YOUNG CHILDREN AND THE FEDERAL BUDGET: TIME FOR A

NATIONAL DIALOGUE

Partnership for America’s ChildrenWebinar for Members

Debbie Stein, Charlie Bruner, Miriam Calderon, and Cecilia Zalkind

May 29, 2015

Moderating and Setting the Context

Debbie SteinNetwork DirectorPartnership for America’s Children

Federal budgeting – Short-term and long-term

1. The next year will be a battleground year for federal funding for programs for children in three key areas:1. Ending sequestration and its particular impact on

children’s programs (discretionary non-defense programs like Head Start, CCDBG, TANF, MIECHV, Title I)

2. Ensuring continued support for child health funding under Medicaid and CHIP (potentially linked to debates over the ACA)

3. Maintaining the EITC and Child Tax credit (within debates over extending other tax breaks)

2. Even in the short-term, but particularly over the long-term, there is a fourth key area, making the case for increased investments in early childhood, and President Obama’s budget provides that opportunity.

OVERVIEW OF THE YOUNG CHILD FEDERAL BUDGET AND OPTIONS

Charlie BrunerDirectorChild and Family Policy Center

Reasons for a national dialogue on increasing investments in young children1. The last four Presidents have called for it.2. Changing work patterns require it.3. Science and research point to its crucial

foundational base.4. There is a gap in investments that affects

national security and competitiveness.5. Voters share this concern.6. The President’s 2016 budget provides a

serious start for such investments.7. It’s the right thing to do.

1. The last four Presidents have called for it.

By the year 2000, all children in America will start school ready to learn.

• 1st National Education Goal, President George H. Bush and Nation’s Governors led by Arkansas Governor Bill Clinton

There’s more to do. We need to develop our children to read and succeed in school with improved Head Start and early childhood development programs.

• 2002 State of the Union address, President George W. Bush

The sooner a child begins learning, the better he or she does down the road. …I propose working with states to make high quality preschool available to every child in America.

• 2013 State of the Union address, President Barack Obama

2. Changing work patterns require it.2a. America’s prosperity and economic growth

over last forty years largely based on increase in women in workforce (not on wage growth).

2b. This increase has placed new demands upon families with young children in balancing breadwinning and caregiving roles.

2c. The economic challenges to families providing for their kids are greatest in the earliest years.

2a. Increase in mothers in workforce,especially when children are very young.

2b. Increase whether two-parent or single-parent families.

WORKFORCE PARTICIPATION OF FAMILIES WITH CHILDREN UNDER AGE 6

1984 2001-2 2012-3

Married Couple -- Both in Workforce 46.8% 53.6% 54.1%Married Couple -- Mother Only in WF 3.4% 6.1% 5.3%Married Couple -- Neither in Workforce 2.0% 3.4% 3.4%

Single Mother -- In Workforce 39.4% 66.4% 61.6%

Single Father -- In Workforce 80.4% 83.9% 80.9%

Note: The percentage of mothers with children in the workforce increased from 39.0 percent in 1975 to 63.6 percent in 2008.

2c. Economic challenges greatest during this period.

65+ Years

18-64 Years

6-17 Years

0-5 Years

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

9.4%

14.8%

21.0%

25.2%

22.0%

17.2%

22.0%

23.1%

19.1%

16.1%

17.0%

16.3%

14.3%

13.5%

12.8%

11.6%

35.1%

38.4%

27.2%

23.9%

Distribution of U.S. population by household age and income (percent of poverty), 2013

<100% 100-199% 200-299% 300-399% 400+%

2c. Economic challenges greatest for single-parent families with children age 0-5, U.S.

