"The Economic Losses from High School Dropouts in California" is our site of the day

The California Dropout Research Center (CDRP) has released two landmark studies that show the a massive burden on taxpayers and other costs with a high school drop out rate that can only be described as a "crisis."

They estimate that this costs California $46.4 billion with each year's graduating class. But rather than just casting stones, they also find that intervention can help and have longstanding economic and social benefits. There are 4 page policy briefs on "The Economic Losses From High School Dropouts in California” and "The Return on Investment for Improving California's High School Graduation Rate."

CDRP's first research report, titled “The Economic Losses From High School Dropouts in California,” is 70 pages. Reading it, you will learn that :

• California loses $46.4 billion – 2.9 percent of the gross state product – for each cohort of Californians who reach age 20 without a high school diploma.

• High school graduates earn an average of $290,000 more during their lifetime and pay $100,000 more in taxes than dropouts. State and local government loses $3.1 billion in tax revenue for each cohort of dropouts.

• High school graduation reduces violent crime by 20 percent, property crime by 11 percent and drug-related offenses by 12 percent. California loses $2.5 billion in crime expenditures for each cohort.

• More than two-thirds of dropouts use food stamps during their lifetime and high school graduates are 68 percent less likely to be on welfare. State and local government will spend $400 million for each cohort of dropouts.

• Dropouts have a higher risk of stroke, heart disease, diabetes, depression and other serious conditions. State and local government loses $3.5 billion in health expenditures for each cohort.

The project’s second report, “The Return on Investment for Improving California’s High School Graduation Rate,” in 39 pages explores the cost of proven dropout intervention programs around the United States. It finds that the cost of using these programs to keep a student in school is far less than a dropout’s lifetime burden on the state.

Researchers uncovered five intervention programs with proven records of success, and estimated their costs at anywhere from $37,810 to $131,000 per graduate. The project estimates a total economic benefit of $392,000 when a potential California dropout stays in school and earns a diploma. Based on those figures, there would be at least a $3 return on every $1 invested in dropout prevention in California.

CDRP is based at the University of California. and is funded by grants from the Bill & Melinda Gates Foundation, the James Irvine Foundation, the William and Flora Hewlett Foundation, and the Walter S. Johnson Foundation.

Over the next six months, CDRP will issue a series of additional research reports and statistical briefs that further study the economic and social costs of dropouts and explore potential solutions. In January 2008, the CDRP Policy Committee -- composed of researchers, policymakers and educators -- will draft a state policy agenda aimed at improving California’s high school graduation rate.