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    Why Business ShouldSupport Early Childhood Educatio

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    MISSIONThe Institute or a Competitive Workorce (ICW) is the non-proft, non-partisan, 501(c)3 afliate o the

    U.S. Chamber o Commerce. ICW promotes the rigorous educational standards and eective job training

    systems needed to preserve the strength o Americas greatest economic resource, its workorce. Through its

    events, publications, and policy initiativesand drawing upon the Chambers extensive network o 3 million

    membersICW connects the best minds in American business with the most innovative thinkers in American

    education, helping them work together to ensure the nations continued prosperity.

    The U.S. Chamber o Commerce is the worlds largest business ederation representing the

    interests o more than 3 million businesses o all sizes, sectors, and regions, as well as state

    and local chambers and industry associations.

    Institute or a Competitive Workorce, 2010

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    U.S. CHAMBER OF COMMERCE 1

    Ready, Set, Go!

    Since the end o the Sputnik era, our nation has lacked the

    urgency to make education a national priorityuntil now. Global

    competition or human talent and innovation, long-standing

    educational achievement gaps, low high school graduation rates,

    and the pending retirement o 77 million baby boomers have placed

    tremendous workorce pressures on American business. These

    pressures, i not checked, will jeopardize our national economic

    security and the viability o the American dream.

    Because the business community understands the importance

    o having a world-class education system, the mission o the

    U.S. Chamber o Commerces Institute or a Competitive Workorce

    (ICW) is to promote high educational standards and eective

    workorce training. Achieving a world-class system, however,

    begins with high-quality early learning opportunities or children

    rom birth to age ve. As a result, ICW has expanded its agenda

    with the launch o the Early Childhood Education Initiative.

    Why Business Should Support Early Childhood Education

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    2 INSTITUTE FOR A COMPETITIVE WORKFORCE

    The Early Childhood Education Initiative

    Early childhood education has emerged as a critical issue

    or many Chamber members, with a growing number

    actively supporting early learning initiatives in their states.

    The Early Childhood Education Initiative will ocus on early

    learning as an investment in workorce development.

    ICW, uniquely positioned to leverage the U.S. Chambers

    business ederation representing the interests o more than

    3 million businesses o all sizes, sectors, and regions, as

    well as state and local chambers and industry associations,

    received nancial support rom The Pew Charitable Trusts,

    PNC Bank, and Knowledge Universe or this initiative.

    The Early Childhood Education Initiative ocuses on early

    learning as an investment in workorce development by:

    Helpingdrivethenationaldebateaboutearly

    childhood education policies and programs.

    Providinginformationtothebusinesscommunity

    at the local, state, and national levels so that it can

    actively engage in advancing policies that support

    high-quality early childhood education programs.

    Developinganearlychildhoodeducationbusiness

    network to exchange best practices on policies,

    programs, and partnerships.

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    U.S. CHAMBER OF COMMERCE 3

    Why Business Should Support Early Childhood Education

    To initiate change, this multiyear eort willocus on policies that support high-quality,

    evidence-based early learning programs.

    Specically, the initiative will:

    Collaboratewithstateandlocalchambersthat

    are active or are interested in becoming active

    in the early childhood education arena.

    Identifymodelprogramsandpublic-private

    partnerships at the state and local levels.

    Developanearlylearningtoolkitforbusiness

    leaders to help guide activities and communication.

    Identifyandtrainbusinessleadersthatwantto

    become active in the early childhood education arena.

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    4 INSTITUTE FOR A COMPETITIVE WORKFORCE

    Defning Early Childhood Education

    Early childhood education is the healthy development and

    education o children rom birth to age ve. Environments

    and experiences in these early years are the most infuential

    inthedevelopmentofachildsbrain.High-qualityearly

    childhood education programs should promote thewhole child, paying equal attention to his or her cognitive

    (academic), social, and emotional development. According

    toHarvardUniversitysCenterontheDevelopingChild,

    eective programs employ highly skilled sta, maintain

    small class sizes and high adult-to-child ratios, utilize

    a language-rich environment, provide age-appropriate

    curricula and stimulating materials, provide a sae physical

    setting or children, nurture positive and warm sta-to-child

    interactions and relationships, and experience high and

    consistent levels o child participation.1

    Early childhood education also recognizes that a childs

    rst teachers are his or her parents. Comprehensive

    programs typically designed or low-income children

    oten encompass strategies and amily supports that

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    U.S. CHAMBER OF COMMERCE 5

    Why Business Should Support Early Childhood Education

    seek to maximize early learning, including a parent-as-partner philosophy, home visits, parent

    educationprograms,andhealthanddevelopmentalscreenings.High-qualityprogramsalso

    work collaboratively with community organizations and social service agencies, as well as other

    service providers, to promote the healthy development o young children.

