Buckeye Institute Study Chronicles the High Cost of High School Dropouts

Release:

COLUMBUS - The Buckeye Institute today released a study chronicling the negative impact high school dropouts have on government services and social welfare programs. Report author Matthew Carr found that individual consequences of not completing high school result in increased public outlays for welfare services, health care, police services and correctional facilities. Dropout recovery charter schools help mitigate costs to the state, according to the study.

The failure of thousands of high school students to graduate costs taxpayers an estimated $677 million annually in Medicaid costs, income tax collections and imprisonment costs, the study found. The reduced labor force participation, employment rates, and average earnings for dropouts also mean lower tax revenues to help offset the costs of providing these services.

Carr's research found that dropout recovery charter schools provided the state a net benefit of about $44 million a year.

"Dropout recovery charter schools help would-be dropouts graduate, and save tax dollars in the process," Buckeye Institute President David Hansen said. "These public charter schools step in where government schools have failed. Their overall efforts bring enormous monetary value to taxpayers."

Among the findings, failing to graduate from high school:

* Leads to lower lifetime earnings;
* Increases the likelihood of unemployment;
* Increases the likelihood of health problems;
* Leads to higher rates of delinquency and incarceration;
* Increases the risk of school-age pregnancy; and
* Produces higher rates of broken-homes.

"Decreasing the number of high school dropouts in Ohio can improve the standard of living for everyone, not just those that get a diploma," Carr said. "One of the strongest predictors of an individual's chances for living a healthy and prosperous life is his or her level of educational attainment. In Ohio, far too many of our high school students do not reach graduation, and spend the rest of their lives suffering the consequences."

The Buckeye Institute for Public Policy Solutions is a nonpartisan research and educational institute devoted to individual liberty, economic freedom, personal responsibility and limited government in Ohio.

The complete study is available online at http://www.buckeyeinstitute.org.