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Study finds fewer dropouts increases economic prosperity for Iowa communities |
| Updated: June 16, 2010 |
Appeared in the Gazette, June 9, 2010
by Katie Stinson
IOWA CITY — A study released by The Alliance for Excellent Education said lowering dropout rates would significantly increases economic vitality in Cedar Rapids, Iowa City and Des Moines.
Bob Wise, Alliance president said these findings clearly prove that everyone benefits from improved education.
“As these results demonstrate, the best economic stimulus package is a high school diploma,” he said.
The study’s key findings state that an estimated 2,500 students dropped out of high school before graduating in 2008 from these three Iowa metropolitan areas.
If those dropout rates were cut in half Des Moines may have seen an estimated $12 million in increased earning in the average year.
Cedar Rapids could have seen $3.1 million and Iowa City $1.8 million.
The data also reveals that an increase graduation rate could have supported more community spending on homes and vehicles, created more jobs and boosted local tax revenue by $500,000 for Cedar Rapids and$300,000 for Iowa City.
Elaine Watkins-Miller, a spokesperson for the Iowa Department of Education said although the state doesn’t track specific economic impact information on low dropout rates, they do record the dropouts from each district.
Iowa has one of the lowest dropout rates in the nation, she said. In 2009, the state of Iowa’s dropout rate was 3.1 percent,with 306 dropouts from Cedar Rapids and 49 from Iowa City community school districts, according to statics released by the department.
“While we don’t have specific information on the economic impact of a low dropout rate,” she said. “Low dropout rate, national studies have shown that having a diploma positively affects earning and reduces incidences of substance abuse and incarceration.”
Nancy Quellhorst, President and CEO of the Iowa City Area Chamber of Commerce said employers communicate the need to have access to avaliable, affordable and capable workers all the time.
“What they [employeers] talk about at length, is a certanity that we graudate students who are proficiant in the skills required for today’s jobs,” she said. “In most cases that’s going to require a high school diploma.”
Quellhorst said education is extremely important to the chamber, and it’s exemplified through the education committee the chamber partners with as well as supporting WorkKeys — an ACT skills assessment program.
Quallhorst agreed with the studies findings, noting how important a commitment to education is for the local economy.
“A lack of education erodes the tax base considerably,” she said.
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