    For the purposes o this report, early childhood education and early learning are synonymousand reer to programs serving children age ve and younger. The term early care reers to

    programs or inants and toddlers, rom birth to age two.

    Prekindergarten (preK) programs are one component o the early learning spectrum that

    has received signicant policy attention in recent years, with a number o states expanding

    access to state-unded preK programs. State-unded preK programs typically invest public

    unds in programs that provide three- and our-year-old children with the academic, social, and

    emotional skills necessary to succeed in kindergarten and beyond. While some organizations

    and state policies use the term preschool as a synonym or preK programs, others use

    preschool as a generic term to describe a variety o programs or children beore they begin

    kindergarten regardless o their age.

    Early childhood education programs vary widely. Questions about how these programs are

    unded and who is eligible or them are explored in the Early Childhood Education Landscape

    section on page 12.

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    6 INSTITUTE FOR A COMPETITIVE WORKFORCE

    The Rationale

    ICW rmly believes that investments in high-quality early

    learning programs or children rom birth to age ve yield

    high returns. In act, research shows that or every dollar

    invested today, savings range rom $2.50 to as much as

    $17 in the years ahead.

    Arthur J. Rolnick, then-senior vice president o the

    Federal Reserve Bank o Minneapolis, and Robert

    Grunewald, associate economist, calculated an annual,

    infation-adjusted rate o return o 16% or high-quality

    prekindergarten or disadvantaged three- and our- yearolds.2 These returns are based on long-term educational,

    social, and economic benets, including increased

    earnings and tax revenues and decreased use o welare

    and other social services, resulting in lower expenses or

    states and communities.

    JamesHeckmanistheHenrySchultzdistinguishedserviceprofessorofeconomics

    at the University o Chicago, a winner o the Nobel Prize in Economic Sciences, and

    anexpertintheeconomicsofhumandevelopment.Hisgroundbreakingworkwitha

    consortium o economists, developmental psychologists, sociologists, statisticians, and

    neuroscientists has proved that the quality o early childhood development heavily

    infuences health, economic, and social outcomes or individuals and society at large.

    Heckmanhasprovedthatgreateconomicgainscanbehadbyinvestinginearly

    childhood development or disadvantaged children. As a result o his research, he has

    developedaformulaknownastheHeckmanEquation.

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    U.S. CHAMBER OF COMMERCE 7

    Why Business Should Support Early Childhood Education

    INVEST: Invest in educational and development resources or disadvantaged

    amilies to provide equal access to successul early human development.

    DEVELOP: Nurture early development o cognitive and social skills

    in children rom birth to age ve.

    SUSTAIN: Sustain early development with eective educationthrough to adulthood.

    GAIN: Gain a more capable,

    productive, and valuable workorce

    that pays dividends to America or

    generations to come.

    Dr.Heckmansresearchontherates

    o return to human capital investment

    at dierent ages clearly shows that the

    earlier the intervention occurs, the greater

    its payo. Investments made rom birth to

    age ve yield the highest return. The later

    the investments are made, the lower the

    return on investment.

    Rates of Return to Human Capital Investment at Different Ages:Return to an Extra Dollar at Various Ages

    Programs targeted towards the earliest years

    Preschool programs

    Rateofreturntoinvestm

    entinhumancapital

    Schooling

    03 45Preschool

    School Post-school

    Job training

    Age

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    8 INSTITUTE FOR A COMPETITIVE WORKFORCE

    The Rationale

    Additionally, research tells us the ollowing:

    Therstveyearsarethemostcriticalinthe

    development o a childs brain.Duringtheseearly

    years, children begin to develop their cognitive, social,

    emotional, and language skills and start to relate to

    and interact with the world around them. In act, rom

    birth to age three, children grow and learn at the most

    intense rate; these are the years when children are

    learning how to learn. The rst ve years represent the

    pivotal juncture o nurture and nature and how theyshapethedevelopmentofyoungminds.Heckmans

    research demonstrates that investments made in these

    early years yield the highest rates o return to society.

