Funding for education is a priority of the business community and will be the focus of a multiyear effort. This legislative session our efforts have been focused primarily on maintaining funding levels. We continue to call on legislators to hold education harmless as they make necessary cuts to make the budget balance.
Utah’s public school and higher education enrollment growth should be funded if updated state revenue projections next week yield any good news about economic improvements. The state’s rainy day fund and other tools for funding enrollment growth should also be considered.
There are some numbers we know already. Utah public schools will see an increase of 11,000 students and higher education will see an increase of approximately 12,000 students. Taking the same amount of money that was appropriated for public and higher education last year and rolling it over to this year is a good start, but it is essentially a cut.
Education is the key to a first-class workforce that will attract business to Utah and strengthen out state economy long-term. If we can find the money, funding for enrollment growth should be a top priority.
This morning I had the privilege of speaking at the Annual Governor’s Breakfast at Junior Achievement City. This is a remarkable program supported by the business community to teach real world financial literacy to Utah students.
JA was created by the business community to play a significant role in preparing our young people for their future. Today Junior Achievement is the oldest and largest career and financial education organization in the world linking the private sector with education, with no tax dollars being used for its programs.
JA offers more than 20 different programs each operating as part of the curriculum in our schools. With the Junior Achievement programming, we engage our young people in relevant ways, positively affecting their values and attitudes. And we don’t just emphasize business and economics, but also citizenship, ethics, character, work-related life skills and effective financial management.
In its 10 year independent evaluation of Junior Achievement programs, Utah State University found that all JA programs have a significant and consistent impact on student learning, skill development, problem solving and decision making.
The demand for JA’s new High School Financial Literacy program has skyrocketed with teachers up and down the state requesting it. The JA program serves as a supplement for Utah’s required financial literacy course.
A sizeable number of Chamber members are providing their accounting and finance people for the JA classes. Junior Achievement is planning an expansion of its finance supplement that would reach every high school by 2013.
We owe this to Mr. Dick Prows, whose vision has continued to drive JA’s effort in reaching more Utah young people, sparking the fire within them, opening their minds to their potential. With these new partnerships, Junior Achievement’s student participation numbers in Utah will expand from 64,000 to nearly 100,000 in 3 years and JA Volunteer numbers will expand to 10,000.
Scott Anderson of Zions Bank recently said Junior Achievement may just be his bank’s best investment in the state because, he know exactly where the contribution goes. He can drive by schools Zions sponsors and see a banner that says, “Thanks Zions Bank for Bringing Junior Achievement to our School.”
He knows every child in every grade is getting Junior Achievement in that school because of Zions Bank and he can see his own employees are the ones teaching in their classrooms. It’s a perfect investment of their contribution dollar.
JA is doing its part in our economic recovery and preventing another crisis in the future by helping our young people obtain the financial and work-readiness education they need to become smart stewards.
JA programs provide a compelling value proposition to our state’s employers by preparing students to contribute in the workplace, practice teamwork, and demonstrate creative thinking.
After experiencing JA programs, our young people are prepared to help drive economic development in Utah.
If you’re interested in helping Junior Achievement, there are a number of ways to contribute. Please contact JA at 801.355.5252 or log on to ja-utah.org.
By Lane Beattie, President and CEO
The Utah Legislature will convene for the 2010 General Legislative Session Monday. They will do so with the well-deserved title of “Best Managed State in the Nation.”
Utah achieved this ranking in 2008 from the Pew Center on the States because of our performance in four key areas – money, people, infrastructure and information. It is a proud honor for our state, and one that Utah has received eight times during the course of the last four governors.
But today Utah, like every other state, faces serious challenges not felt by any previous Legislature or governor.
- State government revenues have declined by nearly a billion dollars in the past three years.
- Nearly 90,000 Utahns are unemployed. That’s a population almost the size of Orem City.
- School enrollment in both public and higher education is at record levels.
- Human service caseloads are up 14% in the past year alone.
- And we have the fastest growing population in the country.
To quote the great patriot, Thomas Paine, “These are times that try men’s souls.” As business leaders we are asking a simple question: When the Pew Center does their next grading of the states, probably in 2011, what will they see?
Will we have managed through this financial crisis in a way that propels the Utah economy to once again lead the nation?
Will we have invested in our most important business resource – our people?
Will we have developed our workforce so that Utah families can be supported by high-paying jobs?
Will we have repaired and maintained our capital assets?
Will we have controlled costs so that future taxpayers are not burdened by our decisions?
Will we pay for our fair share of capital expenditures rather than passing them on to future generations?
Will we take responsibility for our choices and be held accountable for our actions?
May I suggest that the Pew Center, when grading all 50 states next year, will be asking all of these questions and more. They will be applying the business principles that you see attached to the wall behind me to the management of state government and asking, “Did they manage well and did they lead?”
Now is a time to lead.
As business leaders we ask the State Legislature as to apply business principles to the management of government. If they don’t , they will have squandered a great opportunity because no state is better positioned than Utah is right now to lead this country out of recession.
