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3 and Diverging Destinies In a twenty-first century economy, education has become a key factor in diverging destinies. As President Obama has noted, Countries that out-educate us today will out-compete us tomorrow. Unfortunately, a severe recession can impart longterm consequences for education. Rising unemployment and child poverty can impede a child s education by limiting parents capacity to provide high-quality childhood nutrition, a supportive learning environment, or the funds to pay for higher education. 1 The Value of Higher Education e growing significance of education to a secure future is clear. Economists estimate that even a er accounting for tuition, room and board, and the lost wages that would have accrued while the student was attending college, the boost to wages over one's lifetime is roughly $300,000, or three times the cost of attending. Moreover, a bachelor's degree will pay for itself in ten years. 2 In 2008, median earnings for male college graduates in Illinois were 75 percent higher In 2008, median earnings for male college graduates in Illinois were 75 percent higher than those with just a high school diploma. than those with just a high school diploma. For women, the earnings advantage was 80 percent. Lack of a high school diploma was associated with 28 percent lower earnings among men and 32 percent among women. Stark Disparities Remain With so much at stake, it is distressing to see enduring disparities in educational attainment among racial and ethnic groups. In , Illinois high school graduation rates were 93 percent for whites and Asians but only about 75 percent for African-Americans and Latinos. In the same year, African-Americans received 16 percent of public high school diplomas in Illinois but only 9 percent of undergraduate degrees conferred by state universities. Latinos constituted 14 percent of high school graduates and 6 percent of state university graduates. Rising Costs for Families As higher education is ever more in demand, its price tag is rising. Between 2000 and 2008, the average cost of tuition and fees at state universities in Illinois increased at an average annual rate of 12 percent, compared with 6 percent at private four-year institutions and 7 percent at community colleges. As a share of median family income, the cost of an undergraduate education at a public, four-year institution has nearly doubled since the beginning of the decade. In , tuition and fees for state residents at public universities in Illinois were the highest in the Midwest. Little Growth in State Funding A large body of research highlights the importance of early learning in improving educational and socioeconomic outcomes for children. 3 Since the middle of this decade, Illinois has significantly bolstered its investment in early childhood education. Participation in the state-supported Pre-Kindergarten At-Risk Program and Preschool for All Children increased from about 60,000 in state fiscal year 2004 to almost 100,000 in More broadly, however, state investments in education have not been adequate. Since the beginning of this decade, aid to public schools from the State Board of Education has increased 57 percent. Nonetheless, in fiscal year 2008, the state contributed less than 28 percent of total revenue for local school districts, compared with 31 percent in State support for higher education (including state universities, community colleges, and student financial aid) has been essentially flat for the past ten years. 1 John Irons, Economic Scarring: e Long-Term Impacts of the Recession (Washington, DC: Economic Policy Institute, September 2009). 2 Lisa Barrow and Cecilia Rouse, Does College Still Pay? e Economist s Voices (2005). 3 See James J. Heckman, Speech at First Five Years Fund Reception, September 16, 2009, available at 54 Voices for Illinois Children

4 Educational Attainment by Race-Ethnicity in Illinois, Median Earnings by Educational Attainment in Illinois, 2008 Pct. of population aged 25 and older 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Less than H.S. diploma Some college or associate degree 33% 29% 29% 9% White 18% 33% 30% 19% Black 11% 18% 29% 41% Latino H.S. graduate or equivalent Bachelor's degree and higher 61% 17% 12% 9% Asian Median earnings for population aged 25 and older $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 $23,700 Male $14,950 Less than H.S. graduate $33,100 Female $21,850 H.S. graduate or equivalency $41,300 $39,346 $27,550 Some college or assoc. degree $58,050 Bachelor's degree $79,350 $51,824 Graduate or prof. degree Source: U.S. Census Bureau, American Community Survey Source: U.S. Census Bureau, American Community Survey Family Poverty Rates in Illinois by Educational Attainment of Householder, % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 12.1% Less than H.S. graduate Some college or associate s degree 5.1% 2.7% 1.5% Married-couple family 22.2% 13.1% 10.2% 5.6% Male householder Source: U.S. Census Bureau, American Community Survey H.S. graduate or equivalency Bachelor s degree or higher 46.3% 31.6% 24.0% 8.6% Female householder 21.9% 11.5% 8.0% All families 2.4% Illinois Kids Count

