PHOENIX — A new study says that each Arizona college graduate contributes $660,000 to the economy over his or her lifetime through increased earnings, paying more in taxes and depending less on social services.
The study, commissioned by the nonprofit College Success Arizona, says that increasing the number of college graduates will be essential to the state’s economic competitiveness.
The report also says that even small improvements, such as closing the racial graduation gap, would lead to large economic gains. Boosting college-going rates for all races to match the rates for white adults would result in an additional $2.3 billion economic gain over the lifetime of each graduating class, it says.
For years, Arizona has lagged the national average in percentage of adults with college degrees with 37 percent of adults having at least an associate’s degree compared with 40 percent nationally.
5 key findings
of the study
• College graduates can expect to earn more over a lifetime than those with just a high school diploma. On average, high school graduates earn $530,340 in lifetime earnings in Arizona compared with $1.1 million for those with at least a bachelor’s degree.
• College graduates generally pay more in taxes. High school graduates pay an average $160,520 in taxes over their lifetimes compared with $348,900 for those with at least bachelor’s degrees.
• The state’s low college completion rate is problematic, the study says. Of the 60 percent of Arizona adults who have enrolled at some point in postsecondary education, nearly half have never finished their degrees.
• Minority students enroll and complete degrees at lower rates than white students in Arizona. The study says 1 in every 10 Latino adults holds a bachelor’s degree in Arizona compared with 1 in every 4 adults from the adult population at large.
• The state must increase high school graduation rates, the study says, to make sure more students are able to enroll in college. Arizona’s high school graduation rate is 75 percent, compared with 81 percent nationally.
The report is the latest development in a grass-roots movement aimed at sharply increasing the number of Arizona adults with college degrees or certificates.
Across the country, 31 states have set college-attainment goals that leaders say are vital to improving the lives of their residents and boosting local economies. Tennessee, for example, has set a college-attainment goal called “Drive to 55.” The statewide goal is to have 55 percent of adults with a college degree or certificate by 2025 — up from nearly 30 percent in 2013.
Arizona does not have a statewide goal, but last week Arizona State University President Michael Crow highlighted the need for such a goal during a legislative breakfast at the downtown Phoenix campus. Crow suggested a goal of 60 percent.
In addition, a group of about 40 higher-education, philanthropic, business and community leaders, brought together by Regents President Eileen Klein, met recently to discuss setting a statewide goal. Klein said the response in the room was “overwhelming support” for a goal.
How to improve college attendance
The report also recommends strategies to improve college-going rates, including:
- Improve K-12 through reforms such as smaller class sizes, more high-quality teachers and “dual enrollment” programs that allow students to earn college and high school credit at the same time.
- Offer more guidance counseling to help high-schoolers enroll in college. The report says that many first-generation students don’t have enough information on how to apply and get into college or how to choose a college that is best for their needs.
- Reduce college dropouts by providing more counseling and mentoring services and support such as academic planning and advising.
- Start a state-financed financial aid program aimed at low-income students.
Rich Nickel, president and CEO of College Success Arizona, said that before doing the study, he knew that increased college-completion rates would show positive predictions for the economy. But he had no idea the numbers would be so compelling. The findings also underscore the economic opportunity that exists for the state, he said.
“We could have a breakout here if we can have an education system that produces enough skilled people to cover the jobs that will ultimately come to this state,” he said.
