The Urban County Council should be embracing with a bear hug Mayor Newberry’s proposed “Lexing-
ton First” scholarship program - not dis-missing this powerful idea with a lack
of imagination that should be of concern to anyone think
-ing about economic development in the 21st century.
Inspired by “The Kalamazoo Promise,” a privately-funded program that has transformed its name-sake Michigan city from rustbelt decline to a place where people now want to locate their businesses and raise their kids, the plan proposed by Newberry would develop a public-private partnership to fund scholarships for any public or private Lexington high school graduate who wants to major in fields critical to maintaining a competitive toe-hold in today’s economy.
The scholarships would be provided to students majoring in science, technology, engineering or math (STEM), or those who plan to teach one of those subjects. Some members of council have expressed concerns about the cost of such an initiative at a time when the city is projecting a structural imbalance in its budget of $25 million to $30 million in the next fiscal year. What we have not heard from these politicians are thoughtful longterm plans to get our city out of this hole. All they seem prepared to offer is the uninspired and shortsighted stopgap of cutting, cutting, and more cutting - even as our city is growing before their very eyes, its competitive back against the wall. And do keep in mind, Lexington derives 83-percent of its operating revenues from payroll taxes. Higher paychecks in the private sector equal an improved revenue stream that enables the city to meet those increasing demands on the array of services provided by -- and demanded of -- our municipal government.
We do not elect our public officials with the expectation that they will do no more than tell us how little we can get by with as a community. The management audit conducted by Mayor Newberry has taken a hard look at the need to improve efficiencies in our city’s management, and there is no doubt that our current economic circumstances will require difficult choices and potentially painful cuts in services. However, one thing we cannot sacrifice is our effort to move this community forward.
Newberry is not shooting for the moon with this program. It is not as extensive or generous as the Kalamazoo Promise. It applies funding precisely where it will offer the greatest benefit for local students, businesses and the community in general. By funding the “last dollars” needed after expected family contributions and available scholarships and financial aid are taken into account, the Lexington First money is not a free ride, but a promise to provide students only what additional money they absolutely need to make higher education in a STEM field possible.
Look at it this way: if the city had the opportunity to upgrade equipment or invest in new technology with the potential to increase efficiency by 60-percent, would that be considered a worthwhile investment of tax dollars? According to statistics cited by the College Board, the typical full-time worker with a four-year degree will earn more than 60-percent more than a high school graduate. An associate degree brings a 28-percent increase in lifetime earnings with STEM fields typically capturing higher-than-average salaries.
Removing the financial barriers to a higher education places all of the onus on our kids to get their acts together and achieve academically in order to qualify for admission to an area college. No longer would a lack of household dollars be an excuse for a lifetime of arrested development.
Sometimes it’s useful to place yourself in another’s shoes. As you read the following excerpt from “A Simple Gift? The Impact of the Kalamazoo Promise on Economic Revitalization” written by Michelle Miller-Adams for the Upjohn Institute, substitute “Lexington” for Kalamazoo and the pieces begin to fall into place:
“The Kalamazoo Promise is envisioned as a catalyst for economic growth and development. By creating incentives for current residents to remain in the district and for new residents (especially those with children) to move in, the scholarship program is expected to bring about a tightening in the slack housing market and higher property values. The Promise also makes the community more attractive for businesses seeking to invest, expand, or relocate; not only will their employees’ children have access to free college tuition, but the businesses themselves will be able to tap an increasingly well-trained workforce (provided that college graduates or newly skilled workers opt to stay in the region). The program fits readily into a regional growth strategy that seeks to position the Kalamazoo area as a leader in the life sciences field and a home to high value-added, high-wage service jobs.
The arrival of middle-class professionals is also expected to benefit the struggling downtown, as a larger population can support more of the kinds of amenities— restaurants, bookstores, arts and cultural institutions—that are seen as essential for attracting and retaining members of the “creative class” found in vibrant urban centers around the world (Florida 2002, 2005).”
It’s interesting that the very council members who often eagerly and with much radio talk show fanfare vote against a fee or a tax increase also turn out to be the very same individuals who rush to criticize an effort meant specifically to increase revenues by boosting the tax base.
If we need to tighten belts to make this happen, tighten belts. It won’t be long before we can loosen again and enjoy the comfort of living and working in a community that put its money where its mouth so often is.