Key Points:

• Experts say higher education is key to Arizona’s economy

• Arizona has a demand for 54,000 bachelor degree jobs, but falls short on applicants

• Arizona’s public universities receive only 12% of their budget from the state

This week’s Morning Scoop recognized two keys to Arizona’s future: its economy and its higher education institutions. 

Panelists Gregg Brewster, a regent with the Arizona Board of Regents; Danny Seiden, president and CEO of the Arizona Chamber of Commerce and Industry; Ted Maxwell, president and CEO of the Southern Arizona Leadership Council; and Rich Bowen, vice chair of the Northern Arizona Leadership Alliance joined host Steve Goldstein to talk AZ Opportunity. 

AZ Opportunity is an initiative from the Arizona Board of Regents that aims to increase access to higher education, support workforce development in high-demand fields and leverage university research to bolster state industry. The goal is simple: Strengthen the state’s economy by expanding opportunities for all Arizonans. 

Their final conclusion? Education, economy and infrastructure are all connected — and they need each other — now more than ever.

Supply and demand

Less than half of Arizona high school graduates pursue any education after high school, Brewster said, yet preliminary data from the Board of Regents shows the state has a demand of about 54,000 bachelor degree jobs. Basically, Arizona is falling short of its workforce demands. 

“Simply by reaching the U.S. average for education attainment, Arizona would benefit by about $5 billion in additional state and local tax revenues over the next 10 years,” Brewster said. 

About 23% of Arizonans over the age of 25 have some college education but did not complete their degree, Maxwell said. Another 11% of youth between 16 and 24 are not working or going to school, he added. 

“I think a lot of it is, folks just don’t understand what they can accomplish. Arizona Opportunity applies to all higher education programs, to community colleges,” Maxwell said. “Once individuals learn that those opportunities are out there, they have support, I think you’re going to see those numbers increase.”

Seiden said businesses from across the country and the world are interested in coming to Arizona, but the state has to be ready to deliver the workforce. 

“We can build the runway all day long in Arizona. We’ve got the right incentives, we’ve got the right tax structure, we’ve got the right regulatory structure, but if we cannot fill those runways with the planes, the workforce, we’re going to fail,” Seiden said. 

Not only does higher education benefit the economy, but individual’s prosperity as well, Brewster said. The state has to invest more into its public universities and currently, only 12% of the university’s budget is paid for by the state, Brewster said. But states like Texas, Florida and Georgia are investing heavily into their public universities, he added. 

“If we keep losing that battle to those states … we will see our children move out of state. We love Arizona. We want things to stay here, including our kids,” Brewster said.

So what can the state do?

It can work to get more young people interested and enrolled in a higher education degree program — the very goal of Arizona Opportunity. The initiative has helped by expanding enrollment and helping grow industry sectors such as manufacturing and healthcare, and expanding financial aid for students, Brewster said. 

Seiden said the state has won the business attraction, but now they have to earn the right to keep it, and when the state displays a lack of investment in higher education, it’s sending a message. Universities should be seen as economic drivers, not a cost, he added. 

By investing in universities, the state will see more return on investment in four places, including students and families, employers, taxpayers and community returns, Bowen said.

“Arizona businesses need talent now and the university system is the most scalable way to produce it,” he said. 

People with college degrees pay more in taxes, use state services less and benefit the entire economy, including people who don’t have degrees, Maxwell said, adding it’s all connected. 

Tying it all together is the business community, politicians and the universities, Brewster said. Those three working together can solve a lot of issues, he added.