Thank you. I am delighted to join you this afternoon. Recently, in the Washington Post, a commentator asked for America's business and civic statesmen to step forward, to assert themselves, to provide ethical and visionary leadership for the future. In his words, America needs "business patriots."

Well, if that columnist is searching for powerful, positive, productive private-sector leadership, he should come to Indianapolis.

You are leaders, every one. The Kiwanis are leaders in action. Every day, in communities all across America, the Kiwanis are conducting America's business. You are creating jobs, providing place and purpose for millions of Americans. You are opinion-makers, organizers, counselors, donators, and even coaches and volunteers. You are a cornerstone of your communities, proactively serving those in need. In education, you award scholarships to hundreds of thousands of students and work with schools to help educate our children. Many schools wouldn't even be open, except for your support. You have stepped forward with the much-needed Thrive program for immunization. The Aktion Clubs have been valuable to Americans with disabilities. Internationally, your work with UNICEF has been noteworthy, improving world health and fostering much goodwill. And whenever disaster strikes, you are among the first with shelter, provisions, transportation, and consolation for shocked and shattered neighbors.

One person has called the Kiwanis "America's conscience, America's pride." That is a fitting description and tribute to your many efforts to keep our country strong, safe, good, and compassionate.

So I have come here today to ask for your continued partnership, especially with our High School Initiative, which is our joint effort to assist young students to be fully prepared for the future. We must continue to make education a top priority in our work.

Last Monday, the Wall Street Journal looked toward the business environment in the coming years and concluded, in their words, "It's a whole new world." Indeed, it will be. Competition from India, China, the European Union, and others is rapidly changing the way we do business. I am sure you see this in your own businesses, where you must be aware of decisions and events in Delhi and Geneva, as well as Des Moines and Green Bay.

As I was reading, I noticed a section about predictions. Several Nobel Prize-winning economists were asked this question: "Which economy do you expect to be the biggest 75 years from now: the U.S., the European Union, or China?" Most of those cited said China. They echoed the view of Professor Kenneth Arrow of Stanford: "Unless there is a radical change in growth rates, China will be the largest economy in the world." And while there were some votes for the European Union, few thought the United States would be a contender ... not even a contender! Why? Because China and the European Union will have several positive advantages in the coming years: larger populations, better-educated workers, and lower labor costs.

Let me put it another way. The students who are in grade school now will be retired in 75 years. Unless we radically reform their educational experience, at that moment, 75 years from now, they will be the first generation of Americans in two centuries to participate in a second- or third-ranked economy. They will have watched our economic strength marginally, incrementally, slowly slide behind that of other countries. In fact, we could occupy a position in 75 years similar to the position of France or Germany today: strong but not in charge, longing for former glory and power, our legacy of leadership lost, perhaps permanently.

Well, we simply can't forfeit our economic security. We cannot let others control our destiny. How do we remain economically strong and retain our economic leadership? Education is the answer ... education is the most important response. America's economic power is determined by many factors. But the most important is education. The quality of our education system is directly responsible for the level of our economic success.

Yes, we have entered a new era, and as a nation we must be fully prepared for the challenges ahead. The economy of the 21st century is now a service economy dependent on technology, innovation, information, and technical skills. We need "knowledge workers." And knowledge workers must be well-educated. Marginally educated or undereducated workers are not in high demand.

The demand on all levels is for knowledge workers. The need for literacy in reading and mathematics is a prerequisite for almost every job. In the past, employers had jobs for both brawn and brains. Now, almost every job is highly dependent on intelligence, communication ability, and computer skill level.

Not surprisingly, you also see this reflected in the so-called "earnings gap." Recent Labor Department figures show that college-educated workers earn a median weekly salary of about $1,000. High school grads earn about $600 a week. Those without a diploma earn about $400 a week, or less than half of college grads and only two-thirds of the earnings of high school graduates. Simply put: education pays.

Let me paint a picture for you. Approximately half of the chronically unemployed are not functionally literate. Between 41 and 44 percent of the adults who scored at the lowest level of the National Adult Literacy Survey are in poverty, compared with 4 to 6 percent of adults who scored at the highest levels. Employment growth is fastest among those with some level of education beyond high school. Dropouts and underprepared students have almost no opportunity for at economic success. For example, those with less than a high school diploma are in virtually no demand for employment, while one-third of new jobs are going to students with an associate degree, one-quarter to those with a bachelor's degree, and one-fifth to those with a bachelor's degree and some work experience. And there is equivalent job growth for those with a master's degree or a doctoral degree. Those with the highest levels of education are also those who are earning the highest average salaries.

And make no mistake. This wage gap is about education and only education. As Federal Reserve Chairman Alan Greenspan testified last July, the growing earnings gap reflects a "skill premium" commanded by relatively better-educated workers, not an underlying problem with the economy.

