Monday, May 18, 2009

Texas' Future Demands Our Action





High dropout rates across Texas pose a risk to the financial future of the state, particularly in big cities such as Houston.













According to a study by the Editorial Projects in Education Research Center, more than 120,000 Texas students failed to graduate in 2006 and 70 percent of all non-graduates were minority students. Hispanic males were the lowest-performing group, graduating at a rate of less than 53 percent.

A study by the Bill and Melinda Gates Foundation found that most dropouts leave school because classes are not interesting or they have missed too many days to catch up. Other reasons include failing, pregnancy, a lack of motivation to work hard, the need to get a job, and not getting along with teachers and classmates. Whatever the reasons for dropping out, the increasing loss of students in Texas has serious economic implications for the state. The graduation crisis not only affects the labor opportunities of individuals who don’t finish school, it also damages the economic health of their communities.

Almost 20 percent of Houston adults ages 25-64 didn’t finish high school and have an income averaging less than $15,000. The average annual earnings in the U.S. are $20,000 for people who didn’t finish high school, $30,000 for high school graduates and nearly $60,000 for individuals with bachelor degrees.

Texas Kids Count reports that keeping everyone in school would cost Texas an additional $1.7 billion for more teachers, more textbooks, more after-school programs and more space. However, if every 16-19 year-old in Texas graduated from high school, then the state’s earnings could increase by $865 million per year, or $3billion in four years, which would be more than enough to cover the education costs.

Higher incomes are only available where jobs are available. A study from the Milton and Rose D. Friedman Foundation reports that dropouts reduce Texas employment by more than 302,000 jobs. The pattern is simple: Quality well-paying jobs require well-educated and productive workers. If Texas residents fail to receive a good education, they reduce the productivity of the Texas economy. Dropouts accept jobs with lower earnings that result in reduced spending. Less spending translates into less demand and less available jobs.

Dropouts are also more likely to need government assistance than high school graduates, increasing state spending in food stamps, housing assistance and Medicaid. Moreover, approximately three-fourths of state prison inmates are high school dropouts, accounting for an extra $12 million annual expense. The Friedman Foundation study concluded that high school dropouts are costing Texas taxpayers $337 million per year in lost tax revenue, increased Medicaid costs and increased incarceration.

Lowering the dropout numbers is essential to fuel the future of our city and our state. The cycle that starts with less high school dropouts and ends with a prosperous economy is challenging, but collaboration between school districts and their surrounding communities offers a potential cure to the “silent epidemic.”

Texas has a responsibility to feed its youth a proper education and prepare a strong work force. It is time to act collectively to eradicate dropouts if we want to keep our cities safe from a crumbling economy.

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