Of course, it’s not about the Pew Center, Governing Magazine, or any expert grading system, however well respected. It’s about providing the citizens and businesses in this state with abundant opportunities to develop and improve life quality.
And if we do, we will continue a long-standing tradition in this state to be not only well-managed, but to be a great place to do business, to live and to raise a family – a value at the heart of who we are.
By Lane Beattie, President & CEO
Last week the Chamber hosted David Wyss, Standard & Poor’s chief economist, at the Utah Economic Forum. The economy is a hot topic and business leaders, economists, journalists and engaged citizens all took time to listen to one of the world’s most renowned economists.
His message: the recession is over but that doesn’t mean things are back to where they were two years ago.
You may have heard some commentary that while the recession may be over on Wall Street, it surely isn’t over on Main Street. According to Wyss, that’s because the two have different definitions of what “over” means.
Wyss says the recession is over because we’ve hit the bottom. We are turning around and headed in the right direction. This is why Wall Street says the recession is over.
Main Street—meaning businesses of all sizes—disagrees because things aren’t what they were pre-recession. That’s true and may continue to be the case for awhile. Growth will come but, as Wyss puts it, it’s much easier to fall than to climb.
In the past, the Utah Economic Forum attracted some 100 attendees but we had nearly four times that number last week. When talented Utahns take on tough issues, you can bet the outcome will be positive.
I’m confident in the economic future of our state. We have the best managed state in the nation and our governor and State Legislature promote a very business-friendly local economy. Utah still has the nation’s youngest workforce and that has proven very attractive to businesses looking to relocate and/or expand their presence in Utah.
By Lane Beattie, President and CEO, Salt Lake Chamber
Editor’s Note: These remarks were given to the Utah State Board of Education and Utah State Office of Education Board-Legislative Dinner
The great composer Mozart once made a wager with another composer that he could not play at sight a piece which he had composed earlier that day.
When the composer accepted the bet, the score was placed on the piano and he began to play.
After the first few bars, the composer suddenly stopped. As it turns out, the composition required that the hands play at opposite ends of the keyboard while a note was struck at its center.
Not having three arms, the man conceded defeat and Mozart took his turn at the piano.
He began to play the piece and when he reached the impossible note, he bent forward – and struck the key with his nose.
From my years in the senate, I know legislators face a difficult task. Balancing the state budget—particularly in lean times—may make legislators feel as though they are required to play notes on opposite ends of the keyboard and in the middle.
It will be difficult.
It may seem impossible.
And it can be done.
The strength of Utah’s economy tomorrow is directly tied to the quality of education we provide today.
Business leaders have a considerable interest in education because what happens in classrooms across our state directly affects their companies. Students that learn algebra today will be the accountants that balance the books tomorrow. The editor of the school newspaper will market the products that become big sellers. A student taking introduction to civics will be a rising star at a local law firm.
In the last year we’ve seen marquee companies including Goldman Sachs, Microsoft and eBay embrace Utah as a place to grow. The federal government has chosen to build the new NSA Data Center here. And we have some great locally grown companies, as well.
These entities all choose Utah because we have a young, well-educated population. We need to reward the trust they have placed in our ability to produce the best workers. And we need to continue to earn the trust of businesses so they will expand and relocate in Utah, creating jobs for our children and grandchildren.
The famous line from the film Field of Dreams is, “If you build it, they will come.” The same principle applies with education and bringing business to Utah. If we educate our children, the companies and jobs will come.
The business community stands resolute that funding for public and higher education should be funded at current levels as you balance the budget for FY 2011.
As a state we currently spend less of our personal income on K-12 education than all but seven states.
The amount of money we spend per pupil is less than any other state in the union. We’re at the very bottom of the list.
I’m familiar with the same commentary you are:
“Utah educators get more out of every dollar than any other state.”
“Our results are good even with less spending.”
But these old reassurances don’t work anymore. Yes, our educators do a wonderful job considering the resources available.
The world is changing… this country is changing and Utah is changing and we must change the way we educate Utahns.
If you look at any 3rd grade class in the state you see a much more diverse classroom than the one where you learned to write in cursive.
The younger age groups—those in our schools right now—are the most diverse group we’ve ever had in our state. For those over 60 years old the minority population is only between 6.5 percent and about ten percent. But for the age group under five—the next wave of students to enroll in our public education system—one in four students is a minority statewide and in Salt Lake County it’s almost 35 percent.
We are no longer the homogenous state we once were.
From 2000-2007, minorities accounted for one-third of Utah’s population growth and two-thirds of our public school enrollment growth.
Children in 3rd grade classes today are the future of Utah. By 2050, our minority population will double to 30 percent. We must improve educational outcomes for this skyrocketing minority population.
Consider this:
For every 100 Latino students that begin elementary school in Utah, only 40 will graduate from high school. Only four will graduate from college and only one will finish graduate school.
Those numbers don’t work for Utah!
Utah’s student body is changing and we have to re-think the way we teach our students and the way we prepare them to join the workforce.
