Public School Education a Big Industry

Public School Education a Big Industry by Neal Fried and Brigitta Windisch-Cole ocal public education is one of Alaska's largest The ubiquitous industry Neal Fried and Lindustries. Alaska's local school districts, combined, Brigitta In 1997, over 127,000 children, more than one- Windisch-Cole represent one of the state's biggest employers. fifth of the state's population, attended public are labor Jobs with local school districts in kindergarten economists with school in Alaska. (See Figure 2.) Only Utah had a through 12th grade number over 20,000--nearly the Research and larger percentage of its population in school. seven percent of all wage and salary jobs in Alaska. Analysis Section, Alaska's high proportion of schoolchildren creates Administrative No industry is more ubiquitous. Often local edu- education-related jobs in practically every com- Services Division, cation is the single largest employer in a commu- Alaska munity. During 1997, on average, more than nity. In fact, two of the state's 10 largest employers Department of $7,500 was spent educating each child. are school districts. In many communities, one of Labor. They are located in the few employers is the local school district. In many communities, both large and small, the Anchorage. local school district is one of the largest employers, Local education is also a billion-dollar business. In if not the largest. For example, in the Bristol Bay, Alaska, unlike nearly anywhere else in the coun- Anchorage and Mat-Su Boroughs, the Copper try, local education is a basic sector employer. This Center region, Bethel and many other areas, the anomaly occurs because, with almost 70 percent local school district is the single largest employer. of all funds for local education coming from the In some communities, the public schools are one state budget, oil revenues, not local tax dollars, of the few sources of full-time, nonseasonal em- provide the major funding for this industry. (See ployment. In the Bethel, Wade Hampton (Yukon Figure 1.) As a result, when these education dollars Delta area), and the Yukon Koyukuk census areas, are spent, they represent new economic activity more than 20 percent of wage and salary employ- in the state and in all of its communities. There- ment comes from school districts. (See Table 1.) In fore, local education spending in Figure1 Alaska is not only an investment in education but also has imme- Sources of the $910 Million Spent diate economic impacts. This ar- for Local Education in Alaska in 1996 ticle will explore these economic effects and will discuss the employment opportunities pro- Source: Alaska Local Support Department of vided by this industry. 25.5% Education, 1996. For the purpose of this article, local education represents public education, covering kindergarten through grade 12. Private schools are not within the scope of this analysis. Federal & Other 6.7% State 67.8% 2 Alaska Economic Trends February, 1998 Figure2 eight other boroughs or census areas, schools provide over 10 Alaska's School Enrollment Continues to Climb percent of wage and salary em- Kindergarten through Grade 12 ployment. In addition, these employment numbers do not 127,733 include all employees connect- 123,161 124,474 125,340 Source: Alaska 120,116 116,766 ed to, but not employed by, the Department of 112,190 Education. 107,498 school district, such as contract- ed school bus drivers. Neither do they include the hundreds of millions of dollars spent on school construction around the state, (See Figure 3.), nor the employment and income multi- plier effects these education jobs create. The payroll impact of local education is even greater. (See Ta- 1990 1991 1992 1993 1994 1995 1996 1997 ble 1.) In 1996, the total payroll for local education was $641 million. (See Table 2.) This total is nearly equivalent to the pay- Figure3 roll of the oil industry. In the economically depressed region of Wade Hampton, in the Yukon School District Capital Expenditures Delta area, almost half of the payroll in the region comes from $200,000,000 its local school district. In all but Source: Alaska two areas of the state, the aver- Department of Education. age wage in education is greater $150,000,000 than the overall average wage for that region. The average an- nual wage for local education in $100,000,000 Alaska in 1996 was $36,557 as compared to Alaska's overall an- nual average wage of $32,088. $50,000,000 The exceptions were the North Slope Borough and the Valdez- $0 Cordova census area where high 1992 1993 1994 1995 1996 oil industry wages pushed average earnings above the norm. The industry keeps growing During the 1990s, school enrollment has steadily grown, spur- ring growth in local education employment. In 1997, employment in public education topped Alaska Economic Trends February, 1998 3 the 20,000 mark.