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Dropout Recovery Funds 101

February 16, 2012

Filed under: Education,Income & Working Families — Tags: Dropout Recovery Funds — admin @ 9:09 AM

Previous posts have focused on the budget requests for Mississippi’s universities and colleges. MEPC is keeping a particularly close eye on the college’s request for Dropout Recovery Funds for the state’s Adult Basic Education (ABE) and GED programs and shares its perspective in a recent Letter to the Editor in the Sun Herald.

ABE and GED programs provide courses with instruction on basic math and literacy skills and advance adults to a GED and high school equivalency. In Mississippi over 350,000 working-age adults lack a high school diploma.

Simply put, increasing the appropriation for Dropout Recovery Funds provides an avenue to enhance the state’s basic skills instruction and move more adults to high school equivalency. Reaching high school equivalency is an important first step for thousands of Mississippi workers because of the close relationship between employment stability, earnings and educational attainment.

However, bolstering ABE/GED programs also needs to include an added emphasis on college-readiness.

Here is why: In 2010, the unemployment rate for Mississippi adults without a high school degree (20.2%) was more than double that of adults who had taken at least some college courses (9.6%). Educational attainment also raises potential earnings for Mississippi workers. In 2010, median wages for workers with some college or an associate’s degree ($28,255) were $11,848 more than adults without a high school degree.

See MEPC’s recently released fact sheet with recommendations for using Dropout Recovery Funds to advance job skills and transitions to college-level courses here.

Recommendations for advancing more low-skilled adults to college-readiness include:

Increasing the Dropout Recovery appropriation in FY 2013 beyond the previous appropriation of $100,000 per college.
Using Dropout Recovery Funds to strengthen comprehensive wrap around support services for adults in ABE/GED courses.
Allocating a portion of Dropout Recovery Funds to hire staff charged with increasing ABE student success and transitions to college.
Enhancing ABE curriculums so courses are imbedded with job skills and introductory content from career tech programs.

Author: Sarah Welker, Policy Analyst

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HOUSE COMMITTEE REPORT: Community College Appropriations

February 3, 2012

Filed under: College,Education — Tags: Adult Basic Education, community college, Community College Board, Dropout Recovery Funds, Eric Clark, GED, House Appropriations Committee, Mid-Level Funding, Mississippi, student — admin @ 9:41 AM

On February 1^st, the House Appropriations Committee heard testimony from the Mississippi Community College Board as they made funding requests for FY2013. Dr. Eric Clark, the Community College Board’s Executive Director, noted that the trend of growing enrollment and additional financial need continues for the colleges and across the education spectrum. Dr. Clark noted the colleges “can’t do more with less indefinitely.

The chart below illustrates that both colleges and universities have seen growth in full-time enrollment since FY2000 and declines in per-student funding.

MID LEVEL FUNDING
The community college leadership outlined two critical priorities in the hearing. First, to advance toward the Legislature’s Mid-Level Funding formula that promises to fund community colleges at the mid-point between per student funding at universities and K-12 schools.

To advance in full to Mid-Level Funding the colleges would need an additional $154 million above prior year funding, but the colleges’ final request is to move to ½ that amount- equal to a request of an additional $77 million in FY2013. Neither the Legislative Budget Recommendation nor the Executive Budget Recommendation includes increases in funding for community colleges.

CRITICAL REQUEST: DROPOUT RECOVERY FUNDS
Importantly, the Community College Board also asked the committee to increase the annual appropriation for Dropout Recovery Funds. Dropout Recovery Funds are resources to enhance the delivery of Adult Basic Education and GED courses offered on the 15 community college campuses.

The goal of additional resources is to increase the number and success of students enrolled in GED preparation, increase support services –child care, tutoring, transportation, mentoring- and integrate job skills into GED curriculums.

In total, the Board is asking for $11.5 million to enhance the delivery of ABE/GED programs, promote more students to college-readiness and equip them with the skills they need to enter and succeed in the workforce.

Dropout Recovery Funds represents an opportunity for Mississippi to raise the job skills, college-readiness, and employment outcomes for the 350,000 adults over 25 years old in the state without a high school credential. In an environment where Mississippi still has unemployment above 10%, adults without a high school degree are disproportionately likely to enter periods of unemployment.

Finding the resources to support efforts such as those proposed through Dropout Recovery Funds should be a priority.

