Reducing Inequality Through Universal, Place-Based Scholarship Programs

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Reducing Inequality Through Universal,
Place-Based Scholarship Programs

• Dr. Michelle Miller-Adams
• Visiting Scholar, W.E. Upjohn Institute
• June 2009

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Since the 1990s, many cities in the US have
experienced

• Population decline in the urban core growth in
  the suburban population
• Loss of jobs in manufacturing industries
• Increased poverty in urban core
• Enrollment declines and growing low-income
  population in public schools
• Difficulty attracting new businesses and workers

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These issues are especially acute in the
Northeast and Upper Midwest.
Location of the State of Michigan
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The Kalamazoo Promise is a new tool for
addressing these complex challenges.

• Announced in November 2005
• Funded by anonymous donors
• Full college scholarships for every graduate of
  the public school district
• Flexible and generous terms of use
• Funding provided in perpetuity
• Objective Educational attainment Economic
  development

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Location of Kalamazoo
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The Kalamazoo Promise Potential Impact

• Scholarship program serves as a catalyst
• Changes incentives for a broad range of actors
  (e.g., families, realtors, etc.)
• Leads to creation and/or development of human,
  economic, and social capital for the city and the
  region
• A financial investment that creates new assets
  for the community.

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The first comprehensive account of the Kalamazoo
Promise, based on three years of
research. Published by the W.E. Upjohn Institute
for Employment Research, 2009.
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Potential Human Capital Effects

• Reduction in high-school dropout rate
• Increased rates of college-going and college
  graduation
• Narrowing of K-12 achievement gap by income and
  race
• Creation of a better-educated local workforce
• Inclusion of trade and technical degrees,
  short-term programs, provide options for
  nontraditional students.

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The linkages among a communitys educational and
economic systems are illustrated in this
diagram. Source Upjohn Institute
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A new model for human capital development?

• Place-based focus universal coverage
• Economic development strategy that emphasizes
  human capital investment
• Education as the critical factor in both
  individual and community success

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A tool for reducing inequality?

• Need to distinguish between inequality of
  opportunities and inequality of outcomes
• Program works to equalize both
• Universal college access
• Cultural change in the schools
• Alignment of community resources

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Equalizing opportunity universal college access

• Elimination / simplification of financial
  barriers to college attendance
• Other barriers persist
• K-12 achievement gap by income and race
• Lack of college readiness
• Academic and social
• Absence of role models / support
• Cultural sense that college isnt for me
• Importance of defining college broadly

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Equalizing outcomes cultural structural
changes in the schools

• Cultural the need to ensure that every child is
  college-ready
• Early literacy, curriculum standards, testing
• College readiness courses, credit recovery
• Career awareness preparation
• Structural socioeconomic integration of schools
• Supported by enrollment increase new school
  construction

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Kalamazoo Public Schools 20-year enrollment trend
Kalamazoo Promise Announced
Increased enrollment has brought 10 million in
new state funding to KPS.
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Projected impact of redistricting on low-income
enrollment ( of students qualifying for federal
lunch programs)
2008-09 2009-10
Middle Schools
Hillside 52 65
- Maple St. 72 68
Milwood 84 71
- New school n.a. 72
High Schools
Central 53 58
- Norrix 64 60
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Scholarship usage

• 2006 2007 2008
• KPS Graduates 515 567 548
• Eligible for Promise 417 481 474
• of Graduates Eligible 81 85 87
• Used Promise 303 359 370
• Eligible Using Promise 73 75 78
• Includes only those students using their
  scholarships during the first semester following
  graduation.
• 10 million spent on scholarships as of spring
  semester 2009
• 1,113 scholarships awarded
• 834 students currently enrolled
• Top college choices for the Class of 2008
• Kalamazoo Valley Community College (33)
• Western Michigan University (29)
• University of Michigan (22)
• Michigan State University (13).

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Alignment of community resourcesthe critical
element

• Benefits of human capital investment adhere to
  community as well as individual
• Community-based strategies
• Expand student support services
• Strengthen connection between local graduates and
  employers
• Provide support for entrepreneurship
• Seek to attract boomerang generation
• Cultivate employment for low-wage workers

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Lessons from the Kalamazoo Promise

• Universal coverage tool for community
  transformation
• Tradeoffs with more targeted approaches
• Scholarship alone do not lead to economic or
  social transformation equality of opportunity is
  not the same as equality of outcomes
• Community engagement and alignment are required
• Immediate gains are intangible, related to
  identity, reputation, and mobilization
• A long-term commitment and horizon are required

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For additional informationKalamazoo Promise
Research Web Sitehttp//www.upjohninstitute.org/
Comments, questions, or suggestions Michelle
Miller-Adams269-385-0436Miller-Adams_at_upjohninsti
tute.org