The New Economy: Kentucky faces the future

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The New EconomyKentucky faces the future

• KSBA Regional Meeting
• Eastern Kentucky North
• October 7, 2004

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• ThinkLink thinking about the problem
• Council on Postsecondary Educaiton (CPE)
• Department for Workforce Development (
• Dept. for Innovation and Commercialization for a
  Knowledge-Based Economy (ONE)
• Education and Professional Standards Board (EPSB)
• Kentucky Adult Education (KYAE)
• Kentucky Board of Education
• Kentucky Community and Technical College System
  (KCTCS)
• Kentucky Department of Education
• Kentucky Education Cabinet
• Kentucky Workforce Investment Board (KWIB)
• Partnership for Kentucky Schools

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• Four observations to consider
• 1. Kentucky is unprepared and is not adequately
  preparing for a knowledge-based economy.
• 2. Our future as a state depends on our
  preparation.
• 3. There are solutions.
• 4. We all have a role to play in providing
  solutions.

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The Challenge
Kentuckys ability to sustain and propel a 21st
century Knowledge-based economy is dependent on
intellectual capital.
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Regions that accumulate the most human capital
will prosper in the 21st century economy.
Source Strategic Plan for the Office for the New
Economy 2002
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Observation 1
Kentuckians are not prepared to meet the
workforce challenges of the New Economy.
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Current data paint a bleak picture for that
future. . .
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With regards to the number of adult Kentuckians
with less than a 9th grade education . . .
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• US average 7.4
• KY average 11.7
• 110 KY counties below the national average

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Eastern Kentucky - North

• Adults with less than a 9th grade education
• US Average 7.4
• Bath 20.5
• Boyd 8.9
• Carter 18.1
• Elliott 25.5
• Fleming 18.4
• Greenup 10.4

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Eastern Kentucky - North

• Adults with less than a 9th grade education
• US Average 7.4
• Lawrence 22.3
• Lewis 19.6
• Mason 9.5
• Menifee 20.4
• Morgan 24.4
• Rowan 15.2

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Counties exceeding the national rate (7.4) for
more than a 9th grade education among adults 25
10/120 counties
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With regards to adult Kentuckians who have at
least a high school diploma . . .
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• US average 80.4
• KY average 74.1
• 109 KY counties below the national average

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Eastern Kentucky - North

• Adults with at least a HS diploma
• U.S. Average 80.4
• Bath 61.2
• Boyd 76.8
• Carter 66.4
• Elliott 56.4
• Fleming 71.1
• Greenup 75.7

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Eastern Kentucky - North

• Adults with at least a HS diploma
• U.S. Average 80.4
• Lawrence 59.9
• Lewis 61.9
• Mason 76.1
• Menifee 62.9
• Morgan 58.8
• Rowan 74.6

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Counties at or above the national average (80.4)
for adults 25 with a high school diploma.
11/120 counties
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With regards to the number of Kentuckians with a
college degree . . .
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• US average 24.4
• KY average 20.8
• 115 KY counties below the national average

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Partnership Schools Data

• Adults with at least at least a BA
• US Average 24.4
• Bath 11.0
• Boyd 13.9
• Carter 10.3
• Elliott 9.9
• Fleming 9.6
• Greenup 10.9

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• Adults with at least at least a BA
• US Average 24.4
• Lawrence 7.7
• Lewis 7.5
• Mason 12.7
• Menifee 10.2
• Morgan 11.0
• Rowan 22.2

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Counties exceeding the national average (24.4)
of adults ages 25 with 4 or more years of
college. 5/120 counties
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• The needs of the 21st Century workforce have
  changed significantly.

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1997
1950
Unskilled 15
Skilled 20
Skilled 65
Professional 20
Unskilled 60
Professional 20
ThinkLink
National Summit on 21st Century Skills for 21st
Century Jobs
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• Where does Kentucky stand for meeting the needs
  of the 21st Century workforce?

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• The reality is . . .
• In 1990, we were 49th
• in high school completions and GEDs

ThinkLink
1990 Census, Adults 18-64
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ThinkLink
Adults 18-64, Decennial Census 1990, 2000
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But . . .

• In 2000, Kentucky still ranked only 46th in high
  school completions and GEDs

Adults 18-64 2000 Census
ThinkLink
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And . . .

• 40 of working age Kentuckians function at the
  two lowest literacy levels

1997 Kentucky Adult Literacy Survey (KALS)
ThinkLink
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• What this means in practical, economic terms . . .

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Percentage of Kentucky 18-64 year olds not in
the labor force
65
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14
Less than 9th Grade
High School Graduate
College Graduate
Census 2000
ThinkLink
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• The Milkin Institutes State Technology and
  Science Index for 2002 ranked Kentucky at 46
• After significant work and progress, the 2004
  index ranked Kentucky at 48!

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• How did this happen?
• Kentucky slipped two notches to 48th in 2004
  with its biggest regression in risk capital and
  entrepreneurial infrastructure (Milken, 4, 2004)
• Ohios Governor Taft has been moving
  aggressively on the Third Frontier Project . . .a
  1.6 billion plan to create high-paying jobs for
  Ohioans. (Milken, 9, 2004)

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International Factors

• The rest of the world is not standing still
• Competition for unskilled labor
• Competition for skilled labor

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Observation 2

• Our success as a state is dependent on how we
  meet this challenge.

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The Challenges

• K-12
• A look at options
• Stay the course
• Change the course

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New Economy IndustriesNew Economy Industries

• Redefining the enemy
• Jim Collins in Good to Great
• (p. 1, first full paragraph, first sentence)
• We dont have great schools, principally because
  we have good schools.

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Options

• Refocusing Secondary Work
• Focus on learning not time
• End of Course assessments
• Replacing the PreCollege Curriculum
• Virtual Opportunities

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• Challenges
• Redefining the diploma in your districts
• Redefining opportunities in your districts
• Redefining human capital resources

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• Promising Practices
• Vanguard schools
• East Jessamine
• North Oldham
• Corbin Independent
• others

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Observation 3

• There are solutions for Kentuckys current
  position.

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• Build and sustain a strong research and
  development capacity.

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• Create and maintain a thriving entrepreneurial
  climate supported by programs that inspire and
  facilitate the commercialization of ideas.

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• Foster and retain a highly motivated, highly
  educated workforce which can participate in and
  prosper from the commercialization of ideas.

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Observation 4

• We all have a role to play in the resolution of
  this problem.

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In the 21st Century, we cannot continue to allow
geography to be the determinant for educational
opportunities for any student in this state.
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Each student must be provided with the
opportunity for learning at the highest possible
levels.
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We are responsible to see that each student
receives the education opportunities best matched
for his/her individual needs . . .
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As history clearly shows, our economy is best
served by full and vigorous engagement in the
global economy. Consequently, we need to
increase our efforts to ensure that as many of
our citizens as possible have the opportunity to
capture the benefits that flow from that
engagement. . .
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One critical element in creating those
opportunities is to provide rigorous education
and ongoing training to all members of our
society.
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Federal Reserve Board Chairman Alan
Greenspan Feb 20, 2004
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The future of our citizens and the economic
future of your communities and the State rests on
our success in producing life-long learners,
capable of participating in the
New Economy.
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There ARE alternative ways to think about the
future of education in our Commonwealth. . .
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. . .and we must be about the business of
providing them.