Post on 21-Dec-2015
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
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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.
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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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ParentalParental Interests Interests Student’s Student’s InterestsInterests
Polity’sPolity’s Interests 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
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
18 Peabody College Series. Copyright © Allyn & Bacon 2009
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
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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 TrendsTechnological ChangeEconomic GlobalizationWorkforce Implications
25 Peabody College Series. Copyright © 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 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, 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?
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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’dDebt• 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’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?)
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
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
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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
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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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EcologyEcology
EconomicsEconomics
DemographicsDemographics
TechnologyTechnology