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A governor's State of the State address is an opportunity to outline policy priorities, highlight past accomplishments and reflect on the condition of the state and country. In 2018, 17 governors are serving their last year in office, having reached the end of their term or deciding not to seek re-election. Many of them used their State of the State addresses to emphasize the importance of collegiality among policymakers. When governing bodies function well, the state and its citizens reap the benefits--a principal benefit being an education that prepares citizens for well-paying jobs. Each year, Education Commission of the States tracks, analyzes and identifies trends in education policy proposals featured in governors' State of the State addresses. To date, 44 governors have delivered their 2018 addresses. The top six education priorities across states are discussed in this report: (1) School Finance; (2) Workforce Development; (3) Postsecondary Affordability; (4) Career and Technical Education; (5) Teacher Quality; and (6) Early Learning.

State policymakers recognize the economic imperative to ensure that education and training are connected to good jobs. Employers are seeking -- and are often struggling -- to hire appropriately skilled workers. For job seekers, the path to a good job with education beyond a high school diploma is certainly clearer than one without postsecondary education or training; however, with continually advancing technologies and employer expectations, individuals also need periodic access to additional training to upskill and reskill throughout their careers. As a result, there is both need and demand for on- and off-ramps to postsecondary education and training. This more fluid interplay requires a cultural shift so that leaders think differently about the design of education and training programs and craft policies that support more seamless transitions for individuals moving through and between education and work. To support state policymakers on this issue, Education Commission of the States, with the support of Strada Education Network, engaged education and workforce leaders in 2019 and again in 2021 to develop and refine four principles of policy design for connecting education to work. This paper details each and shares current examples from states.

There are two modalities for delivering public financial support to colleges and other postsecondary education providers. First, typical of state governments, grants are made directly to postsecondary institutions to finance general operations, thus providing a broad subsidy to all students. Second, typical of the federal government, substantial but indirect financial support to individual postsecondary institutions is delivered via student grant and loan programs. Those students in turn use that financial support to pay tuition at the colleges they have chosen to attend. Very broadly speaking, states provide general institutional subsidies while the federal government provides specific student subsidies. A 21st century postsecondary education financing framework should recognize the two modalities and finds ways to align state and federal investments in colleges and students around the national imperative to improve student outcomes. With an outcomes-based approach, a new state/federal postsecondary finance framework can emerge. The authors of this paper recommend five initial steps states and the federal government could take to connect postsecondary funding to student outcomes: (1) Collect, nationally, student-level data on a common set of student outcomes and metrics, including the attainment of high-quality credentials; (2) Create greater federal waiver authority around Pell Grants; (3) Utilize common access, completion and employment metrics in state and federal funding for institutions; (4) Require well-designed outcomes-based funding in state funding for institutional operations or student aid as conditions for new federal funding; and (5) Identify high quality credentials by utilizing the federal workforce delivery system. An appendix provides supplemental figures and tables. [This report was written with Martha Snyder, Jeff Stanley and Scott Boelscher.]