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Want a world-class workforce? Invest in education

Sometimes statistics just make sense. For instance, the revelation that spending more on education is correlated with a more highly educated workforce is hardly a surprise. To be sure correlation is not causation, but as more states look to cut corners on education spending, it is important to remember the relationship between spending and results.

Using the 2014 State New Economy Index’s workforce education score (a weighted score of the educational attainment of the workforce), there is a significant positive correlation of 0.46 between the education levels of a state’s workforce and the state’s current spending on education per student.

Of course, with a simple correlation it is impossible to attribute any directional causality. Part of the correlation could derive from higher incomes earned by a more educated workforce. Much of education spending comes from property taxes, so wealthy areas where land is more valuable tend to have higher education spending. For instance, education spending is highest in Northeastern states, led by New York ($19,552), where schools spent over three times as much per student as in Utah ($6,206). Resource rich Alaska and Wyoming also spent heavily, though

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