Invest in America's Children

My Latest Piece Featured @ YPNation.com:
http://www.ypnation.com/blogs/invest-americas-children

Conspicuously missing from the national budget debate is a discussion about strategic investments in early childhood education.

Without a doubt, all levels of government are facing tough choices in this new age of austerity. But if America is to remain a country that prides itself on enabling individuals to pursue their God-given abilities in a free market system, than it must place top priority on ensuring its children have the skills to compete in today’s global economy.

Targeted investments in early childhood development can lead to significant economic gains for society. For every dollar invested in early learning programs today, savings range from $2.50 to as much as $17 per child in the years ahead, according to the U.S. Chamber of Commerce.

Children who are involved in early childhood education programs are less likely to rely on social services and are more likely to earn more. High-quality prekindergarten for disadvantaged three- and four- year olds generates a 16 percent annual rate of return, according to the Federal Reserve.Which leads to increased tax revenues for local communities as well as declining expenditures on costly juvenile justice and social welfare programs.

Many communities across the country have begun to develop innovative programs to address this need. For example, in Cleveland, a broad spectrum of leaders from the public, private, and non-profit sectors joined together in 1999 to develop Invest in Children, an initiative aimed at increasing the development, funding, visibility, and impact of early childhood services. Since its inception, the program has served more than 75 percent of all new infants born in Greater Cleveland. Students who participated in the Invest in Children program and then entered kindergarten in the Cleveland Metropolitan School District averaged a score three points higher on the Kindergarten Readiness Assessment for Literacy (KRA-L) than other students in the district.

Early learning programs are a good investment, yet they are too often neglected in economic agendas, despite their importance to America’s long-term strategic interests and the high rates of return they generate for the public and private sectors.

Investing in early childhood education is an important first step as America plots its path back to prosperity. Tax cuts and entitlement reform are only part of the solution. To win the future, we must invest in our most precious asset—our children.

Building A Critical Mass

St. Patrick’s Day is a great day if you’re a Clevelander. It’s one of those rare occasions where you can experience having a critical mass of people downtown. Bars are packed. Cars stand at a stand still on the street. If you close your eyes and take in all of the sounds of the city, you would easily think you were in Chicago or New York City. Walking down the street, I was struck by the comments of a bystander who said, “I would easily live downtown if it were always this crowded and filled with energy.” The sad reality is that there a probably thousands of people across Northeast Ohio who feel the same way. They would live in the city if it had a vibrant urban core, good schools, and a sense of connectedness.

The latest figures from the U.S. Census make the case for a new sense of urgency around quelling Cleveland’s population loss even greater. With 396,815 residents, the lowest since the 1900’s, the challenge of creating a robust urban core seems daunting, but the problem can be fixed. To help solve Cleveland’s population problem, a group of civic and business leaders have come together to help re-engineer Cleveland as an international metropolis, through Global Cleveland, a new initiative aimed at attracting diverse talent and marketing the city in immigrant and minority communities across the country. The group has set out an ambitious goal of attracting 200,000 immigrants over the next two decades. This new project is also focused on building a welcome center that would serve as a way to connect new residents to the greater Cleveland community.

The Global Cleveland project, if done right is certainly a step in the right direction. By attracting new immigrants and creating more open and welcoming neighborhoods, the city could truly begin to develop the entrepreneurial culture and dynamism to foster sustainable economic growth. Creating a prosperous urban core in Northeast Ohio also requires dramatically transforming public education to help encourage middle-class families to live in the city. More of the same just won’t do.

A New Era Begins

This week, Ed Fitzgerald began his tenure as the county's first-executive. On his first day in office, Fitzgerald implemented a sweeping new ethics policy for county employees. Under this new framework, county employees will no longer be able to accept any gifts that could influence their official duties and will be forbidden to hold any outside job without approval. This is certainly a step in the right direction. Focusing on creating a more accountable and transparent government is the best way to rebuild public trust. Yet, beyond focusing on good government policies, Fitzgerald will have a huge opportunity to create a 21st century economic agenda for the region.

The latest economic downturn has fundamentally changed our global economic order, creating huge implications for state and local governments across the United States. With rising deficits, unfunded mandates, and weak economic growth, the mantra of “doing more with less” will continue to be an overriding principle when delivering public goods. While the challenges of this “new normal” seem insurmountable, there is a unique opportunity for Northeast Ohio to think differently about it's economic assets.

Cleveland's healthcare sector is one economic asset that, if leveraged right, has the opportunity to truly revive the region. Just this month construction started on the Medical Mart and Convention Center, which will showcase and market high tech medical equipment. The $465 million facility is not a economic panacea but alongside other strategic investments, it could help re-brand Cleveland as a global health-care hub while attracting high-paying jobs.  It also will help bring more customers to the Cleveland Clinic and University Hospital. Yet, to fully reap the benefits of these economic development projects, regional leaders, like Fitzgerald, will need to work towards developing policies and strategies to ensure our region has a world-class workforce. This requires a bigger, bolder, and better approach to education.