Author: Sarah Welker, Policy Analyst

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State of Working Mississippi 2012 Chapter 1: JOBS

January 26, 2012

The release of MEPC’s State of Working Mississippi 2012 reveals that the 2000s challenged many Mississippi businesses, as well as working adults and their families. Chapter 1 of the report details trends in the state’s workforce, jobs and unemployment.

CHANGE IN EMPLOYMENT BY DECADE

Mississippi’s job losses in the 2000s appear particularly harsh when compared to the growth of the 1990s (see chart). Mississippi’s employment grew by 23.2% during the 1990s, in contrast to a 5.5% decline in the 2000s. The South experienced similar trends of strong job growth during the 1990s; however, the region did not experience the same level of overall decline in the last decade.

The latest data reveals that Mississippi was one of four states with an unemployment rate still above 10% in December 2011.

SHIFTS IN EDUCATIONAL ATTAINMENT AND AGE OF WORKFORCE

The percentage of workers with at least a bachelor’s degree rose to 22.8% during the decade, and 57.1% of the workforce has taken at least some college coursework. Even with gains, the state’s portion of adults with college experience registers below national norms (60.5%). Overall, more than 350,000 working-age adults still lack a high school diploma and college experience.

Older adults now represent a larger share of Mississippi’s workforce. Throughout the economic downturn in the late 2000s, many Americans delayed retirement to build economic security after suffering financial losses. In 2000, 13.3% of Mississippi workers were age 55 or over. By 2010, 18.7% of Mississippi’s labor force was at least 55 years old. In contrast, younger Mississippians now represent a smaller share of the state’s workforce.

RECOMMENDATION: (For full recommendations see complete State of Working 2012).

Increase wrap around supports for adults in adult basic education, job training and post-secondary courses. Strong wrap-around support services are critical for adults returning to school with the hope of gaining skills and moving into higher wage employment. Without these resources, even the strongest students will struggle to meet both the needs of their families and the demands of training. Examples of supports include: transportation vouchers, child care and staff dedicated to helping adults in adults basic education and GED programs transition to college-level classes.

Tomorrow: The SOW 2012 series continues with a closer look at wages by race, gender and educational attainment.

Author: Sarah Welker, Policy Analyst

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INTRODUCING THE STATE OF WORKING MISSISSIPPI 2012

January 25, 2012

Many communities across Mississippi continued to experience persistently high unemployment and underemployment, stagnant wages and economic insecurity. However, the state’s workforce remains resilient and continues to be one of the state’s greatest assets. Understanding how workers, industries and families have been affected over the last decade can lay a foundation for building up the workforce in the years ahead.

MEPC’s latest report, State of Working Mississippi 2012 is a comprehensive piece that looks at key aspects of the economy affecting Mississippi’s workforce from 2000 to the present. Specifically the report:

Inspects changes in critical areas of Mississippi’s economy since 2000 including: jobs, the workforce, wages, income, and state revenue.
Compares information in these areas with trends nationally and among Mid South states.
Examines each of these areas through the lens of race, gender and educational attainment.
Summarizes key takeaways and makes recommendations in each chapter for advancing working Mississippians and their families.

SELECT FINDINGS FROM STATE OF WORKING MISSISSIPPI 2012

TWO RECESSIONS RESULT IN JOB LOSS OVER THE DECADE

In Mississippi, employment peaked in February 2008 and then steeply declined until February 2010. In total, Mississippi lost 76,800 jobs over the two-year period. Mississippi’s job losses in the 2000s appear particularly harsh when compared to the prosperity of the 1990s. Mississippi’s employment grew by almost 25% during the 1990s, in contrast to a 5.5% decline in the 2000s. The Southern region and the United States experienced similar job growth during the 1990s; however, neither the South nor the nation experienced the same level of overall decline in employment in the 2000s.

MISSISSIPPI WORKERS EXPERIENCE LITTLE CHANGE IN WAGES

Many members of the state’s workforce have not seen an improvement in their wages since 2000, as companies were hit hard by two economic downturns, and state and local budgets tightened. The inflation-adjusted median wage in Mississippi grew marginally from 2000 to 2010, from $13.13 to $13.45. The gap between men’s and women’s wages narrowed over the decade, while the wage gap between white and African American workers persisted from 2000 to 2010.

WORKFORCE ADVANCES IN EDUCATIONAL ATTAINMENT

Mississippi’s workforce advanced in educational attainment over the decade, but needs to raise skill levels further to reach national norms. In 2000, 20.8% of the workforce received a bachelor’s degree or higher compared to 22.8% in 2010. Overall 57.1% of the state’s workforce has taken at least some college classes. However, over 350,000 working-age adults still lack a high school degree, and the share of workers without high school equivalency is larger in Mississippi than in the U.S.

