This research article provides detailed information on the effects of the escalating high school drop out rate in Philadelphia. High school dropouts impose very high costs on the broader community. This report details these costs, including: These costs include: lower tax payments to the government, intensive reliance on cash and non-cash government income transfers, and the cost of incarceration. In addition, this article demonstrates how the fiscal consequences of dropping out of high school have been exacerbated by changes in the economy.