The New Economy: Kentucky faces the future

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The New EconomyKentucky faces the future

• ONE Statewide Project Leader meeting
• May 17, 2004

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• The New Economy
• is a Learners Economy

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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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• In 1983, MIT economist David Birch told a
  Louisville audience . . .

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• Youre like a Third World country within the
  United States. Your economy is dead because
  youve got the most poorly educated work force in
  America. To become prosperous, you must improve
  your schools and colleges.

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• We have made significant strides in the past
  decade
• First in the nation in increased percentage of
  adults with a high school diploma.
• Fourth in the nation in increased percentage of
  adults with a 4-year degree.

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Current data still 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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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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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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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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• Even with the significant strides of the past
  decade . . .

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• Kentucky was still 49th in percent of adults with
  a high school diploma
• Kentucky moved from 48th to 47th in percent of
  adults with a 4-year degree

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• No one else is
• standing still !

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• Given our rate of improvement, by the time 2010
  gets here we will meet the US average for adults
  with diplomas or BAs . . . For 1990!

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• We are not alone in understanding the compelling
  sense of urgency . . .

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• The ThinkLink partners
• Kentucky Department of Education
• Kentucky Education Cabinet
• Council on Post-Secondary Education
• P-16 Council
• KCTCS
• KWIB
• Adult Ed
• ONE
• Partnership for Kentucky Schools

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Observation 1
Kentuckians are not prepared to meet the
workforce challenges of the New Economy.
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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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Observation 2

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

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New Economy Plan

• New Economy Infrastructure
• New Economy Industries for Kentucky

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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 our 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.
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• The New Economy
• is a Learners Economy