April 3, 2025, 5:45 pm
www.education-consumers.org
calculator@education-consumers.org

The Cost of Failure to Teach Reading:
Projections From 3rd Grade Reading Scores

For every student who fails to master reading by grade 3, taxpayers are subjected to what amounts to a hidden annual surtax - one that cumulates with each graduating class. It is levied in the form of added local, state, and federal tax-funded resources absorbed by the resulting school dropouts and unprepared graduates. How to interpret this report.

Because state tests and reading proficiency benchmarks vary substantially, the reading proficiency rates and projected costs generated by our calculator may not be compared from state to state. Within states, however, schools and districts may be compared—especially those with similar demographics (see: http://education-consumers.org/school-performance-nationally).   Also, users may compare states by manually substituting NAEP proficiency percentages for the states of interest.

State: ()
County:

Calculations are Based on the Following:
Third grade students enrolled:
Percent reading at the BASIC level:
Percent reading at the BELOW-BASIC level :
Number of Dropouts and Unprepared Graduates:
Projected dropouts 0
Projected unprepared graduates 0
Total dropouts + unprepared graduates 0
As a percent of basic + below-basic readers NAN%

Added Taxes Absorbed by Dropouts & Unprepared Graduates1
Cost of Dropouts: State/Local Federal Total
Healthcare $20,000 $40,000 $60,000
Public Safety $17,000 $14,000 $31,000
Welfare $3,000 $14,000 $17,000
Education2 $-12,000 $-2,000 $-14,000
Total cost per dropout $27,000 $67,000 $93,000
Total cost of dropouts in this class $0 $0 $0

Cost of Unprepared Graduates 3 State/Local Federal Total
Healthcare $5,000 $10,000 $15,000
Public Safety $8,000 $7,000 $15,000
Welfare $1,000 $3,000 $3,000
Education $-4,000 $-1,000 $-5,000
Total Cost per Unprepared Graduate $9,000 $20,000 $29,000
Total Cost of Unprepared Graduates in this class $0 $0 $0

TOTAL COST TO TAXPAYERSState/LocalFederalTotal
Total Cost of Dropouts & Unprepared Graduates in this class. $0 $0 $0

Avg. Added Expense per Enrolled 3rd Grade Student4

$0 $0 $0

In brief:

  • The above report shows the projected number of dropouts and unprepared graduates for your school, district, or state based on current third grade reading data. The added government spending for welfare, health care, and criminal justice is then estimated from the projected number of dropouts and unprepared graduates.

  • The added outlays are the difference between federal and local/state spending for dropouts or unprepared graduates and spending for graduates who are college and career-ready, i.e. , prepared to enter and complete some college or begin a career.

  • It is important to note that the above reported amounts are lifetime outlays arising from a single graduating class. Over time, the costs created by each class add to those from previous classes creating a tax burden that has been growing, year-by-year, for decades. Without improvement in reading proficiency rates, it will continue to do so for the foreseeable future.

  • The dropout and unprepared graduate rates, and other outcomes reported by this calculator may not be compared between states because of their differing student standards. However, states may be compared by manually inputting the student proficiency  rates reported by the National Assessment of Educational Progress. Within states, schools with similar student poverty rates may be identified by visiting our 3rd grade reading graphic.

  • The dropout and student preparedness estimates produced by this calculator are based on research by the Annie E. Casey Foundation and ACT. The cost calculations are based on the findings of a detailed analysis reported by Teachers College, Columbia University.

  • For an in-depth discussion of the calculator, visit here: https://education-consumers.org/efc-cost-calculator/.

  • For more on the roots of the problem and a path forward, see Reversing American Decline: https://education-consumers.org/reversing-american-decline/

Footnotes:
1 Amounts shown are the difference in the lifetime costs of public services consumed by dropouts or unprepared graduates versus those consumed by graduates who complete some college. They cumulate annually as succeeding classes are added to the adult population.
2 Public expenditures on postsecondary education are less than average for dropouts and underprepared.
3 "Unprepared graduates" are diploma recipients who are not college or career ready.
4 Amount shown is the average hidden "tax" per enrolled 3rd grade student. May be used to compare schools or districts within a state.

Data Sources:
Getting Students on Track to College and Career Readiness: How Many Catch Up from Far Behind? - ACT
Double Jeopardy: How Third-Grade Reading Skills and Poverty Influence High School Graduation - Annie E. Casey Foundation
What Are the Social and Economic Returns? - Teachers College, Columbia University

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