Future Economic
Security for Louisiana
The answer –
An investment in higher education
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:
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•
•
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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%
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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!
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
1. During the “Great Recession” Louisiana experienced even higher levels of insecurity than the country
as a whole.
2. Nearly 4 out of every 5 jobs destroyed by the recession were held by workers with a high school
diploma or less.
3. 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.”
4. 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
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_cros
s_state.pdf.
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/DecadeB
ehind.FullReport.073112.pdf
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/ROIState-Fact-Sheets-Louisiana.pdf
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-acollege-degree-afford-85899440520
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
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