Wow, almost time for school to start!  That seemed like a quick summer. Now, students must get back to their studies.  It certainly got me thinking about graduation rates and the number of youth dropping out each year.  For the 16-24 age group, it is estimated that at least 6.7 million (17%) nationally are currently 'opportunity youth'. Opportunity youth may have dropped out of high school or college and been unable to find work; may have been involved in the criminal justice system; may have mental or health conditions that
have inhibited their activities; or may have care-giving responsibilities in their families.

It is estimated that each opportunity youth imposes - on average and 

compared to other youth - an immediate taxpayer burden of $13,900 per

year and an immediate social burden of $37,450 per year (2011 dollars).   After each opportunity youth reaches 25, he or she will subsequently impose a future lifetime taxpayer burden of $170,740 and a social burden of $529,030. Thus, the immediate burden is only a fraction of the future loss in potential: on average, only one quarter of the burden is incurred in youth (up to age 24); three-quarters is incurred afterward (ages 25-65).  In total, a 20-year old opportunity youth will impose a full taxpayer burden of $235,680 and a full social burden of $704,020. For a 16 year old opportunity youth, therefore, the total taxpayer burden is $258,240 and the total social burden is $755,900.

The economic potential of an opportunity youth cohort is very large.

Considered over the full lifetime of a cohort of 6.7 million opportunity youth, who are aged 16-24, the aggregate taxpayer burden amounts to $1.56 trillion in present value terms. The aggregate social burden is $4.75 trillion. These costs 'roll over' each year because each year brings a new cohort of opportunity youth.

Approximately half of all opportunity youth are chronic, i.e. they have almost no formal education or work experience between the ages of 16 and 24. These youth will require a substantial array of social and economic supports. The other half are 'under-attached' opportunity youth: these individuals are likely to have completed high school and may have participated in (but not completed) higher education; and they are likely to have accumulated some work experience.  These under-attached youth are far from full participants in the economy but they may - given the appropriate reforms and supports - play a much more productive role.  We estimate that the total taxpayer burden for
each under-attached opportunity youth is $215,580. The total social burden is $596,640 per youth. These figures represent threshold values for deciding on the optimal investment in such youth. That is, investments up to this amount to ensure that opportunity youth are fully productive would pay for themselves. Across the 3.3 million such youth, the total fiscal loss is $707 billion and the total social loss is $1.96 trillion (expressed as lump sum amounts at age 20).

Overall, the economic burden from failing to invest in all of America's youth is substantial. More education, better training, as well as social supports will be needed to alleviate this burden. This is why NYEP is so important.  

Sincerely,

Monica DuPea

Executive Director

Announcements:

• NYEP staff, consultants and mentors provided specialized skills training on the following during July: Mixed Martial Arts, Meal Planning, Shopping, Time Management, Problem Solving, Interpersonal Growth, Resident Meetings, Game Night, Anti Poverty, Cleaning, Volunteering and Job Searching.
• Please welcome our new resident, Tricia.  Next month's issue will feature an interview! 
• NYEP Residents, Miesha and Liliana, continue to volunteer at the Discovery Museum.  
• NYEP Resident, Angeleena, began her new volunteer work with DayBreak.
• NYEP Residents continue to attend the 16 week anti poverty series Getting Ahead in a Just Getting By World.
• NYEP's Executive Director continues to work with Charles Schwab to develop a financial education and asset building component within our independent living curriculum. Thank you to Jim Joseph for the special information on working with girls and money!
• Thank you to US Foods for donating laptops to our Community Living Program.
• NYEP Graduate, Sarah, came for a visit from Hawaii.

7/10 - NYEP submitted a grant to the Administration of Child and Family Services to fund supportive housing services for homeless, unprepared older teen girls.

7/10 - NYEP now has 3 people trained to deliver the Getting Ahead curriculum.

7/11 - NYEP's Executive Director continues to chair the Reno Area Alliance for the Homeless (RAAH) Youth Subcommittee. We anticipate big things to come from this group! Please contact Monica if you would like more information about how to get involved.

7/11 - Phil Devol, the author of Getting By in a Just Getting By World, came for a visit to NYEP to discuss poverty with our young residents. NYEP will assist Mr. Devol in developing guidance sheets to instruct teachers on how to use the curriculum most effectively with older youth.

7/15 - NYEP submitted its first quarterly report to United Way for its generous grant award to our Community Living Program. Thank you again!!

7/23 - NYEP's Executive Director met with Genevieve  DeBernardis, a local artist, to discuss sexually exploited children and youth and how we can raise awareness about the issue. Approximately 50% of all national cases of child prostitution occur in Nevada.

7/25 - Kim Delancey, with Faces of Grace, came for a tour of the Community Living Program to identify a project for the upcoming Women's Retreat.

7/26 - NYEP's Executive Director attended the Soroptomists International of Truckee Meadows meeting to discuss NYEP and our services.

7/31 - NYEP Resident, Liliana, received the Millennium Scholarship.