education decision- making in a mixed economy chapter 2 &4 in guthie dr. len elovitz

EDUCATION DECISION- EDUCATION DECISION- MAKING IN A MIXED MAKING IN A MIXED

ECONOMYECONOMYChapter 2 &4 in GuthieChapter 2 &4 in Guthie

Dr. Len ElovitzDr. Len Elovitz

2 Peabody College Series. Copyright © Allyn & Bacon 2009

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.

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. Labor2. 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


PurposesSchool 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 non-instructional 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.


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.


ParentalParental Interests Interests Student’s Student’s InterestsInterests

Polity’sPolity’s Interests Interests


The technical influences on policy

• Demography

• Economy


Demography• Demography is influenced by two

things: • Size • Geographic, racial/ethnic, age distribution of

the population

Population Migrations1. 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

• 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


Economy• Two economic dimensions influence

policy:

– The level of overall economic development

– The rate of economic growth


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

24Peabody College

Series. Copyright © Allyn & Bacon 2009

Summary of Secular Trends

The 21st Century At Work: Forces Shaping the Future Workforce and Workplace in the United States

Demographic TrendsTechnological ChangeEconomic GlobalizationWorkforce Implications


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?


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 will they need?


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.


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, problem-solving, 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 non-standard employment relationships such as “e-lancers” or self-employed workers.

What level of education should the public pay for?


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


Summary of trends cont’dDebt• The United States debt extends

internationally• Second only to Britain• Influences allocation of resources to

education system• Current Status


Summary of trends cont’dInternational 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?)


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


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

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

http://www.state.nj.us/education/data/fact.htm


Financial CostsSpending 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


Supplier of School Services: Personnel

• Huge U.S. employer

• Current characteristics of the workforce

• Future trends


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)

education decision- making in a mixed economy chapter 2 &4 in guthie dr. len elovitz

Documents

private education

institutionalized slide

services slide

education decision

special education

reduced education

healthier life slide

len elovitz slide