Investing In The Next Generation: How Education Drives Colorado’s Economic Future

“Education is not only the foundation of opportunity and social equity – it is the infrastructure on which our economy is built.”

John Hickenlooper Mayor City of Denver PEBC BOARD OF DIRECTORS George Adams U.S. Bank Hank Baker Forest City Stapleton, Inc. Ron Brady Colorado Education Association WHO WE ARE … Jim Christensen Douglas County Schools Timothy P. Connors The Public Education & Business Coalition Pinyon Mortgage Corp. Monica Dodd Calhoun is a partnership of business and education TIAA-CREF Mary Fisher leaders joining forces to support and encourage Xcel Energy Dr. George Garcia excellence in Colorado’s public schools. Boulder Valley Schools William Gold III Goldbug Rollie Heath Ponderosa Industries, Inc. OUR MISSION … Joseph D. Hoffman Anthem Blue Cross & Blue Shield … is to cultivate excellence in public schools so Tom L. Konkel Stewart Title of Denver, Inc. all students succeed in learning and in life. John W. Low Sherman & Howard LLC Dr. Monte Moses Cherry Creek Schools John Nelson Wells Fargo, Retired WHAT WE DO … Dr. Rick O’Connell Douglas County Schools, Retired We accomplish our mission through Mark Pitchford Qwest Communications • front-line initiatives in Colorado schools that Charlotte Scarpella promote teacher quality, school leadership, Mapleton Public Schools and school reform Dr. Stan Scheer Littleton Public Schools George Sparks • policy initiatives promoting support for NorthStone Group LLC system-wide excellence in public schools Dr. Cynthia Stevenson Jefferson County Schools Joseph R. Swedish • collaborative partnerships between business Centura Health and education Danny Thompson State Farm Insurance Co. Robin Van Bergen Wells Fargo Dr. Jerome Wartgow Denver Public Schools Douglas L. Wooden Great-West Life & Annuity Insurance Co. ©2004 Public Education & Business Coalition For bulk copies of this report at cost, please call (303) 861-8661. Table of Contents

EXECUTIVE SUMMARY ...... 4

THE ECONOMIC BENEFITS OF EDUCATION FOR INDIVIDUALS AND SOCIETY ...... 7

THE ECONOMIC BENEFITS OF EDUCATION: EDUCATION AS A FORCE FOR ECONOMIC DEVELOPMENT ...... 9

COLORADO’S ECONOMIC PICTURE—PAST AND FUTURE ...... 10

WHAT BUSINESS NEEDS: A HIGHLY QUALIFIED WORKFORCE ...... 12

WHAT BUSINESS NEEDS: A HIGH QUALITY OF LIFE TO ATTRACT KEY EMPLOYEES ...... 14

WHAT BUSINESS NEEDS: PARTNERSHIP OPPORTUNITIES WITH HIGHER EDUCATION ...... 15

WHAT BUSINESS NEEDS: STABLE COMMUNITIES ...... 16

ASSESSING THE SITUATION: BUILDING ON OUR STRENGTHS AND ACKNOWLEDGING OUR CHALLENGES ...... 17

THE FUTURE: TAKING STRATEGIC ACTION TO ENSURE A WORLD-CLASS EDUCATION SYSTEM IN COLORADO ...... 24

Public Education & Business Coalition 1410 Grant Street, Suite A-101 • Denver, Colorado 80203 (303) 861-8661 • www.pebc.org For more information, visit our website at www.pebc.org, or call us at (303) 861-8661.

OCTOBER 2004 • www.pebc.org 3 OCTOBER 2004 • www.pebc.org 3 Investing In The Next Generation:

EXECUTIVE SUMMARY HOW EDUCATION DRIVES COLORADO’S ECONOMIC FUTURE

What does education have to do with the Paying attention to the canaries in the economy? coal mine “It’s simple - The best way to grow our state and regional Strategic planning around education requires economies is to ensure the quality of our an assessment of our current situation. In greatest resource: our public schools. some ways, the state is doing well. We have good schools Thinking and acting strategically about the one of the most highly educated workforces quality of education in Colorado is essential to in the country. Many of our schools are are good for our economic future. If we can improve our performing very well, and our children tend schools to meet the needs of our economy and to score highly on national assessments business. We all provide opportunities to all students, we will compared to other states. We have numerous thrive. Neglect the quality of our schools, and public institutions of higher education. our economic advantages will begin to vanish. have an interest in But scratch beneath the surface, and there are We all have a stake in building a world-class troubling facts masked by these strengths – public education system in Colorado. making sure that our facts that demand our immediate attention if Education is directly linked to economic we are to maintain our competitive advantage. outcomes in a number of ways: schools are the best they ■ Our workforce is highly educated in ■ Educated individuals are more likely to large part because of the influx of highly can be for Colorado’s be employed and to earn more. They educated workers from other states, not contribute to the economy by spending because we have consistently educated all children. As business more money and paying more in taxes. of our own children to high levels. ■ As education levels rise, the costs of social Fact: The college-going rate for our students is lower than the national leaders, we must commit programs go down. Higher levels of education mean lower levels of spending average, and among the lowest in the on welfare, unemployment, health care, nation for low-income students. to giving our schools and criminal justice. ■ Graduation rates in our own high schools ■ Business relies on quality K-12 education are lower than most people think, the expertise, resources, and higher education institutions to create disturbingly so for minority and low- a highly-qualified workforce that can serve income children. and long-term support the needs of a diverse economy. Fact: Less than 70% of our 9th graders ■ The condition of the local school system graduate from high school four years they need to meet our is a major quality-of-life consideration for later. relocating businesses and employees. In Fact: Less than half of our black and the New Economy, attracting and retaining Hispanic 9th graders will graduate. expectations for all individual talent is key to success. ■ Higher education provides specialized students.” training and essential partnership Joseph R. Swedish opportunities for business. President and CEO ■ Quality public schools stabilize Centura Health communities and increase housing values.

4 OCTOBER 2004 • www.pebc.org ■ Far too many of our children are not What does Colorado need to do next? ■ We must ensure that our teachers are reaching the levels of proficiency Educating all of our children well in well-prepared for the work of helping mandated by state and district today’s society is a complex endeavor, all children learn, and are supported standards. particularly when the challenges faced by quality professional development Fact: According to the most recent by education reflect back to us the throughout their careers. CSAP scores, just two-thirds of our challenges that exist in our society. As a ■ We must institute reforms in our middle 10th grade students read at grade result, building this world-class system and high schools to ensure that students level. will be hard work. It will take the long- stay engaged and graduate from high Fact: Black and Hispanic students term commitment of all of us – political school prepared for work or college. typically score around 30 percentage and community leaders, educators, ■ We must take steps to understand what points lower than Asian and white parents, and the business community – to is causing the achievement gap in our students, across grades and subjects. achieve success. There won’t be any easy schools and design targeted programs answers, but there are goals we need to ■ Our state colleges and universities to reduce the gap. have been left reeling by budget pursue consistently and relentlessly. ■ To accomplish our goals, we must cuts and risk losing not only their At the Public Education & Business be willing to invest in our children’s competitive quality but also their status Coalition, we believe that Colorado must schools. Education must be as publicly-funded institutions. act on the following strategic priorities to consistently and adequately funded Fact: We rank 48th in the country address the weaknesses in our education across all levels. for state appropriations to higher system: We are starting from a place of strength. education per $1000 of personal ■ All of our educational systems, from We are a wealthy, well-educated state income. preschool through post-secondary interested in maintaining and growing Fact: Our state universities are education, must be deliberately aligned our economic advantages. This provides warning that they may privatize by to achieve our goals. an excellent platform for recognizing the end of the decade. ■ We must continue to emphasize the our mutual goals and joining together to ■ Overall, we are doing education on the importance of standards, assessments, ensure our future prosperity by building cheap, with little money available to and accountability in ensuring high a world-class education system. But we invest in promising practices. achievement for all children. must not be lulled by past success. The Fact: We rank 48th in the country time for strategic action is now. for funding K-12 education per $1000 of personal income. Fact: According to Education Week, we rank 40th in the country for average per-pupil spending. These are the canaries in the coal mine, warning of danger ahead. As we look for ways to improve our economy, we do not have the luxury of ignoring these issues. We are in a competitive economic environment, in a state with ever-diminishing public funds. We must be proactive. We must think strategically about education and take the actions now that will assure our economic vitality later.

