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21 posts on "Education"

November 12, 2014

Did Local Funding Responses to Post-Recession State Aid Cuts Vary by Property Wealth?




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In the first of this two post series, we investigated the relationship between state aid and local funding before and after the Great Recession. We presented robust evidence that sharp changes in state aid brought about by the prolonged downturn influenced local budget decision-making. More specifically, we found that relative to the pre-recession relationship, a dollar decline in state aid resulted in a $0.19 increase in local revenue and a $0.14 increase in property tax revenue in New York school districts. In this post, we dive deeper to consider whether there were variations in this compensatory response across school districts, using an approach described in our recent study. For example, one might expect that there would be differences in willingness and ability to offset cuts in state aid across districts with varying levels of property wealth, which in turn might lead to differences in responses. Was this really the case?

Continue reading "Did Local Funding Responses to Post-Recession State Aid Cuts Vary by Property Wealth?" »

Posted by Blog Author at 7:00 AM in Education, Regional Analysis | Permalink | Comments (0)

November 10, 2014

Did School Districts Offset State Education Funding Cuts?




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Correction: Earlier, we inadvertently posted the content of the second post in this two-part series under today’s headline. We have updated the blog with the correct content and will post part two on November 12. We apologize for the error.

It’s well known that the Great Recession led to a massive reduction in state government revenues, in spite of the federal government’s attempt to ease budget tightening through American Recovery and Reinvestment Act aid to states. School districts rely heavily on aid from higher levels of government for their funding, and, even with the federal stimulus, total aid to school districts declined sharply in the post-recession years. But the local school budget process gives local residents and school districts a powerful tool to influence school spending. In this post, we summarize our recent study in which we investigate how New York school districts reacted when state aid declined sharply following the recession.

Continue reading "Did School Districts Offset State Education Funding Cuts?" »

Posted by Blog Author at 7:00 AM in Education, Regional Analysis | Permalink | Comments (2)

June 26, 2014

From Our Archive: Student Debt in Perspective

The Editors

We read with interest a new Brookings Institution report, Is a Student Loan Crisis on the Horizon?, assessing the weight of the student debt burden. It was also pleasing to see the New York Times, several of our Twitter followers, and others citing work on this blog in counterpoint.

Continue reading "From Our Archive: Student Debt in Perspective" »

Posted by Blog Author at 3:00 PM in Education, Household Finance, Housing, Labor Economics | Permalink | Comments (0)

June 05, 2014

What Americans (Don’t) Know about Student Loan Collections

Basit Zafar, Zachary Bleemer, Meta Brown, and Wilbert van der Klaauw

U.S. student debt has more than tripled since 2004, and at over $1 trillion is now substantially greater than both credit card and auto debt balances. There are substantial potential benefits to be gained from taking out a student loan to fund a college education, including higher earnings and lower unemployment rates for college grads. However, there are significant costs to having student debt: The loans frequently carry relatively high interest rates, delinquency is common and costly (involving potential late fees and collection fees), and the federal government has the power to garnish the wages of individuals with delinquent federally guaranteed student loans (in fact, reported federal recovery rates on defaulted direct student loans exceed 70 percent). The ability of U.S. households to make well-informed decisions regarding higher education and student loan take-up for themselves (or members of their households) depends on the extent to which they accurately perceive the costs and benefits of such choices. To what extent does the American public understand the implications of student loan indebtedness? To shed light on this question, we went out and surveyed U.S. households.

Continue reading "What Americans (Don’t) Know about Student Loan Collections" »

Posted by Blog Author at 7:00 AM in Education, Household Finance, Labor Economics | Permalink | Comments (1)

May 13, 2014

Just Released: Young Student Loan Borrowers Remained on the Sidelines of the Housing Market in 2013

Meta Brown, Sydnee Caldwell, and Sarah Sutherland

Last year, our blog presented results from the FRBNY Consumer Credit Panel (CCP) indicating that, at a time of unprecedented growth in student debt, student borrowers were collectively retreating from housing and auto markets. In this post, we compare our 2012 findings to the news for 2013.