There are other issues, too:
n Skyrocketing enrollment growth. You know the numbers. Utah public school enrollment will increase by 10,000 to 15,000 students every year for the next decade. We need to provide some $90 million a year to educate these children.
n College readiness for all students. Many high school graduates are ill prepared for serious college coursework. Only 25 percent of our students who take the ACT meet the benchmark score to show college readiness in English composition, algebra, social science and biology.
Utah must improve educational outcomes. For a prosperous 21st century economy, we need to elevate our performance all the way around.
As a business community we have identified three principles to guide our involvement in education:
1. Invest in the most important business input—human capital:
Education fuels Utah’s economy by turning potential into skill. As we develop the best workforce in the nation we will attract millions of research dollars. We’ll attract companies that are not here, encourage expansion in those that are, and generate income for Utahns.
2. Create long-term prosperity:
As a business community we are committed to acting in Utah’s long-term interest no matter how difficult that may be in the present. Education drives economic development.
3. We must act:
There may be nothing so extensively studied as education policy. Many studies have documented the need for educational improvement and innovation. Now is the time to take decisive action to ensure all students get a sound start in reading and math, to better prepare all students for postsecondary education, and to increase participation in postsecondary education.
The Salt Lake Chamber has made a long term-commitment to education.
We’ve done this, in part, because Dr. Shumway came to us and asked for our partnership. It’s a short walk from the State Board’s offices on 5th South to the epicenter of business on 4th South—the Salt Lake Chamber. For far too long, this distance has been too great! Business has been business and education has been education. But no more. It is our pleasure, as Utah’s largest statewide business association to partner with the State Board of Education, the Utah State Office of Education, school districts, local boards of education, charter schools, teachers, principals, guidance counselors, parents, students and the State Legislature to optimize education in Utah. Like many of you have said, “we have promises to keep” and Utah business leaders want to help you as you lead the way.
For the upcoming session we’re asking the legislature to maintain current funding levels for public and higher education.
The fact is, appropriating the same dollar amount as last year is not maintaining the current funding level. It is still a step-back.
This year, public education enrollment will increase by more than ten thousand students. The same amount of money will have to fund the education of a significant increase in students. Even maintaining funding levels leaves educators spreading themselves thin.
We have grave reservations about not funding public education enrollment growth. So far as we know, this is the first time in Utah history that we haven’t funded public education enrollment growth.
We cannot afford to take a step back in education. In a difficult budget year the best we can do may be to tread water. Funding education at current levels—which means avoiding any cuts to public and higher education while accounting for enrollment growth—may be good enough this year, but long-term it simply isn’t good enough.
The business community will push for unified, statewide goals for education and strategies to improve both public and higher education.
Laying the foundation of Utah’s future economic strength means better supporting Utah educators who are doing more with less. They can do even more with more.
Laying the foundation of Utah’s future economic strength means embracing student diversity.
Laying the foundation of Utah’s future economic strength means improving academic results in every ethnic group.
You may be familiar with the story of a water pump in the sand, isolated in a far away desert. A lonely traveler, thirsty and hot, with only an empty canteen, stumbles across the pump.
Tied to it is a hand written sign put there by someone who came before him.
The sign reads: “I have buried a bottle of water to prime the pump. Don’t drink any of it.
“Pour in half of it to wet the leather. Wait, and then pour in the rest. Then pump.
“The well has never gone dry, but the pump must be primed to bring the water up. When you are through drawing water, fill the bottle and bury it in the sand for the next traveler.”
Having come upon this pump in the desert with this sign and being out of water, what would you do? Would you dig the water bottle from the sand and drink it? Or will you pour every drop of that water down into the pump?
While we sit here it’s easy to say we would follow the instructions. The temptation to think of the immediate would be greater in that moment.
We face a similar challenge today. We can make cuts to get us through the tough spot we’re in or we can prime the pump – invest in education — and reap the rewards for years and decades to come.
Investing in the future of Utah’s economy is not always easy but it is the right thing to do.
The time to act is now. The business community views the improvement of education and the improvement of the workforce as a long-term goal—but not an effort with long-delayed successes. We can begin today to make the system better.
As a state, we face unprecedented fiscal challenges. You can leave the legislature but once you’ve been involved in the state budget process, you never can leave it alone. I spend a great deal of time thinking about the challenge we all face as Utahns and the specific challenges you face as public servants and elected officials charged with the duty of balancing the state budget and making decisions with far-reaching ripple effects.
But you and I know… there is more to this than simply balancing the budget. That part is easy. You could simply make a cut across the board at a certain percentage and call it a day. But that’s not in anyone’s best interest. If a business did that… it wouldn’t be in business very long.
The challenge this session is to balance the budget in a way that best positions us, not just for an economic recovery, but to emerge from the “Great Recession” stronger than we were before… better positioned for growth than we were before… and stronger than the competition. We can do that by maintaining our investment in education.
Our future is bright. I firmly believe Utah’s best days lie ahead.