    Achievementgapsdevelopwellbeforechildrenbeginkindergarten. Because school

    readiness and language development are key predictors o a childs academic success, they

    are the ocus o early childhood education programs. Unortunately, many children who do not

    participate in high-quality preK or early childhood programs are in general not ully prepared

    to begin school. In the United States, those most likely to begin kindergarten at an academic

    disadvantage are low-income and minority children. Research also tells us that students who

    begin school behind have a tendency to remain behind throughout their academic careers.

    High-qualitypreKprogramsforthree-andfour-year-oldscanhaveasignicantimpacton

    allchildren,butespeciallythosefromlow-incomefamilies. Research shows that quality early

    education programs have positive impacts on all childrens cognitive and language development,

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    U.S. CHAMBER OF COMMERCE 9

    Why Business Should Support Early Childhood Education

    regardless o income level or program setting. For example, a

    study o the current preK program in Tulsa, Oklahoma ound

    that children rom amilies earning more than 185% o the

    ederal poverty level made signicant gains in early literacy

    skills.3 This is important because middle-income children also

    experience educational challengesduring the 20052006

    school year, more than hal o all dropouts were rom middle-

    income amilies, and 10% o all middle-income children age

    16 to 19 have been retained in grade at least once.4

    While preK or all may have the greatest total impact, the

    largest per-child impact is clearly on disadvantaged children.

    Longitudinal research on low-income children in high-quality

    preK programs also indicates that these children, compared

    with their peers who did not participate, exhibit stronger early

    reading and math skills and show signicant gains in social and emotional skills, reduced grade

    retention, reduced placement in special education, increased likelihood o being in school at

    age 21, and increased likelihood o attending a our-year university.

    Meaningfulinvestmentsinqualityearlylearningprogramsforyoungerchildrenhave

    lastingeffectsthatcanreducecostslaterinlifewhileenhancingeconomicgrowth.

    Interventions early in lie have a higher rate o return than later interventions. Longitudinal

    research has shown gains among program participants so signicant that they have resulted

    in positive outcomes through adulthood. Specically, program participants were less likely

    to be involved in criminal activity or be arrested; less likely to rely on social services such as

    welare; less likely to have children out o wedlock; and more likely than nonparticipants to

    earn more, own a home, or own a second car.

    Ahigh-qualityearlychildhoodeducationcanhelpbreakthecycleofpoverty. Early

    environments (i.e., cognitive and noncognitive stimulation) are a powerul predictor o

    success in adulthood. A wealth o brain research concludes that early experiences have

    a proound impact on cognitive, social, and emotional development. Providing young

    children with a strong start early on can help counteract disadvantaged environments.

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    10 INSTITUTE FOR A COMPETITIVE WORKFORCE

    The Early Childhood Education Landscape

    The early learning landscape is complex. It involves

    a mix o public and private unding streams, a variety

    o program settings and requirements, and dierent

    eligible populations. In addition, it has grown moreimportant as the proportion o children in amilies with

    both parents working has increased.

    Participation in Out-o-Home ProgramsThe Shriver report5 shed new light on the composition

    o the current workorce. The percentage o women in

    the workorce is nearing 50% and continues to grow.As

    womens labor orce participation rates have increased,

    so has childrens participation in out-o-home programs.

    Despitethistrend,parentalaccesstofull-day,full-year

    programs is oten a challenge, and not all programs

    provide a high-quality child development and early

    learning experience. Program quality and availability

    varies widely within each type o setting as well as

    across settings.

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    U.S. CHAMBER OF COMMERCE 11

    Why Business Should Support Early Childhood Education

    Today, there are approximately 20.3 million6 children under age ve across America, 45% o

    whom are minorities7 and 21% o whom live below the poverty line.8 Nearly 12 million are in

    some orm o out-o-home care while their parents are at work, spending on average 36 hours

    per week in the care o someone other than a parent.9 More than 1 million o these children are

    three- or our-year-olds who are enrolled in state-unded preKprograms,orfederalHeadStart

    or special education programs.

