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               September 9, 2010

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Investing in Public Education -
A strategy to build the Kansas economy

Economic Benefits: The most common measure of the value of an economic stimulus is the influx of new businesses that bring job growth to a community. But the economic impact of investing in public education is often overlooked. Education jobs stay in the community and won't flow out of state or overseas. Education employees add money and knowledge and skills directly into the community. Quality of education drives property values up for the residents of a community, too.

In many counties in Kansas, the local school district is the major employer -- statewide, there are over 63,000 certified and non-certified k-12 school employees (in 2003). The indirect cuts in recent years by under-funding education have already had a negative impact on these employment numbers and negatively impacted communities across the state. There is also a ripple effect -- education employees spend the bulk of their income right in their local community so these cuts hurt every business in a town.

While cuts dampen the economy, research study after study has found numerous positive links between increased education spending and the economy:

  • Increasing spending by $1 per $1,000 of personal income increases employment almost immediately by 0.26% and long term by more than 3% in a state.
  • Average personal income in the community increases by 3.1%.
  • Education spending is the only government expenditure linked to increases in manufacturing investment.
  • Education spending was found to have the greatest immediate impact on local economic development of any government expenditure.
  • Quality schools in been found in studies across the country to increase home values by amounts ranging from 2.6% to over 6%.
  • Each additional year of schooling translates roughly into increased earnings of between 4% and 8% - keeping kids in quality schools has lifetime economic benefits.
  • And even small business starts increase. Actually, only investing in fire protection had a more positive impact than education spending!

Other benefits of spending on education: Spending on schools has a real, positive impact on the economy and on personal income and employment. That's not all. Researchers have analyzed the link between education spending and other non-economic factors. In study after study, increased education for citizens has some amazing and wide ranging benefits for society including:

  • improved health & life-expectancy;
  • more efficient consumer choices;
  • when out of work, shorter length unemployment;
  • increased charitable contributions; and
  • increased participation in civic organizations.

These studies seem to indicate that, as a community's citizens are better-educated, they have the additional resources to spend on better health care and to contribute to charity. They also have more leisure time (when not working 2 full time jobs, for example) to participate in civic organizations and even to research major purchases and make smarter consumer decisions.

 



KNEA Legislative Contacts

Blake West, President
Mark Desetti, Director, Legislative and Political Advocacy
Terry Forsyth, Director, Political Action

The KNEA Lobby Team consists of elected leaders and staff. The Lobby Team welcomes member feedback on issues before the Legislature and on this site.

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