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Recent Census Bureau data clearly illustrate this point, as shown in Table 1. It’s not surprising that higher education levels also correspond with significantly lower levels of poverty, as the bold numbers on the bars indicate. Another important fact is that the earnings premium on increased educational attainment is growing. This trend should not surprise us either. The increased earnings premium is merely a reflection of our changing economy. Today’s jobs that offer decent wages (as well as health and retirement benefits) require higher credentials and skill levels. These new job market demands are impacting millions of low-skilled Wisconsinites. In 2006, for example, over 1.7 million adults in the state possessed only a high school education or less. The solution for them and their families, as well as for the increasing numbers of employers crying out for better-skilled employees, is greater access to postsecondary education and training opportunities. Many adults do not have the disposable income or savings, however, to spend on tuition and other costs of education, despite how important that education may be for them in the long run. Financial aid for this large population of adults, many of them balancing their schooling with work and family obligations, is a critical piece in the state’s workforce puzzle, and a key to the economic prosperity of Wisconsin’s families. Unfortunately, despite increases in recent budgets, our public investments in financial aid have not kept pace with the costs of postsecondary programs. The result is that at a time of increasing demand, those services are being priced out of range for many low- and middle-income Wisconsinites. For example, while the cost of attending the University of Wisconsin rose 55 percent over the last ten years, the amount of need-based financial aid grew only 24 percent during that time. The result is a large group of low-skilled adults that need postsecondary skills and credentials (whether in the form of certificates of training, technical diplomas, associates or bachelors degrees) but are not able to afford our universities and technical colleges. Issues surrounding postsecondary education and financial aid have garnered significant attention in recent months. Numerous reports and newspaper articles have touched on one aspect or another of the problem along with potential solutions. Business leaders have been at the forefront of this emerging conversation, urging greater investments and offering fresh ideas, from “Human TIFs” to greater employer involvement. Organizations such as Competitive Wisconsin have called for increased financial aid investments as a way to spur economic and wage growth. And the Governor has successfully advanced the Wisconsin Covenant, a promise of access to postsecondary education for qualifying students. A comprehensive discussion of our financial aid investments and their impact, as well as student needs and enrollment behavior should occur to ensure strategic and efficient use of our financial aid dollars. We offer the following thoughts on what that discussion could entail:
Keeping these ideas in mind could lead to greater and better-designed financial aid investments for our students and for our employers, and could lead to increased economic security for our families. |
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We’re all aware by now of the economic value of education. The more you get, the better off you’ll be economically. While it can be a little more complicated than that, educational credentials and job skills are the surest route to economic security.