OCTOBER 2004 • www.pebc.org 5 Colorado By the Numbers

2 35 65 Rank of Colorado in Rank of Colorado in Percentage of Colorado concentration of high- percentage of students 10th graders reading at tech jobs graduating from high grade level, 2004 school 3 27 Rank of Colorado in 68 Percentage of Colorado percentage of adults Percentage of Colorado 10th graders performing with college degree 9th graders graduating math at grade level from high school four years later $42,237 8 47 Rank of Colorado Median annual year- Percentage of Hispanic in FY 2004 state round wages for a 48 10th graders in Colorado appropriations for higher college graduate in Percentage of Hispanic perfoming math at grade education per capita Colorado, 1999 9th graders in Colorado level graduating from high school four years later 10 Source: Colorado Department 48 of Education Rank of Colorado Rank of Colorado in in FY 2004 state median household $21,757 appropriations for higher income, 2003 Median annual year- education per $1000 of round wages for a high personal income school dropout in Sources: Progressive Policy 37 Colorado, 1999 Institute, U.S. Census Bureau, Rank of Colorado for Colorado Office of State Planning and Budgeting high school graduates -12.6 68 continuing to higher Percentage change in education Colorado state funding Percentage of state for higher education prison inmates over last five years nationwide in 1997 who 42 $4.10 did not have a high Rank of Colorado for Estimated return to school degree low-income graduates +14.1 society for every $1 continuing to higher National average % spent to equalize the education in 2001 change in state funding graduation rate across 6 for higher education ethnicities and race Rank of Colorado over last five years in growth of prison Sources: National Information population, 1995-2002 Center for Higher Education Source: RAND Corporation Policymaking and Analysis, Center for the Study of Sources: National Information Opportunity in Higher Education Center for Higher Education Sources: Manhattan Institute, Policymaking and Analysis, Urban Institute, Colorado Office Measuring Up, Illinois State of State Planning and Budgeting, University U.S. Department of Justice 48 Rank of Colorado in total taxable resources spent on K-12 education, 2001 D Grade received by 40 Colorado from the Corporation for Rank of Colorado in Enterprise Development average per-pupil for investment in human spending, 2001 resources, 2003

Source: Education Week

6 OCTOBER 2004 • www.pebc.org ENEFITS B The Economic Benefits of Education CONOMIC

E FOR INDIVIDUALS AND SOCIETY

Key Points: CO Median Earnings for Persons 21-64 ■ Higher education levels lead to greater employment rates and Who Worked Year Round in 1999 higher wages for individuals ■ The benefits of education for individuals flow to society through $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 increased personal spending and revenue and decreased social costs ■ These effects are particularly important for Colorado, because we rely heavily on individual personal income for state revenue and because we have limited state and local funding available to alleviate social costs Not a HS High School Some Bachelor Advanced Why do politicians, policy makers, and Graduate Graduate College Degree Degree business and community leaders devote $21,757 $28,765 $32,294 $42,237 $53,528 so much time and attention to education? Source: U.S. Census Bureau Why, in poll after poll, do citizens in Colorado list education as a top concern? Because quality education benefits not For all these reasons, education is more This individual economic benefit, only the person being educated, but also than just another line-item in the budget. multiplied over many people and families, his or her family and the society in which It is strategic, as Purdue University helps drive an economy. People who are the person lives. Ensuring that everyone president Martin Jischke puts it, and we employed and earning higher wages tend receives a quality education is not just need to be thinking strategically about to spend more, contributing to the overall morally right. It is the most effective and it in terms of its benefit to the state, size of the economy. Census Bureau efficient way to operate a democratic to local communities, to families, and researchers report that on average, society like ours. We all have a stake in to individuals. Investing wisely and college graduates will earn nearly $1 good education. strategically in education yields benefits million more than high school graduates now and for future generations. over the course of their careers (Day, The well-educated person enjoys access 2002). to more employment opportunities and Both in Colorado and nationally, greater lifetime earnings potential, while education is correlated directly to society benefits from a skilled workforce, participation in the workforce and lower Who’s working in Colorado, 1999 increased productivity, increased levels of unemployment. People are more revenue in the economy, and greater likely to be employed and to earn more Not a HS Graduate - 56.8% social stability. In fact, given the work- as they obtain higher levels of education. based nature of American society, the The positive effects of higher education High School Graduate - 74.4% ability of our children to contribute to levels are intergenerational. The children our democracy and our culture may be of more highly-educated individuals live College Graduate - 84.7% dependent upon their ability to become in households with higher incomes, and Source: U.S. Census Bureau productive members of our economy. do better in school.

OCTOBER 2004 • www.pebc.org 7 The relationship between higher families in Colorado’s Front Range in “The inescapable education levels and higher individual which adults did not graduate from high income has profound implications for school were very unlikely to earn enough the ability of state and local governments to be self-sufficient – that is, to be able reality is that ours is a to provide public services. People who to meet their needs without public or make more pay more in taxes. But it private assistance (CLRI, 2001). When is not just in tax revenue that education researchers at the RAND Corporation society based on work and levels make a difference to government. looked at the effects of educational Higher education levels relieve social attainment on costs associated with ten costs associated with under-education. different social programs, they found that “the amount of public expenditure knowledge. If educators Under-educated people are more likely to per person declines dramatically as cost society money in a number of other educational attainment increases for all ways, including unemployment benefits, ages up to retirement age” (Vernez, 1999). cannot fulfill their economic welfare benefits, other subsidized assistance programs, and costs associated The relationships between individual with increased health problems. education on the one hand, and personal mission to help our youth Researchers in Colorado found that income and public costs on the other, are particularly important in Colorado. According to Governing Magazine, we Adults age 25 and older and adults become successful are one of five states that derives more reporting being in excellent than half of its revenue from taxes on or very good health personal income, making us very sensitive to changes in individual income. We also workers, they also will fail in 100% are not a state that historically funds social programs at high levels, and our tax and 78% expenditure limitation, popularly known their cultural and political 56% as TABOR, encourages an even greater 50% constriction of government services. For 39% our state, finding ways to reduce the need missions to create good for state-funded programs will become more and more important. Increasing 0% education levels is one very effective way to increase individual self-sufficiency and neighbors and good citizens. Bachelors degree or higher ” decrease social costs. We can invest now, High school completed Anthony Carnevale or we can pay later, and possibly at a time Educational Testing Service Less than high school degree when we no longer have the state funds to Source: National Center address our problems. for Education Statistics

Rand Corporation Research: Going from high school dropout to high school graduate

Annual returns associated with obtaining a high school Annual returns associated with obtaining a high school degree for native-born women age 30 (1997 dollars) degree for native-born men age 30 (1997 dollars) Non- Non- Other Hispanic Other Hispanic Black Mexican Hispanic Savings Mexican Hispanic Asian White in public Asian Black White $4,000 $8,000 3,397 3,376 programs 7,064 3,080 $3,000 2,841 $6,000 2,556 2,588 2,655 2,378 2,487 2,438 2,295 1,951 Increased 3,963 $2,000 1,819 1,843 $4,000 3,849 3,692 2,866 1,409 disposable 2,677 2,257 2,262 income 2,184 2,037 $1,000 $2,000 1,860 1,522 1,736 1,930 1,039

