Harold McGraw III Calls Education at a "Crossroads"; Cites Reasons for Optimism

Business Wire, March 5, 2002

Business Editors

PALM BEACH, Fla.--(BUSINESS WIRE)--March 5, 2002

"American education stands at a crossroads, struggling to keep up with the demands of the new economy, but with the opportunity to create a system that fully educates future generations," said Harold McGraw III, Chairman and CEO of The McGraw-Hill Companies (NYSE: MHP), in a keynote address at the Bear Stearns annual media, entertainment and information conference in Florida.

He said reform has been gaining momentum and there is greater alignment among key constituency groups on the need for educational improvement than at any time in the recent past. He cited the recently passed landmark federal education reform bill, "No Child Left Behind," as evidence of the growing consensus on the need to substantially improve the effectiveness of our educational system.

"I have a guarded optimism about the future of American education," said Mr. McGraw. He cited several reasons for this optimism:

- Today, we have a much better understanding of what high standards for
students, teachers and schools should look like;

- Teaching is becoming a true profession, with programs becoming available to
support teachers from recruitment to professional development;

- Schools, districts and states are creating large scale assessment systems;

- The public wants results;

- Technology is emerging as an important support for teaching; and

- We are focusing on different stages in a child's learning, in the knowledge
that each requires unique support.

"We have seen vast improvements in establishing `best practices' in schools, and the availability of technology to act as a powerful and enabling force," said Mr. McGraw. He observed that educators would continue to broaden their use of technology to improve teaching and learning, and to more closely involve parents, policymakers and community leaders in the education process.

In addition, Mr. McGraw noted that teacher recruitment has not kept pace with a looming shortage of educators. He believes that attracting and retaining a new generation of teachers will be critical to meeting new standards of accountability.

Mr. McGraw predicted major changes in American education in the next decade. "As we recognize the importance of early literacy, schools will increasingly add pre-kindergarten as a standard grade level," observed Mr. McGraw, Currently, early childhood literacy is promoted in low-income communities or for those students with disabilities.

The public will give teaching much higher status in terms of compensation and professional time, and policymakers will require quality in teacher education programs, he predicted. "And in high schools, especially those in inner cities, there will be more choices to students in smaller settings. Education tailored to the needs and aspirations of individual students will be the norm," he said.

In addition, he said school leadership will change drastically. "The traditional principal and superintendent will become obsolete. A new education career - the local school manager - will emerge, perhaps as an assignment to handle the business affairs for a cluster of schools." He cited Maryland as an example of where such a local school manager structure is under consideration.

Mr. McGraw noted the strong link that exists between education and economic growth. "As Americans struggle to keep up with the demands of the new economy, we are presented with opportunities to create a system capable of fully educating future generations." Mr. McGraw warned that demographic trends pointed to a shortage of an educated labor pool in the face of competition from abroad. The U.S., given its aging society, will need a growing number of younger knowledge workers in order to sustain current levels of productivity and prosperity.

"Our challenge today is that the needs are monumental and society is in a hurry," Mr. McGraw said. "We cannot sustain ourselves without growth, and a public-private sector collaboration must address the problem. No other industrialized nation has such dispersed accountability in education. This is both our strength and greatest weakness," he concluded.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information services provider meeting worldwide needs in the financial services, education, and business-to-business information markets through leading brands such as Standard & Poor's, BusinessWeek, and McGraw-Hill Education. The Corporation has more than 300 offices in 33 countries. Sales in 2001 were $4.6 billion. Additional information is available at www.mcgraw-hill.com.