© copyright 2006, northstar economics, inc. all rights reserved. 10/13/06 economic development and...
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1© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
ECONOMIC DEVELOPMENTAND
EARLY CHILDHOOD EDUCATION
Dennis K. WintersVice President &
Director of Research
October 13, 2006
Law and Policy of
Universal Preschool
2© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
Show you the fiscal benefits for K-12
Tell you how to sell this to local constituents
Show you how the economy is changing
Tell you why early education is important
WHAT I WILL DO TODAYSHOW & TELL
3© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
THE EVIDENCE IS INHUGE RETURNS
• Perry Scope
• 17 : 1
• Chicago-Child Parent• $7 to $1 total
• $4 to $1 public
• Abecedarian Educational Child Care• $4 to $1 total
• Elmira Prenatal/Early Infancy Project• $5 to $1 total
• $4 to $1 public
4© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
BENEFITS ARE SHAREDACROSS SECTORS
Personal Success – 20% of gains• Higher Income
• Better Employment Attributes
• Better Health
Public Externalities – 80% of gains• Lower Crime
• Less Social Intervention
• Greater civil contributions
Business• More Skilled Workforce
• Higher Productivity
• Less Turnover
5© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYFISCAL FLOWS IN K-12
• TitleThe Economic Returns to Wisconsin’s Education System from Investment in Four-year-old Kindergarten
• SponsorsTrust for Early EducationThe Pew Charitable TrustsPre-K Now
• AuthorsProfessor Clive R. BelfieldQueens College, CUNY
Dennis K. WintersNorthStar Economics, Inc.
6© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
SCOPE OF WISCONSIN STUDYFISCAL BENEFITS/COSTS
• Wisconsin 2002-03 data
• Benefits Limited to K-12 Fiscal Flows
• State & Milwaukee PS Analysis
Parameters:
7© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYASSUMPTIONS
• Quality Programs• Trained Staff – BS, Early Ed Certified• Family Outreach – Home Visits @ 1 per 2 wks
• Universal Offering • Attracts 32,102 more students• Brings total to 48,153• Leaves 29% uncovered, 25,861
8© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
PROVISION OF PRE-KINDERGARTENCOHORT OF 4-YEAR OLDS
Note: * Head Start programs are also available for 3-year olds. This table does not include demographic information on child care provision across the state. Sources: Census (2000); Wisconsin Department of Public Instruction; NIEER Yearbook (2003).
Provision Types for 4-year Olds in Wisconsin
Current Provision*
UniversallyAvailable 4K
Children aged 4 89,170 89,170
Public Early Childhood Special Education
6,240 (7%) 6,240 (7%)
Federal Head Start 8,026 (9%) 8,026 (9%)
Wisconsin Head Start 890 (1%) 890 (1%)
4K 16,051 (18%) 48,153 (54%)
No public provision 57,693 (65%) 25,861 (29%)
9© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYFISCAL COSTS & BENEFITS
• Costs • Quality Staff• Support Services
• Benefits• Reduced Special Education• Reduced Grade Repetition• Better Teaching Environment
• Higher Job Satisfaction• Lower Turnover• Less Need for Substitutes
• Improved School Environment• Reduced Support Programs
10© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYFISCAL COSTS
• Costs • Quality Staff• Support Services
Costing Formulas(32,102 new pupils statewide, 3,209 for Milwaukee)
Unit Annual
Cost Per Child
Total ExtraWisconsinInvestment($ million)
Milwaukee District
Investment($ million)
Actual $3,518 $112.93 $11.29
Guaranteed high quality 4,468 143.43 14.34
Comparable to Head Start 6,445 206.90 20.69
Notes: ‘Actual’ refers to current 2003 expenditures on 4K. ‘Guaranteed high quality’ requires 27% more resources than are needed for ‘Actual’. ‘Comparable to Head Start’ assumes that 4K providers will receive funds equivalent to Head Start funding.Sources: NIEER Yearbook (2003); Marshall et al. (2004); and Head Start data.
11© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYFISCAL BENEFITS
• Benefits• Reduced Special Education• Reduced Grade Repetition
12© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYSCHOOL SYSTEM FISCAL BENEFITS
BENEFITSReduced Special EducationReduced Grade Repetition Current
Provision
Cohort Entering Kindergarten in 2005
with Universally Available 4K
Results
Students Per Category (%):
Regular education (non-repeater) 83.3 84.1
Special education 14.4 13.8
Repeats 1 grade 2.3 2.1
Costs Per Category:
Regular education (non-repeater) $ 94,733 $ 94,733
Special education $ 181,513 $ 181,513
Repeats 1 grade $ 101,775 $ 101,775
PV K–12 Expenditures ($ million) $ 8,431 $ 8,387
PV Cost-Savings ($ million):
Reduction in special education $ 42.41
Reduction in grade repetition $ 0.95
Notes: Present Value (PV) figures are discounted over the child’s educational span from K–12 at a discount rate of 3.5%. Economic values are in 2004 dollars.
13© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYFISCAL BENEFITS (continued)
• Benefits•Better Teaching Environment
• Higher Job Satisfaction• Lower Turnover• Less Need for Substitutes
• Improved School Environment• Reduced Support Programs
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYFISCAL BENEFITS (continued)
BENEFITSLearning Productivity Increases($ million)
Cohort Entering Kindergarten in 2005 with Universally Available 4K
Results
Teacher-related:
Higher job satisfaction $51.33
Lower teacher turnover $18.48
Reduced need for substitute teachers $5.48
School-related:
Improved school safety and climate $14.87
System-related:
Reduced pressure for aid programs $7.44
Notes: Present Value figures are discounted over the child’s educational span from K–12 at a discount rate of 3.5%. Economic values are in 2004 dollars.
15© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYFISCAL COSTS & BENEFITS
BENEFIT/COST ANALYSISPresent Value Figures($ million)
Cohort Entering Kindergarten in 2005 with Universally Available 4K
Investment (COST) $206.90
School System Benefits:
Special education placement $42.41
Grade retention $0.95
Job satisfaction for teachers $51.33
Retention of teachers $18.48
Reliance on substitute teachers $5.48
Spending on school safety $14.87
Pressure on school support $7.44
Total Educational Benefits (BEN) $140.96
Net Fiscal Impact (BEN-COST) -$65.94
Benefit–Cost Ratio (BEN/COST %) 68%
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
MILWAUKEE STUDYFISCAL BENEFITS
Notes: Present Value (PV) figures are discounted over the child’s educational span from K–12 at a discount rate of 3.5%. Economic values are in 2004 dollars.
Cost-Savings for Educational Budgets for Milwaukee from Expanded 4K Programs ($ million)
Cohort Entering Kindergarten in 2005 with Universally Available 4K
Results
Placement-related:
Lower special education $5.30
Lower grade retention $0.44
Teacher-related:
Higher job satisfaction $5.16
Lower teacher turnover $1.86
Reduced need for substitute teachers $0.55
School-related:
Improved school safety and climate $1.66
System-related:
Reduced pressure for support programs $0.83
17© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
MILWAUKEE STUDYFISCAL COSTS & BENEFITS
MILWAUKEE BENEFIT/COST ANALYSISPresent Value Figures($ million)
Cohort Entering Kindergarten in 2005 with Universally Available 4K
Investment Cost (COST) $20.69
Total Educational Benefits (BEN) $15.80
Net Fiscal Impact (BEN-COST) -$4.89
Benefit–Cost Ratio (BEN/COST %) 76%
Notes: Present Value figures are discounted over the child’s educational span from K–12 at a discount rate of 3.5%. Economic values are in 2004 dollars.
18© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYFISCAL COSTS & BENEFITS
• Costs • $207 million
• Benefits• $141 million
• Net Cost • $66 million• Returns 68 cents on the dollar• Returns 76 cents on the dollar for Milw
19© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
FISCAL COSTS & BENEFITSPERSPECTIVE
• $66 million < 1% of State Education Budget
• Huge Returns to Individual and Society
• Imperative to Workforce Development
• Imperative to Economic Development
20© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WISCONSIN STUDYEXPANDED COSTS & BENEFITS
BENEFIT/COST ANALYSISPresent Value Figures($ million)
Cohort Entering Kindergarten in 2005 with Universally Available 4K
Results
Investment (COST) $206.90
Total School System Savings (BEN) $140.96
OTHER BENEFITS
Tax Revenue Gains 48.44
Criminal Justice System 142.18
Health Expenditures Savings 7.00
Total Other Benefits $197.62
Grand Total Benefits $338.58
Net Fiscal Impact (BEN-COST) $131.68
Benefit–Cost Ratio (BEN/COST %) 1.64
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
HOW DO YOUSELL
EARLY EDUCATIONTO
YOURCONSTITUENCIES?
PUBLIC BUSINESS
LEGISLATURE
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
EVOLUTION OF ECONOMIC PROSPERITY
• 19th Century – Bigger and Better Farms
• 20th Century – Bigger and Better Factories
• 21st Century – Bigger and Better Ideas
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
U.S. SECTOR EMPLOYMENT TRENDS
0
20
40
60
80
100
1900 1950 2000
(% SHARE)
Other (Retail, Construction, Government, etc.)
Private Services
Manufacturing
Agriculture
YEAR
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
Old Economy
• Raw Materials
• Cost Race to Bottom
• Workers Chased Jobs
• Quality of Life was luck of the draw
New Economy
• QoL attracts talent
• Businesses Chase Talent
• Value-Added Products
• Brain Power
NEW ECONOMYCHANGED CONSTRUCT
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
DESIGNED HEREMANUFACTURED THERE
Designed in California
Assembled in China
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
KATHLEEN
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
Workforce development and
economic development are
interrelated and interdependent.