Increased TOTAL $8,331 $7,147 $6,869 $7,686 $7,080 tax revenue TOTAL $8,500 $10,360 $7,555 $7,690 $6,833

Sources: Adapted from Vernez (1999)

8 OCTOBER 2004 • www.pebc.org EVELOPMENT D

The Economic Benefits of Education CONOMIC

E EDUCATION AS A FORCE FOR ECONOMIC DEVELOPMENT

Key Points: In this environment, our support ■ A high-quality education system is for quality education will be key essential to economic development to maintaining and improving our in a competitive environment. competitiveness, because quality ■ High-quality education delivers: education delivers competitive advantages “At its core, that businesses need in today’s economy: ■ A well-qualified workforce able to meet the labor needs of a ■ A high-quality workforce diversified economy ■ A high quality of life to attract key ‘economic employees ■ An attractive quality of life for key employees and their ■ Partnership opportunities with higher development’ families education ■ Partnership opportunities with ■ Stable communities higher education Local education quality is by no means is nothing more or ■ Stable communities and the only factor in maximizing economic increased housing values development, but investing in quality education can yield great returns in less than the pursuit The art and science of economic combination with other economic development focuses on deliberately development strategies. shaping our economic future. What kind of intelligence – how of industries do we want to attract and keep in the state? What kind of jobs will our citizens hold? to attract it, nurture Colorado is facing a highly competitive economic environment, in which we must maximize all of our considerable assets it, and sustain it.” to compete effectively on the national and global stage. We must be very savvy Tom Clark about investing wisely in economic Executive Vice President development, particularly as state and Metro Denver Economic local governments have less and less Development Corporation money to spend on traditional economic development strategies such as subsidies and other economic incentives.

OCTOBER 2004 • www.pebc.org 9 COLORADO’S ECONOMIC PICTURE — PAST AND FUTURE Where we’ve been: Where we want to go: COLORADO’S BUSINESS A bumpy ride Focusing on the future CLIMATE: In the 1990’s, we enjoyed an amazingly Researchers at the University of POISED FOR TAKE-OFF robust economy. Our highly educated Colorado’s Leeds School of Business have population, well-regarded research identified current economic development institutions, low taxes, and beautiful opportunities in the following areas: environment allowed us to attract high- Ranked 4th nationally in 2002 ■ Maintaining and increasing our high- tech and other emerging industries. ◗ New Economy Index (Progressive tech presence, with new efforts to Telecommunications, manufacturing, Policy Institute) build biotechnology, nanotechnology, tourism, and construction drove and photonics sectors economic growth, and resulted in Ranked 3rd nationally in 2004 increased growth in retail sales, ■ Maintaining and increasing our role ◗ National State Technology and business services, and local government in aerospace, satellite, and defense Science Index (Milken Institute) (DiPersio, 2004). technologies The state was dealt a serious setback ■ Revitalizing and expanding Straight A’s (1993-2002) and during the recent recession. Although telecommunications Honor Roll (2003) (Corporation for we ranked 5th in the country for jobs ◗ ■ Expansion in transportation, financial Enterprise Development) added between 1995 and 2001, by the end of July 2002, the struggling high- and health-care services, and R&D tech, telecom, and tourism industries had ■ Outside the Front Range, increasing 4th most business-friendly tax caused Colorado to lose more of its job tourism, new technologies in ◗ climate (State Business Tax base than any other state (Couch, 2002). agriculture and energy, and Climate Index 2003) The lagging economy was reflected in developing high-tech capacity newer rankings: we fell from 4th to 11th ■ in the Beacon Hill Institute’s 2003 Metro Continuing to support small business Area and State Competiveness Report, and development and entrepreneurial 2003 ended our nine-year “straight A” efforts streak with the Corporation for Enterprise ■ Expanding international trade Development. The latest indicators, however, show that Sources: Wobbekind, 2004; Business Colorado’s Ten Largest Colorado is moving back on track, albeit Research Division, 2003. Private-Sector Employers, 2003 more slowly than the rest of the country. The FDIC projects that by 2005, we will Company Description Employees see employment at the 2000 level. Wal-Mart Stores Retail 20,100 Kroger Grocery Retail 15,404 Qwest Communications Telecommunications 13,500 Centura Health Health Care 12,330 Our Entrepreneurial Spirit Small Business is Key Safeway, Inc. Grocery Retail 11,250 Vail Resorts Resorts 11,072 Colorado ranks 2nd Of Coloradans employed in Columbia/HealthOne Health Care 9,140 nationwide in the businesses with employees, Lockheed Martin Aeronautics/Defense 8,900 establishment of new 78% work in businesses with Target Corporation Retail 7,513 United Airlines Air Transportation 7,000 companies. less than 10 employees. (Corporation for Enterprise (National Federation of Source: Denver Post Development, 2003). Independent Business, 2003).

10 OCTOBER 2004 • www.pebc.org COLORADO’S ECONOMIC PICTURE — PAST AND FUTURE Selected Occupational Groups as a Percentage of the Employed Civilian Population 16 years and over in 2000

Construction, extraction, and Production, transportation, maintenance and material moving 10% 10%

Management, professional, Sales and office and related occupations 27% 38%

Farming, fishing and forestry Service

1% 14% Source: Fronczek, 2003

Share of Colorado Employment Held by Each Sector In 2003

Natural Resources & Mining 1.2%

Federal Government 2.5%

Other 3.1%

State Government 3.2%

Information 4.2%

Transportation & Utilities 4.3%

Financial 7.0%

Construction 7.2%

Manufacturing 7.6%

Education & Health 9.7%

Local Government 10.3%

Leisure & Hospitality 11.5%

Professional & Business 12.4%

Trade (Wholesale & Retail) 15.4%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Source: OSPB, 2003

OCTOBER 2004 • www.pebc.org 11 What Business Needs A HIGHLY QUALIFIED WORKFORCE

Key Points: As economists at the Milken Institute EDUCATION AND ■ In today’s economy, the quality put it, “today a state or region’s most PRODUCTIVITY of a state’s workforce is its most important source of competitive important source of competitive advantage is the knowledge embedded in advantage its people …” (DeVol, 2004). In this According to the National Center on the ■ New Economy, educational levels and Educational Quality of the Workforce, To maintain an elastic labor supply in a diversified and changing quality have become much more essential increasing the average education economy, states must produce high as employees in both high-skill and level of all workers by 10% is more school graduates with meaningful lower-skill occupations are required to productive than: diplomas who are ready for work work with information and collaboratively or higher education with each other (Carnevale, 2002). A A 10% increase in worked hours ◗ ■ Quality higher education is key to state whose high schools consistently supplying specialized knowledge produce graduates who are literate, A 10% increase in capital stock and skills for the labor force numerate, and ready for either the ◗ workplace or higher education will enjoy a decided competitive advantage over “There is a clear consensus among researchers that education other states. enhances productivity.” Source: KnowledgeWorks Foundation, 2004