Continue reading "Just Released: Young Student Loan Borrowers Remained on the Sidelines of the Housing Market in 2013" »

Posted by Blog Author at 11:15 AM in Economic History, Education, Household Finance, Housing | Permalink | Comments (3)

November 20, 2013

Just Released: Lifting the Veil—For-Profits in the Higher Education Landscape

Rajashri Chakrabarti and John Grigsby

Higher education is pivotal in our society—yet, its landscape is changing. Over the past decade, the private, for-profit sector of higher education has seen unprecedented growth, and its market share is at an all-time high. While we know much about traditional four-year public and private non-profit institutions, the for-profit sector seems more opaque. What services does it provide? Who enrolls at for-profits, and how has their enrollment changed during the Great Recession? What are their tuition levels? How about their net prices and student loans? And do their students succeed? We shed some light on these important questions in today’s economic press briefing at the Federal Reserve Bank of New York, and in a new set of interactive maps and charts released today by the New York Fed.

Continue reading "Just Released: Lifting the Veil—For-Profits in the Higher Education Landscape" »

Posted by Blog Author at 10:00 AM in Education, Labor Economics | Permalink | Comments (2)

September 23, 2013

Waiting for Recovery: New York Schools and the Aftermath of the Great Recession

Rajashri Chakrabarti and Max Livingston

A key institution that was significantly affected by the Great Recession is the school system, which plays a crucial role in building human capital and shaping the country’s economic future. To prevent major cuts to education, the federal government allocated $100 billion to schools as part of the American Recovery and Reinvestment Act of 2009 (ARRA), commonly known as the stimulus package. However, the stimulus has wound down while many sectors of the economy are still struggling, leaving state and local governments with budget squeezes. In this post, we present some key findings on how school finances in New York State fared during this period, drawing on our recent study and a series of interactive graphics. As the stimulus ended, school district funding fell dramatically and districts across the state enacted significant cuts across the board, affecting not only noninstructional spending but also instructional spending—the category most closely related to student learning.

Continue reading "Waiting for Recovery: New York Schools and the Aftermath of the Great Recession" »

Posted by Blog Author at 7:00 AM in Education, Labor Economics, Regional Analysis | Permalink | Comments (0)

July 22, 2013

Just Released: Mapping Changes in School Finances

Rajashri Chakrabarti and Max Livingston

This morning, the New York Fed released a set of interactive maps and charts illuminating school finances in New York and New Jersey. These user-friendly graphics illustrate the progression of various school finance indicators over time. They also make clear the large variability in finances across districts and states.  

Continue reading "Just Released: Mapping Changes in School Finances" »

Posted by Blog Author at 7:02 AM in Education, Regional Analysis | Permalink | Comments (1)

June 27, 2013

Just Released: Are Recent College Graduates Finding Good Jobs?

Jaison R. Abel and Richard Deitz

Stories abound about recent college graduates who are struggling to find good jobs in today’s economy, especially with student debt levels rising so quickly. But just how bad are the job prospects for recent college graduates when one moves beyond anecdotes and looks at the data? How widespread is unemployment? And how common is it for college graduates to work in a job that doesn’t require a bachelor’s degree—that is, how widespread is underemployment? We examined these questions at today’s economic press briefing at the Federal Reserve Bank of New York.

Continue reading "Just Released: Are Recent College Graduates Finding Good Jobs?" »

Posted by Blog Author at 12:00 PM in Education | Permalink | Comments (0)

May 20, 2013

Do Big Cities Help College Graduates Find Better Jobs?

Jaison R. Abel and Richard Deitz

Although the unemployment rate of workers with a college degree has remained well below average since the Great Recession, there is growing concern that college graduates are increasingly underemployed—that is, working in a job that does not require a college degree or the skills acquired through their chosen field of study. Our recent New York Fed staff report indicates that one important factor affecting the ability of workers to find jobs that match their skills is where they look for a job. In particular, we show that looking for a job in big cities, which have larger and thicker local labor markets (that is, bigger markets with many buyers and sellers), can give workers a better chance to find a job that fits their skills.

Continue reading "Do Big Cities Help College Graduates Find Better Jobs?" »

Posted by Blog Author at 7:00 AM in Education, Labor Economics, Regional Analysis | Permalink | Comments (3)
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