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 Americas Future
Slide 2
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.
Slide 3
What does science tell us? 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
Slide 4
Key elements of early experiences that predict later outcomes,
among others Poverty Prenatal and early health care Nutrition
Parent child relationships Parental sensitivity Maternal education
Early learning experiences
Slide 5
Abecedarian: Academic Benefits Source: Carolina Abecedarian
Study, W. Steven Barnett, NIEER
Slide 6
Perry Preschool: Educational Effects Source: High Scope
Educational Research Foundation
Slide 7
Perry: Economic Effects at Age 27 Source: High Scope
Educational Research Foundation
Slide 8
Perry Preschool: Economic Effects at 40 Source: High Scope
Educational Research Foundation
Slide 9
Return on Investment : Perry Preschool Total Benefit-Cost Ratio
= $8.74 to $1 Estimated Total Annual Rate of Return = 16% Public
Rate of Return = 12% Source: Art Rolnick and Rob Grunewald,
Minneapolis Federal Reserve
Slide 10
Source: Heckman and Masterov, The Productivity Argument for
Investing in Young Children, October 2004. Human Capital Rate of
Return
Slide 11
Low-Income Status Varies by Age Source: National Center for
Children in Poverty. (2006). Basic Facts About Low-Income Children:
Birth to Age 18.
Slide 12
Slide 13
Slide 14
Slide 15
Percentage of Income Paid for Care SOURCE: Giannarelli and
Barsimantov, Child Care Expenses of Americas Families, Urban
Institute, 2000. *Higher Income is over 200% of poverty, very low
income is under 100% of poverty.
Slide 16
State investment in early childhood grows but still far from
meeting the need 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) In 2005-06, 38
states invested in prekindergarten initiatives spending nearly $3.3
billion, with 942,766 children participating While the number of 4
year olds served has grown, the number of 3 year olds has remained
relatively stable 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
Slide 17
Federal policies fail to keep up with what we know from science
is important for early development and later success 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
Slide 18
With flat federal funding, number of children receiving child
care assistance has declined Sources: Child Care Bureau and
Analytic Perspectives, Budget of the United States Government,
Fiscal Year 2008, slide by CLASP.
Slide 19
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)
Slide 20
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.
Slide 21
Time for a New National Investment in Early Childhood
Development 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.