The Storm on the Oklahoma Horizon
Matthew Ladner Senior Advisor for Policy and Research Excel in Ed
United States Treasury currently estimates the amount of federal debt at $19 trillion and unfunded entitlement liabilities at $55 trillion.
10,000 Baby Boomers will reach retirement age per day until 2030, whereupon all surviving Baby Boomers will be age 65 or older.
33% of funds spent by the Oklahoma state government in 2014 originated with Uncle Sam.
Make your plans accordingly.
Oklahoma NAEP 8th Grade Reading Scores 1998 to 2015 Below Basic and Proficient or BeBer
30%
30%
28% 24%
25%
26%
28%
26%
28%
27%
27%
29%
29%
27%
26%
25%
24%
20%
1998
2002
2003
2005
2007
2009
2011
2013
2015
Congressional Budget Office Projections for Federal Costs per Medicaid Enrollee in 2023 (Source: Kaiser Family Foundation)
$16,190
$4,590 $2,550
Elderly
Adult Non-Elderly
Children
Oklahoma State Expenditures, 2000 and 2014 29.6% 28.4% 24.3%
23%
23.2%
15.6% 15.6%
15.5%
9.6% 6.0% 3.8% 2.6%
1.6% 0.9% K-‐12
HIGHER ED
WELFARE
MEDICAID
CORRECTIONS TRANSPORTATION ALL OTHER
What are Educa,on Savings Accounts? An educa,on program u,lizing an account controlled by parents with mul,ple educa,onal uses. Under a robust system of accountability (monitoring and audi,ng), parents can direct funds in an ESA to any combina,on of educa,onal uses, including:
Private school tui,on
Exam fees
Tutoring
Therapy for special needs students
Savings for future college costs
Instruc,onal materials and curriculum
Contract public school courses
Online programs and courses
Foundation for Excellence in Education Copyright.2014
11
New to Educa,on, But Not to Parents
Health Savings Accounts
Flexible Spending Accounts
Unemployment Benefits
Coverdell Accounts
Food Stamps
Dependent Care Accounts
Foundation for Excellence in Education Copyright.2014
12
ESAs Embrace Basic Economics
Foundation for Excellence in Education Copyright.2014
13
Next-‐Gen Accountability Using parent ra,ngs and objec,ve metrics to help parents navigate school choice.
Interac,ve search tools, community advice, and expert reviews to find the right tutor, school, or educa,on service.
Drives quality by requiring users to rate each experience
Foundation for Excellence in Education Copyright.2014
14
The Oklahoma Constitution guarantees K-12 spending and the public supports it strongly, but the system today is underperforming despite an unsustainable level of spending. The next 15 years seem likely to test the outer limits of our political adaptability. The working-age taxpayers of 2030 sit in Oklahoma classrooms right now- one of the few things we can control now is how many opportunities we give them to fulfill their potential. By providing the maximum possible flexibility and creating incentives to maximize value, ESAs could play a large role in a Oklahoma plan.
Thank You ! MaYhew Ladner Senior Advisor for Policy and Research Excel in Ed (512) 844-‐5504 MaYhew@excelined.org