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System Level Case for Support
OVERCOMING THE PAST


Kentucky has made great progress in the last few decades, but it still must overcome significant challenges to successfully compete and thrive in the new economy of the 21st Century.

Workers in a factory

Workplace Competency - Many Kentucky workers, young and old alike, lack the necessary knowledge and skills to adapt to emerging technologies that keep businesses and industries competitive. And many in our current and future workforce lack even the basic competencies in reading, math, communications, problem-solving, and decision-making to participate as effective members in today's team-oriented workplace.

Adult Literacy - Approximately 1 million Kentuckians function at the lowest levels of literacy, with nearly half of them living in poverty. With only minimal skills, these Kentuckians cannot function effectively in the marketplace and are not likely to make a meaningful contribution to the state's economy. Adult illiteracy is a fundamental barrier to prosperity and every major initiative of Kentucky, including early childhood education, education reform, economic development, and improving the health and well-being of Kentucky's families and communities.

Educational Attainment - Two-thirds of the new jobs created in Kentucky over the next five years will require some type of postsecondary education and training, especially in high-tech occupations. The 2000 census shows that only 22 percent of Kentuckians over the age of 25 have completed an associate or higher college degree. That translates into 78 percent of our current working age adults who lack the postsecondary education and training to succeed in the jobs of the future. This problem is worsened by higher than average secondary school dropout rates, uneven access to postsecondary education resources, and low motivation by many citizens to further their education.

Despite significant improvement since 1990, Kentucky still ranks 46th in the nation for adults with an associate degree, 47th for bachelor's degree and 38th for graduate/professional degrees.

Aging Workforce - Most of Kentucky's workers for the next 20 years are already on the job and are struggling to keep pace with rapid change. Because these "baby boomers" are expected to live and work longer than any previous generation in history, they will require continuous retraining at greater rates and for longer periods to exceed the expectations of Kentucky's businesses and industries in the new economy. Replacing them when they retire with workers who possess equal or greater skills is a serious issue for many employers over the next 10 to 15 years, especially in the skilled trades areas.

Globalization - Kentucky's economy is global, which presents enormous challenges to find workers with an understanding and appreciation for the business methods, economic systems, and cultures of their international counterparts. Breaking down cultural and educational barriers is imperative in developing new avenues of economic prosperity for the citizens of the Commonwealth.

JOHN MORGRIDGE, Chairman of the Board, Cisco Systems, Inc.
John Morgridge,
Chairman of the Board
Cisco Systems, Inc.
"Cisco has a real appreciation for the importance of an educated mind. It's not only that we want sharp people, but we also want people who have been adequately trained and are current in the tools and techniques of our industry. We have a very strong interest in creating the assets that we need to be successful on a global basis."



Hands counting coins
Earning Power
The per capita income of Kentuckians is only 81 percent of the national average. Without some education or training beyond high school, most workers can expect to earn little more than subsistence wages. Sadly, single-parent households, usually headed by women, remain the poorest of the working poor. As a result, Kentucky cannot achieve the economic prosperity of its competitor states.

GARY CONVIS, President, Toyota Motor Manufacturing, Kentucky, Inc.
Gary Convis
President
Toyota Motor Mfg., Ky., Inc.
"Often the people who are at risk get left behind. That's a tragedy for our society. Everyone needs a chance to be successful and find their place in the overall economy in Kentucky."

Access to Education
Many Kentuckians are unable to access postsecondary education due to lack of basic skills, transportation, child care, financial aid, or information about opportunities. Cultural, social, and ethnic heritage also prevents many students (and their parents and families) from placing value on postsecondary education. In the digital age, access to education means access to technology. On average, only 45 percent of Kentuckians have access to computers at home, compared to 50 percent nationwide. And only 11 percent of Kentuckians with incomes below $15,000 have Internet access. Students without computers and Internet access at home or at work are at a disadvantage to students with these same resources. If these Kentuckians are to be full participants in the new economy, we must find a way to bridge this "digital divide."