March 2004

Without question, a strong public education system is necessary to attract - and retain - business and fuel New York's economic expansion. Companies must look at the quality of public education as one of the factors they consider when looking to start, relocate or expand their business operations in a state.

"Good schools are important to business for many reasons," said Daniel B. Walsh, president and CEO of The Business Council of New York State, New York's largest broad-based employer group. "For one thing, executives and managers want good schools for their kids, their workers' kids and their communities. What's more, employers recognize that schools where kids don't learn today are unlikely to produce the educated and skilled workers that New York will need tomorrow."

Improvement in New York's public education system - and the deepening pool of excellence in many public schools - is catching the attention of business executives and influential opinion-shapers across the nation.

One reason for the success of New York's Tech Valley initiative is the region's high-quality public education system.

National and international high-technology companies are viewing the Capital Region and the Hudson Valley favorably, making them a new center for computer chip research and production.

The $2.5 billion IBM semiconductor plant in Dutchess County will draw from the region's highly educated workforce. The Capital Region's $400 million International Sematech North project and its adjacent Tokyo Electron Ltd. semiconductor research and development operation are other high-tech initiatives "sold" in part by the excellence of New York's public schools and universities.

"Education is a critical component in the effort to generate economic prosperity," said Lyn Taylor, president of the Albany-Colonie Regional Chamber of Commerce. "As we strive to create an exciting future in the Tech Valley region of upstate New York - one that will provide opportunities for our young people to build both a living and a life - we are pleased to be able to point to the excellence of our educational institutions as assets in our community."

Taylor noted that quality of public education is "a critical consideration for individuals considering where to build a career and companies deciding where to locate a business."

She noted the Capital Region - in the heart of the rapidly expanding Tech Valley - placed third nationally in a ranking by Forbes magazine of "The Best Places With the Best Education."

"Not only is that recognition well deserved, it also provides a strong lure to the smart people and innovative companies that will fuel our future success," Taylor said.

When Current Technologies, a Germantown, Md., company that develops Internet-based communications systems, wanted to locate a call center for customer support and technical assistance, it chose the Rochester suburb of Henrietta largely because of the excellent reputation of area public schools.

"The quality of elementary and secondary education here is extremely high," said Joe Curfari, Current Communications Services' vice president of business development. "We can attract employees to this area because we can show them that the schools here in New York are second to none."

Two national publications - Site Selection and Expansion Magazine - recently spotlighted New York State and said its attractiveness to business is growing. Many reasons are behind this. New York's proximity to market, transportation system, low-crime rate, high quality of life and government incentives all play a role. But education - from top-flight public schools, to strong community colleges, to research and high-skilled labor provided by State University of New York and City University of New York campuses - is certainly as important.

The National Policy Research Council, a Washington, D.C.-based public policy research organization, recently ranked New York first in the nation for its attractiveness to business - and said New York's public education and higher education system have helped to shift New York's economic focus.

NPRC Executive Director Spencer Tracy said New York's economic base is moving from traditional manufacturing to high technology. Education excellence is vital to New York's future competitiveness.

Tracy told Site Selection magazine, "The old paradigm was (access to) a large blue-collar labor pool, proximity to market and cheap raw materials," he said. "New factors are knowledge workers, creativity and innovation, capacity to develop and harness innovation, quality of life, natural environment and a rich education system."

Expansion Magazine, marketed to executives looking for a place to expand or relocate, also recently gave high marks to New York's public schools. In its "Education Quotient 2003: Shaping Tomorrow's Workforce," the magazine gave "gold medal" rankings to 29 school districts, including Averill Park, Fayetteville-Manlius, North Tonawanda and Warwick Valley. (More than two dozen other school districts, including Albany, Lockport and Syracuse, were also singled out as having good student performance, strong community support for education and a highly educated adult population.) The most important factors are test scores and graduation rates.

"That's the bottom line for potential employers," said chief editor Bill King. "They want to know if their potential workers are smart enough to do the job."

NEXT: 10. "New York's Teachers: At the Head of the Class"