Transcript Investing in Early Childhood Development: Science, Benefits and Common Sense Joan Lombardi, Ph.D. April 12, 2007 Prepared for An Agenda for Shared Prosperity forum Sponsored by The Economic.

Investing in
Early Childhood Development:
Science, Benefits and Common Sense
Joan Lombardi, Ph.D.
April 12, 2007
Prepared for
An Agenda for Shared Prosperity forum
Sponsored by
The Economic Policy Institute and
The Institute for America’s Future
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If we are serious about shifting the odds for at risk
children, we need to start early
Young children need good health, strong families
and positive early learning experiences to assure
they are ready to succeed in school.
To reach these goals we should increase
investments in at risk children, beginning in the
prenatal period and continuing through school entry.
These investments should be followed by
improvements in the quality of K-3.
What does science tell us?
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Early experiences matter- early experiences
have a long term impact on health, behavior
and learning
The interaction of what we are born with and
early experiences shapes the architecture of
the brain
Domains of development are integrated:
social, emotional, cognitive, physical
Key elements of early experiences that
predict later outcomes, among others
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Poverty
Prenatal and early health care
Nutrition
Parent child relationships
Parental sensitivity
Maternal education
Early learning experiences
Abecedarian: Academic Benefits
Program group
No-program group
25%
Special Education
48%
31%
Grade Repeater
55%
67%
HS Graduation
51%
36%
4 Yr College
0%
13%
10%
20%
30%
40%
50%
60%
70%
Source: Carolina Abecedarian Study, W. Steven Barnett, NIEER
80%
Perry Preschool: Educational Effects
Program group
No-program group
15%
Special Education
(Cog.)
34%
49%
Age 14 achievement
at 10th %ile +
15%
66%
Graduated from high
school on time
0%
45%
10%
20%
30%
40%
50%
Source: High Scope Educational Research Foundation
60%
70%
Perry: Economic Effects at Age 27
Program group
No-program group
29%
Earn $2,000 +
monthly
7%
36%
Own home
13%
41%
Never on welfare
as adult
20%
0%
5%
10% 15% 20% 25% 30% 35% 40% 45%
Source: High Scope Educational Research Foundation
Perry Preschool: Economic Effects
at 40
Program group
No-program group
60%
Earned > $20K
40%
76%
Employed
62%
76%
Had Savings
Account
0%
50%
10%
20%
30%
40%
50%
60%
Source: High Scope Educational Research Foundation
70%
80%
Return on Investment:
Perry Preschool
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Total Benefit-Cost Ratio = $8.74 to $1
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Estimated Total Annual Rate of Return = 16%
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Public Rate of Return = 12%
Source: Art Rolnick and Rob Grunewald, Minneapolis Federal Reserve
Human Capital Rate of Return
Source: Heckman and Masterov, The Productivity Argument for Investing
in Young Children, October 2004.
Low-Income Status Varies by
Age
Source: National Center for Children in Poverty. (2006). Basic Facts About Low-Income Children: Birth to Age 18.
An uneven start
SES Difference at Start of K
0.8
0.69
0.7
0.6
Standard Deviation Units
0.4
0.25
0.27
0.2
0
0
lowest
second
-0.2
third
fourth
fifth
-0.17
-0.22
-0.4
-0.47
-0.6
-0.55
Math
Reading
-0.8
SOURCE: Valerie Lee and David Burkam,
Inequality at the Starting Gate, Economic Policy
Incom e Quintile
Institute, 2002, p.18.
School readiness by mother’s education level
100
Percentage of First-time Kindergartners Demonstrating Positive
Indicators of School Readiness by Mother's Education Level,
1998
Less than high school
86
90
79
80
69
70
Percent
High school diploma/GED
61
57
60
Some college, including
vocational/technical
College degree or more
50
46
50
40
39
38
32
30
31
22
20
10
0
Reading proficiency
Mathematics proficiency
Fine motor skills
Source: Child Trends and Center for Health Research. (2004). Early Child Development in Social Context.
Data from K. Denton, E. Germino-Hausken, and J. West (project officer), America's Kindergartners, NCES
2000-070, (Washington, DC: U.S. Department of Education. National Center for Education Statistics, 2000).
