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Although the economic expansion of the 1990s was felt even in small towns and rural areas, events in recent months point out that the economic health of rural America remains fragile. Rural manufacturing has suffered sizable employment declines in recent months and only modest expansion has occurred in the service sector--the lifeblood of rural job growth over the past decade. Wages in both sectors for the remaining jobs are less than in urban areas. Four strategies for strengthening the viability of rural America are offered. Community human capital resources can be enhanced by helping parents foster a home environment in which educational aspirations are developed, creating positive teacher-student and teacher-parent relationships in schools, and building youth-supportive communities that give youth a voice in community decisions and opportunities to experience positive role models outside of school. Entrepreneurial activities in communities can be spurred by providing access to quality workers, embracing and nurturing entrepreneurs, enacting public policies that support entrepreneurial development, and making entrepreneurship an explicit economic development strategy. The digital capacity of rural communities must be built through focused investments in rural telecommunications infrastructure. Civic engagement in rural communities can be expanded by involving all segments of the community in guiding its future, providing opportunities for new and expanded leadership development, sharing leadership responsibilities, and supporting the establishment of local-oriented small and entrepreneurial businesses. (Contains 22 references.) (TD)

Public education in Virginia during fiscal year 2002 is characterized by fiscal crisis, reductions in funds, and no new salary increases for state employees including teachers and university faculty. The current context of recession and budget deficits, together with tax reductions imposed by the previous gubernatorial administration and current balkanization of public government funding, bodes ill for the future of public education in the Commonwealth. This paper discusses these issues together with the gubernatorial elections, state revenue projections, and the state budget for 2002-04. The dismal 2002-04 education budget reflects, in part, the state's budget crisis, though dividends for the schools were meager during the 1990s economic boom. A more plausible explanation for the lack of long-term education support in Virginia is the state's low priority for schools and universities, regardless of party control, with continuing tax balkanization for public services portending reduced funding and services for government activities together with increased disparities between communities, well into the future. (Contains 15 references.) (RT)

The views of users of e-learning in Europe and elsewhere were examined through seven online surveys that were posted on the interactive World Wide Web site called The European Training Village. The surveys examined e-learning users' views regarding the following topics: technology-supported learning; e-mail in e-learning; trainers' skills for e-learning; the economics of e-learning; e-learning and adult basic skills; e-learning for people with disabilities; and training of trainers and teachers. The surveys attracted approximately 3,213 respondents, 19% of whom were trainers or teachers in schools and universities and 14% of whom were training managers or trainers in companies or the private sector. The following were among the key findings: (1) 42% of respondents said that 0-25% of their learning was currently supported by technology; (2) uses of e-mail in e-learning included sending instructions and assignments, surveying learner views, providing advice, and generating discussion; (3) costs of developing or purchasing e-learning products and services elicited the greatest concern in the survey on the economics of e-learning; (4) respondents were optimistic regarding e-learning's potential contribution to teaching adults in need of basic skills instruction and disabled individuals; and (5) most respondents anticipated spending more time on e-learning professional development in the future. (Questionnaires are included. Contains 48 figures.) (MN)

This memo provides an overview of the fall 2001 planning process covering the 2001-2003 years for Mount Hood Community College (MHCC), Oregon. The paper also provides guidelines for the 2002-2003 budget. Some of the MHCC goals, and their key indicators, are as follows: (1) knowledge-based workforce to meet student and community needs--key indicators are that 95% of MHCC graduates will pass licensure/certification examination results; living wage minimum will be $10 per hour or $400 per week; and 100% faculty will participate in at least one development activity per year; (2) access and diversity for members of the community seeking postsecondary education--key indicators include increased annual enrollment by 3% for 2002-2003; increased market share of local high school graduates by 10%; and increased Jump Start enrollment by 5% for 2002-2003; and (3) student success ensured by providing infrastructure and support services--key indicators include increased overall retention rate by 3%; a minimum of 75% of students receiving a grade of "C" or better; a 10% annual increase in fundraising; and maintenance of a budget target for technology funding. Attachments include templates with guidelines for filling out unit objectives, and associated budget requests and performance indicators. (NB)