5 High School Enrollment and High School Graduates by Race-Ethnicity, Illinois Public Schools, High School Enrollment High School Graduates White 58.1% % 64.4% Male Female Black Male Female Latino Male Female Asian/Pacific Islander Male Female Total Source: Illinois State Board of Education Undergraduate Enrollment in Public Universities and Community Colleges in Illinois, Fall 2008 Illinois High School Graduation Rates, Total %87% White 93 Black 75 Latino 76 Asian/Pacific Islander 93 Limited English proficiency 57 Low-income 75 Male 84 Female 89 Source: Illinois State Board of Education Undergraduate Degrees Conferred by Public Universities and Community Colleges in Illinois, Public Universities Community Colleges Public Universities Community Colleges White 97, % 218, % Male 48, , Female 49, , Black 19, , Male 6, , Female 12, , Latino 11, , Male 5, , Female 6, , Asian 11, , Male 5, , Female 5, , Total 151, , Male 72, , Female 78, , Source: Illinois Board of Higher Education White 24, % 35, % Male 11, , Female 12, , Black 3, , Male 1, , Female 2, , Latino 2, , Male , Female 1, , Asian 2, , Male 1, , Female 1, , Total 33, , Male 15, , Female 18, , Source: Illinois Board of Higher Education 56 Voices for Illinois Children

6 Average Tuition and Fees for College Education in Illinois $20,000 $15,000 $10,000 $5,000 $0 $15,317 $4,178 $1, Public two-year $16, $17, Public four-year (in-state) $18,049 $4,572 $5,171 $5, $18,930 $19,406 $6, Private four-year $7, $20,398 $8,044 $1,567 $1,660 $1,782 $1,949 $2,104 $2,250 $2,377 Source: U.S. Department of Education, National Center for Education Statistics Average College Tuition and Fees in Illinois as a Percentage of Median Family Income 35% Public two-year Public four-year (in-state) Private four-year $21,508 $8, Average Undergraduate Tuition and Fees, Midwestern States Public four-year (in-state) % Change Illinois $4,178 $8, % Indiana 3,786 6, Iowa 3,157 6, Michigan 4,615 8, Minnesota 4,009 7, Missouri 3,879 6, Ohio 4,742 8, Wisconsin 3,417 6, Private four-year Illinois 15,317 21, Indiana 16,078 22, Iowa 14,630 18, Michigan 11,155 14, Minnesota 16,243 22, Missouri 12,600 17, Ohio 15,419 22, Wisconsin 15,032 21, % 25% 20% 27.5% 28.6% 30.0% 30.7% 31.1% 31.2% 31.7% 31.9% Public two-year Illinois 1,532 2, Indiana 2,108 2, Iowa 2,141 3, % 10% 5% 7.5% 2.75% 10.7% 11.5% 12.5% 13.3% 8.1% 9.1% 9.6% 2.8% 2.9% 3.0% 3.2% 3.4% 3.5% 3.5% Michigan 1,743 2, Minnesota 2,507 4, Missouri 1,472 2, Ohio 2,292 3, Wisconsin 2,262 3, % Source: U.S. Department of Education, National Center for Education Statistics Sources: U.S. Department of Education, National Center for Education Statistics; U.S. Census Bureau, American Community Survey. Illinois Kids Count

7 Enrollment in Illinois Pre-Kindergarten At-Risk Progam and Preschool for All Children (fiscal years) Thousands $ Millions State General Funds Spending on Education (fiscal years) $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $4,699 State Board of Education (awards and grants only) $4,880 $5,096 $5,061 Higher education (state universities, community colleges, student financial aid) $5,373 $5,718 $6,015 $6,425 $6,954 $7,386 $2,005 $2,131 $2,274 $2,096 $2,007 $2,033 $2,042 $2,086 $2,138 $2, * $ * * Estimate Source: Illinois State Board of Education * Estimate Sources: Illinois Office of the Comptroller; Governor's Office Management and Budget. Revenue Sources for Public School Districts in Illinois (fiscal years) 100% Property taxes 90% 80% 70% 60% 54.4% 55.4% 56.6% 57.0% 58.2% 58.8% 57.6% 58.7% Other local funding* General state aid 50% Other state funding 40% 7.5% 6.1% 5.4% 5.0% 5.1% 6.0% 7.3% 6.3% 30% 17.9% 18.7% 17.9% 18.0% 18.5% 18.2% 18.1% 18.6% Federal funding 20% 12.7% 12.5% 12.1% 11.9% 10.1% 9.3% 9.7% 9.0% 10% 7.4% 7.3% 8.0% 8.0% 8.1% 7.7% 7.3% 7.4% 0% * Includes corporate personal property replacement tax, which is collected by the state Source: Illinois State Board of Education 58 Voices for Illinois Children