12 OCTOBER 2004 • www.pebc.org The importance of quality K-12: The importance of higher education: Laying the groundwork Providing specialized knowledge and Quality K-12 creates the building blocks skills for a qualified workforce. It is in our A solid high school diploma provides a public schools where the vast majority qualified workforce for many jobs in a of our children will learn essential state’s economy, and also provides the academic skills as well as the character foundation for those students who choose and teamwork habits necessary for to continue their education in community success in a workplace environment. colleges and four-year institutions. The Ninety-two percent of school-age students fastest-growing jobs require some in Colorado are enrolled in our public advanced training in addition to a schools, making public schools the de high school diploma. facto training ground for many of our future employees. Ensuring that students are ready to proceed to higher education A state looking to be competitive in the is particularly important in a state New Economy should ensure that each like Colorado, where we are actively of its students can and does obtain a looking to maintain our dominance as a meaningful high school diploma. A high high-tech center. A ready-made workforce school diploma is now the entry point for of college-educated employees will help many jobs that were previously available keep these high-paying jobs in Colorado. to workers who did not graduate from high school, and the manufacturing jobs Growing our own: that sustained a prior generation of high The “economic gardening” approach school dropouts are disappearing fast. We are an entrepreneurial state. Some Not only are few jobs available for high Colorado communities have begun to take school dropouts, but wages for high advantage of this mindset and encourage school dropouts have actually dropped “We need to “economic gardening.” This approach between 1975 and 2002 (Carnevale, to economic development, pioneered 2003). in Colorado by Littleton and Steamboat The majority of jobs available today do Springs, focuses on nurturing homegrown be forward not require higher education, but they do entrepreneurship rather than trying to require a solid mastery of the knowledge compete for existing businesses. This is a and skills graduating high school particularly appealing approach for rural students should possess. A rigorous communities, which lack some of the looking in order to K-12 education and a meaningful high competitive advantages enjoyed by metro school diploma provide students with the regions. Obviously, a community that ability to make their own choices in the has quality education will have greater economy, and provide business with a success creating the kind of innovative, adapt our educational supply of workers who are responsible, talented entrepreneurs that economic adaptable, and grounded in basic skills. gardening needs. According to Federal Reserve chairman There will always be a wide range of jobs system to the evolving Alan Greenspan, quality K-12 education in our society, from the entry-level job allows a state to have the widest possible at the fast-food restaurant to the head of supply of workers who are able to adapt neurosurgery at the local hospital. A to changing business and personal state like ours, looking to meet the needs needs of the economy circumstances and sort themselves of a diversified range of businesses, into available openings. Workers who from a one-person start-up to a Fortune have choices, thanks to a good basic 500 company, needs a diversified pool education, do not just benefit themselves, of potential employees. This requires and the realities of our they provide an elastic labor supply for a both high-quality K-12 education, which diversified economy. provides solid employees for lower-skilled industries and feeds well-prepared students into higher education, and high-quality changing society.” post-secondary institutions, which provide graduates ready to work at highly-skilled Alan Greenspan jobs (Weiss, 2004). Federal Reserve Chairman

OCTOBER 2004 • www.pebc.org 13 What Business Needs A HIGH QUALITY OF LIFE TO ATTRACT KEY EMPLOYEES

Key Points: Among these factors, education is right ■ As business relies more and more at the top of the list, as employees are on employee talent, it looks for very interested in the quality of schools “Recent research regions with high “quality of life” where they will be sending their children. factors to attract and retain talent Site selection professionals are well ■ The importance of “quality of life” aware of this. The editor of Expansion emphasizes considerations is particularly true Management magazine states, “In our for high-tech industries opinion, the ability to afford a decent place to live and to be able to send one’s ■ The quality of the local education the increasing system is a key “quality of life” children to quality public schools are by factor far the two most important categories in evaluating a metro’s overall quality of life” importance of locating (King, 2004). “Quality of life” factors are increasingly This emphasis on keeping employees important in business location decisions. businesses in places with a In the New Economy, businesses rely on happy through quality of life talent – educated, creative people who considerations like K-12 education is particularly true for technology-related can dream up new ideas and innovative high quality of life that will processes. But talent is highly mobile. companies who rely heavily on key Star performers are choosy, making their employees. As one biotech business leader told Site Selection Magazine, employment decisions based not only on attract future workers, and the qualities of their employers, but also “You ask companies what’s important on the quality of life available in the area to their success and more and more where they will be working. it’s talent. And talent demands quality of life. States are putting a strong focus the quality of public schools Businesses that rely on well-qualified on retaining their top graduates and employees are thus highly motivated to attracting earlier graduates back. One way make decisions that allow them to recruit is through strong K-12 programs. Top has increasingly begun to talent nationally and to encourage star biotech talent wants to live where their employees to remain in their employ. As kids can get a good education” (Jan. a result, in making location decisions, 2004). fit in under the rubric of a more and more businesses consider not only the quality of the workforce in proposed locations, but also the quality community’s general quality of life available to employees in the area “The ability to afford a based on available cultural, recreational, decent place to live and housing, and educational opportunities. of life.” to be able to send one’s Source: KnowledgeWorks Foundation, 2004 children to quality public schools are by far the two most important categories in evaluating a metro’s overall quality of life.”

14 OCTOBER 2004 • www.pebc.org What Business Needs PARTNERSHIP OPPORTUNITIES WITH HIGHER EDUCATION

“University research labs could be the catalyst to recharge Colorado’s lagging tech economy, according to state and business leaders.” (Denver Post, 3/29/2002)

A partial list of companies using intellectual property developed

at Colorado universities:

Amgen CDM Optics

Key Points: source of competitive advantage.” By Phiar Corp. ■ Access to higher education drawing in research dollars, creating Aurogen, Inc. research institutions fuels business companies built from university-generated research and innovation intellectual property, and attracting Myogen ■ Community colleges are important business partners, universities generate Gonex, Inc. partners in developing a local much more benefit to the economy than workforce responsive to the needs they cost the state. Numerica Corp. of local employers Community colleges also play a significant Ribozyme Pharmaceuticals role in the New Economy. Many of the Astralux, Inc. Partnerships between business and fastest-growing jobs require associate’s academia have become commonplace in degrees – specialized training for high Barofold, Inc. the New Economy. Research universities school graduates. Community colleges now supply much of the research and also tailor their programs to the needs of Efectka Technologies development that used to occur in-house. local industries, ensuring a qualified local Knowledge Analysis With many economists suggesting that workforce. A strong community college Technologies R&D will be the United States’ strength system thus serves many needs by: in the global economy, the importance Eyetech ■ Providing an affordable route to higher of higher education partnerships to education for students who otherwise Sentry Biosciences business continues to grow. According would not attend college to Richard Florida’s popular book, Dharmacon, Inc. The Rise of the Creative Class, “[t]he ■ Providing avenues for working adults presence of a major research university to ascend into higher-paying fields is a huge advantage in the creative without a full four-year degree economy – more important than the ■ Providing specialized training grounds canals, railroads, and freeway systems for the needs of local industries of past epochs – and a huge potential

OCTOBER 2004 • www.pebc.org 15 What Business Needs STABLE COMMUNITIES

Key Points: ■ Good local schools help stabilize communities, leading to “No community can develop a reliable infrastructure for business investment ■ The quality of the local school system is positively successfully and hold its correlated with housing values population, especially its upwardly mobile Quality public education contributes not only to a qualified workforce, but also to stable communities that invite business investment. Well-maintained public schools with high achievement families, over the long run if it does not provide a levels boost community economic health and housing prices. Creating innovative new schools or revitalizing older schools can form of education that is good enough to prepare have a significant effect on the economic health of a neighborhood or community, creating conditions that are favorable to business children for college.” investment. The National Association of Realtors (2002) reports: “More and more community leaders are recognizing the power of Gary Orfield schools to attract and keep residents in a neighborhood. Leaders Professor of Education and Social Policy in many urban communities are building or renovating schools as Harvard University part of broader strategies for revitalizing blighted areas.” In its new Stapleton housing development in Denver, housing developer Forest City Stapleton actively incorporated quality public schools into the neighborhood as part of a conscious effort to attract family homebuyers (Baker, 2003). Developers in Adams County School District 27J have funded a foundation to help build schools in the district’s fast-growing communities. According to Joel Farkas of Gateway American Properties, “Schools are critically important … The first thing we looked at is how to help schools” (Johansen, 2004). Good schools can also stabilize a community by actually increasing housing values. A recent review of the academic research concluded that the link between public school quality and property values has been consistently demonstrated, and holds true for urban and suburban communities, low-income and high-income areas, and for homebuyers with and without children (Weiss, 2004). People are willing to spend more for housing located in areas with quality schools, as realtors selling in the Cherry Creek Schools district know.

