The Fiscal Consequences:  Arizona Adults and Educational Attainment

 (Highlights from the report of the same name  conducted by Center for Labor Market Studies, Northeastern University, Boston, MA; November, 2009)

 Ø      An individual that had passed the GED Test and earned an Arizona High School Equivalency Diploma would contribute $559 more annually to Arizona ’s income, property and sales tax base than an individual who had not earned a high school or high school equivalency diploma.  The 14,000 Arizona High School Equivalency recipients of 2009 represent a potential $7.8M annual increase to the current state tax base.

 Ø      The average high school dropout in Arizona (18-64) received $352 in the form of government transfer benefits and costs more than they paid, while a high school/GED diploma holder contributed $5173 more to the budgets of state, federal and local governments.  

Ø      Receipt of a high school/GED diploma increases the likelihood of an adult paying state taxes:

·        55.4% of high school/GED diploma recipients pay state income taxes compared to only 49.6% of adults w/o a high school diploma.

·        53.3% of Arizona high school/GED diploma recipients pay state property taxes compared to only 43% of adults w/o a high school diploma.  

Ø      Receipt of a high school/GED diploma increased the amount of Arizona state income taxes paid:  adult dropouts averaged $249 in annual state income taxes paid.  High school diploma/GED recipients paid over 100% more in annual state income taxes.

 Ø      The value of government cash and in-kind transfers for adults with a high school/GED diploma was reduced 34% from that of adults without a diploma.  

Ø      The institutionalization rate was reduced by half for adults  who hold a high school/GED diploma over adult drop outs:

o       For adults (18-60) the rate was 3.3% for those without a diploma and only 1.8% for high school/GED diploma holders.

o       For adults (18-34) the rate was 4.0% for those without a diploma and only 2.1% for high school/GED diploma holders

 Ø      Almost one-fifth of those household heads in Arizona without a high school/GED diploma were reliant on food stamps versus only 9 % of high school graduates.  

Ø      Over the working-age lifetime (18-64) , the gap between the net fiscal contributions of a high school/GED diploma holder and a drop out in Arizona would be equal to $265,700.