We will have continued job growth, but only for those with skills. One estimate is that by 2014, the American workforce will have openings for nine million more college degree-holders than there will be new degrees awarded. This includes three million openings for two-year degree-holders, four million for four-year degree-holders, and two million for advanced degree-holders.

Unfortunately, not all of our students are ready for this new environment. We have a lot of work to do in the years to come.

Four years ago, the president and Congress recognized that millions of students were mired in mediocrity, denied a quality education. The vast majority of those left behind were African American, Hispanic, English learners, or special-needs or low-income children. For various reasons, they were passed on and passed out.

How bad was it? The most glaring evidence of this divided world of possibilities was a huge achievement gap between some racial and ethnic groups and their white and Asian peers. By 12th grade, African Americans are typically four years behind white and Asian students. Hispanics are doing only slightly better than blacks. In other words, these students are finishing high school with a junior high education.

This achievement gap could not be corrected by simply spending more money. Before No Child Left Behind, we only vaguely identified problems and tried to spend our way out of them. And we were good spenders. Between 1965 and 2000, the federal government spent more than $130 billion on education (Title I), with no visible difference in outcomes. Test scores in reading were basically flat during the period between 1992 and 2000. There was some improvement in some areas, but the rate of improvement was slow and clearly did not reflect the money spent.

So we needed to change the system itself. The education system needed to be reformed--transformed!

The No Child Left Behind Act is a more accountable, responsible approach to education. Like a successful business, No Child Left Behind Act introduces measurement of progress, makes the system transparent and accountable, and introduces consumer choice. These ingredients ultimately make the system better and provide a better product.

The No Child Left Behind law required the states to set their own standards for teacher quality, for testing, for measurements of adequate yearly progress, and for many other areas of educational accountability. The actual standards were determined by the states themselves because they were in the best position to do so. In other words, the people of Indiana set the standards for Indiana's children.

These changes allow for a real investment in education, whereas before we were just throwing money at the problem. And that investment is substantial. The president has set federal support for education at $57 billion for fiscal year 2005, a 36 percent increase since he took office. This means that federal education funding for Indiana will be $2.3 billion in 2005, a 50 percent increase since 2001.

Already, this law has been the salvation of our schools. We already see considerable evidence that the law is working. Earlier I mentioned the flat test scores in reading before the president took office. No Child Left Behind has ended that flat line. While fourth-grade reading scores between 1992 and 2000 remained stagnant, there has been a five-point increase in the last three years nationally. Delving down into the numbers, we see important movement: the percentage of African American and Hispanic fourth-graders who know their reading and math basics increased substantially more between 2000 and 2003 than in the previous eight years combined. As a result, the achievement gap is closing.

And we must build on the foundation of this law. That is why President Bush is offering new initiatives to enhance reading, increase job training, increase funding for community colleges, stabilize the long-term fiscal viability of Historically Black Colleges and Universities, and encourage more knowledgeable and experienced people to turn to teaching. The passage of No Child Left Behind was a milestone, a landmark. Yet, in many ways, it is just the beginning.

I am also hopeful that we can press ahead with a joint program called "Take the Lead." This is part of our Preparing America's Future: High School Initiative. In this initiative the Department is equipping state and local education leaders with information, developing the Departmental expertise to provide effective technical assistance, and encouraging a national dialogue on students' needs for the future. We have held a national summit in Washington and seven regional summits around the nation. We are working to disseminate information, arrange for speakers, initiate exhibits, and develop publications to promote improvements and inclusivity in American education. We are doing this on the national and the local levels.

The Kiwanis have stepped forward to work with us on this effort. I am hopeful that your local club and each of you will approach school administrators and other community leaders to discuss ways to help. For instance, you could create and support adult mentoring programs and tutoring projects. You could work with students to share your knowledge and experience about the business world. You could reach out to help reshape and transform American education. You can "Take the Lead". If you do, believe me, others will follow.

I also want to thank you for initiatives like Young People: Priority One to improve the health and fitness of young people. You have elementary school projects like Bring Up Grades and Terrific Kids. You have Key Club, Builders Club, K-Kids, involving more than 10,000 schools and tens of thousands of students. That is leadership in action.

We need to do all of this and more. Recently, the Financial Times reported on the future of work. Their headline: "Technology and emerging economies are creating a new working model."

Indeed, we do see a new working model developing. But that new model will rely on one important, overriding constant: education. And if our children are to have economic security and stability, if our children are to have opportunity and choice, then we must have vision, quality, and accountability in education. We must enable all students to receive a world-class education. We simply cannot afford to leave anyone behind.

That is the difference we will make, if we make education more successful, inclusive, and fair. If we do this, together, then 75 years from now, our children, in their golden years, will thank us for our foresight, wisdom, and leadership today.

Thank you.

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