8 Community Colleges The Tip of the Spear By Ray Hancock President, Illinois Communituy College System Foundation The American military refers to those units that embrace the enemy at the outer limits as the tip of the spear. Illinois community colleges, like most of the community colleges in America, are the tip of the spear in education. Community colleges respond to America s need for preschool and child care programs, adult basic and adult secondary education, and academic and vocational-technical education. ey top it all off with cutting-edge workforce training and continuing education. Community colleges are picking up where the other educational systems have failed, and they are blazing new trails daily. Meeting the Demand for Middle-Skill Careers e global community has changed rapidly and dramatically in the past 50 years, from jobs that lasted a lifetime to jobs that change every few years and require workers to retrain, on average, five times in their working lifetimes. According to Dr. Scott Parke, Senior Director for Policy Studies at the Illinois Community College Board, Middle skill careers are the foundation of Illinois economy, and Illinois community colleges Middle skill careers are the foundation of Illinois economy, and Illinois community colleges are leading providers of that workforce. are leading providers of that workforce. Middle-skill careers include jobs such as most health care positions, law enforcement, masons, pipefitters, electricians, jobs in computers, and firefighters, to name just a few. ese are jobs that are not likely to be outsourced to other countries. These positions are the largest segment of jobs available in our economy, and more than onehalf of all jobs in the state fall into this category. e bad news is that only 43 percent of workers in Illinois are qualified to fill these positions, leaving a gap that is growing daily. National estimates by Skills2Compete-Illinois predict that Illinois will need more than one million additional jobs in this middle skill category by What a daunting task for Illinois community colleges when state resources are rapidly disappearing and local resources are strained to make up the deficit. Growing Demand, Shrinking Funding Illinois 48 community colleges graduated about 260,000 students in these critical areas in Added to this are the 73,800 employed workers in Illinois who are receiving onthe-job training and retraining through contracts and other arrangements with their local community college. In all, 333,394 individuals are being retrained or prepared for the workforce. And lest we forget, our community colleges lead the state in higher education enrollment. It s not enough, and it s being done with less money than the colleges received 10 years ago. Leadership in the General Assembly and in the education bureaucracy still provides funding on the basis of historical models, not the demands of the future economy. Sharpen the Tip of the Spear Elected leaders must find the courage and skill to direct the resources to the tip of this spear. e implications of not doing so are monumental for our state and, indeed, the American way of life. Students today must study harder and longer, and workers must retrain more frequently. Community colleges must continue to be the entrepreneurial community educators because kids count they are our future. e tip of the spear must be sharpened with money to provide the programs, buy the technology, employ the teachers, provide the scholarships, and build the facilities that will house this gigantic effort to lead Illinois to the head of the class in the global marketplace. Illinois community colleges are the tip of the spear that penetrates the future. We must provide for families, individuals, and our general economic, social, and political welfare. We must place our first and best response at the tip of the spear. Illinois Kids Count

9 Strengthening Our Schools, Strengthening Our Economy By Robin Steans Executive Director, Advance Illinois T he countries that out-educate us today will out-compete us tomorrow. President Barack Obama Is there any doubt that there is a direct correlation between a well-educated public and a thriving economy and polity? For decades, the U.S. boasted the most educated population in the world. At the same time, the United States secured its position as a dominant economic and political superpower. Our educational advantage helped spur stronger productivity and growth, and our commitment to educating all our citizens set us apart from other nations and anchored a strong economy. U.S. Education Slips But in recent years our educational dominance has slipped. Not only do other industrialized countries boast stronger performance in science, math, and reading on international tests, but for the first time in our lifetime, the United States has fallen behind many of our industrialized economic rivals in educational attainment. According to the Organisation for Economic Co-operation and Development, in the past ten years we ve slipped behind a dozen other countries, and more countries pass us by each year. Illinois represents a microcosm of these trends. Despite being the fi h largest economy in the country, our student performance remains fixedly in the middle-lower half of the nation, as do our high school graduation rates. is at a time when the global economy makes it imperative that all students leave high school prepared to compete with their peers around the world, not just down the street or across the state line. Growing Return on Investment We each have some self-interest in fixing this problem. According to economists Edward Glaeser and Albert Saiz, increasing our college graduation rate by 1 percent can lead to a 1.2 percent increase in wages for all of us, not just the new graduates. at s a 20 percent return on smarter policies. Similarly, if students of color graduated high school at the same rate as white students, we could add $13 billion to the economy by 2020, according to a study by the Alliance for Excellent Education. For the first time in our lifetime, the United States has fallen behind many of our industrialized economic rivals in educational attainment. Directions for Moving Forward So, how do we strengthen our schools and, by extension, our economy? By aligning our college- and career-ready standards. e fastest-growing sectors of the economy demand some postsecondary work, and even those industries that require only a high school degree demand many of the skills we traditionally associate with collegereadiness. By signing on and taking a leadership role in the Common Core Standards Initiative, the state has taken a strong step toward correcting the mistakes of the past, raising expectations for all of our students. In addition, we must re-examine our assessments to make sure they measure not only the content, but the skills and competencies our children need to be productive, wellbalanced citizens. How do we help our students meet stronger standards? By giving every child in Illinois effective teachers, by empowering their school leaders, by freeing the system of unhelpful and unfunded mandates, by using strong data to help make decisions in the classroom, and by rethinking how we support innovation in our schools. President Obama tells young people that turning their backs on their own education is tantamount to turning their backs on their country. e same is true in reverse. With the state and country facing tough budget decisions, we must continue to view education as an investment in the future of our children, and our nation. 60 Voices for Illinois Children