Report: High school dropouts cost economy billions

From staff and wire reports
February 26th, 2013

The report said raising the nation’s average graduation rate to 90 percent would produce an additional $6.6 billion in economic growth.

High school dropouts are costing some $1.8 billion in lost tax revenue every year, education advocates said in a report released Feb. 25.

If states were to increase their graduation rates, state and federal lawmakers could be plugging their budgets with workers’ taxes instead of furloughing teachers, closing drivers-license offices, and cutting unemployment benefits. While advocates tend to focus on the moral argument that all children deserve a high-quality education, they could just as easily look at budgets’ bottom lines.

“This has huge economic implications,” said John Bridgeland, president and CEO of Civic Enterprises, a public policy group that helped write the report.

That’s part of the reason Education Secretary Arne Duncan on Feb. 25 introduced a three-year, $15 million effort to put AmeriCorps members in 60 of the nation’s worst schools. About 650 AmeriCorps members are going to try to raise graduation rates, increase math and reading skills, and prepare more students for college.

“Turning around our nation’s lowest-performing schools is challenging work that requires everyone to play a part—from teachers, administrators, and counselors to business leaders, the philanthropic sector, and community members,” Duncan said.

Boosting graduation rates might be the most lasting way to turn around struggling budgets.

See also:

High school graduation rate highest in 34 years

Online classes target high school dropouts

How to achieve true educational transformation

Some 24 state budgets are smaller than they were in 2008, and states are still clawing their way back to pre-recession levels, according to the National Association of State Budget Officers.

Lawmakers in state capitols are making tough choices about whether to raise taxes to keep classroom lights on or to sell off state agencies to provide health care to seniors. Federal officials, meanwhile, are looking at some $85 billion in automatic spending cuts that are set to take hold at the end of the week—including cuts of nearly 8 percent to programs such as Title I, Head Start, and the Individuals with Disabilities Education Act.

Take Colorado, where the state cut $4.7 million from its higher-education budgets between fiscal years 2012 and 2013, according to the budget officers’ annual report.

If 90 percent of students finished high school, state and local governments would have $4.1 million extra, the education advocates said. The state graduated 74 percent of its students on time in 2011.

Or Washington, where the state cut $17 million from its primary and secondary education budget, according to the budget officers. Had 90 percent of its students finished high school on time instead of 76 percent in 2011, state and local governments could be collecting $14 million more in taxes, the education advocates said.

(Next page: Some concerns with the report’s figures)

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4 Responses to “Report: High school dropouts cost economy billions”

February 26, 2013

Surely someone besides me notices the irony on this page? Because not all kids graduate from high school, the government loses money?
And: Highest graduation rate in 34 years…

Rudy Schellekens

Yes, I noticed the same thing. My question is what is AmeriCorps going to do that teachers and schools are already working on for school improvement. Insight to many of these matters would be better found from the teachers that are dealing with these students every day for many years.
I am a forty plus year teaching professional who has gone through the cycles too many times – and yet I believe I still make a difference in the lives of students, despite all the new things we are told to use for improvement. And my students do LEARN!

February 27, 2013

This situation of droputs is not only prevelant in almost every school in America. It is also a large problem among Native Americans where I am a Special Educator. There are very few working programs in the Native American schools.

I am preparing my dissertation to address this problem. The problem it appears starts in Middle School and some of this problem is Teacher Leadership and just extra time and caring for several students at risk. I am hoping to do my little part to assist in this situation.