Percentage of Income
Paid for Care
Higher Income
6%
16%
Lower Income
23%
Very Low Income
0%
5%
10%
15%
20%
25%
*Higher Income is over 200% of poverty, very low income is under 100% of poverty.
SOURCE: Giannarelli and Barsimantov, ‘Child Care Expenses of America’s Families,” Urban Institute, 2000.
State investment in early childhood grows but still
far from meeting the need
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States investing in 0-5 but funding limited, particularly for 0-3
(Home visiting, Early Head Start, prek with set aside for 0-3,
public private partnerships 0-5)
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In 2005-06, 38 states invested in prekindergarten initiatives
spending nearly $3.3 billion, with 942,766 children participating
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While the number of 4 year olds served has grown, the number of 3
year olds has remained relatively stable
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Quality varies across the states, almost half the states do not meet
the benchmark of requiring a BA or higher for all lead teachers.
Source of Prek data: The State of Preschool 2006, NIEER
Federal policies fail to keep up with what
we know from science is important for
early development and later success
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Too many families still not covered by FMLA,
and of those covered, far too many cannot afford
to take unpaid leave
Head Start- about half of the eligible served
Early Head Start, only 3 % of the eligible served
Child Care and Development Fund-only one in
seven eligible served, limited investments in
quality
With flat federal funding, number of children receiving
child care assistance has declined
Decline in Children Receiving Child Care:
150,000 Children Have Already Lost Assistance,
Administration Expects to Lose 300,000 More
3
(in millions)
2.45
2.3
2.0
2
1
2000
2002
2004
2006
2008
2010
2012
FY 2007-2012 are Administration's Projections
Note: The Deficit Reduction Act increased mandatory funding for CCDBG by $200
million beginning in FY 2006.
Sources: Child Care Bureau and Analytic Perspectives, Budget of the United States
Government, Fiscal Year 2008, slide by CLASP.
Current Federal and State Funds for
Head Start, Prek, and Child Care*
Federal and state spending on Head Start and Prek
$10.2b Total spending on Head Start and State prek
6.8b Federal Head Start (06)
3.3b State Prek Initiatives (05-06)
$11.7b Total Federal and State Child Care Subsidy
(This assumes $8.5 Federal for 05 CCDBG and TANF
transfer and direct)
$3.5b in Child and Dependent Care Tax Credit and DCAP (est 06)
* Does not include SSBG, Title I, special ed or CCFP
05-06)
Three different estimates for additional
investments needed
Cost-Effective Investments in Children (J. Isaacs. Jan, 2007)*
For high quality early childhood education for three and four year olds
$18b additional in 2008, $20b additional in 2012
For home visiting and healthy development of infants
$1b additional in 2008, $4 b additional in 2012
*This assumes a very limited investment in infants and toddlers, particularly in quality child care for 0-3
Next Steps for Federal Child Care Policy (M. Greenberg, Feb 2007)**
$18b per year additional (11b federal and 7b state) for child care guarantee and basic quality
improvements**
$ 5 b per year (for making the CDCTC refundable and increasing the credit-- based on Urban
Institute estimates of $25 b over five)
**This assumes a limited additional investment in quality
Success by Ten: Intervening Early, Often and Effectively in the Education of Young
Children (Ludwig and Sawhill, February 07)
$40b additional for transforming and expanding the current early education system into a more
intensive program based on Abecedarian and other intensive models.*** This proposal calls
for a phase in over ten years. Ludwig and Sawhill also call for improving early grades in
school through the use of redirecting Title I funding for programs that have proven effective.
***Estimate is $56b higher than under current law if all eligible children participate, $40b with 75 percent
participating.
Time for a New National Investment in
Early Childhood Development
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Expand FMLA and provide incentives to states to provide paid
leave
Assure access to quality health care for all young children and
their families and provide developmental screening and follow up
Invest in Head Start 0-5, with a special focus on expanding Early
Head Start
Transform child care to support working families and their children
by assuring access to all families below 200 percent of poverty
and requiring states to develop a quality improvement system
Provide an infusion of new resources to states to promote early
learning 0-5 through a diverse delivery system (parenting support, quality
improvements for child care 0-5, preschool, family literacy)
At least triple investments over current spending.