“School quality has a direct and positive influence on residential property values.”

Source: KnowledgeWorks Foundation, 2004

16 OCTOBER 2004 • www.pebc.org TRENGTHS S UR O ON

UILDING ASSESSING THE SITUATION: B BUILDING ON OUR STRENGTHS AND ACKNOWLEDGING OUR CHALLENGES

As a state, we have many strengths that concentration of high-tech workers in states in the West have managed to “net should not be underestimated. But the country, and we are ranked 2nd export” our high school dropouts while if we are to think strategically about nationally in recent degrees in science or “net importing” individuals with college education’s role in achieving a sound engineering as a percent of the civilian degrees (CLRI, 2004). This is the so- economic future for Colorado, we must workforce (DeVol, 2004). There is no called “Colorado Paradox.” also be clear about our challenges. doubt but that this strength has driven our economic expansion over the past decade The Colorado Paradox – our highly and given us an essential competitive educated population is not home- advantage over other states. “Colorado has produced grown But these encouraging statistics mask an One of our state’s strongest drawing interesting dilemma for Colorado. It is relatively few of its college points is our highly educated workforce. widely understood that our dominance According to the 2000 census, Colorado in the number of adults with college graduates – they have ranks 7th in the country in the percentage degrees has resulted from in-migration. moved here from other of adults with advanced degrees, 3rd in As Tom Mortenson of the Pell Institute the percentage of adults with a college for the Study of Opportunity in Higher states and brought with degree, 1st in the percentage of adults Education says, “Colorado has produced with at least some college, and 8th in the relatively few of its college graduates – they them the prosperity they proportion of adults with a high school have moved here from other states and diploma (Bauman, 2003). According to brought with them the prosperity they have generated.” the Milken Institute, we have the highest have generated.” To date, we and other

Distribution of Education Levels in Colorado

Less than High School Diploma Graduate or Professional Degree 13% 12%

High School Diploma or Equivalency Bachelor’s Degree 24% 22%

Some College, No Degree Associate Degree 22% 7%

Source: American Community Survey, 2002

OCTOBER 2004 • www.pebc.org 17 This has potentially major implications jobs of the future. Unless addressed, HOW COLORADO for the future of our workforce if this problem will grow in magnitude. COMPARES current migration trends shift. Are we A 1996 Census Bureau projection willing to bet our economic future on predicted that Hispanics would comprise these trends continuing? A far more 17% of Colorado’s population in 2015 prudent course would be to improve the (Campbell, 1996). We reached that % of 9th graders graduating ◗ odds of economic stability by improving number by 2002. four years later the number of homegrown highly- In addition to the moral implications, educated workers. Factored into this In Colorado 68% this achievement gap has significant decision should be the substantial public economic repercussions. According to a National average 70% expenditures we incur by leaving behind RAND study, simply raising national high a significant number of Coloradans who school graduation rates to the same levels do not attain a basic level of education. across race and ethnicity would result in % of Hispanic 9th graders To understand this issue, we need government savings of $3.30 for every ◗ graduating four years later to examine K-12 outcomes within additional $1 needed to achieve the goal, Colorado. Recent studies have pegged and the benefits increase to $4.10 when In Colorado 48% our high school graduation rates societal benefits from increased individual at around 68%. In other words, of disposable income are considered National average 53.2% the students who enter 9th grade in (Vernez, 1999). Colorado, an estimated one-third will not graduate four years later. This % of high school graduates places us 35th in national rankings for high school graduation rates – below ◗ continuing directly to higher the national average of 70%, not a education particularly good showing for one of the In Colorado 53% most highly-educated and affluent states in the nation (Greene, 2003; see also National average 56.7% Swanson, 2004). Even this number masks another problem. When graduation rates are % of low-income graduates disaggregated by race, we see that less ◗ continuing to higher than half of our black and Hispanic children are graduating (Swanson, education, 2001-02 2004). Far too many students, In Colorado 17.2% particularly black and Hispanic students, will not have even a high National average 24% school diploma, the most basic entry- level qualification for the decent-paying

“Society pays in many ways for failing to take full

advantage of the learning potential of all its children – from lost

economic productivity and tax revenues, to higher crime rates, to

diminished participation in the civic and cultural life of the nation.”

The Committee for Economic Development

18 OCTOBER 2004 • www.pebc.org Surprisingly, for such a well-educated state overall, our students who graduate “There are structural from high school go on to college at a fairly low rate. According to the National changes going on in our Information Center for Higher Education Policymaking and Analysis, approximately 53% of Colorado’s high school graduates economy … Like Colorado, continue directly on to higher education, below the national average of 56.7% Massachusetts and arguably the and ranking us 37th nationwide. If this situation continues, relying on homegrown college graduates will not allow us to rest of the country’s economy is continue our dominance as one of the most highly-educated states in the country. going to depend on how innovative Disaggregation of college-going rates also shows another troubling statistic: we rank very poorly in the number of low- we can be. The challenge now is income high school graduates who choose to continue on to college, far below the finding a way for the labor force to national average (Ludwick, 2003).

be prepared for the opportunities.”

Michael Goodman Director of Economic and Public Policy Research University of Massachusetts Donahue Center (Quoted in the Denver Post, July 26, 2004)

Assessment of Employment Barriers in Colorado

Immigrant Issues 44%

Child Care 63%

Jobs/Employment 88%

Transportation 94%

Education/Training/Skills 100% 0% 25% 50% 75% 100% % of CO Regions Identifying Barrier

Source: Colorado Foundation for Families and Children, 2003

We may be starting to see the implications of this stratification of our workforce. In a recent assessment involving more than 500 persons statewide representing community organizations, public agency employees, workforce development professionals, employers, and jobseekers, 100% of the regions surveyed listed inadequate education and job skills as a major barrier to finding employment for job-seekers, ranking this factor even above the scarcity of jobs in a troubled economy (Colorado Foundation for Families and Children, 2003).

OCTOBER 2004 • www.pebc.org 19 HOW COLORADO COMPARES ON THE NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS (NAEP)

Grade 4 CO % Proficient National Nat. % Prof. High state Low state Scaled score and above average and above Reading 224 46% 216 39% 228 (CT) 203 (NM)

Math 235 38% 234 36% 243 (NH) 223 (AL, MS, NM)

Grade 8 CO % Proficient National Nat. % Prof. High state Low state Scaled score and above average and above Reading 268 40% 261 35% 273 (MA) 251 (HI, CA)

Math 283 42% 276 34% 291 (MN) 261 (MS)

Source: National Center for Education Statistics

Colorado students are performing at above average levels nationally – but not well enough according to our own state Percentage of Students Scoring Proficient standards or Above on CSAP 2004 The National Assessment of Educational Progress (NAEP) provides a picture of how a state’s students perform in reading and 100% mathematics relative to students in other states and nationwide. According to the 2003 NAEP, Colorado 4th and 8th graders are 90% doing relatively well. 80%

While NAEP provides a useful picture of how Colorado students 70% are performing relative to other students nationwide, Colorado’s 69% state accountability system, the Colorado Student Assessment 60% 65% 59% Program (CSAP), provides an objective measurement of how 50% Colorado students are doing relative to the standards that have been set for their learning. Colorado’s Model Content Standards, 40% which articulate what students at each grade level should know 30% and be able to do in a variety of academic areas, have been in 27% place since 1994. The CSAP measures whether students are 20% meeting these standards. Because students must meet objective standards, CSAP provides a different picture than NAEP, which 10% is a relative measurement of student achievement. The graph to 0% the right shows the number of 5th and 10th graders meeting or 5th Grade 5th Grade 10th Grade 10th Grade exceeding all state grade-level standards for reading and math in Reading Math Reading Math 2003. Source: Colorado Department of Education

20 OCTOBER 2004 • www.pebc.org Only about two-thirds of Colorado 5th and 10th graders are meeting state grade-level standards in reading. Math scores are even worse – in the tenth grade, only about one-quarter of our Quality of public schools worries students can meet grade-level standards. This poses a serious problem for our high-tech economy, which depends on employees area businesses. with solid math skills. Even Colorado’s impressive performance on the NAEP tests must be tempered with the realization that the percentage of Colorado 4th and 8th graders who were considered Denver companies ranked the city’s public school proficient in reading and math hovers between 38 - 46%. In addition, the same achievement gap that plagues our graduation system...among their biggest concerns about doing statistics is present in test scores – low achievement levels that are likely setting the stage for disengagement with school. The chart business in the metro area... below shows the achievement gap just for 5th and 10th graders, but it is persistent across grades and subjects. The achievement Rocky Mountain News gap represents an enormous waste of individual potential and September 24, 2004 economic possibilities.