    Among amilies with children age six or younger, 77% have a parent who is in the labor orce.10

    Nationally, about three-quarters o children rom upper income amiliesbut only hal o

    children rom low-income amiliesare enrolled in public or private preK.11 Middle-income

    amilies are increasingly being squeezed by the cost o early education; the average amily o

    our with two young children spends 29% o its monthly income on early education and care.12

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    12 INSTITUTE FOR A COMPETITIVE WORKFORCE

    The Early Childhood Education Landscape

    Where are children being served?As more households have both parents in the workorce, children are in

    out-o-home settings in large numbers. Programs are oered in a variety

    o settings, such as amily child care homes, child care and early learning

    centers, and public schools. Children are oten in multiple settings,

    depending on their ages and the needs o their parents, especially those who

    work and need sae, reliable, and stimulating experiences or their youngchildren throughout the workday and work year. For example, a our-year-old

    may go to a preK program at a public school or 2.5 hours and spend the

    remainder o the day at home or in a program oered at a child care center.

    The combination o ages, schedules, public and private programs, and

    individual amily needs can make the possibilities appear endless.

    How are these programs unded?For early childhood education as a whole, parents pay the bulk o the costs;

    however, a mix o ederal and state unding is available to provide additional

    support or some eligible amilies. Programs that provide services are oten

    supported through multiple unding streams that can include ederal, state,

    and local public unds as well as private unds. Federal unds come primarily

    throughtheU.S.DepartmentofHealthandHumanServicesandinclude

    theChildCareDevelopmentBlockGrant(CCDBG),TemporaryAssistance

    forNeedyFamilies(TANF),HeadStart,andEarlyHeadStart.Otherfunds

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    U.S. CHAMBER OF COMMERCE 13

    Why Business Should Support Early Childhood Education

    areprovidedthroughtheU.S.DepartmentofEducation,includingTitleIoftheElementaryand

    SecondaryEducationActandtheIndividualswithDisabilitiesEducationAct.Childrenenrolledin

    programs may be supported by multiple sources o unding, depending on their parents incomeand employment status.

    States provide matching amounts or ederal child care unding, and 40 states have invested in

    state-unded preK programs. Financing or state preK initiatives can come rom various sources,

    including the states K12 unding ormula, general revenue, lottery or gaming unds, or tobacco or

    other sin tax dollars.13 In recent years, states

    have signicantly increased preK unding and

    the number o children being served.14

    Nationally, amilies pay 60% o early care

    and learning costs or children under age

    ve. Local, state, and ederal governments

    pay 39% o the costs, while the private

    sector (businesses and philanthropies) pays

    the remaining 1%.15 Sources o early care and learning costs as percentages

    Familycontribution

    60%

    Business andphilanthropy

    1%

    Governmentunds39%

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    14 INSTITUTE FOR A COMPETITIVE WORKFORCE

    The Early Childhood Education Landscape

    What is required o the programs?Programrequirementsvary.Forinstance,HeadStart

    is a ederal-to-local program or low-income children

    that operates with the same criteria or participation

    and operation in each state. It oers a variety o

    comprehensive services. In contrast, programmatic

    details and participation criteria vary rom state to state

    or state-unded preK programs. States also require

    licensed child care centers and homes to meet minimum

    health and saety standards, which typically are not

    required o schools providing state-unded preK in their

    classrooms, which have their own regulations.

    Programqualitycanvarywidelyacrossthesesectors.High-

    quality early childhood education can be ound in child care

    centers,familychildcarehomes,HeadStartprograms,

    and public preK classrooms. Sadly, poor quality education

    exists in each o the programs as well. To encourage

    providers to oer the highest quality programs, nearly hal

    o the states have begun to develop or implement Quality

    Rating and Improvement Systems (QRIS) that distinguish

    between providers who have met dierent quality

    standards, communicate these ratings to parents, and in

    the best cases provide supports or programs to reach and

    maintainhigh-qualitylevels.However,notallQRISincludes

    amily child care, and most do not rate public school preK

    programsorHeadStartgrantees.

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    U.S. CHAMBER OF COMMERCE 15

    Why Business Should Support Early Childhood Education

    Who is eligible or these programs?All programs are voluntary. Eight states (Florida, Georgia, Illinois, Iowa, Louisiana, Oklahoma,

    NewYork,andWestVirginia)plusWashington,D.C.,havecommittedtopreK or all

    children. Some o the states have not yet put ull unding in place, and initial resources

    generally target at-risk children. Thirty-two states oer preK only to at-risk children, using

    eligibility criteria such as parental income, homelessness or being an English language learner.

    Ten states do not provide state unding or preK.

