"I believe education in this state is the great equalizer. It's the way we offer every young person in North Carolina a level playing field, regardless of race or religion or zip code."

The future demands a highly skilled, highly educated workforce. Our workers have to be the best in the world. In the past, North Carolina has led the southeast in educational innovation. We have made massive investments in public education to produce strong public schools and well-prepared graduates who fuel economic growth. Right now, by many measures, too many of our high schools are failing to deliver.

At present, more than four in ten students drop-out of high school instead of graduating. This high drop-out rate is a statistic that places us among the lowest in the country - an embarrassing reality, which is unfortunately still worsening. These young people today who fail to complete high school are at a clear competitive disadvantage. When they don't graduate, they become more likely to engage in substance abuse. They are less likely to find a job, and if they do find one - it's more likely to be sent overseas.

UNC System President Erskine Bowles uses this framework for describing the problem. For every 100 eighth-graders, 58 graduate high school, 38 attend college, 28 return for a second year, and 18 graduate from college. We lost roughly 34% of the high school drop-outs in ninth grade alone. Overall, two-thirds of North Carolina's schools did not meet the 80% pass rate on the 2004 End of Course exams. Forty-eight high schools had a pass rate below 60%.

Students who choose not to finish high school are entering the workforce with one hand tied behind their back. Managers in the workforce continue to hire people with skills associated with higher levels of education. The Raleigh News and Observer recently noted that 60% of employers rate graduates' skills as "fair" or "poor." As dropout rates continue to increase, we move further from our goal of using education to stimulate economic growth. North Carolina has lost over 170,000 manufacturing jobs since 2000. The jobs we're replacing these with increasingly require a college level degree or vocational degree.

Unfortunately, the current Liberal Democrats have almost accepted the fact that our schools are failing. With the exception of Erskine Bowles, who is implementing dynamic reforms at the UNC System schools of education, we're failing to make the enormous changes necessary to remedy the vast deficiencies we face.

Charter schools are reforming education with a fresh innovative approach to teaching. Foremost, charter schools are public schools. They meet the needs not met by existing public school systems and I strongly support them. Many charter schools, freed of bureaucratic regulations imposed by the state, have been successful at raising test scores and improving student performance. When applied correctly, this non-selective, tuition free alternative creates an achievement-oriented culture that drives performance.

Successful charter schools involve families and the business community in supporting their mission. They are purpose driven - and results driven. That's why over 41 states have passed charter school legislation and the National Assessment of Educational Progress shows charter schools are succeeding.

To also consistently meet the needs of the students, we must maintain high standards for teachers. A National Drop-out Prevention Center study discovered that low achieving students increased their achievement level by as much as 53% when taught by a highly effective teacher. Improving student performance starts with improving teacher quality. Other essentials include creating a safe learning environment, strong family participation, and streamlining school system operations to save costs. Increased efficiency can allow for investment in launching appropriate remedial, vocational, college prep, honors level, and advanced placement classes to address every student's education needs so that every student sees graduation as personally important goal. The News and Observer has reported that less than a third of high school students in college prep classes find their course work meaningful. Good teachers and a rigorous curriculum can quickly remedy this problem.

If we do this, we'll challenge our students, forcing them to understand how the material that they are learning will make their lives better. That combination of relevant material and rigorous expectations leads to an atmosphere of respect at school - for both teachers and other students. This is a smart investment. As taxpayers, we will either pay now or later for high school graduates or drop-outs who do not have the necessary education for a job that pays a living wage. This is also a moral imperative. America's promise is that if you study hard, work hard, and make good decisions a young person can go anywhere. Let's give them that chance.