Advocates Tie Education to Brighter Economic Future

When the citizens of Northeast Ohio are asked what challenges they must overcome to build a prosperous future economy, their first answer is “improving education.” Throughout the summer and fall, Voices and Choices, a public engagement initiative of a collaboration of 70 regional philanthropies, has conducted 3,000 one-on-one interviews with residents, culminating in a Regional Town Meeting, attended by 900. In nearly every category of discussion, residents at the Town Meeting identified strengthening education as its top challenge.

Voices and Choices, which aims to unify Northeast Ohio in order to compete better in a global economy, held the Town Meeting to gather ideas for a regional action agenda. This agenda is designed to encourage communities to pool their resources, creating more jobs and better economic opportunities for families and businesses in the region. Residents discussed ways to improve Northeast Ohio in the areas of employment and economic growth, education, equity, quality of life, and governance. In particular, they want to improve parental involvement, the poor relationship between business and educators, the flawed and inequitable school funding system, and unequal educational opportunities. Furthermore, people suggested reforms like rethinking the tax base and moving towards regional school districts.

By realizing that a weak education system can stifle the region's economic development, participants showed that they “understand the interconnectivity of the issues,” says Carolyn Lukensmyer, president of AmericaSpeaks, which is helping direct the campaign. Over the next several months, Voices and Choices plans on involving thousands more, through public forums, town meetings, and citizen interviews, in establishing economic priorities for Ohio's future.

Research Findings

The response to this public engagement effort reflects the research on the links between schools and economic success. A report by the KnowledgeWorks Foundation, another organization based in Ohio, “Public Schools and Economic Development: What the Research Shows,” compiles past studies and presents the strong indications that quality public schools increase national economic growth and competitiveness, state and local business attraction, and residential real estate values.

Research shows that education enhances productivity: by investing in the skill level of the population, the nation increases its human capital and improves the quality of its labor force, especially in the technology sector. Furthermore, studies show that higher educational attainment leads to higher wages and increased employment stability for individuals. The nation as a whole benefits when all are given a quality education, for when less-advantaged citizens qualify for higher-paying jobs, the “social distance” among classes narrows, as does the socio-economic gap.

On a state and local level, researchers have found that educational expenditures substantially increase median housing values and residential rates. Additionally, studies show that home buyers are willing to pay more for a home close to a high achieving school. For example, in Florida , property values for an “A” scoring school increase by more than 7% over a “B” scoring school. Moreover, overcrowded, debilitated school facilities contribute to neighborhood decline, while school construction can help revitalize blighted urban areas. In rural contexts, small, community-oriented schools can narrow the achievement gap and create a more economically advanced work-force. Public schools themselves are also frequently major local employers and become a factor in attracting local businesses that are looking for competent workers.

The report's survey of current literature reveals that good public schools positively impact economic development. As some areas are better documented than others, many opportunities remain for exploring the connection between the two. Through both public engagement and academic research, communities and policymakers can take into account the importance of education to economic growth in future decisions.

Prepared by Katherine Lu, December 14, 2005