Poverty LevelMarried - Two-Parent

Family Single-Parent FamilyLess Than 100% 1,228,481 11.8% 2,174,326 45.8%

100-199% 2,057,111 19.8% 1,278,502 26.9%

200-299% 1,863,748 17.9% 633,595 13.4%

300-399% 1,547,909 14.9% 314,188 6.6%

400+% 3,688,948 35.5% 345,331 7.3%

Total 10,386,197 100.0% 4,745,942 100.0%

Source: U.S. Census Bureau, PUMS Data, 2011-2013

3. Science and research point to its crucial foundational base…

• Protective Factors (Strengthening Families)

• Adverse Childhood Experiences (Center for Disease Control)

• Resiliency (American Academy of Pediatrics)

• Epigenetics (Genetics)

• Neurobiology (Brain Research)

• Toxic Stress (Center on the Developing Child)

• Social Determinants of Health

(World Health Organization)

8

Positive Positive StimulationStimulation

Negative Negative StimulationStimulation

… and to the solution.

• Protective Factors

• Adverse Childhood Experiences

• Resiliency

• Epigenetics

• Neurobiology

• Toxic Stress

• Social Determinants of Health

Improving home health, safety, and learning environment key to healthy development.

The role of family needs to be recognized and supported.

Parents are their child’s first and most important teacher, nurse, safety officer, and guide to the world.

At least one-fifth to one-third of families faces significant challenges in providing a consistent, safe, healthy, home learning environment for their young children.

Children are powerful motivators; for the love of their child, most of these families will go to new lengths to foster a bright future.

4. There’s a federal investment gap.

4a. Federal investments in children in the overall federal budget

4b. Role of federal investments in children in different areas of investment

4c. Public investments in young children’s development compared to older children

4d. Investments in young children’s development related to known need

4a. Federal investments in children in the overall federal budget

Share of federal budget focused on children, 2012

Source: Kids’ Share 2013

(Urban Institute)

4b. Federal investments in children as share of all public investments in children.

Source: Kids’ Share 2013 (Urban Institute) – Billions of Dollars

4c. Overall investments in education and development by child agePer-child annual public investment in

education and development by child age

Source: BUILD Initiative, Early Learning Left Out, 2013.

For every dollar invested in a school-aged child, 25 cents is invested in a preschooler and 7 cents in an infant/toddler.

4d. Extent of public investments in relation to underlying need

From: BUILD Initiative, Early Learning Left Out, 2013.

5. Voters share these concerns.Importance for Congress to protect basic investments in children (health, education, nutrition)

Extremely important – 56%; Highly important – 19%; Moderately important – 17%; Not very important – 6%

Importance relative to reducing deficitChildren more important – 31%; Deficit more important – 26%; Equally important – 41%

Focus more on needs of children or elderlyMore on needs of children – 51%; More on needs of elderly – 24%; Both/neither – 21%Source: Voters and Public Policy: Compilation of Voter Opinion Surveys, Child and Family Policy Center. 2015

6. The President’s 2016 budget begins to address this gap.

6a. Doubling of investments in early care and education by 2020

6b. Other significant investments in the economic well-being of parents and parents-to-be

6c. Opportunity for a bipartisan approach

6a. Major investments in child care and preschool through subsidies and tax code …

President's Proposed FISCAL Year 2016 Budget: Spending and Tax Incentives For Young Child Education and Development

Fiscal Year(s) (millions of dollars) 2016 2017 2018 2019 2020

Preschool for All 130 1,235 3,110 5,456 7,360

Expand Child Care Subsidy 2,969 3,889 4,632 5,599 6,639

Extend and Expand MIECHV 20 105 395 555 895

Reform Child Care Tax Credit 4,956 5,160 5,443 5,746 5,980

Total NEW Early Learning Investments 8,075 10,389 13,580 17,356 20,874

6b. … coupled with other recognitions of needs for economic support.

