State and local fiscal consequences of high school dropout problems in Massachusetts

• Online Access: http://hdl.handle.net/2047/d10015358

This paper is designed to identify and estimate some of the most important fiscal impacts of high school dropouts on both the Massachusetts state budget and property tax receipts at the local level in recent years. At the state level, we will estimate annual tax payments by 18-64 year old adults in selected educational attainment groups for each of the following three tax revenue sources: the state personal income tax, state sales taxes, and unemployment insurance/worker compensation taxes. For governments at the local level, the most important source of tax revenue is the property tax. Using data from the 2005 American Community Surveys on home ownership rates and estimated property taxes paid by homeowners in various educational groups, we will estimate median property tax payments by homeowners ages 18-64 in selected educational groups within the state.