This paper reviews the economics of tuition tax credits (TTCs). TTCs can be described in terms of "finance" and "regulation." They allow individuals to spend money on education services and to offset at least a portion of that expenditure against their tax liability. There are few economic studies of tax credits, but they stress two questions: What is the loss/gain in revenues to the state? and Who benefits? There is some evidence on both these questions, and the evidence in the main points to the following answers: (1) state revenues fall; and (2) those who already have children in private schools are the largest group of beneficiaries. Discussion of the future for the specific federal TTC plan is highly speculative with political, economic, fiscal, and possible legal barriers that may affect future adoption of TTCs. The paper also looks at how to evaluate TTCs using a comprehensive framework. An appendix describes TTC schemes across six states. (Contains 14 references.) (RT)

School finance issues are of paramount concern to all levels of the education system of the Southwestern Region of the United States. As expectations rise for students and teachers to perform at higher levels and for schools to guarantee the success of all students, the question of how best to support this reform through fiscal measures becomes even more critical. This study, conducted by the Southwest Educational Development Laboratory, will examine fiscal resource allocation in relation to student performance in public school districts across this region. It will be designed to answer the following four questions: (1) What are the expenditure patterns over time in school districts across varying levels of student performance? (2) How do improving school districts allocate their financial resources? (3) What allocation practices have improving school districts implemented that they identify as innovative and effective? (4) What barriers and challenges have improving school districts faced in allocation practices? The results of this study will provide state and local decision-makers with information and strategies for improving the allocation of financial resources to support greater student success. Appendix A includes a data-sources matrix, interviewer guidelines, focus-group guide, letter to survey recipients, and sample survey. (Contains 41 references.) (RT)

This paper examines Miami-Dade Community College's (M-DCC) (Florida) economic benefits to the community. The Beacon Council lists M-DCC as the eighth largest public sector employer in Miami-Dade County. Economic benefits can occur in many ways, one of which is when vendors who sell to M-DCC provide jobs and income for residents who are not directly employed by the college, but profit from college funding. Findings indicate that the college's total impact on the Miami-Dade economy for 1999-2000 was $772 million, of which $90 million originated in Miami-Dade County. This is a return rate of 862% and indicates that M-DCC has a substantial economic impact on the community, including an impact of $233 million on household earnings. In addition, approximately 11,460 jobs were created in Miami-Dade through the primary and secondary effects of college funding, with 8,436 jobs created solely due to the college's presence. Table 5 shows M-DCC's final economic impact on Miami-Dade County: The $89 million in funds originating inside Miami-Dade County contributed $187 million to the economy, with $69 million of that impacting household incomes, and created 3,024 jobs. Funds originating outside Miami-Dade County contributed $457 million, with $147 million impacting household incomes, and created 7,363 jobs. (NB)

As an applied discipline based on evidence and guided by economic principles, the ultimate aims of the economics of education should be to influence outside opinion and shape policy. In a major court case based heavily on the economics of education, it can be seen how this knowledge base was interpreted by the New York Supreme Court on public-school funding in "Campaign for Fiscal Equity versus The State of New York" (2001). In this highly praised ruling, known as the "DeGrasse" decision, the court drew heavily on research evidence, along with direct testimony from noted academic economists and educationalists. Yet the court also challenged this evidence and testimony on both empirical and methodological grounds. The ruling therefore reflects a considered "outside opinion," and one made by an agency--the judiciary--with substantial influence both on policy and on the views of society at large. This article reviews the economic content of the ruling, that is, what the courts think about the economics of education. It also considers whether the benefits of court-mediated policies exceed the costs, that is, whether economists should view the courts as a good way of influencing policy. (Contains 61 references.) (Author/RT)

