Future Economic Security for Louisiana

1. Future Economic Security for Louisiana The answer – An investment in higher education

2. Executive Summary • During the “Great Recession” • Louisiana experienced even higher levels of insecurity than the country as a whole. • Louisiana’s lack of educational attainment is related to its level of economic insecurity. • The current rate of attaining an Associate’s or Bachelor’s degree in Louisiana – 28.2% • Unfortunately, those who do get educated here leave Louisiana because: • Industry has no incentive to locate…, • employers have no incentive to create jobs that require anything but low skill and pay, and • workers have no reason to attain much beyond a minimum education. • Louisiana’s future depends on investing in higher education • Research shows a college degree meant greater job and wage protection during the Great Recession. • To become globally competitive by 2025 Louisiana’s degree attainment MUST REACH 60% • If Louisiana continues current trends PERSONAL INCOME in the state FALLS by $200 million in 2025 • If Louisiana reaches that mark state revenue RISES by $700 million in 2025 • If Louisiana just doubled the share of workers with a Bachelor’s degree income tax revenue would rise 75-150%. • If Louisiana invests and benchmarks are reached, revenues will exceed higher education spending by $425 million. Investing in higher education increases income and tax revenue without raising taxes!

3. Louisiana’s lack of 4-year degrees is a significant barrier to its current and future economic success Findings from a 2012 Georgetown University Public Policy Center Report • During the “Great Recession” Louisiana experienced even higher levels of insecurity than the country as a whole. • Nearly 4 out of every 5 jobs destroyed by the recession were held by workers with a high school diploma or less. • The state’s economic growth will be limited by its relatively low level of education demand of 51 percent (50th in the nation) by 2020, which reflects a lower share of high-wage, high-growth occupations and industries.” • The impacts of the current trend in Louisiana are: • Industry has no incentive to locate…, • employers have no incentive to create jobs that require anything but low skill and pay, and • workers have no reason to attain much beyond a minimum education Investing in Higher Education will break this cycle

4. Louisiana’s lack of educational attainment is related to its level of economic insecurity.Figure 4 shows that states with more college graduates tend to experience lower insecurity, while states with more high school dropouts tend to have higher ESIs. Low percentage of household head with a college degree = insecurity Source: Hacker, Jacob S et al. (2012). “Economic Insecurity Across the American States: New state estimates from the economic security index”. The Rockefeller Center. Retrieved on April 27, 2013 from http://www.economicsecurityindex.org/assets/state_reports/ESI_cross_state.pdf.

5. Louisiana is one of only two states that is a net EXPORTER of educated workers.Other states are not experiencing this brain drain! SOURCE: Carnevale, Anthony P. and Smith, Nicole. (July 2012). “A decade behind: Breaking out of the low-skill trap in the southern economy.” Georgetown University Public Policy Institute. Retrieved on April 27, 2013 from http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/DecadeBehind.FullReport.073112.pdf

6. Louisiana’s future depends on an investment in higher education SOURCE: The Center for Law and Social Policy and the National Center for Higher Education Management Systems. (April 2012). “Return on Investment to increase postsecondary credential attainment in Louisiana”. Published by the Center for Postsecondary and Economic Success. Retrieved on April 27, 2013 from http://www.clasp.org/admin/site/publications_states/files/ROI-State-Fact-Sheets-Louisiana.pdf

7. 4-year degrees mean greater job and wage protection during tougher economic times Louisiana needs this kind of economic protection! Grusky, David et al. (January 2013). Economic Mobility Project Report. Pew Research Center. Retrieved on April 27, 2013 from http://www.pewstates.org/research/reports/how-much-protection-does-a-college-degree-afford-85899440520

8. Higher Education is an investment Louisiana cannot afford to miss out on! SOURCE: The Center for Law and Social Policy and the National Center for Higher Education Management Systems. (April 2012). “Return on Investment to increase postsecondary credential attainment in Louisiana”. Published by the Center for Postsecondary and Economic Success. Retrieved on April 27, 2013 from http://www.clasp.org/admin/site/publications_states/files/ROI-State-Fact-Sheets-Louisiana.pdf

9. Higher Education is an investment with significant return for the state!REVENUE WITHOUT RAISING TAXES! If Louisiana “doubled its respective share of workers with a bachelor’s degree, tax revenue could increase 75-150%” -Georgetown University Public Policy Institute 2012 Report SOURCE: The Center for Law and Social Policy and the National Center for Higher Education Management Systems. (April 2012). “Return on Investment to increase postsecondary credential attainment in Louisiana”. Published by the Center for Postsecondary and Economic Success. Retrieved on April 27, 2013 from http://www.clasp.org/admin/site/publications_states/files/ROI-State-Fact-Sheets-Louisiana.pdf