The Maryland Public Policy Institute
MPPI IN THE NEWS
MARCH 25, 2010
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In opposing a bill to reduce the number of high school dropouts in Maryland, some Republicans in the General Assembly have chosen the wrong issue on which to demonstrate their fiscal principles.
The bill, proposed by Sen. Catherine E. Pugh (D-Dist. 40) of Baltimore, increases the mandatory school attendance age to 17 for the 2014-15 school year (currently, students can legally drop out of school once they turn 16). It's estimated to cost the state $48.8 million in fiscal 2014 and more in later years. Opponents have been so concerned about the price tag that Sen. J. Lowell Stoltzfus (R-Dist. 38) of Westover succeeded in pushing through an amendment precluding the bill from being implemented unless the governor pays for it.
Opponents have pointed out that their concerns are purely fiscal. While that point is understandable given the current economic conditions, the lack of forethought about long-term benefits from an increased number of high school graduates is staggering.
In 2008, a study by the nonprofit Friedman Foundation for Educational Choice and the Maryland Public Policy Institute concluded that the state loses about $193 million in tax revenue each year as a result of a growing number of high school dropouts. That figure is derived from calculating that the state's 393,200 working-age dropouts earned nearly $10,000 a year less than high school graduates, reducing overall state income by nearly $4 billion a year.
In 2009, 7,920 high school students dropped out; that was a decrease from 2008, when more than 9,800 left; 2009 represented the fewest dropouts in the state's history. Even without being required by law, more students are staying in school.
There are other problems with not taking action to reduce the dropout rate in that the issue disproportionately affects urban communities. In turn, the study also indicates an increased cost for government services, such as incarceration, and Medicaid and unemployment benefits.
What's most unfortunate about this debate is those opposed have fallen back on well-worn, politically driven arguments rather than seeking fresh thinking about the state's long-term fiscal stability.
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