This is the Comprehensive Annual Financial Report (CAFR) of the Yavapai Community College District (YCCD) (Arizona) for the fiscal year (FY) ended June 30, 2001. The report is separated into three sections: (1) introductory section; (2) financial section--includes the basic financial statements as well as the independent auditors' report on the financial statements for all funds of YCCD; and (3) statistical section--includes tables of unaudited data depicting the financial history of YCCD on a multi-year basis, as well as other demographic information. Highlights of the report include: (1) 48% of YCCD's revenues come from property taxes; (2) due to higher property assessments, the total intake from property taxes of $16,533,362 for FY 2000-2001 was 3% higher than the previous year; (3) 2000-2001 state appropriations of $5,079,600 were 2% lower than the previous year; (4) government grants and contracts increased 13% to $3,655,123; (5) tuition and fees brought in $6,489,567; (6) 29%, or $10,667,904, of expenditures go to instruction, 23% ($8,549,839) go to auxiliary enterprises, and 17% ($6,205,336) go to institutional support; and (7) public service expenditures constitute 0.4% (130,923) of expenditures, down 26% from FY 1999-2000. The decreases were related to a reduction in federal grants. Notes to financial statements appended. (NB)

Concerned about the deadening effects of standardization imposed by monopolistic education bureaucracies, policymakers in many different countries endorse economic-style mechanisms of consumer choice and competition between autonomous providers as the key elements of "market-driven" education. The reasoning behind this approach is that market forces of choice and competition induce pedagogical and curricular innovations leading to a diverse set of options from which parents may choose. This paper focuses on innovation in school-choice programs, appraising the relationship between market mechanisms and innovation. Research on market-oriented school reforms in four systems is reviewed to examine the record of competition and choice in fostering educational innovation. Findings indicate that hypothetical predictions about competition and choice are largely unfulfilled in practice. In fact, interventions by public bureaucracies have often succeeded in encouraging classroom innovations, whereas market mechanisms appear to contribute to standardization. The logic of markets is also examined as applied to education. Competitive environments may catalyze innovative practices, but competition and choice can also lead toward emulation and standardization. Thus, a more complex view of markets indicates that there is no simple, direct, or immediate causal relationship between the choice/competition dynamic and education innovation. (Contains 301 references.) (RT)

Increasingly, education systems are being privatized through various changes to organizational structures, to school management, and to funding mechanisms. Yet education remains publicly funded and therefore accountable to taxpayer preferences through voting mandates. This paper investigates the determinants of political support for the privatization of education in the United Kingdom. The electorate is assumed to apply cost-benefit calculations, depending on their circumstances, and a set of criteria for evaluating educational reforms is linked to individual voters' characteristics. It is then possible to identify which voters would oppose or advocate educational reforms such as greater school competition, ability selection, and promotion of private schooling. Support for these reforms is then estimated using the British Educational Panel Survey. The results indicate that political preferences largely reflect the anticipated personal costs and benefits from educational reforms. Those with children are in favor of reforms to raise school competition, whereas those working in the education sector are against such reform. Those with higher anticipated tax liabilities favor privatization and support private schooling. Overall, however, educational reforms toward privatization received only minority support in Britain as of 1997. (Contains 29 references and 6 tables.) (Author/RT)

A study investigated the extent of e-learning learning supported by information and communication technologies (ICT) methods in vocational education and training (VET) in the European Union (EU). The survey conducted via the Internet received 653 replies from organizations in the EU. Just over 80 percent of respondents were suppliers or users of e-learning; about 60 percent were both suppliers and users. Larger organizations involved in VET and specialist companies producing training tools or content were more likely to use e-learning. About 30 percent of time spent by users on training involved e-learning. E-learning and classroom-based methods of training were not necessarily alternatives and could be complementary. Use of e-learning for training varied by subject area highest in ICT and lowest, but still significant, in processing and production and sales and marketing. Training suppliers estimated e-learning was responsible for about one-third of their total income from supply of training content and material in 2001. For suppliers of capital equipment and infrastructure, e-learning sales accounted for 23 percent of total income in 2001. For users, e-learning-related investment was responsible for almost 13 percent of expenditure on capital equipment for training in 2001; 14 percent of total spending went on e-learning-related content. The survey and descriptions of 10 recent studies on e-learning in Europe are included. (Contains 36 figures.) (YLB)