According to the U.S. Census, more than a third of adults in Greater Cleveland hold an advanced degree. However, in the city of Cleveland, only 13.7% of adults hold a bachelor degree, and only 5.2% have an advanced degree. This huge gap, coupled with the cities low graduation rate, make it particularly difficult to attract employers in today's highly competitive knowledge based economy. Fitzgerald, along with the regions other business and civic leaders must use this defining moment in our region's history as a clarion call to action. Ensuring that every child in Cuyahoga County has the skills to be ready for college, work, and life in the 21st century is in everyone's best interest.

Sustainable Leadership in Urban Schools

Earlier this week, Cleveland Schools CEO Eugene Sanders announced his intentions to resign. Sanders retirement came as a surprise to many throughout the city. Just six months ago he announced a wide scale school transformation plan, calling it the most important work of his career. While the district has asserted its intentions to continue moving forward with the plan, its success is without a doubt in question.

Cleveland, like many other cities with failing schools, is struggling to keep students and attract high-quality teachers. Bold reform is needed. But can it be achieved without sustainable leadership?

The D.C. public schools face a similar challenge. This past November, school Chancellor Michelle Rhee and Mayor Adrian Fenty suffered an electoral defeat that has put the city’s education transformation plan in jeopardy.  While Mayor-Elect Vincent Gray has promised to continue those reforms, there is still a sense of uncertainty about the future.  The challenges facing Americas education system are too daunting for inconsistent leadership. School chiefs need time to implement their plans.  And elected officials need to think creatively about how they hire superintendents. Even more importantly, superintendents must implement succession planning into their human capital strategies. All of these factors are critical to ensure school effectiveness.

It is my hope that Cleveland community leaders will do their due diligence to ensure our next schools chief has the commitment and the vision to turn around Cleveland’s schools. With a 54% graduation rate, one of the lowest in the nation, we need more than a plan…we need a movement. 

The Warehouse District Dillema

No city can thrive in the 21st century without a thriving downtown. Downtowns are innovative places where creative business can grow and prosper. From the architecture of restored and new buildings, to the offspring of new retail shops and restaurants, downtowns reflect the cultural diversity of the urban core. Yet sometimes, rejuvenating the downtown of a city can produce dramatic consequences, especially under the backdrop of historical racial tension. The latest events surrounding Cleveland’s Warehouse District is a classic example of what happens when such racial and economic tensions clash in a city’s quest to revitalize its downtown.

Since the early 1990’s, downtown Cleveland has undergone a dramatic transformation. The Gateway development project that lead to the development of Quicken Loans Arena and Progressive field, ushered in what was considered by many, a new urban renaissance for Cleveland. However, while these efforts to revitalize downtown and the city's economy have not fully created the substantive renaissance Cleveland desperately needs, it has created pockets of real hope and opportunity in some neighborhoods. Cleveland’s Warehouse District is a great case study of what can happen when residents and private-sector investors come together to create systemic change. With help from the local government as well, leaders in the neighborhood since 1992, have gone above and beyond to develop a hip community that has the amenities and atmosphere to rival any urban enclave in New York City or Chicago. There are new restaurants and clubs, and housing developments that offer great views of Lake Erie.

The distinct problem that may undermine the Warehouse Districts future progress however, lies in the fact that it is one of the very few places in downtown Cleveland that offers a vibrant nightlife. This concentration of clubs, restaurants, and a rowdy crowd anxious to enjoy one of the very few appealing places to relax and party, has created a toxic mix that may jeopardize the districts future. The recent proliferation of several hip-hop clubs has created a tension between residents, owners, and party goers that have led some to believe the local police and club owners are profiling African-Americans without just cause. These accusations led Cleveland NAACP President George Forbes to meet with Mayor Frank Jackson to discuss best solutions to eliminate any unjust racial profiling that could be occurring. In response, the Mayor has urged officials from the federal prosecutors office to improve business owners and employees knowledge of anti-discrimination laws.

Mayor Jackson and George Forbes response is a step in the right direction. However, it will not cure the inherent problem that exists. Cleveland lacks an array of options when it comes to downtown nightlife. To attract talented young professionals, Cleveland needs a concentrated and swift effort to redevelop its downtown in a way that can appease the various ethnic and social groups who call Cleveland home. The Medical Mart Project and the new Casino development may help in relieving some pressure off the Warehouse District. Additionally, the new Flat’s redevelopment also has the opportunity to be a new hub of dynamic nightlife. And while downtown redevelopment is vital for Cleveland's future competitiveness,  it will only be a “symbol” of a renaissance, not the "substance" of a renaissance the city needs if redevelopment efforts do not encompass real reforms to create a competitive business climate and a world class education system.

A New Model for Teacher Pay

Earlier this week, D.C. City Council approved a contract with the Washington Teacher’s Union which guarantees higher pay for teachers who show significant impact in the classroom. After 2 years of intensive debate, Chancellor Michelle Rhee has finally cemented her innovative ideas around tying teacher pay to new systems of evaluation into a school system that for decades has been in desperate need of change. While most union contracts of large cities rely mainly on tenure for paying teachers, the new D.C. contract will use growth scores as one benchmark of higher teacher pay. As many other urban districts go back to the bargaining table to approve their own union contracts, some are wondering if the D.C. model can be replicated across the country.