    All o the ederal programs have eligibility requirements tied to income. Other programs may

    haveadditionalrequirements;forexample,CCDBGandTANFrequireparentstobeworking

    or in an approved school or training program in order or their children to be eligible. Other

    actors may be taken into consideration or eligibility, such as a childs welare status (e.g.,

    oster care) or a parents employment in the military or a rst responder occupation (e.g.,

    police or re) or state-unded preK programs.

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    16 INSTITUTE FOR A COMPETITIVE WORKFORCE

    Promising Practices

    Despitethesecomplexities,earlychildhoodeducationoers great promise and may be a rewarding area o

    infuence or the business community. Every sector o

    society has a stake in the uture o children and should

    be active partners in their success. To make critical

    improvements to our educational inrastructure, business

    must lend its experience and expertisenot just its

    money and goodwill. Several states, in collaboration with

    local and state chambers o commerce and businesses,

    have made great accomplishments.

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    U.S. CHAMBER OF COMMERCE 17

    Why Business Should Support Early Childhood Education

    VirginiaThe Greater Richmond Chamber o Commerce is a preK leader. Businesses, policymakers,

    health and human services agencies, communities at large, and child advocates have been

    working together to promote quality early childhood development programs, both public

    and private. Regarding early childhood education as an economic security and workorce

    developmentissue,businessleadersfromChestereld,Hanover,Henrico,andRichmondwork

    in partnership with Success By 6, a United Way early learning initiative, to achieve ve goals:

    IncreaseVirginiasnancialinvestmentsintheVirginiaPreschoolInitiative,HealthyFamilies,andtheChildrensHealthInvolvingParentsofVirginiaprogram.

    Investinearlychildhoodeducationprogramsbyinuencingpolicy,promotingthebenets

    o participation in preschool programs, or contributing money.

    Investinthechildcareindustryandprovideincentivestocreateandimprovequality

    child care programs.

    Supportchildcareworkforcedevelopmentbyinvestinginscholarshipsandprovide

    incentives or child care workers to upgrade their education and reduce turnover

    through salary increases.

    Understandthechildcareneedsofemployees,includingtheavailabilityand

    aordability o child care and how child care aects employees and the workplace.16

    The success o the partnership among these entities has culminated in the development o

    a rigorous regional plan outlining a comprehensive, high-quality early childhood education

    system built on best practices and public-private partnerships. This plan provides a template

    or other chambers interested in mobilizing the business community around preschool.

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    18 INSTITUTE FOR A COMPETITIVE WORKFORCE

    Promising Practices

    North CarolinaNorth Carolina and its business community have a history o strong support or preK programs.

    In1993,Gov.JimHuntcreatedtheDivisionofChildDevelopmenttomanageandcoordinate

    North Carolinas early childhood education and child care services. Smart Start, a public-privateearly childhood education initiative begun in 1993, provides early childhood unding to programs

    in each o the states counties. With signicant annual state and private contributions, the initiative

    has grown into a nationally recognized model noted or its sustainability, quality, structure, and

    breadth.17 Smart Start unds are distributed through local partnerships and are used to improve

    quality and expand access and services or children rom birth to age ve and their amilies.

    Huntssuccessor,Gov.MikeEasley,initiatedMoreatFourin2001,apre K program unded

    by the states lottery. Together, More at Four and Smart Start serve a large number o the states

    disadvantaged our-year-olds. Because early childhood education is such a critical issue or the

    state, local chambers have joined the eort to promote it and garner additional public support.

    TheDurhamChamberofCommerce,forexample,hasincorporatedearlychildhoodeducation

    into its economic development agenda.

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    U.S. CHAMBER OF COMMERCE 19

    Why Business Should Support Early Childhood Education

    MinnesotaMinnesotas business community has taken an active lead in the states investments in early

    learning. In 2003, business leaders launched Minnesota Business or Early Learning (MnBEL) to

    raise awareness about early childhood education, to identiy and promote best practices in the

    workplace, and to impact public policy.18

    Today, MnBEL is a 200-member organization composedo high-level business executives rom more than 100 companies and organizations across the

    state. MnBEL also works collaboratively with other business organizations, including the Minnesota

    Chamber o Commerce and a number o local chambers throughout the greater Minnesota area.