Colorado’s Achievement Gap 2004 CSAP Proficiency by Race/Ethnicity

100%

90%

80% 80% 74% 70% 70%

60% 52% 50% 47% 42% 40% 37% 36% 38% 33% 30% White 20% Hispanic 10% 8% 7% 0% Black 5th Grade 5th Grade 10th Grade 10th Grade Reading Math Reading Math

Source: Colorado Department of Education

OCTOBER 2004 • www.pebc.org 21 We have an abundance of higher FY 2004 STATE education institutions – but we are “The long-term APPROPRIATIONS FOR perilously close to crippling them economic vitality of Colorado HIGHER EDUCATION through budget cuts Our state has an abundance of community PER $1000 OF colleges, four-year colleges, and research depends upon an excellent PERSONAL INCOME institutions. The University of Colorado, Colorado State University, the University National Average = $6.80 of Northern Colorado, and the Colorado higher educational system.” ◗ School of Mines are key resources for business, particularly as we continue George Sissel ◗ Colorado = $3.96 to expand our high-tech sector. Our Former Chairman universities’ contribution to the state Ball Corporation Colorado’s Rank = economy is enormous. For example, for ◗ every dollar in unrestricted state general 48th Nationally fund support, the University of Colorado system generates $16.64 for the state Source: Mortenson, 2003. economy in research dollars, intellectual property, employment, tuition, taxes, and the like (Hoffman, 2004). Colorado State University calculates its 2002 return on state investments at $9.59 of additional state economic activity per $1 of state “This lack of funds (Colorado State University, 2002). Our four-year colleges, such as Adams funding also holds State College in Alamosa and Western State College in Gunnison, are primary economic drivers in their rural areas. significant consequences for But the recent recession hit higher education harder than any other category Colorado’s economy and for of state General Fund expenditures. Funding for higher education was cut the well-being of our entire more than 21% from FY 2002 to FY 2004. Colorado spent 20% of General Fund appropriations on higher education state. Colorado’s research in 1990; it now spends just 11% of the General Fund on higher education. universities are economic Due to these cuts, our ranking for public funding of higher education has plummeted. Because of the provisions of drivers, and their health TABOR, we cannot quickly restore these cuts as our economy improves. matters to our citizens and to As it stands, we are allowing one of the major drivers of our state’s economy to at a time when Colorado needs to the global competitiveness of take the brunt of state budget cuts now and in years to come. CU President be economically competitive. A lack Elizabeth Hoffman predicts that without of publicly-funded higher education Colorado companies.” reforms to TABOR and Amendment 23, institutions could leave our high school “public higher education in Colorado will graduates without affordable higher Larry Penley not survive in its current form.” education options, further exacerbating President our struggles to “grow our own” highly Colorado State University The economic implications of this lack educated workforce. At the same time, of public investment are potentially our businesses could be left uncertain enormous. Our colleges and universities about the resources flowing from higher may be undergoing a structural upheaval education institutions.

22 OCTOBER 2004 • www.pebc.org Colorado citizens are committed to childhood education. According to the education, yet we have very little Committee for Economic Development, “Ironically, in a state public funding available for strategic every $1 spent on preschool programs investment in quality returns $7 in savings. For this reason, with public support early childhood education is considered In 2000, Colorado voters passed by the Federal Reserve Bank of for quality education, Amendment 23, which ensured that state Minneapolis to be the most cost-effective education funding, which had failed to strategy for economic development we have pitted K-12 keep pace with inflation, would be restored (Rolnick, 2002). to prior levels. Coloradans consistently tell education against pollsters that education is a top priority. According to Education Week, in the 2001-02 school year, we funded public higher education in a But struggles continue over dwindling K-12 education at the rate of $6,662 per public funds. Amendment 23 has been pupil, ranking us 40th in the country. battle for limited state accused of contributing to our state’s Because we are a wealthy state, we rank recent economic crisis by mandating very low – 48th in the country – when funds.” additional money for K-12 education at a education spending is considered as time when we had no additional money a percentage of per capita income to spend. Higher education, as one of (U.S. Census Bureau, 2004). Our state the very few categories of significant appropriations for higher education discretionary expenditures in the state’s put us in the national basement by any budget, took the brunt of the necessary measure. budget cuts. Ironically, in a state with public support for quality education, we Our state rightfully touts our high have pitted K-12 education against higher rankings from the Corporation for education in a battle for limited state funds. Enterprise Development. But in 2003, And in this environment, with established we broke our streak of straight A’s programs struggling for funding, there is from that group. One of the reasons? very little chance of meaningful statewide Colorado received a D for investment in public investment in promising ideas human resources based on our school such as targeted access to quality early system outcomes and expenditures.

OCTOBER 2004 • www.pebc.org 23 THE FUTURE TAKING STRATEGIC ACTION TO ENSURE A WORLD-CLASS THE FUTURE EDUCATION SYSTEM IN COLORADO

We are starting from a place of strength. Deliberately align all of our What other states are doing: We are a wealthy, well-educated state educational systems to achieve our ■ Creating P-16 councils to better align interested in maintaining our economic goals all educational systems in the state. advantages. This provides an excellent There are many points of influence along Several states, including Georgia, platform for recognizing our mutual goals the education continuum, from preschool Maryland, Missouri, and Oregon, have and joining together to ensure our future through college. Integrating all levels created significant P-16 agencies or prosperity by focusing our attention of education so that they work together initiatives. In Indiana, the governor on student educational opportunities. coherently and in logical progression and state superintendent are chairing Together, we can build a world-class is essential if we are to efficiently meet the Education Roundtable, a group of business leaders, educators, educational system. If we wait too long, the new education standards of today. legislators, parents and community however, we may find that the obstacles Compartmentalizing early childhood we face have become more challenging members charged with adopting a education, K-12 education, and higher P-16 plan. than our economy can easily handle. education, and pitting these programs against each other in competition for ■ Funding early childhood education Education is a complex endeavor, (ECE), especially for low-income particularly when the challenges faced limited state dollars, is self-destructive in today’s economy. children, to ensure school readiness. by education reflect back to us the Low-income children often come challenges that exist in our society. As a into school already so far behind result, there are rarely any easy answers. their peers that it becomes nearly But there are goals that are worth impossible to catch up. A public- pursuing. private partnership in Minnesota, spurred by a Federal Reserve report calling investment in early childhood education the state’s most effective economic development strategy, is raising $1.5 billion to fund an endowment that provides high-quality ECE to low-income children. ■ Requiring a high school curriculum that prepares students for college work. Far too many college students (in Colorado and elsewhere) find they need to take remedial courses because they are not prepared for college level work. The Education Commission of the States reports that in Georgia, which adopted a P-16 approach in 1995, college remediation levels have dropped by 50% as the numbers of students taking a rigorous high school core curriculum have climbed (Van De Water, 2002).

