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Education and Economic Growth

August 22, 2013 Common Cents

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The best way for New Hampshire to foster a productive economy is to invest in a well-educated workforce, according to a new report. Researchers from the Economic Policy Institute’s Economic Analysis and Research Network (EARN) found that productivity growth and high-wages are overwhelmingly found in states with more educated workers.

Between 1979 and 2012, states that grew their share of adults with at least a college degree experienced greater increases in productivity (measured as gross state product per hour worked) and greater increases in median wages, researchers found.

In New Hampshire’s case, a 16 percentage point increase in college attainment levels between 1979 and 2012 is accompanied by an almost 115 percent increase in productivity. Median worker compensation over that time also increased in NH – by about 35 percent.

In contrast, providing tax breaks to businesses does not improve productivity, which was closely linked to growth in wages. Furthermore, tax breaks drain critical resources that otherwise could be invested in education.

Here are some of the main conclusions from the report, “A Well-Educated Workforce is Key to State Prosperity.”

  • Overwhelmingly, high-wage states are states with a well-educated workforce. There is a clear and strong correlation between the educational attainment of a state’s workforce and median wages in the state.
  • States can increase the strength of their economies and their ability to grow and attract high-wage employers by investing in education and increasing the number of well-educed workers.
  • Cutting taxes to capture private investment from other states is a race-to-the-bottom strategy that undermines the ability to invest in education.
  • Providing expanded access to high-quality education will not only expand economic opportunity for residents, but also likely do more to strengthen the overall state economy than anything else a state government can do.

 

 

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Legislature Passes Budget, Now Heading to the Governor

22 Jun 2017

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On June 22, both the New Hampshire House and the Senate passed HB 144, the primary budget bill, and HB 517, the budget trailer bill, as proposed by the Committee of Conference. These two bills allocate and direct funding for the next two State fiscal years (SFY), which begin on July 1, 2017 and end June 30, 2019. HB 144 authorizes and appropriates $11.855 billion for SFYs 2018-2019 for State agencies to use, although the Legislature assumes State agencies will lapse a certain percentage of their appropriations and spend less money overall. This lapse, however, is not included in the amount agencies are legally appropriated in HB 144.