This paper reports on a study that sought to determine the relationships between investment in education and training and performance in production, quality, and safety in manufacturing companies in northeast Alabama and northwest Georgia. The study also examined whether company size was a factor in predicting the ratio of the investment. One hundred and eight questionnaires from manufacturing companies with 50 or more employees were included in the study. These questionnaires supplied information about the companies; how the companies performed in production, quality, and safety; and the investment in education and training. The study confirmed the findings of the literature survey that not enough attention has been paid to the financial accountability of the education and training functions with manufacturing concerns. Results also supported the conclusion that there had been little systematic effort in neither the manufacturing industry nor academia to generate and gather empirical evidence concerning the veracity of the evaluation process and the contribution of education and training to the bottom line in manufacturing companies. Consequently, there appears to be a lack of understanding and appreciation for the contribution of education and training to business success. (Contains 28 references.) (DFR)

Data from The College Board's 2000-2001 Annual Survey of Colleges delivers a positive message about the financial accessibility of an education at a public college or university. While the 4.4% increase in tuition and fees and the 5.0% increase in room and board from 1999-2000 to 2000-2001 represent a slightly higher rate of increase than the previous year's, such increases remain near their lowest point in more than a decade. In comparison to the national average, American Association of State Colleges and Universities (AASCU) institutions maintained the same rate of increase, but average tuition and fees remain below the average for all public four-year institutions ($3,190 compared to $3,510). At the master's level, the average increase nationally was 5%, while for AASCU institutions it was 4.6%. At the doctoral level, the national average increase was 4.5%, while at AASCU institutions the increase averaged a slightly higher 4.7%. The findings from this data underscore for all public four-year institutions the relationship between states' economic and fiscal conditions and its tuition rates. The past several years have been marked by economic expansion and significant budget surpluses, which have helped state colleges and universities to post only modest tuition increases. As the economy shows signs of settling, many states are becoming more conservative in their fiscal decision-making. As a result, the rate of increase for student charges has edged up slightly. Understanding this relationship, particularly in light of the fact that higher education is the largest single discretionary item in most states' budgets, is important to crafting tuition policy that can moderate the boom/bust cycle that has manifested itself over the last two decades. (EMS)

These papers examine research on the impact of class size on student achievement. After an "Introduction," (Richard Rothstein), Part 1, "Understanding the Magnitude and Effect of Class Size on Student Achievement" (Alan B. Krueger), presents a reanalysis of Hanushek's 1997 literature review, criticizing Hanushek's vote-counting method and suggesting it would be better to count each publication as a single study rather than counting separately each estimate within a publication. This method of analyzing the research suggests a strong connection between school resources used to reduce class size and student outcomes. It also discusses the effects of expenditures per student and looks at economic criterion (Lazear's theory of class size, benefits and costs of educational resources, the critical effect size, and caveats). Part 2, "Evidence, Politics, and the Class Size Debate" (Eric A. Hanushek), focuses on: the history of class size reduction; econometric evidence; the Tennessee Class Size Experiment (Project STAR, or the Student/Teacher Achievement Ratio Study); and policy calculations. The author claims that his own method of counting each estimate as a separate study is the most valid method and that effects of class size reduction will be small and expensive. An appendix discusses the econometric data. (Papers contain references.) (SM)

This report calculates the financial costs incurred by Michigan businesses and institutions of higher education when students leave high school without learning the basic skills. Five different strategies are used for determining this cost, they are: direct expenditures for remedial education by Michigan institutions of higher education and employers; re-calculating the cost to employers; the cost of producing a successful high school graduate; using National Assessment of Education Progress scores to estimate the number of students lacking basic skills; and including a return on investment. The report conservatively estimates that the Michigan economy suffers a total annual loss of between $311 million and $1.5 billion. The best estimate, from averaging the results from all five calculation strategies, is $601 million per year. The report discusses the best estimate of the economic cost of remediation, examines why so many students require remedial education, and considers what can be done. The three appendixes include: "Educational Failure and the Need for Remediation: The Human Cost" (Thomas F. Bertonneau); "The Problem is Clear, but Solutions May Vary" (David W. Breneman); and "Additional Costs, Causes, and Policy Implications of Remedial Education" (Herbert J. Walberg). (SM)