Ed = ED
28© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
NEW ECONOMYTALENT BASED
Carly Forina, former CEO HP –
Don’t show me your highway interchange or TIF district, show me the number of college graduates
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
"The days are over when you could walk into a paper mill with a high school diploma and run one of the machines."
– Patrick Schillinger, Wisconsin Paper Council President,
Center will teach paper-industry technology, Milwaukee Journal Sentinel, JS Online, October 21, 2004.
NEW ECONOMY HIGHER SKILL SET REQUIRED
30© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
“Today in most fields I know, the struggle is about creativity and innovation. There is no script.”
– Robert B. Shapiro, former CEO & Chairman, Monsanto Corporation
NEW ECONOMY NEED FOR CREATIVITY & INNOVATION
31© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School Source: Autor, Levy and Murnane, 2003.
Nonroutine manual
Routine cognitive
Routine manual
Nonroutine analytic.
Nonroutine interactive
WORKPLACE REQUIREMENTSCHANGES IN SKILLS USED AT WORK*
Source: K-12 Education and Economic Summit presentation by Alan B. Krueger, Princeton University
* Based on the Dictionary of Occupational Titles
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
NEW ECONOMYSCARCITY OF SKILLED WORKERS
Former Federal Reserve Chairman Alan Greenspan voiced his concern about a growing earnings gap between highly skilled and unskilled workers.
"It's a problem caused basically by our skill mix not keeping up with the technology that our capital stock requires," the Republican Fed chairman said. . . .
33© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
THE NEW ECONOMIC EQUATIONIN A KNOWLEDGE-BASED ECONOMY
BRAINPOWER
EARNINGPOWER=
34© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
Source: K-12 Education and Economic Summit presentation by Alan B. Krueger, Princeton University
35© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
THE EARNINGS GAP HAS WIDENEDREAL $ TERMS
Source: US Census Bureau; Postsecondary Education Opportunity
Education.
Income(2004 Dollars)
Difference (High School vs.
Other Degree)
1975 2004 1975 2004
High School $27,538 $28,631n/a n/a
Some College
/ Asso. Degree$29,452 $32,010 $1,914 $3,379
Bachelors $43,298 $51,568 $15,760 $22,937
Advanced $58,721 $78,225 $31,183 $49,594
36© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
MEDIAN FAMILY INCOME BY EDUCATIONAL ATTAINMENT
Source: U.S. Census Bureau
37© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
TAXES
25% (college graduates)
OF THE WORKFORCE PAYS
51% OF THE
INCOME TAXES
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
LOW INCOME GROWTH LEADS TO :DETERIORATION OF ECONOMIC CONDITIONAND QUALITY OF LIFE
Lower per capita income
Decreased tax base / Budget deficits
Lower bond ratings
Decreased school funding and teacher salaries
Less & fewer public services
Lower quality of life
39© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
Import the talent
Export the job
Grow the Talent here
THREE TALENT OPTIONSFOR PRODUCTION
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WHY ISEARLY EDUCATION
IMPORTANT?
41© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
Third Grade Reading Skills Learn to Read Read to Learn
Forty-Minute Assessment 80% Accurate
WHY EARLY EDUCATION?AN EARLY FULCRUM
42© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
ACHIEVEMENT GAPESTABILISHED EARLY
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
ACHIEVEMENT GAPDEPENDENT ON THE MOTHER’S EDUCATION
Source: Prof. James Heckman, Nobel Laureate, University of Chicago
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10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
POVERTY v. EDUCATIONUSE THE CORRECT POLICIES
Ed ≠ f (Poverty)
Poverty = f (Education)
45© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
NEW ECONOMIC DEVELOPMENT MODELUSING THE RIGHT TOOLS
• Traditional economic development tools produce a zero public return or worse.– See A. Rolnick, Federal Reserve Bank of Minneapolis
• Returns to high-quality early-childhood initiatives produce huge returns.−Perry Preschool 40-year study reports $17-to-$1 total
and $13-to-$1 public benefit-cost ratios.
46© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
WHAT MORE DO YOU NEED?THE QUESTIONS HAVE BEEN ANSWERED
What are the returns?17: 1 returns; 80% to the Public
Is it fiscally prudent? Tiny fraction of total public school funding
What is the greatest job need? Skilled, creative, interactive occupations
What is your alternative investment? Not a new mall !
47© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
• Postponing the Investment only postpones the Rewards
• It’s Good for Kids, It’s Good for Business, It’s Imperative for the Future
EARLY CHILDHOOD EDUCATIONBETTER SOONER THAN LATER
48© Copyright 2006, NorthStar Economics, Inc. All rights reserved.
10/13/06
ECONOMIC DEVELOPMENT
AND EARLY
CHILDHOOD EDUCATION
Economic Development and Early Childhood Education
Law and Policy of Universal Preschool
Loyola University
of Chicago Law School
Dennis K. Winters, Vice President & Director of Research
Phone: (608) 441-8060
Email: [email protected]
Fax: (608) 441-8064
Website: www.northstareconomics.com