Over the next several days we will take a closer look at the key findings and recommendations from each chapter of the report.

Author: Sarah Welker, Policy Analyst

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What Can Data Do?

November 1, 2011

Filed under: Childhood Advisory Council,College,Data System,Department of Education,Department of Human Services,Education,Income & Working Families,Institutions of Higher Learning,Longitudinal Data System,State Board for Community and Junior Colleges,Training,Workforce — admin @ 8:56 AM

A recent MEPC post raises concerns that the state’s future economic prosperity may be limited by persistently disparate outcomes between residents by poverty status and race. Moving towards many of the goals outlined in the post –job creation, quality schools and strong post-secondary and workforce training- will require more in-depth knowledge of how our education systems connect and support students of all ages.

In an effort to build that knowledge, the state recently passed legislation that will eventually provide the state’s leaders and policymakers with data on student and workforce outcomes across all education systems- elementary school to employment. Through the recently passed Mississippi State Longitudinal Data System, Mississippi will now begin to build the capacity to link information together from key state entities and eventually make data driven decisions for investment in policies and programs that move the state forward.

The figure below shows the agencies that will potentially be included in the new state system:

In particular, the recent authorization could develop a system that provides a resource for looking at the wage and employment outcomes of adults that exit training programs across the state. The system can also help determine which programs are successfully preparing low-income, low-skill adults to move into jobs with advancement opportunities and higher wages.

Using the SLDS gives leaders a resource for strengthening the state’s education and training, so more adults are equipped with the skills they need to open the doors to higher wage employment. Opening these doors remains a key avenue for increasing the economic security of families and one solution for closing income and educational disparities across the state.

Want to learn more?

Read more on the State Workforce Investment Board’s goals for the State Longitudinal Data System.
Read more on how data systems can be used to strengthen Mississippi’s education and training systems.
Read the SLDS legislation passed by Mississippi during the last legislative session.

Author: Sarah Welker, Policy Analyst

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Rising Costs Make Higher Education Harder to Reach For Middle and Low Income Mississippians

October 27, 2011

Filed under: Affordable Education,College,Education,Pell Grant,tuition,Undergraduate Student,University Costs — admin @ 11:09 AM

A recent article and editorial point out the effects of a 7% increase in Mississippi’s university tuition last year. The increase adds to the amount Mississippi’s students take out in student loans or that individuals take out of pocket to cover costs. Tuition at the state’s historically black colleges and universities increased by a greater rate last year than tuition overall. Increases compensate for inadequate state support over the last few years.

Raising the cost of receiving a university education can have a particularly harsh effect on Mississippi’s middle and low income families. Pell grants are a key piece of providing support for students that might not otherwise have the means to attend college and pursue education that provides career opportunities for economic security after college.

In 2009, 24,593 students – or 42.3% of all university undergraduates- received the opportunity to attend and finance a portion of their education through Pell Grants. When tuition rises, Pell Grants cover a smaller portion of the cost for attending school, and calls for limiting the resources put towards funding Pell Grants would have a negative effect on the opportunity to access higher education for almost half of Mississippi’s university students.

Even slight increases in tuition are likely to have a substantial impact on Mississippi’s low income families. And data on Pell Grants for undergraduate students shows the Mississippi’s African American families are more likely than their classmates to access higher education through Pell support. Seventy-four percent (74%) of African American students in Mississippi’s universities required need-based financial aid to access higher education compared to 22% of white students. Of the 24,593 students receiving Pell Grants, 7,138 were white, 16,561 were African American and 894 were of another ethnicity (see chart).

Increases of tuition at Mississippi’s universities impact the cost of college and debt incurred by thousands of Mississippi students regardless of race. However, tuition increases and suggestions to reduce funding for Pell Grants will have a particularly adverse impact on Mississippi’s African American families.

With 42% of Mississippi’s university students receiving Pell support, increases in tuition and limits in Pell Grants limit access to opportunity and upward mobility to a large portion of the state’s youngest residents and future workforce. And when tuition increases at a faster rate than wages, higher education requires a larger portion of all families’ budgets.

It remains absolutely imperative that we restore investments in universities and protect Pell funding for the health of the state’s universities and for ensuring we keep pathways for economic mobility and economic security open for the all of Mississippi’s students.

