01/24/2003: "Education Plays Important Role in Economic Development"
Education is a cornerstone of economic development. A Texas high school graduate will probably make about 50% a year more than an individual who doesn’t complete high school. The variance between a high school diploma and a Bachelor’s degree is even more pronounced. A college degree can boost yearly earnings by more than 82% over a high school diploma.
By many standard measures, educational attainment in the Lone Star State is inadequate. According to the US Census Bureau, only 79.2% of Texans receive a high school diploma by the time they are 25 years of age, ranking the state last among the ten most populous states that frequently compete as sites for new business locations. Texas also ranks behind most key competitors in student math and science achievement, a fact that is further exacerbated by the US failing to rank among the top ten nations in what is clearly a global market for talent.
The statistics with regard to higher educational attainment levels are further cause for concern, particularly with regard to ethnic disparities in achievement. Texas ranks 33rd among the states in percentage of adults with a Bachelor’s degree. One-quarter of whites, 33.7% of Asian/Pacific Islanders, and 14.3% of African Americans have earned a college degree. However, only 8.7% of Hispanics have achieved a similar level of education.
There are some indications that educational attainment levels for Hispanics are slowly rising. Even so, recent demographic studies based on the 2000 Census unequivocally reveal that, if current trends in population and educational levels persist, Texas will experience declining average living standards over an extended time horizon.
A recent study reveals that firms locate in areas with high-performing schools, in part because skilled workers demand excellent learning experiences and opportunities for their children. In addition, good schools improve the quality of the available workforce, a key consideration in most corporate locations. This finding, which corroborates earlier research and is consistent with a fundamental role of government in economic development, is particularly relevant for technology-oriented growth industries.
Higher education also plays a vital and essential role in long-term economic progress for Texas. In addition to the need to improve high school graduation rates, there is also a critical need to increase college enrollment. Working to remove barriers to college entry, particularly financial impediments, will prove advantageous to the state and its residents.
Although the idea of education for its own sake is certainly appealing, the vast majority of people cannot afford to make higher education decisions simply on that basis. Instead, the likely income gains associated with educational choices are typically considered. As higher educational institutions move forward in endeavors to match programs to the needs of business, Texans will be better served and businesses across the state will greatly benefit from the constant influx of quality graduates.
Another key economic issue related to higher education pertains to the training of scientists, engineers, medical researchers, and similar professionals. High-quality research, the ability to attract substantial federal grant funds, and state-of-the-art laboratory and computational facilities are vital. For Texas to have a sustained presence in the emerging technologies, significant investment in higher education must be made.
For the Lone Star State to achieve its full potential, Texans must be educated to meet the ever-increasing demands of a sophisticated economic complex. This outcome is only attainable within the context of an exceptional educational system at all levels. The press has been filled with stories of a $10 billion budget shortfall and newly inaugurated leadership with a determination to improve fiscal discipline. These goals are certainly laudable and, indeed, essential. The key to success in these tough budget times, however, is to prioritize those things that are most essential to our future. Education at all levels—elementary, secondary, college, and job training—is at the top of that list.