24 OCTOBER 2004 • www.pebc.org Continue the emphasis on standards Ensure that our teachers are well- and accountability to ensure high prepared for the work of helping all achievement for all students children learn “By working If the goals of a standards-based Research shows that the quality of a education system are to succeed, we student’s teacher is the most influential to improve must recognize the need for a long-term school-based factor affecting student commitment to its success from the performance. For this reason, the Public business community, educators, parents, Education & Business Coalition has education in and community members. focused most of its attention on teacher quality initiatives. We need to redouble Colorado, I can What other states and cities are doing: our efforts to get the best teachers ■ A 1998 RAND study exploring the possible for our children and make sure reasons behind significant test score these teachers are supported by quality help children gain a love increases in North Carolina and Texas professional development throughout revealed that the business communities in those states were key to increasing their careers. of learning now that will student achievement. Business leaders What other states and cities are doing: provided the stability and long-term ■ San Diego restructured its district benefit us all in the future. outlook needed to keep the pressure administration, schools, resource up for continued achievement, and allocation, and human resource led the charge to improve the schools practices to make instructional That’s important to me through assessment, accountability, improvement the focus of the district. and improved teacher quality As a result of aggressive recruiting (Grissmer, 1998). practices, almost all teachers hired as a businessperson, as a ■ In Washington state, the business- by the district have been fully backed Partnership for Learning raises credentialed. On-site professional community member, and public awareness and support for the development is a key factor in the state’s standards-based accountability district’s reforms. system, and is spearheading a ■ In Illinois, State Farm Insurance as a citizen of Colorado.” campaign to support implementation employees are trained as substitute of new high school graduation teachers to enable classroom Mark Pitchford requirements. teachers to have time for professional Senior Vice President, Marketing Qwest Communications ■ San Diego’s Business Roundtable, a development. project of its chamber of commerce, ■ The El Paso Collaboration for played a key role in helping policy Academic Excellence, a civic makers understand the need partnership, pairs school districts for standards, assessment, and with scientists, mathematicians and accountability. It now has a number engineers from local institutions of of projects underway to use data and higher education to improve math and accountability to promote increased science instruction in the districts. student achievement.

OCTOBER 2004 • www.pebc.org 25 Institute reforms in our middle and Take steps to understand and reduce Adequately and consistently fund high schools to stem the dropout rate the achievement gap education across all levels Our middle and high schoolers need As our state’s demographics continue to A sound business climate depends on rigorous and relevant coursework and change, the achievement gap between a delicate balance between low-enough relationships with adults who care about ethnic groups and high-income and low- taxes and high-enough public investment. them. We need to support our schools in income students could well become a Lower taxes ensure that business is not meeting the needs of these students. major drag on the state’s economy. It is overly shackled by costs, while public certainly already a social justice issue. investments ensure that the necessary What other states and cities are doing: The achievement gap is a complicated infrastructure for business, including ■ In Texas, local businesses and school problem with no easy answer, but we a qualified workforce, will be in place. districts partner to implement the need to get started on resolving it. Colorado must ascertain the appropriate “Texas Scholars” program, which level of public investment in education encourages students to take a rigorous What other states and cities are doing: necessary to accomplish its long-term core curriculum in high school. ■ Studies show that the neediest Businesspeople make presentations at goals. The business community, with its children are often taught by the most planning and budgeting expertise and middle schools showing students why inexperienced and underqualified its long-term vision for investment in the they should be Texas Scholars, and teachers – a teacher gap that provide support to students as they contributes to the achievement gap. state, is uniquely positioned to help in continue through high school. In Chattanooga, business leaders in this effort. ■ The Southern Regional Educational the Community Education Alliance are What other states are doing: Board’s High Schools That Work funding a program that provides $5,000 ■ A number of states have funded school reform framework puts in bonuses to qualified teachers who agree “adequacy studies,” which attempt place a rigorous curriculum and to teach in high-needs schools. to estimate the amount of funding career/technical learning experiences. ■ Virginia governor Mark Warner has necessary for the state to meet set In one example of a HSTW school, proposed creating elite corps of student performance goals. a Maryland high school requires its teachers and principals who specialize ■ In Washington state, Governor Gary students to participate in intensive in working in and turning around low- Locke convened a group of business work-based experiences, and the state performing schools. and community leaders during the provides a tax credit to businesses ■ recent budget crisis to determine that provide these structured learning In Oregon, Employers for Educational the state’s available funding, funding opportunities. Excellence is leading an outreach program to engage business, priorities, and the most efficient ways ■ To combat the depersonalized community, and education leaders in to spend money to meet priorities. environments of traditional large selected communities in the creation high schools, many states, including of specialized school improvement Colorado, have received grants to plans designed to increase community form “small schools” – high schools support for high student achievement. which are small enough to allow ■ real relationships between teachers Quality early childhood programs like and students. The Denver School of those already described are considered Science and Technology, a new charter to be a very promising way to target high school, is one of the latest “small the achievement gap by giving children schools.” from disadvantaged homes the skills they need to succeed in school.

26 OCTOBER 2004 • www.pebc.org IN CONCLUSION In Conclusion

We are all in agreement that a strong economy benefits all the citizens of our state. But too often we fail to think strategically about one of the key components of a strong economy – quality education for Colorado’s students. Quality education is essential for individuals, for families, for cities, for regions, and for the state.

Improving education is complicated, time-consuming, and often controversial. It can be frustrating for businesspeople used to quick turnarounds, logical solutions, and formulas. As one superintendent said in comparing working in education to working in business, children tend to be inefficient.

Yet business has so much to offer education in terms of support for improvement: expertise in planning, budgeting, efficiencies of scale, marketing and communications, strategic partnerships, leadership development, and employee motivation. Business financial and political support for education is invaluable. As studies of Texas and North Carolina have shown, the long-term commitment of business to school improvement can give schools the space, time, and resources they need to make real changes.

With this commitment, the schools of Colorado can be world-class, ensuring that the economy of Colorado remains healthy into the future.

