Graduates cost the state far less money in the long term, in the form of Medicare, TANF, and the criminal justice system than dropouts. And 9th grade is recognized as being an exceptionally tough year--students who make it to tenth grade have an increased likelihood of graduation than students in the 9th grade. Timothy Krueger, a long-term intern at Policy Matters Ohio, wrote a report analyzing the Governor's Initiative.
The economic benefits of education for the state and society are tremendous. The University of Cincinnati Center for Education and Research recently calculated that the lifetime return on education is $11.62 for every dollar spent. Tim's report is far more conservative; he focuses only on the potential cost savings on social welfare programs and incarceration (while ignoring the costs of crime to victims). In short, adjusting for incarceration rates among graduates, average cost to Medicare, and increased tax payments, Tim finds that the Initiative would have (conservatively) saved the state roughly $28.5 million dollars, or $3.3 for every dollar spent.
I strongly urge you to go straight to the source, and see Tim's research and how he arrived at his numbers. It's definitely worth a read. You can check out other Policy Matters reports at www.policymattersohio.org
