Early Childhood Education Cost Analysis

& RecommendationsNew Mexico

Early Childhood Development Partnership

December 2013

New Mexico Early Childhood Development Partnership

November, 2013

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New Mexico’s Children

• There are just over 2 million people in New Mexico

• 8% of the state’s population (about 171,200) is under the age of six

• 31% of children live at the poverty level

• 27,800 babies are born each year in New Mexico

• 39% are first births

• 62% of children, ages 3 and 4, are not attending preschool

• 79% of fourth graders are not proficient in reading

• 33% of high school students do not graduate in four years

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Early ChildhoodEducation (ECE) Investments Pay Off

• Quality home visiting programs have been shown to reduce child abuse and neglect by as much as 80%, improve cognitive and vocabulary scores, and contribute to higher grade point averages and achievement test scores.

• Children who attend higher quality child care centers demonstrate better cognitive and social skills from preschool into the early elementary school years.

• Pre-K programs have shown reductions in grade retention and special education placement by as much as 50%.

• Early experiences last a lifetime. Numerous studies have shown that ECE programs contribute to higher rates of employment and higher earnings, as well as a reduction in public assistance. 3

ECE InvestmentPrinciples

• Address the full continuum of supports for children 0-5

• Ensure ongoing General Fund commitment to ECE• Address unmet need • Focus on quality• Strengthen professional development• Accountability for outcomes • Adhere to a 5 year plan• Workforce development is the infrastructure

of ECE: up-front investments create a foundation for future growth and pay dividends for years to come.

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3 Essential Elements of Capacity:1. Workforce2. Workforce3. Workforce

Increase the capacity of the ECE workforce by:

Wage incentives – Attract and retain motivated workers Pre-Service Education and Training – Prepare early educators with college coursework, endorsements and credentials On-Site Training – Technical assistance and consultation provided to educators on-the-job by:• Training and Technical Assistance providers

(TTAPs)• FOCUS implementation consultants• Other qualified ECE trainers registered with

CYFD5

Despite its tremendous significance in the lives of children, ECE is one of the lowest paid professions in New Mexico.

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Data Systems for

Accountability and Continuous Quality Improvement

An early learning data system that utilizes a common set of unique identifiers will enable us to track outcomes for:

1. Children2. Educators3. Programs4. Government policies and programs

To maximize the benefit to children and the return on New Mexico’s investment

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Recommended Early Childhood System Expansion

Total Cost Over 5 Years:$119 Million New General Fund

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Home Visiting Principles

• Ensure universal, voluntary services – improve access, provide choice, target highest risk populations

• Funding to provide services, ensure quality, improve capacity, and strengthen professional development

• Ensure that the Home Visiting Accountability Act (HVAA) is promptly and fully implemented

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Home Visiting5 Year Cost Analysis($ Millions)

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Child Care Assistance (CCA) Principles

• Increase access to high-quality child care for low and moderate income families

• Increase slots to families with income below 200% Federal Poverty Level (FPL)

• Increase quality for all children by increasing the number of level 4 and 5 slots (the highest levels in the STARS quality rating system) occupied by CCA children

• Increase reimbursement rates or otherwise offset the cost of high quality care so level 4 and 5 providers can open more slots to CCA children.

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High-Quality Child Care is Unaffordable for Many Families

US HHS Recommends that families spend no more than 10% of income on child care, but high quality care for one child exceeds 15% of income for MOST working families in New Mexico

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Child Care Assistance5 Year Cost Analysis($ Millions)

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New Mexico Pre K5 Year Cost Analysis(dollars in millions)

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Professional Development Principles

In order to heighten professional standards & increase the educational attainment of the ECE workforce, the following goals must be achieved:• Higher Education: Increase the number of ECE

instructors with ECE degrees to improve education at all levels

• TEACH: Additional scholars will serve to enhance the quality of learning in ECE services

• On-Site Training: More training and technical assistance opportunities for ECE programs and workers

• FOCUS implementation: Additional training for ECE workers

 Avg. Annual Expenditures, Years 1-5

Pre-Service Education & Training $763,919

Wage Incentive $9,617,007

On-Site Training $692,601

FOCUS Implementation $440,000

Total $11,513,527 15

Thank you!

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