It's Complicated: The Relationship between Postsecondary Attainment and State Finances. Issue Brief

Autor/inn/en	Ward, James Dean; Weintraut, Benjamin; Pisacreta, Elizabeth Davidson
Institution	Ithaka S+R
Titel	It's Complicated: The Relationship between Postsecondary Attainment and State Finances. Issue Brief
Quelle	(2021), (18 Seiten) PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Monographie
Schlagwörter	Postsecondary Education; Educational Attainment; Two Year Colleges; Academic Degrees; State Aid; Financial Support; Taxes; Income; Social Services; Costs; Expenditures; Welfare Services + Suchen Sie Ihr Suchwort? Post-secondary education; Tertiäre Bildung; Bildungsabschluss; Bildungsgut; Degree; Degrees; Academic level graduation; Akademischer Grad; Hochschulabschluss; Finanzielle Förderung; Abgabe; Einkommen; Social service; Soziale Dienstleistung; Soziale Dienste; Cost; Kosten; Ausgaben; Fürsorgeeinrichtung
Abstract	Increased college-going and attainment comes with a host of benefits for individuals and society. A college credential is associated with increased civic engagement, volunteering, happiness, life satisfaction, and better health and wellness, as well as lower incarceration rates and reliance on social services. In this paper, the authors examine the relationship between increased attainment of two- and four-year college degrees and state revenues and expenses, building on prior work detailing states' approaches to and progress towards meeting their attainment goals. The authors use state-specific, national datasets to estimate the relationship between state-level educational attainment and states' tax revenues and social services spending, and explore how and why these estimates vary by state. The authors find that in all states individuals with higher attainment pay more in state taxes (income, sales and excise, and property) and require fewer expenditures through Medicaid and welfare programs, though the extent of these impacts depend on states' income tax structures, their "generosity" in social services spending, and the attainment and income levels of their populations. The findings provide comparative state-level estimates of the potential economic impacts of increased attainment, which can help inform state policymakers about the barriers and benefits to increased higher education investments. The authors discuss the challenges to estimating the economic benefits of increased attainment and outline a theory of action and detailed approach. Next, they present state-by-state estimates of the relationship between attainment and state income, sales, and property tax revenues. Then, the authors do the same for the relationship between attainment and state expenditures on Medicaid and welfare. They apply these estimates to a hypothetical five-percentage point increase in attainment, using the state's 2018 attainment levels as a baseline. Finally, the authors discuss the state characteristics that influence their estimates and provide four recommendations for policymakers to guide their thinking on investments in pursuit of attainment goals. (ERIC).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2024/1/01