President's Proposed FISCAL Year 2016 Budget: Spending and Tax Incentives For Children

Fiscal Year(s) 2016 2017 2018 2019 2020

Total Early Learning Investments 8,075 10,389 13,580 17,356 20,874

Other Child Health, Welfare ProvisionsHome/Community Based Child Psych 79 165 172 180Express Lane Eligibility for Children 65 105 160 105Require EPSDT for Inpatient Psych 30 35 35 40 40Extend CHIP through 2019 30 4,049 4,018 4,159 -625Tax revenue to extending CHIP -351 -750 -835 -515IV-e Funding for Prevention 130 41 41 51 57Modernize Child Support 30 169 269 290 360

Middle Class Tax ChangesProvide a Second Earner Credit 2,067 9,739 9,833 10,133 10,242Expand EITC for Single Young Adults 736 11,775 11,850 11,950 12,190Simplify EITC Rules for Single Filers 70 1,115 586 1,105 1,137

Total Child/Tax Investments 11,168 37,105 39,732 44,581 44,045

6c. Opportunity for debate and common ground

We need affordable, high quality childcare more than ever. It’s not a nice-to-have. It’s a must-have.

Barack Obama, January 20, 2015

The question’s not whether but how best to make early childhood education available to the largest number of children.

Lamar Alexander, May 14, 2014

7. It’s the right thing to do.7a. It is based upon our principles of

America as a land of inclusion and opportunity for all, with strength in diversity.

7b. It offers the best opportunity to ensure that all children get off to a great start that enables them to achieve their full potential.

7c. It’s about our values.

7a. It provides an opportunity to start off right.

The opportunities offered by a multicultural society that is cohesive and inclusive are virtually limitless—including the richness that comes from a broad diversity of skills and talents. … The challenges posed by a multicultural society that is fragmented and exclusive are daunting—including the wasted human capital that is undermined by prejudice and discrimination. Neurons to Neighborhoods, 2000

It is better to raise strong children than repair broken men.Frederick Douglass

If we can’t raise children of color to be part of the middle class, there won’t be one.

Angela Glover Blackwell, 2014

7b. It offers the best opportunity to ensure a good start ...

Total

Age 65+

Age 18-64

Age 5-17

Age 0-4

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

17.1%

7.5%

16.7%

23.5%

25.8%

20.3%

13.7%

20.6%

23.2%

24.2%

62.6%

78.8%

62.7%

53.3%

50.0%

Distribution of the U.S. population by race/ethnicity and age -- 2013

Hispanic Non-White, Non-HispanicWhite, Non-Hispanic

Source: United States Census Bureau, Population Division 2013

… but only if we recognize the need as well as opportunity.

All

African American

Hispanic

White, NH

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

25.2%

42.7%

36.1%

16.1%

23.1%

25.4%

30.4%

19.6%

16.3%

13.6%

15.1%

17.8%

11.6%

7.5%

7.7%

14.4%

23.9%

10.8%

10.7%

32.1%

Distribution of young child population (0-5 years) by race/ethnicity and household income (percent

of poverty) -- 2013

<100% 100-199% 200-299% 300-399% 400+%

Source: U.S. Census Bureau, Public Use Microdata Sample, 2011-2013

One Picture … Our Values

We can do this.

OPPORTUNITIES AND ALIGNMENT AT THE FEDERAL LEVEL

Miriam CalderonBUILD Dual Language Learner and Diversity and Equity Consultant

BUILDING ADVOCACY ACROSS THE STATES

Cecilia ZalkindDirectorAdvocates for Children of New JerseyCo-Chair, State-Based Advocates for Early Learning

Questions, Thoughts,Opportunities for Next Steps

Debbie SteinNetwork DirectorPartnership for America’s Children

505 5th Avenue, Suite 404Des Moines, IA 50309www.cfpciowa.org515-280-9027

Resources available through CFPC/BUILD and source for information in presentation slides:

Early Learning Left Out

The State of the Union Address and Investments in Children

Voters and Child Policy: Public Opinion Research

Women, Work and Poverty: The 21st Century Challenge

Securing America’s Future: Children and the 2016 Presidential Election