Author: Sarah Welker, Policy Analyst

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2011 Annual Policy Conference Recap

October 26, 2011

Filed under: 2011 Annual Policy Conference,Basic Economic Security,Budget & Tax,Education,Events,Healthcare,Income & Working Families,Jobs,Making Mississippi Competitive: Solutions For Building Assets In Low-Wealth Communities,Poverty,Predatory Lending,Revenue,Self-Sufficiency,Taxes,Workforce — admin @ 10:23 AM

The 2011 Annual Policy Conference was a great success. Thank you to everyone who attended and the presenters who shared their knowledge and expertise. This year, MEPC expanded our break out session format to allow participants to attend two sessions.

Darrin Webb, opened the conference with an overview of Mississippi’s economy and Bobby Harrison, Capitol Correspondent for the North East Mississippi Daily Journal and Emily Wagster-Pettus, Associated Press political reporter served as respondents to the presentation, offer insight on how the changing political landscape will affect efforts to engage policy makers on issues affecting working families.

Our keynote luncheon address focused on the importance of the role of government in the lives of all Americans and the need for various constituencies to work together for a more prosperous Mississippi. Video of our Keynote Speaker, Hodding Carter III, Professor of Leadership and Public Policy University of North Carolina at Chapel Hill will also be available soon on our website so check back!

Below are brief descriptions of our 2011 Breakout Sessions:

Taxes fund the public structures that make up the foundation of our economy and make job creation possible.

MEPC Senior Policy Analyst Sara Miller and Elaine Mejia Senior Program Associate with Public Works at Demos present tax reform options and how to talk about taxes effectively in the current political landscape.

Understanding the challenges and opportunities of health care reform implementation

Corey Wiggins with i-Think Group examine the ongoing efforts of health reform implementation in Mississippi and how those opportunities and challenges affect the lives of working Mississippians.

Measuring basic economic security in Mississippi and building pathways for working families to achieve it

Wider Opportunity for Women’s Delese Harvey explores the new benchmark for basic economic security and gives hands on guidance on how organizations can use the Basic Economic Security Tables to advocate for programs that support families in their community or to help adults budget and set goals as they re-enter the workforce.

Steps to help Mississippi’s working families protect and build assets

Mississippi Center for Justice Community Organizer, Alicia Netterville and Felicia Lyles, VP Regional Branch Administrator for Hope Credit Union explain the effects of payday lending and how working families can make responsible financial decisions and move toward economic security.

PDF versions of all the PowerPoint presentations given in each break out session at the conference.

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Exploring Basic Economic Security In Your County Online

October 19, 2011

Filed under: Basic Economic Security,Education,Income & Working Families,Self-Sufficiency,Workforce — admin @ 8:59 AM

The previous post focused on the release of a new report – Basic Economic Security Tables for Mississippi- that measures how much Mississippi’s families need to cover basic expenses and save for long-term economic security. Across Mississippi, 1 worker needs $26,664 per year to reach this benchmark and a family with 2 workers, 1 preschooler and 1 schoolchild needs $55,586 per year for their basic needs and modest savings for retirement and emergencies.

WHAT ABOUT BASIC ECONOMIC SECURITY IN MY COUNTY?

Families experience different costs for basic needs and different savings targets depending on where they live in the state. To ensure residents, non-profits, schools, and public agencies have access to county-level information on the income families need for basic economic security, MEPC has printable fact sheets for each county.

To the right is an example of county-level basic economic security tables for Lauderdale County. In Lauderdale County, 1 worker needs $25,956 per year for basic economic security compared to the state average of $26,664. Each fact sheet shows basic expenses and savings for 6 different family types. County fact sheets are available for each of Mississippi’s 82 counties.

UPGRADES TO THE ONLINE CALCULATOR

The Basic Economic Security Tables build on MEPC’s use of the Self-Sufficiency Standard, and MEPC’s online calculator has been upgraded to include basic needs and savings amounts from the new report.

The new Basic Economic Security Calculator allows individuals to pick their monthly savings targets for emergencies, retirement, homeownership and children’s post-secondary education. The savings are then included in the family’s monthly budget. After an individual gets their basic economic security wage, they can proceed down the page to compare it with the wages different occupations pay in their community. Occupational wages have been updated to 2010 with the help of the Mississippi Department of Employment Security.