This paper examines how the introduction of the Cleveland, Ohio, voucher experiment in 1995 affected the administration and leadership of the city's public schools. The paper focuses on the nature of political and bureaucratic responses to competition and describes the short-term consequences of competition and how such consequences might influence the long term. Data were gathered through interviews with educational participants and observers, visits to public and private schools, archival searches of newspaper coverage, and an extensive review of school-system documents, board minutes, private papers, statistical data, and secondary documents. The paper offers a history of the troubles that the Cleveland Public School (CPS) system has endured and describes both the beginnings of the voucher program and the turmoil that has rocked this program. Findings suggest that teachers and administrators in the CPS did not view the voucher program as a serious threat. As a result, public schools were not motivated to alter their practices. The limited size, early difficulties, and bleak political and legal prospects of the voucher program all undermined any competition the voucher system could have offered. It is claimed that competition is crucial to promoting school improvement. (Contains 68 references.) (RJM)

The use of demand-side financing mechanisms and vouchers for postcompulsory secondary-level education was examined through case studies of funding practices in the following countries: Austria; France; the United Kingdom; the United States; and Wallonia (the French community of Belgium). Different models of voucher use were identified in the countries studied. "Pure" vouchers with a paper coupon were found in a minority of cases (in parts of France and England/Wales). In Austria, training accounts co-fund various types of adult learning by providing funding in arrears rather than in advance of training undertaken, which eliminates the purchasing power apparent with vouchers and quasi-vouchers. The aims and targets of the various voucher and quasi-voucher schemes varied considerably. In the United Kingdom, trainees with special needs received vouchers with higher face values (to avoid the "cream skimming" that may be encouraged by flat-rate vouchers). Voucher and voucher-like schemes were found to have considerable potential to promote lifelong learning and to increase investment in training. The case studies further established that voucher and voucher-like schemes are highly flexible mechanisms that can be designed differently to meet a diverse range of economic, social, and political objectives, depending on policymakers' objectives and priorities. (Contains 54 references.) (MN)

In consideration of conclusions reached by the Council of Ontario Universities (COU) in March 1999, the COU presents data in support of recommendations for the 2000 Ontario budget. Significant issues include the substantial increase in demand for university services, need for faculty recruitment, facilities improvement, and expanded research capabilities. The paper discusses student demand, expected to reach an additional 88,900 students by the year 2010. In addition, almost 11,000 new faculty will be needed over the next decade. According to analysis of research capacity, Canada lags behind its G7 counterparts in expenditure on research and development. Facilities renewal will comprise a substantial future expenditure. Quality, accountability, diversity of educational opportunity, and responsiveness to student and marketplace needs are highlighted. The brief outlines government actions indicated and the university system's commitment in attaining goals for the system. The report highlights Ontario universities' areas of innovation and responsiveness, economies and efficiencies, and commitment to accountability. Data indicating Ontario's expenditures on research and development, and future facilities costs, are presented, as well as a chart outlining four-year changes in support for higher education in Ontario as compared to other provinces and the United States. (HB)

This paper establishes a comparison between the problems that IT (Information Technology) people are currently having in evaluating the return on the investment in IT and the difficulties faced by those who have been trying to find consistent ways of assessing the benefits of formal education since the 1960s. The objective was to determine if the problems in assessing investments in the area of education were the same or similar to those in the IT area. If that were the case, there would be room for future studies to determine if "education economics" could contribute to the development of better evaluation tools for investments in IT. The first section discusses coincidences and similarities between the benefits from IT and the benefits from formal education, including: IT and formal education are power decentralization and opportunity democratization factors; IT and education allow/happen in less hierarchical environments; and IT and education are important flexibility factors. Difficulties involving the investment in IT and formal education are addressed in the second section, including: depending on the industry, the impact of the investment may vary greatly; and difficulty in isolating the benefits directly related to the investment in education or in IT from those caused by other factors. (MES)

Innovative resource management can enable institutions to respond to changes in enrollment while remaining within budgetary parameters. Successful use of these techniques allows institutions a flexible resource management strategy geared towards future needs and changes. Some increased resources may be used to enhance the students' academic and social experience by providing more programs and services at reasonable tuition rates and student fees. Recent trends reflect a shift from use of traditional revenue resources to use of non-traditional resources. This report examines a narrative background of current fiscal practices in higher education, followed by an explanation of various traditional fiscal resources and non-traditional resources and techniques with examples of successes. Data analysis is presented on trends in the use of higher education resources. The authors draw conclusions on ways institutions can respond to needs for resources. (HB)