    In 2005, MnBEL established the Minnesota Early Learning Foundation (MELF) to explore eective

    and cost-ecient ways to provide quality early learning services to children and engage amilies

    in the process. Based on research ndings,19 MELF launched two initiatives: Innovation Projects

    and Comprehensive Scalable Community Projects. MELFs standout project is the St. Paul

    Early Childhood Scholarship Program. This initiative pilots the market-based scholarship model

    developed by Art Rolnick and Rob Grunewald o the Federal Reserve Bank o Minneapolis in

    collaboration with the oce o the mayor o the city o Saint Paul, the Federal Reserve Bank, and

    theMinnesotadepartmentsofHumanServicesandEducation.20 The Scholarship Program mentors

    parents and assists them in selecting high-quality programs or their children and provides two-year

    scholarships to low-income amilies o three- to ve-year-olds to pay or these programs. As the rst

    pilot o this model, the St. Paul Childhood Scholarship Program has gained national attention.

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    20 INSTITUTE FOR A COMPETITIVE WORKFORCE

    Promising Practices

    CaliorniaIn 2005, the Los Angeles Area Chamber o Commerce became the rst organization to endorse

    a state ballot initiative to make preK programs available to every our-year-old in the state.

    Although the chamber had previously opposed similar measures and unding mechanismsto support voluntary preK programs, its board o directors decided that preK programs

    are a necessary investment in children, the workorce, and the states education system

    overall. Although voters ailed to pass the 2006 initiative, the Los Angeles chambers position

    represented a shit in the business communitys support or early learning public policy.

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    U.S. CHAMBER OF COMMERCE 21

    Why Business Should Support Early Childhood Education

    Washington StateThe Greater Seattle Chamber o Commerce, with a major commitment to educational

    excellence, supports the Business Partnership or Early Learning (BPEL). BPEL is a coalition

    o area business leaders dedicated to closing the school readiness gap by investing in earlylearningfortwo-andthree-year-olds.TheParent-ChildHomeProgramworkswithlow-income

    and minority parents and amilies who do not speak English as their primary language to

    address school readiness.

    The program provides two years o home visits (two visits each week or 23 weeks), provides

    mentoring and coaching to parents, gives gits o educational toys and books, and ocuses

    on preliteracy skill development. Plan and Learn Groups, the second component o the BPEL

    program, oer amilies the opportunity to participate in inormal weekly play-and-learn groups

    to enhance the development o childrens noncognitive skills. Assessment data reveal that

    amilies who participate or the ull two-year period show positive and signicant gains in

    behaviors that are consistent with long-term outcomes.21

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    22 INSTITUTE FOR A COMPETITIVE WORKFORCE

    Conclusion

    Early childhood education is not only a smart investment with positive returns, but it

    is the right thing to do. Our nation cannot aord the cost o inaction. In decades past,

    the United States proudly claimed premier international status as home to the best and

    brightest. Todays U.S. rankings, however, prove that we have a long way to go to reach

    the top o the list again.

    With current early childhood education resource levels, too many kindergarteners will

    continue to begin school ill-prepared, language skills and achievement scores in math and

    reading will likely remain at mediocre levels, costs or interventions during the K12 years

    and ater will continue to rise, high school graduation rates and postsecondary degree

    completion rates will likely remain unchanged, and businesses will lack the necessary

    workorce to ll the jobs o the uture.

    The research is clear. Early learning opportunities or children rom birth to age ve have

    great impact on a childs development and build a strong oundation or learning andsuccesslaterinlife.Othercountriesknowwhatwearejustguringout.High-quality

    preK programs can have a signicant short- and long-term impact on children and

    society. Early learning interventions, ollowed by other high-quality learning experiences,

    maximize the benets o early childhood programs. ICW believes that all children can

    benet rom early learning. This is why ICW recommends the ollowing:

    Supportinganddirectingtheexpansionofhigh-qualityprogramstoserveyoung

    childrens development and learning, including state-unded preK delivered in a

    varietyofsettingssuchasschools,childcarecentersandhomes,andHeadStart

    agencies, with public unding targeted to low-income children rst.

    Hiringqualiedandeffectiveearlychildhoodeducatorswiththeknowledgeand

    skills necessary to teach young children.

    Developingmixedproviderdeliverysystemsthatsupportparentalchoiceandtake

    advantage o public, private, and nonprot providers and their various settings.

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    U.S. CHAMBER OF COMMERCE 23

    Why Business Should Support Early Childhood Education

    Integratingearlylearningandcare

    systems or children rom birth to age ve.

    Makingbestuseofexistingresourcesby

    coordinating local, state, and ederal eorts.

    Developingseamlesstransitionsfromthe

    early childhood education system to the

    K12 system to create a continuum o

    lielong learning.