Some of the tenets of the new teacher contract include:

-21.6 % salary increase through 2012, which includes a raise they did not receive while the new contract was being negotiated.

-Raises the average salary of a D.C. teacher to $81,000 from $67,000.

-Includes a volunteer pay-for-performance system that could increase teacher salaries by an additional $30,000 if students achieve better than expected growth in test scores.

-Creates “teacher-centers” where teachers can receive additional profession development support and resources.

Cleveland is one of those cities that is in desperate need of examining how it attracts, retains, and incentivizes highly qualified teachers. As it stands now, Cleveland has one of the most restrictive teacher contracts in the nation. Teacher seniority and other defunct contract provisions stand in the way of any real reform that would allow the district to eliminate ineffective teachers. For Cleveland to create a word-class education system, teachers unions, education leaders, and policymakers need to think hard about creating a teacher evaluation system that rewards success and fosters real accountability, not just seniority.

LeBron James and the Future of Cleveland’s Economy

For any avid NBA fan, it’s hard to escape the hype surrounded by the free agency of LeBron James. Since being drafted in 2003, James has rejuvenated the Cleveland Cavaliers as one of the league’s best teams. His ability to transform the Cavs as a premier basketball franchise has also impacted Cleveland’s local economy. As any Cleveland fan will tell you, downtown Cleveland has the energy of any major metropolis during basketball season. However, once James and company have left the court, downtown returns to its fledgling state, leaving many to worry about future of Cleveland’s local economy in an era without one of the world’s biggest superstars.

Adam Miller, corespondent for the Bleacher Report, weighs in on the immense impact James has had on the economy of Cleveland. In his piece, Miller, coins the term “Lebrononomics”, to highlight how James has already helped the city of Cleveland outperform market expectations. Currently, the Cleveland Cavaliers are the fifth most valuable team in the NBA, while the city is only ranked 18th in nation in terms of its standing as a premier basketball market. Other larger markets are beginning to recognize the economic potential of signing James. A recent Chicago business article estimated that if the Chicago Bulls sign Lebron James, it could bring almost $3 billion to the city. It’s clear that the implications for Cleveland could be devastating without James. In 2009, local tax revenues totaled $491 million, which is only $15 million more than what the Cavs are worth currently. This value without a doubt would drop dramatically with the departure of number 23. While it is a big leap to say that Cleveland’s entire economy is built on James, the city has certainly benefited as the local hotel, restaurant industry, and merchandise stores have all boomed in the era of “Lebrononomics”.

While I am one of the cities most passionate basketball fans, it is disheartening to find that so much of our downtown revival depends on an athlete. Local politicians are planning major outreach campaigns to woo James, and even citizens are mobilizing movements on Twitter and Facebook. Everyday it seems as if there is one more campaign or initiative to keep our best player. I wonder would happen if the people of Cleveland, with the support of our local officials, put the same vigor and excitement into mobilizing the city to reform our schools or attract new businesses.  For decades we have invested tax dollars and other resources to build stadiums and other developments that we think will solve our economic ills. But despite these investments, our city remains stymied by double digit employment and high levels of crime. For Cleveland to be competitive in the 21st century it is imperative that we get our priorities straight. The problems are too big and the stakes are too high.

Cleveland's Drop-Out Rate

President Barack Obama gave a speech today to a group of Michigan high school graduates in an effort to call the nation to action to solve our high school graduation epidemic. In his speech, he told students “Don’t make excuses. Take responsibility not just for your successes but for your failures as well.’’

Without question, the stakes are high for our nation when it comes to this issue of our high school drop-out rate. National data tell us that every 26 seconds another student drops out of school -- totaling more than 1.3 million students per year. Even more striking is the fact that, each year, due to more than 20 million high school drop outs, ages 20-67, the United States loses more than $50 billion in potential state and federal income tax revenues. For Cleveland, the story doesn’t get any better. According to the Ohio Department of Education, Cleveland's high school graduation rate is less than 54%, one of the lowest in the United States. The key to Cleveland’s competitiveness in the 21'st century lies in its ability to transform how we think about reforming education.

For far too long, we have had too many status quo conversations about how we fix our schools. Cleveland can’t become a world class city unless we find away to ensure that every child in our community has the tools to be competitive in today’s knowledge based economy. Achieving this goal will require every person in the community to take responsibility for our children’s future. This notion of shared responsibility is the only way to ensure we develop the right interventions to fix such a complex issue. Not one teacher, policymaker, or business leader can do it alone.

Creating meaningful education reform in Cleveland also will require having difficult policy conversations around the role that teachers unions, charter schools, and parents have in empowering our children. Other ideas such as merit-based bay for teachers, school choice, and principal autonomy all need to be a part of the current debate. We can longer afford to shy away from embracing real reform.

Throughout the course of this blog, I will lay out more concrete ideas around education policy. Creating a movement in our city around fixing our schools is perhaps the biggest issue in making Cleveland relevant in the 21st century. Without good schools, our city will not be able to create the right entrepreneurial and creative climate needed for a thriving metropolitan center.