Former Maine State Economist Laurie Lachance - Keynote address

"Maine's Economy - Today and Tomorrow: Implications for School Leaders"

Opening note: "Knowledge is power: get facts to the people and they will survive."

A. Long term education trends affecting Maine school.

1. Shortage of trained teachers, especially in math, science and special ed.
2. Aging work force in education and in Maine
3. Private and home school competition
4. Higher expectations from local communities
5. Fewer resources
6. More mandates - some not related to school mission.

B. Financial factors affecting education in Maine

1. More education usually equals less unemployment and more income. Maine has high rate of high school graduation rates, yet is only 33 in per capita income. Only 66% of Maine's jobs pay living wage (185% of poverty for family of 2 = $22,000.)
2. Population growth has been slow, projected school age children growth is 1% decline in next 20 years. 97% growth is in 65-75 age group, Maine has 3rd oldest population. How can school plan to include retirees in education?
3. Service centers losing population to rural areas. Empty city schools
   and overfull rural schools = regionalization needs.
4. Multicultural in US is 31% and growing, in Maine is 3.5%. Schools need to educate for other cultures.
5. Maine workers are 77% productive as rest of US - lack skills, lack technology, lack newer equipment on the job.
6. Maine ranks 1-2 in State and Local taxes as a % of personal income. 1/3 of sales taxes come from cars & houses - when income is low, fewer cars and houses purchases = affects taxes for school use. 1/3 of income taxes come form top 3% of Maine people. Income tax is not a fair means to collect school costs.
7. 36% of state dollars go to education. 61% of city dollars (71% in some rural areas) go to education.
8. Increases in education costs: 47% in administration and 28% in teachers with a 14% drop in enrollment. Why?
9. Special Education costs show a 1400% growth in costs 1970-2003.

C. Property tax relief possibilities

1. Incentives for making current school effective, regional cooperative, and regional school districts
2. Special Ed and program costs under EPS.

Ending note: Maine has done well with education and human services, but needs to encourage a healthy business climate.

Report by Nancy Grant.