Download LP 3 EDUCATION DECISION MAKING IN A MIXED ECONOMY

EDUCATION DECISIONMAKING IN A MIXED
ECONOMY
Chapter 2 &4 in Guthie
Dr. Len Elovitz
Objectives
• Understand the web of forces within
which our education system functions.
• Gain a working knowledge of how
change within these forces will impact
the education system.
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WOULD YOU CLASSIFY EDUCATION AS
CONSUMPTION OR INVESTMENT?
•
CONSUMPTION – PAID FOR BY EXPENDITURES
FROM HOUSEHOLDS OR GOVERNMENTS ON THEIR
BEHALF USING TAXES COLLECTED FROM THEM.
•
INVESTMENT – HUMAN CAPITAL - SCHOOLING
ENDOWS INDIVIDUALS WITH KNOWLEDGE AND
SKILLS THAT ENABLES THEM TO BE MORE
PRODUCTIVE AND THEREBY RECEIVE HIGHER
EARNINGS.
IS EDUCATION A PUBLIC GOOD OR A
PRIVATE GOOD?
• PRIVATE
• ABILITY TO EARN MORE MONEY, ENJOY A HIGHER
STANDARD OF LIVING AND BETTER QUALITY OF LIFE
• MORE INTERESTING JOBS
• POSSIBILITY OF MORE SCHOOLING
• UNEMPLOYMENT LESS LIKELY
• MORE OPTIONS FOR USE OF LEISURE TIME
• INFORMED CONSUMERS – MAKE BETTER USE OF
RESOURCES
• BETTER DIET AND HEALTH HABITS = LONGER HEALTHIER
LIFE
• PUBLIC
• ENLIGHTENED CITIZENRY THAT IS NECESSARY FOR
DEMOCRACY
• MORE PRODUCTIVE CITIZENS EARN MORE AND
PRODUCE MORE RESULTING IN HIGHER TAX
YIELDS AND INCREASED PRODUCTION THAT
CONTRIBUTES TO AN IMPROVED QUALITY OF LIFE
FOR ALL
• REDUCTION IN CRIME RATE
• IS EDUCATION MORE OF A PUBLIC GOOD
OR A PRIVATE GOOD? THEN WHO
SHOULD PAY FOR IT?
• ARE THERE PUBLIC BENEFITS TO
PRIVATE EDUCATION? IS THERE A
DOWNSIDE?
WHAT IS THE OUTCOME OF THIS
CONFLICT? WHAT ARE WE SEEING?
• VOUCHERS
• CHARTER SCHOOLS
• EROSION OF PUBLIC SUPPORT
WHAT COULD BE THE EFFECTS OF
EXTERNAL ECONOMIES – SAVINGS ON
REDUCED EDUCATION?
• INCREASED DROPOUTS
• UNDER-EMPLOYMENT
• INCREASED WELFARE
• HANDICAPPED INSTITUTIONALIZED
WHAT CONTROLS PRODUCTION
DECISIONS IN THE PRIVATE SECTOR?
• SUPPLY AND DEMAND - PROFIT
• WHAT DO HOUSEHOLDS CONTRIBUTE?
RESOURCES
1. Labor
2. Money
•
WHAT DO PRODUCERS CONTRIBUTE?
– GOODS AND SERVICES
WHAT CONTROLS PRODUCTION
DECISIONS IN THE PUBLIC SECTOR?
• SUPPOSED TO BE GREATEST
GENERAL WELFARE
•
WHAT IS IT OFTEN? POLITICS
•
EFFICIENCY?
HOW ARE POLICY DECISIONS MADE IN
EDUCATION IN U.S.?
•
STATE AS OPPOSED TO FEDERAL
•
LOCAL CONTROL - IS IT ERODING? WHY?
•
REDUCTION IN POWER OF SUPT. & BOARD
•
MORE REGULATIONS AND CONTROL FROM ABOVE
•
NEGOTIATIONS FROM BELOW
•
SHARED DECISION MAKING
Purposes
School finance systems are designed to achieve multiple
objectives, some of which conflict with one another. The broad
objectives of most school fiance systems are:
 To assure every district can attain a level of revenue considered to be
“adequate” or a least “basic”
 Promote equity across districts in terms of revenues and tax effort by
providing more aid to districts with relatively high need, relatively low
wealth, relatively high tax effort, or some combination of these
characteristics.
 Reimburse districts for a portion of costs associate with provision of
high-expense programs (such as special education) and noninstructional programs (such as transportation), and
 Provide districts with an ability to generate supplemental revenue,
sometimes within strict limits that control absolute per pupil spending,
annual increases in spending, or changes in property tax revenue or
tax rates.
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Complexity
School finance systems are complicated
because:
 They embody multiple objectives
 They are tailored to characteristics of numerous
districts
 They distribute huge sums of revenue, and
 They have developed incrementally over long
periods of time, often layering new features on top
of old ones.
