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Title: The Fiscal Return on Education: How Educational Attainment Drives Public Finance in Origin

Citation Type: Miscellaneous

Publication Year: 2010

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Abstract: Oregon’s system of public finance is profoundly shaped by the educational attainment of its population. The state gets the bulk of its revenues from people who have completed a four-year college degree, and spends a disproportionate share of its budget providing services to those with just a high school diploma or less education. The close relationship between educational attainment and state revenues and expenses means that the Oregon budget has a huge stake in improving the educational attainment of the state’s population. There is a large “fiscal return” on the state’s investment in improving education—higher educational attainment both increases state revenues and drives down the cost of key state programs. Revenue. Oregon income tax revenues, the principal source of revenue for the state’s General Fund, come disproportionately from well-educated Oregonians. Better educated persons have higher incomes: In Oregon, in 2008, the average household headed by a person with at least a four-year degree had an income 70 percent higher than the average household headed by a person with just a high school diploma. Better educated households had both more income, and paid a higher personal income tax rate than less well educated households. In 2008, households headed by a person with a four-year degree constituted 36% of all households, but paid more than 53% of all state income taxes. Increasing educational attainment is likely to translate . . .

Url: https://www.k-12leadership.org/sites/default/files/fiscal-return-on-education.pdf

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Authors: Cortright, Joe

Publisher: Impresa Economics

Data Collections: IPUMS USA

Topics: Education

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