OCTOBER 2004 • www.pebc.org 27 REFRENCES & RESOURCES & REFRENCES REFERENCES AND RESOURCES

American Electronics Association. Center for the Study of Education Policy, Corporation for Enterprise Development. “Cyberstates 2003: A State-by-State Illinois State University. “Grapevine: “2003 Development Report Card for the Overview of the High-Technology Appropriations of State Tax Funds for States.” Industry.” (2003). Operating Expenses of Higher Education in the 50 States.” (Available online at Couch, Mark P. “Colorado last in job Atkinson, Robert D. “State New Economy www.coe.ilstu.edu/grapevine/50state.htm) growth.” Denver Post, September 13, Index 2002.” (Progressive Policy 2002. Institute, 2002). Colorado Department of Labor and Employment. “Colorado Occupational Crummy, Karen. “Candidates face a tough Baker, Hank. “Schools at the Heart of Employment Outlook: 2000-2010.” crowd: voters desperate to find work.” Community Development: A Public- Denver Post, July 26, 2004. Private Partnership Model.” HeadFirst Colorado Foundation for Families and Colorado Magazine (Fall 2003). Children. “Summary Report: Community Day, Jennifer Cheeseman and Eric C. Assessments for Colorado Workforce Newburger. “The Big Payoff: Educational Bauman, Kurt and Nikki Graf. Regions.” (2003). Attainment and Synthetic Estimates of “Educational Attainment: 2000.” Census Work-Life Earnings.” U.S. Census Bureau, 2000 Brief, U.S. Census Bureau (August Colorado Literacy Research Initiative. Current Population Reports (July 2002). 2003). “Educational Attainment, Income & Self-Sufficiency.” LitScan, vol. 5, no. 4 Denver Post, “The Denver Post Top 100 Beauprez, Jennifer. “High-tech sector (October 15, 2001). Employers.” May 11, 2003. looks toward CU for second wind.” Denver Post, March 29, 2002. Colorado Literacy Research Intiative. DeVol, Ross and Rob Koepp. “State “Regional Mobility and Educational Technology and Science Index: Enduring Business Research Division. “Thirty-Ninth Attainment.” LitScan, vol. 8, no. 5 (April Lessons for the Intangible Economy.” Annual Colorado Economic Outlook.” 15, 2004). (Milken Institute, March 2004). Leeds School of Business, University of Colorado at Boulder (2003). Colorado Office of Innovation and DiPersio, Cindy. “Population, Labor Technology. “Colorado’s Place in the Force, and Personal Income Growth Campbell, Paul R. “Population Projections Sun: A Bioscience Future.” (March Forecast for 2004.” Colorado Business for States, by Age, Sex, Race, and Hispanic 2003). Review, vol. LXX, no. 1 (Business Origin: 1995 to 2025.” U.S. Census Research Division, Leeds School of Bureau (1996). Colorado Office of State Planning and Business, University of Colorado at Budgeting. “Special Study: Colorado Boulder, 2004). Carnevale, Anthony P. and Donna M. Employment.” Colorado Economic Desrochers. “The Missing Middle: Perspective (December 18, 2003). Education Week. “Count Me In: Special Aligning Education and the Knowledge Education in an Era of Standards.” Economy.” Education Testing Service Colorado State University. “Economic Quality Counts 2004. (April 2002). Impact on Colorado.” (2002). Federal Deposit Insurance Corporation. Carnevale, Anthony P. and Donna M. Committee for Economic Development. “State Profile: Colorado.” (Summer Desrochers. “Standards for What? The “Universal Prekindergarten: A Call to 2004.) Economic Roots of K-16 Reform.” Action.” OCD Policy Bulletin (February Educational Testing Service (2003). 2004). Fronczek, Peter and Patricia Johnson. “Occupations: 2000.” Census 2000 Brief, U.S. Census Bureau (August 2003).

28 OCTOBER 2004 • www.pebc.org Governing Magazine. “The Governance Mortenson, Tom. “Opportunities for Schweke, William. Smart Money: Performance Project: The Way We Tax.” Higher Education for Students From Low Education and Economic Development (February 2003). Income Families in Colorado: State Policy (Economic Policy Institute, 2004). Design.” Paper presented at the Colorado Greene, Jay and Marcus Winters. “Public Policy Forum, April 14, 2003. Sissel, George. “Colorado’s Higher School Graduation and College Readiness Educational System: Key to Our Rates in the United States.” Education Mortenson, Tom. “State and Local Tax Economic Competitiveness.” Colorado Working Paper 3, Manhattan Institute Fund Appropriations for Higher Education Association of Commerce and Industry (2003). per $1000 State Personal Income.” (2004). Opportunity Newsletter No. 139 (January Grissmer, David W. “Exploring Rapid 2004). Swanson, Christopher B. “Who Achievement Gains in North Carolina and Graduates? Who Doesn’t? A Statistical Texas: Lessons from the States.” (RAND, National Association of Realtors. Portrait of Public High School Graduation, 1998). “Meeting the Challenge of Growth: A Class of 2001.” Education Policy Center, Blueprint for Realtors Action and Smart Urban Institute (2004). Haughton, Jonathan and Cagdas Sirin. Growth.” (2002). “Metro Area and State Competitiveness Teske, Paul. “School Finance Trends in Report 2003.” Suffolk University, Beacon National Center for Education Statistics. Colorado.” Forthcoming report from Hill Institute for Public Policy Research, “The Condition of Education 2004.” the Center for Education Policy Analysis, 2003. University of Colorado at Denver Graduate National Center on the Educational School of Public Affairs. Hodge, Scott, Moody, J. Scott, and Quality of the Workforce. “The Other Wendy P. Warcholik. “State Business Tax Shoe: Education’s Contribution to the U.S. Department of Justice. “Prisoners Climate Index.” Background Paper, No. Productivity of Establishments: A Second in 2002.” Bureau of Justice Statistics 41 (Tax Foundation, 2003). Round of Findings from the EQW National Bulletin (July 2003). Employer Survey.” (1995). Hoffman, Elizabeth. “The Pursuit of Van De Water, Gordon, and Carl Krueger. Excellence in Public Higher Education: National Federation of Independent “P-16 Education.” ERIC Digest, ED What’s Next?” Presentation to Grand Business. “Most Colorado Businesses Are 465213 (2002). Junction Economic Partnership (June 11, Small – Very Small.” (2003). 2004). Vernez, Georges, Richard A. Krop, C. National Information Center for Higher Peter Rydell. Closing the Education Gap: Jischke, Martin. “Education is the raw Education Policymaking and Analysis Benefits and Costs (RAND, 1999). material needed to build progress.” website, http://www.higheredinfo.org/. IndyStar.com (March 16, 2004). Weiss, Jonathan D. “Public Schools Penley, Larry. “Colorado’s Economic and Economic Development: What the Johansen, Erin. “Developers donate Health Depends on Universities.” Letter Research Shows.” KnowledgeWorks millions to foundation for new schools.” to Colorado State University campus Foundation (2004). Denver Business Journal, August 6-12, community (March 2004). 2004. Wobbekind, Richard L. et al. “Colorado’s Rolnick, Art, and Rob Grunewald. “Early Economic Opportunities: Today, King, Bill and Michael Keating. “Quality Childhood Development: Economic Tomorrow, and the Future.” Business of Life Quotient: Accessing the American Development With a High Public Return.” Research Division, Leeds School of Dream at the Lowest Cost.” Expansion Federal Reserve Bank of Minneapolis Business (2004). Management Magazine online (May 9, (December 2003). 2004). Rothstein, Richard. “Out of Balance: Ludwick, Lorraine. “College Participation Our Understanding of How Schools Affect Rates for Students from Low-Income Society and How Society Affects Schools.” Families by State, 1992-93 to 2000-02.” 30th Anniversary Essay for the Spencer Opportunity Newsletter, No. 132 (June Foundation Traditions of Scholarship in 2003). Education Conference (January 24-25, 2002).

OCTOBER 2004 • www.pebc.org 29 CURRENT PROJECTS CURRENT CURRENT PROJECTS AT THE PEBC

Teacher Preparation School Reform Grants for Teachers The Boettcher Teachers Program is an The School Reform Initiative (SRI), Teachers can apply for grants from PEBC intensive, highly selective licensure and a joint project of the PEBC and the through three different projects: The master’s program that trains teacher Colorado Small Schools Initiative at the Fund for Teachers, the Facing History candidates for work in urban and high- Colorado Children’s Campaign, develops Student Leadership Grant Program, and needs school settings. coherent reform efforts that span middle the Art Venture Grant Program. grades and high school, providing high- Professional Development quality professional development for Policy and Business Engagement PEBC’s nationally renowned Teaching teachers, cultivating strong principal PEBC’s work in policy promotes and Learning Center provides high-quality and teacher leadership, and building excellence in public schools and support professional development based on best structures and processes that support for the systems necessary to sustain instructional practices to teachers and best instructional practices. best practices in the classroom. We schools in Colorado and nationwide. also engage the business community in Civic Education understanding the challenges of today’s PEBC’s Coaching Initiative provides The Facing History Project is a rigorous, schools and supporting our schools in training and support services for school- standards-based academic and leadership their important work. based instructional coaches serving program for high school students based classroom teachers. on the nationally acclaimed Facing History and Ourselves Program.

Supporting PEBC There are many ways to support the work of PEBC, from donations to volunteer support. To find out more, please contact our office at (303) 861-8661.

30 OCTOBER 2004 • www.pebc.org Public Education & Business Coalition 1410 Grant Street, Suite A-101 • Denver, Colorado 80203 (303) 861-8661 • www.pebc.org For more information, visit our website at www.pebc.org, or call us at (303) 861-8661.