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Parental Interests
Student’s Interests
Polity’s Interests
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The technical influences on
policy
• Demography
• Economy
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Demography
• Demography is influenced by two
things:
• Size
• Geographic, racial/ethnic, age distribution of
the population
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Population Migrations
1. Manifest Destiny – 18th & 19th centuries
2. European Immigration – 19th & 20th centuries
3. Shift of Rural Blacks from south to cities – from late
1930’s through WWII
4. Shift of urban whites to suburbs
5. Latin American & Asian Immigration – 75% of all
immigrants 1990-2000
6. Current movement from northern to southern states
Recent societal developments
influencing demography
• 1 new person every 11 seconds in the United States
– 1 birth every 8 second
– 1 death ever 14 seconds
– 1 immigrant every 26 seconds
• Geographic relocation of population
– Move from North and Midwest to South and West
» Greater political influence of these states
» Retirees spending more in these states
» “Brain drain” of kids from North and Midwest with
history of pre-K readiness commitment
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• Immigrant population is growing 6.5 times
faster than the native-born population
• Between 1979 and 2003 the number of
children who spoke another language at
home rose 3,800,000 to 9,900,000
• From 9% to 19 %
Age Distribution
•
•
•
•
US population is aging rapidly
Median age in 1950 – 30.2
Median age in 2000 – 35.3
Decreased birth rates and increased
longevity
• Public school students and their parents
constitute a smaller percentages of the
electorate
Influence of racial and ethnic
composition:
• Schools react to servicing greatest need
– Ex. 19th century immigration from the South and East
of Europe intensified the assimilation function of the
public schools
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Economy
• Two economic dimensions influence
policy:
– The level of overall economic development
– The rate of economic growth
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Summary of Future Trends
• Demographic Trends affecting the United States
workforce
• Technological Change affecting the dynamics of
workforce and productivity
• Economic Globalization affecting the whole of the United
States economy
• Workforce Implications affecting the demands placed on
the American education system
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Summary of Secular Trends
The 21st Century At Work: Forces
Shaping the Future Workforce and
Workplace in the United States
Demographic Trends
Technological Change
Economic Globalization
Workforce Implications
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Allyn & Bacon 2009
Demographic Trends
• Workforce will continue to increase in size, but
at a considerably slower rate
• Composition of the workforce will be more
balanced by age, sex and ethnicity
• Slower workforce growth may make it more
difficult for firms to recruit workers during
periods of strong economic growth
• Many overseas trading partners of the U.S. are
undergoing slower workforce growth, offering a
new competitive advantage to the U.S.
IS THIS ALL TRUE TODAY?
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Technological Change
• Pace of technological change will accelerate in
the next 10-15 years
• Synergies across technologies and disciplines
will generate advances in research and
development, production processes, and the
nature of products and services.
• Further technological advances are expected
to continue to increase demand for a highly
skilled workforce, to support higher productivity
growth, and the change the organization of
business and the nature of employment
relationships.
What skills 26
will they need?
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Economic Globalization
• The reach of economic globalization will be even more
expansive than before, affecting industries and segments
of the workforce relatively insulated from trade-related
competition in the past
• The new era of globalization is partly the result of
inexpensive, rapid communications and information
transmission enables by the IT revolution.
• Jobs will be lost in some sectors and will be
counterbalanced by employment gains in other sectors.
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Workforce Implications
• Rapid technological change and increased international
competition place the spotlight on the skills and preparation of the
workforce, particularly the ability to adapt to change technologies
and shifting product demand.
• Growing importance of knowledge-based work also favor strong
non-routine cognitive skills, such as abstract reasoning, problemsolving, communication and collaboration
• Education and training become a continuous process throughout
life involving training and retraining.
• Technology mediated learning offers the potential to support
lifelong learning both on the job and through traditional public and
private education and training institutions.
• Shift away from more permanent, lifetime jobs toward nonstandard employment relationships such as “e-lancers” or selfemployed workers.
What level of education should28the public pay for?
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Summary of the influence of
these trends on education
Productivity
• Ratio relating measurement of output of
goods and services relative to inputs
• Critical to nation’s wellbeing
– productivity high, standard of living high
– productivity low, standard of living does
not rise and may decline
• Education plays a big part in
productivity achieved
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Summary of trends cont’d
Debt
• The United States debt extends
internationally
• Second only to Britain
• Influences allocation of resources to
education system
• Current Status
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Summary of trends cont’d
International Competition
• Trade balance uneven
• United States goods and services too
expensive for the world market
• Education reacts to the needs of the
workforce (Does it?)
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Education in the United
States
• An industry central to our economy
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Demand for schooling:
Enrollments
– Size – projected to increase to 50 million by 2014
– Grade levels – PK-8 increasing more than HS
– Types of schooling
• Nonpublic
– About 10% of total enrollment ( higher in Northeast)
– Mostly Catholic
– Growth of Evangelical Christian & others
• Homeschooling – 2.2% of students
– Geographic variation
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Governmental Arrangements
• Broker between those demanding
school services and those willing to
supply instruction
• Tenth Amendment
• Decentralization
– Roles of the levels of government
• federal
• state
• local
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Local Control
• 128,000 school districts in 1920
• 15,000 in 1980’s
• In the 1920’s each board member
represented 200 citizens today it’s 3000
• New Jersey
Financial Costs
Spending on elementary & Secondary
Education in the US about $555 billion per
year
Add in post-secondary and it accounts for
about 5% of the GDP
• PPE (per pupil expenditure) varies by state
• Increase of 900% over the last 60 years
• Variances and cause
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Supplier of School Services:
Personnel
• Huge U.S. employer
• Current characteristics of the workforce
• Future trends
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Student Outcomes
• No Child Left Behind Act of 2001
• National Assessment of Educational
Progress (NAEP) - “The Nation’s Report
Card”
• tracks trends in student achievement in math
& reading
– Trends in International Mathematics and Science
Study (TIMSS)
• Program for International Student
Assessment (PISA)
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Economics
Ecology
Demographics
Technology
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Allyn & Bacon 2009