New Report Highlights Link Between Education Funding and Economy

Analysis of State of the State addresses across the country demonstrates clear need for consistent funding of education

Washington, D.C. — A new report from Communities for Quality Education (CQE) analyzes State of the State gubernatorial addresses between 2004-2008 and highlights specific education policy trends. The report shows that between 2004 and 2007, every governor who delivered a State of the State address stressed the importance of education to economic growth. In fact, no issue surrounding education has been focused on as much by governors in their State of the State addresses as the link between education and economic prosperity.

"The economic recession in early 2000 created fiscal crises in state budgets that lasted until 2004," said CQE researcher Kay Coles. "During those years, governors and state legislators grappled with closing budget gaps as much — if not more than — issues surrounding public education. What is needed moving forward is a long-term commitment to stable and consistent education funding."

Governors across the country agree. "The smartest thing we can do to create high-wage jobs and grow our economy is to keep our focus on education," said New Mexico Governor Bill Richardson. Oklahoma Governor Brad Henry echoed those sentiments: "No other investment yields as great a return as the investment in education. An educated workforce is the foundation of every community and the future of every economy."

Notably, one governor did propose long-term, more stable funding for K-12 education in her State of the State message in 2008. "Our Three-year Education Plan invests more than a billion dollars each year. We must forward-fund education, letting schools plan ahead. We must stop pink-slipping teachers, and then struggle to recruit and retain them the next year.... This potential will prime Alaska to compete in a global economy that is so competitive it will blow us away if we are not prepared," said Alaska Governor Sarah Palin.

When 2004 State of the State messages were delivered the economy was on the upturn again. Governors turned their attention back to education, linking strong schools to the promise of economic prosperity. In 2005, 19 governors addressed school finance issues, with most focused on reforming how funding formulas distributed state funds to local school districts. This emphasis is most likely due to the number of states that faced lawsuits over school funding. As economic conditions improved, 28 governors talked about increased education funds in 2006 and 36 mentioned added money in 2007. During those two years governors emphasized the need to add back or make up for funds that had been cut in prior years during the states' fiscal crises.

"What state leaders need to understand is that we can't just fund our schools adequately in the good times," Coles said. "An unwavering commitment to a world class education system is necessary to compete globally for good jobs. Most governors are seeking ways to inoculate their states against economic instability."

Beyond linkages between sound education systems and strong state economies, the report identifies other trends such as the declining number of mentions of "merit" or "differential" pay dropping from 11 in 2006 and 12 in 2007 to only two in 2008. Vouchers may also be losing steam with the recent defeat of a universal voucher referendum in Utah. Only two governors mentioned "school choice" and/or charter schools in a 2008 State of the State address. Governors highlighted other education issues in their addresses in recent years such as investment in early education, the importance of teachers, career and technical education, and the accessibility and affordability of higher education.

"Governors speak eloquently about the value, necessity, and importance of public education to the future of their respective states," said CQE Executive Director John Hein. "Governors spent more time discussing education in their 2004 though 2008 state of the state messages than any other single topic. And yet, with anticipated budget cuts in the current fiscal year, the promise of educational progress to enhance states' economic positions may go unfulfilled. That would be a tragedy."

For more information including the complete text of the report "Governors and Public Education: A Trend Analysis of Gubernatorial Messages 2004-2008," as well as excerpts on education issues from State of the State addresses, please click the links below.

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