graduate Some College Associate s Bachelor s Master s or Higher Source: 2000 Census Public Use Microdata Sample 5

6 ECONOMIC PROSPERITY Job growth is strongly linked to higher education. Higher education prepares Georgians for career success, and building an educated work force makes Georgia more attractive to growth industries. In fact, job growth is highest among educated Georgians. Change in Number of Full Time Georgia Jobs by Education Level +570, ,782-6,258 Less than Graduate Some College or 6 Source: 2000 Census Public Use Microdata Sample

7 Higher education = higher revenue collection. ECONOMIC PROSPERITY Because of their professional success, people with more education contribute more to the state s tax base. Educated Georgians provide the heart of funding for our state s operations and programs. Effective Contribution to Georgia State and Local Taxes per Household by Education Level 3,970 4,200 5,030 6,290 6,950 2,780 Less than Graduate Some College Associate s Bachelor s Master s or Higher Source: U.S. Congressional Budget Office and Institute on Taxation and Economic Policy - Microsimulation Tax Model 7

8 REDUCED GOVERNMENT SPENDING The more education you have, the less likely you ll need government help. People who pursue higher education are far less likely to need public assistance. More than three-fourths of spending on direct public assistance in Georgia goes to citizens with a high school diploma or less. 8% College Share of Direct Public Assistance Funds in Georgia by Education Level 16% Some College 45% Less than 31% Graduate 8 Source: 2000 Census Public Use Microdata Sample

9 REDUCED GOVERNMENT SPENDING Dropping out of school can lead to big trouble... and big bills for society to pay. 573,325,000 Amount Spent on Georgia Prisoners by Inmates Education Level More than two-thirds of Georgia prison inmates never finished high school. Last year alone, the state spent more than a half billion dollars on their incarceration. 160,685,000 97,874,000 Less than Graduate Some College or Source: Calculated from Georgia Department of Corrections data 2004 (excludes prisoners with unknown education levels) 9

10 LONG TERM BENEFITS Higher education s benefits carry over to the next generation. Parents with more education tend to raise children who achieve greater academic success. Students of college-educated parents score higher on the SAT. They re also less likely to have disciplinary problems in school Georgia Average Student SAT Scores by Parent Education Level 1, ,072 Less than HS HS Graduate Associate s Bachelor s Master s or Higher 6.2% 5.6% Source: College Board 2004 College Bound Seniors Report (SAT data); National Center for Education Statistics 2003 Household Education Survey (suspension/expulsion rate) 18.7% 14.7% 12.5% Suspension/Expulsion Rates for Georgia Students (Age 15 17) by Parent Education Level 10

11 LONG TERM BENEFITS Georgians Aged with School years add up Income Below Poverty Level by Education Level to financial security. Even decades later, people with more education enjoy a higher standard of living while those who quit school early are more likely to struggle financially. A full two-thirds of older Georgians who live in poverty never earned their high-school diplomas. 6% College 7% Some College 67% 20% Less than HS Graduate Source: U.S. Census Bureau Current Population Surveys 11

12 vs vs. v s.. v COMPETITIVE ADVANTAGE Average per Capita Personal Income and Median Years of Education Georgia must become more by State 42,000 competitive in education CT to boost income levels. NJ MD MA Georgia currently ranks 35th in the 37,000 amount of education for citizens. As a result, personal incomes in the state fall far short of their potential.. 32,000 27,000 22,000 KY LA AR WV MS TN SC AL vs NV IL RI MI FL GA WI TX IN OH PA NC MO IA OK ND ME SD VA CA DE NY AZ ID HI OR KS VT NE WY MT NH AK WA MN UT CO 12 Source: 2000 Census Public Use Microdata Sample

13 vs vs v. s. v COMPETITIVE ADVANTAGE Georgia s real education Percentage of Adults with a disparity is evident in counties. Bachelor s or Higher by County The vast majority of Georgia counties fall short of the U.S. percentage of adults with Bachelor s degrees or higher. Only 13 of the state s 159 counties have percentages above the national percentage. U.S. Percentage to to to to to 12.5 Source: U.S. Census 13

14 It s time to build on Georgia s investment in higher education. A CALL TO ACTION It s clear that the more we invest in Georgia s colleges and universities, the more we enjoy economic prosperity, reduced government spending and many other benefits. This report focuses on a few of these returns. But there are many more that are critical to the state. For instance, Georgia s colleges and universities generate more than 1.1 billion in research and development, spawning new discoveries and new companies. Established businesses bring new products to market with the aid of Georgia s research universities. Just as important are the less tangible benefits of higher education. People who continue their education are more inclined to vote, volunteer their time, read to their children and be active members of society. This is true whether they complete a college, university or technical program. Please help the Atlanta Regional Consortium for Higher Education () communicate the vital role our institutions play in growing Georgia. Share this report with others. Visit the Web site to download additional information. Or contact at Download this report or presentation slides from the Web site at 14

15 About this report The Atlanta Regional Consortium for Higher Education () published this report in February 2005 to build awareness of the value of Georgia s institutions of higher learning. Founded in 1938, is comprised of 19 public and private institutions of higher learning. Membership also includes corporate and non-profit Community Partners and regional Affiliated Libraries. s mission is to advance Atlanta-area higher education through academic collaboration, community partnerships and public awareness. Data for the study was compiled by Human Capital Research Corporation, a firm that provides research and analysis in the areas of higher education operations, educational productivity, enrollment management, work force development and public policy. The firm may be contacted at 15

16 50 Hurt Plaza, Suite 735, Atlanta, Georgia

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