(See Figure 4.) Figure4 In recent years, public education has been the impetus for Alaska's School District Employment nearly all the growth in local gov- Reaches Record in 1997 ernment. Because of its large size, turnover, and recent early retirement incentive programs, 1/ Estimate. local education is providing more Source: Alaska employment opportunities than Department of it has since the 1980s. Labor, Research and Analysis Section. Discussing employment opportunities in this industry often trans- lates into examining opportunities for teachers. (See Figure 5.) Teaching positions account for nearly half of the jobs in local education. (See Figure 6.) The other half of public education's occupational profile includes various types of professionals, service workers, support and /1 managerial positions. Most of the discussion in this article, how- Figure5 ever, refers to teachers, since they are largely the backbone of The Number of Alaska School Teachers this industry. Continues to Grow Job opportunities for 1/ Estimate. teachers are good Source: U.S. During the past two years, and Department of probably for the next two years, Education. the job outlook for teachers in Alaska is more positive than it has been in a long time. Many factors affect the supply and demand for teachers. On the demand side, there is growth in enrollments, teacher-pupil ratios, funding, legal requirements and /1 the national labor market for 1995 teachers. Influencing the supply side are the number of gradu- ates, wages, the national supply of certified teachers and the gen- eral condition of the overall job market. In Alaska, there are two distinct labor markets for teachersschool districts that are 4 Alaska Economic Trends February, 1998 Table1 cruiting for most teaching posi- School Districts Play an tions because the applicant pool Important Role in Alaska's Economy was so large. It was not unusual for the school districts of Fair- banks, Anchorage, Mat-Su, Kenai Share of Share of and Juneau to have thousands of Total Area Total Area applicants on file. During the Source: Alaska Employment Payroll Department of Area: in 1996 in 1996 1980s, there were years when Labor, Research there were only 10 openings for and Analysis Statewide 6.7% 7.6% secondary teachers for the entire Section. Anchorage School District. Dur- Aleutians East Borough 5.5 5.9 ing this period, the following Aleutians West Borough 3.2 3.6 comment appeared in one of Municipality of Anchorage 4.4 5.3 Alaska's newspapers: "to become Bethel Census Area 21.5 27.5 a school teacher...appears al- Bristol Bay Borough and most analogous to becoming a Lake & Pen. Borough 14.1 17.2 movie star." However, more re- Denali Borough 5.3 6.1 cently the script has changed. Dillingham Census Area 14.1 17.1 Fairbanks North Star Borough 5.5 6.9 The year 1997 or 1998 may go Haines Borough 8.1 10.0 down as a record year for new Juneau Borough 4.0 5.5 hires in Alaska's public education Kenai Peninsula Borough 8.7 10.1 system. (See Figure 7.) Last year Ketchikan Gateway Borough 5.0 5.0 Kodiak Island Borough 6.0 7.9 the Alaska Teacher Placement Lake & Peninsula Borough (combined with Bristol Bay Borough) staff predicted that "Alaska's de- Matanuska-Susitna Borough 14.7 21.2 mand for educators would be as- Nome Census Area 16.8 20.6 tronomically high." This demand North Slope Borough 7.4 5.3 is partially due to the current lo- Northwest Arctic Borough 15.6 16.4 cal and statewide early retire- Prince of Wales/Outer Ketchikan 10.4 12.3 ment incentive programs that Sitka Borough 6.6 8.2 began in 1996 and will continue Skagway-Hoonah-Angoon Census Area 12.7 12.4 through the year 2000. Although Southeast Fairbanks Census Area 14.8 17.2 this is the third time an early Valdez-Cordova Census Area 8.4 8.0 retirement incentive package has Wade Hampton Census Area 29.0 48.5 been offered, under present cir- Wrangell-Petersburg Census Area 8.8 10.4 cumstances it is translating into Yakutat Borough 8.9 9.0 almost unprecedented opportu- Yukon Koyukuk Census Area 25.8 26.6 nities for teachers in Alaska. Thus far, 435 teachers have taken early retirement, and the number urban or on the main road system, and the rural job will increase significantly. The Anchorage School market. District alone expects to see more than 220 and possibly as many as 300 teachers retire at the end of the 1997-98 school year. This is in addition to The urban teacher scene those who took advantage of the package last year.

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