This Organisation for Economic Cooperation and Development report documents the growing demand for learning around the world. A quantitative description of the functioning of education systems allows for international comparisons and the identification of the strengths and weaknesses of various approaches to providing quality education. Chapter 1, "Country Profiles," surveys government priorities and recent trends in educational participation, attainment, policy design, enrollment, and funding indicators for Argentina, Brazil, Chile, China, Egypt, India, Indonesia, Jordan, Malaysia, Paraguay, Philippines, the Russian Federation, Sri Lanka, Thailand, Uruguay, and Zimbabwe. Chapter 2, "Managing the Growth of Educational Participation," explores patterns in data on school demand, participation, demographic changes, gender and income disparities, progression, completion, and school types. Chapter 3, "Mobilizing Resources and Encouraging Efficiency," looks beyond aggregate data to examine ways in which countries support particular types, or levels, of education, encourage student participation, provide capital investments, and achieve educational improvements as measured by teachers' salaries, qualifications, yearly instructional hours, and student-teacher ratios. Annex A1 provides notes pertaining to coverage and the main sources of data. Annex A2 organizes definitions and notes important for understanding of indicators. Annex A3 provides cross-references between data tables and notes. Annex A4 provides the full set of data. Annex A5 documents allocation of national educational programs, according to the International Standard Classification of Education criteria. (TEJ)

This paper examines the relationship of the Chinese National Academy of Educational Administration, the Asian Development Bank, and a consulting U.S. university in a project to provide technical assistance for senior Chinese university administrators in management training and modernization of facilities. Although the higher education component in China is relatively small, the central government expects it to play a key role in social and economic development. The government also wants to decentralize university administration and reduce its share of the financial burden, but at the same time not lose complete control. Sections of the paper discuss the development of Chinese higher education, sources of funding for higher education, private higher education, the need to decentralize the administrative structure, and issues of efficiency, effectiveness, and expansion. Issues addressed include free education in China losing out to market forces; a growing disparity between rich and poor; increasing demand for higher education as a result of the growth of secondary education; and the need for legal codes on which to base policies and protect the rights of institutions, their administrators, faculty, and students. (Contains 25 references.) (RH)

A dynamic model of decisions to work, invest in human capital, and commit crime was developed and examined. By making all three activities endogenous, the model explains why older, more intelligent, and more educated workers tend to commit fewer property crimes of some types than others. The model includes the following predictions: (1) policies providing education, training, and work subsidies can reduce criminal activity; however, short-term wage subsidies only temporarily reduce crime at the expense of future crime rates; (2) a rise in youth crime should accompany the recent rise in returns to skill, whereas most adult crime rates may rise or fall; and (3) law enforcement policies increase education, training, and labor supply while reducing criminal activity. When the model's testable implications were studied by analyzing data from the National Longitudinal Survey of Youth (NLSY), Current Population Survey (CPS), and Uniform Crime Reports (UCR), both ability and high school graduation were found to significantly reduce criminal participation among young men in the NLSY. Evidence from the UCR and CPS indicated that states with higher high school graduation rates and more severe punishment policies have lower index property crime rates. (Fourteen tables/figures are included. The bibliography lists 42 references.) (MN)

This report contains a conceptual framework for analyzing costs and prices by evaluating the higher education production function and the determinants of both prices and costs. The framework can be used to strengthen understanding of costs and prices within individual institutions and to inform macro level investments at state and national levels. Despite the breadth of choices in higher education, average costs differ in somewhat predictable ways, by level of instruction, discipline or field, and institutional type and control. Any analysis of price structures must incorporate subsidies and strategies for differential pricing. There are differentials in sticker prices based on residency status, level of instruction, and institutional type and control. Price-to-cost ratios developed in this report point to broad trends across institutions. In spite of differences in missions and resources across institutions, categories of institutions exhibit somewhat consistent pricing and cost patterns. The analyses in this report suggest that greater use of available data will enhance understanding of cost and price structures within higher education to help institutions ensure that their financing decisions are compatible with institutional goals. (Contains 17 figures, 58 endnotes, and 51 references.) (SLD)