The online calculator has been a valuable resource for Mississippi’s high school students, teachers, guidance counselors and adults returning to training. MEPC is excited to launch this upgraded online resource and looks forward to working with individuals and groups across the state to expand awareness of what families need to reach true economic security and advance beyond living pay check to pay check.

To learn about ways to use both the county fact sheets and online calculator in your community and across the state, attend MEPC’s 2011 Annual Policy Conference on October 21, 2011.

Author: Sarah Welker, Policy Analyst

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INTRODUCING THE BASIC ECONOMIC SECURITY TABLES FOR MISSISSIPPI, 2011

October 18, 2011

Filed under: Basic Economic Security,Education,Income & Working Families,Jobs,Making Mississippi Competitive: Solutions For Building Assets In Low-Wealth Communities,Self-Sufficiency,Workforce — admin @ 10:59 AM

In the wake of the 2007 recession, many Mississippi families are still struggling to reach financial stability in their households. A new report –Basic Economic Security Tables for Mississippi- from MEPC and Wider Opportunities for Women redefines how much Mississippi’s families need for true economic security in today’s economy by covering their basic needs but also saving for life-long economic security.

Basic Economic Security Tables for Mississippi determines how much families need for daily necessities and includes monthly savings targets for emergencies and retirement. These savings targets insulate families from poverty and increase economic security across generations. In Mississippi, a family with 2 workers, a preschooler and a school child needs each adult to work full time and earn $13.16 per hour to reach basic economic security.
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BASIC ECONOMIC SECURITY LINE BY LINE FOR 2 MISSISSIPPI FAMILY TYPES

The tables show monthly basic expenses and savings targets for 2 family types. The table on the left shows average monthly targets for 1 worker in Mississippi. The worker needs $443 for housing, $138 for utilities and $246 for food and so on. In total, a single working adult in Mississippi needs $26,664 per year or $12.63 per month to cover basics and have modest savings for emergencies and retirement.

The table on the right shows similar expenses and savings for family with 2 working adults, 1 preschooler and 1 schoolchild. For this family to reach basic economic security, each adult needs to earn $13.16 per hour for a combined income of $4,632 per month to cover their basic needs and save for retirement and emergencies like job loss or an unexpected medical bill.

The tables assume workers receive employment-based benefits like health insurance through their employer and unemployment insurance. Without these additional employment-based benefits families will need to save more for emergencies and increase their monthly healthcare budget substantially. For example, the average 2-adult, 2-child family which cannot participate in an employer-sponsored health insurance plan pays $634 more per month -$7,608 per year- more than those who do participate in employer health plans.

Want to know more? Keep reading, tomorrow’s post will drill down and look at basic economic security in different counties and we’ll walk through updated online resources for members of communities across the state.

Author: Sarah Welker, Policy Analyst

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Investments in Education and Research Critical to State’s Future Economic Progress

October 6, 2011

Filed under: Economic Outlook Conference,Education,Income & Working Families,Jobs,Workforce — admin @ 8:14 AM

MEPC’s previous post focused on projections for job growth by sector presented in last week’s IHL Economic Outlook Conference. The conference also looked at projections for growth in Mississippi’s employment, personal income, inflation and output for next year.

As the chart below shows, growth rates in output, employment and inflation are all similar for the US and Mississippi with differences of only 0.1% for 2012. However, Mississippi’s personal income, already among the nation’s lowest, is projected to grow slower than the nation’s in 2012. In 2012, personal income is projected to grow 3.1% across the state.

Growth in personal income may be needed among many Mississippi households. As noted in a previous post, median household income across the state has fallen over the decade. Adjusting for inflation, median incomes declined $6,142 from $42,963 in 1999/2000 to $36,821 at the end of the decade

Dr. Marianne Hill with IHL noted that 2012 will likely have larger growth than 2011 assuming Mississippi and the nation avoid another economic recession. The nation and Mississippi are currently at a 40% probability of entering another recession.¹

In the longer term, investments in education and research were both listed as critical to the state’s future economic progress by state and national experts. Industry leaders regularly emphasized that innovation across sectors was key to future competitiveness.

They stated that this innovation could be fueled by investments in education that lead to the training of a more skilled workforce. However, budget hearings last week underscored that many of the needs across Mississippi’s education and training spectrum are at risk of being unmet without approaches that consider pathways to increasing state funding for K-12, community colleges and universities.

Author: Sarah Welker, Policy Analyst
¹Daco, Gregory. IHS Global Insight. Presentation on the U.S. Economic Outlook.

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