The purpose of this brief report is to present a balanced look at current issues surrounding the education reform known as "academic standards." Prepared by the Morrison Institute for Public Policy at the request of Greater Phoenix Leadership, the information contained in this report is intended for a business audience. It does not advocate any particular stance or make policy recommendations, but rather presents a platform from which the business community might choose a position. The report is organized around four areas of interest: (1) the national context for academic standards, (2) facts regarding Arizona's standards, (3) the pros and cons of academic standards, and (4) specific issues and positions in the national business community related to academic standards.

Fierce competition for workers is one of the top issues today in Arizona. Many people may be surprised to hear that anything related to the state’s economic situation is on a list of pressing issues. Arizona’s economy is and remains robust, the state is finding it difficult to supply workers in demand by industry. The result is a new but deep threat to our economic future. Businesses’ inability to find and retain the workers they need, where they will need them, may in fact be the spear that unexpectedly pierces the state’s prosperity.

It is an oversimplification to describe the new economy as a technology revolution, something that is mostly driven by and affects business. Clearly, new technologies and business practices are central to the concept of a new economy. However, that’s the easy part to understand. The bigger challenge is to grasp—and then develop strategies to take advantage of—how public policies in the new economy can most positively affect people and places. This report is meant to help Arizonans do just that.