While Government Spending on Education Increased 60% Over Past 50 Years, At Margin, Government Spent More on Healthcare... USA Total Government Healthcare vs. Education Spending as % of GDP, 1960 — 2008 Bg ee me me = = et = eat 9 lt on — s 6% nen mee Se mec oe ee ee ee oe eee es eee ee ee ee ce eee ee ee ee ge ne = eee ee = “ a t , a 6.0% o ‘ ‘0 i ° re ¢ sF Po im. "i wa awe £ \ 3 3.7% i Co) N ya fos i wi @ oO a —Total Government (Federal + State + Local) Spending on Health Care ——Total Government (Federal + State + Local) Spending on Education Oy A 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 Note: Total government spending on healthcare includes Medicare, Medicaid and other programs and total government spending on education includes spending on pre-primary through tertiary education programs. Source: Dept. of Education, Dept. of Health & Human Services. (@)) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 379 Despite Increased Government Spending, USA Education is Falling Behind — Math / Science Tests Scores Well Below OECD Average & Getting Worse Though Self Confidence Rising USA Ranking Out of 30-34* OECD Countries in PISA (Program for International Student Assessment for 15-Year Olds) 2000 / 2003 / 2006 / 2009 2000-2009 2000 2003 2006 Trend Mathematics 18 23 25 25 | | Science 14 19 21 17 | Reading 16 15 --** 14 tT Self 9 4 4 Confidence’ t Note: *30 OECD countries participated in 2000 / 2003 PISA, 34 OECD countries participated in 2006 / 2009 PISA. 1) Confidence is the self-perceived efficacy in learning abilities (for year 2000); mathematical problem solving abilities (for year 2003) and scientific problem solving abilities (for year 2006). USA tied in confidence ranking with Canada, Hungary, Slovakia, Switzerland and Liechtenstein in 2003 and tied with Poland and Canada in 2006. **2006 reading scores for KP USA were rendered invalid because of a printing error in questionnaire instructions. Source: OECD. Ce USA Inc. | What