    Increasingtheavailabilityofhigh-quality,

    ull-day, and/or year-round programs that

    support working parents where needed.

    Collectingdataandconductingthe

    research needed to identiy best practices,

    assess system perormance, and report

    these results to the general public.

    In addition to these eight recommendations,

    ICW has compiled a list o action items to

    encourage greater business involvement in

    early childhood education. These actions

    outline state- and business-level activities in

    which business leaders may choose to engage.

    More inormation on action items, as well as

    a summary o the economic evidence behind

    investments in early childhood education can

    be ound at www.uschamber.com/icw or

    www.PartnershipforSuccess.org.

    Education in America:

    The Straight Facts

    Thereisnotasinglestatewhere

    50% or more o the children are

    profcient in reading or math.Only one-fth o low-income

    and minority ourth and eighth

    graders are profcient in reading

    and math.22

    Only70%ofninthgraders

    graduate rom high school

    within our years. Among blacks

    and Hispanics, this number

    decreases to just hal.23

    Outof30industrializednations,

    U.S. 15-year-olds rank 25th inmath and 21st in science.24

    SeventypercentofU.S.eighth

    graders read below a profcient

    level.25

    TwentypercentofU.S.workers

    are unctionally illiterate and

    innumerate.26

    For more national statistics and

    international comparisons, see

    Appendix B.

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    24 INSTITUTE FOR A COMPETITIVE WORKFORCE

    TakeAction

    1. Connectwithyourstateearlychildhoodadvisorycouncil.

    The more you know about the goals and programs in your state,

    the easier it is or you to be a good partner.

    2. Familiarizeyourselfwiththebenetsofhigh-qualityearly

    learning programs.Understanding the benets o these

    programs and telling others about them will help create

    communities o children who are ready or school.

    3. Visitahigh-qualityearlylearningsite.Knowing what a high-

    quality program looks like and how it runs can help you be a

    better advocate and understand what it means to give young

    children a strong start.

    4. Adoptpoliciesinyourbusinessthatsupportsworkingparents.

    When possible, implement programs and policies that help your

    employees become better inormed and more engaged in theirchildrens learning and development.

    5. Educate employees on the value o early childhood education.

    Whether or not children rom birth to age ve are at home, they

    need the social, emotional, cognitive, and physical preparation

    that will help them be ready or kindergarten.

    6. Conveytopolicymakersyoursupportforpublicinvestmentin

    early education. As someone who does not have a vested interest

    in the early childhood education eld, business leaders make

    powerul messengers in support o public investment or eective

    programs. Communicate the evidence behind early education in

    a variety o orumspublic meetings, personal communications,

    and through the media.

    Six Actions a Businessperson Can Take

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    1. Support a mixed provider delivery system. Whether early childhood programs are

    delivered by public, private, or nonprot providers, communities should ensure that

    quality programs are available and convenient or the amilies who need them.

    2. EncourageearlylearningsystemandK12alignment.Too oten, children are

    in programs that do not adequately prepare them or success in kindergarten.

    Encouraging better alignment between early learning programs and

    kindergarten will help children learn to the best o their ability.

    3. Promote early learning policies as part o the economic development agenda.

    Several studies have shown the return on investment that early learning

    programs can bring to communities. From the number o people employed to

    the supports provided to working parents to the long-term benets or children

    who attend high-quality programs, early learning policies should be considered

    with the economic development plans.

    4. Encouragetheinclusionofearlychildhooddatainthestatewidelongitudinaldata system. As a nation, we need more inormation about which programs work,

    who benets, and where we need new and better solutions. Tying early childhood

    data to statewide longitudinal data systems will help provide the inormation that

    policymakers and parents need.

    5. Encourage your state to adopt a Quality Rating Inormation System (QRIS).

    Many states have worked to implement QRIS to distinguish between high-quality

    programs and programs that need improvement. Rating systems are one way to

    achieve transparency and accountability so that parents and policymakers know

    which programs meet quality standards.

    6. Encouragebusinessorganizationsandnetworkstoadoptapolicyposition

    insupportofpublicinvestmentsforeffective,highqualityearlyeducation

    programs. Many chambers have included such a statement in their public policy

    agenda. Ensure that your chamber, as well as other business networks such as

    Rotary, Kiwanis, and others, adopts this priority and ollow up with policy makers.

    Six Actions the Business Community Can Take

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    26 INSTITUTE FOR A COMPETITIVE WORKFORCE

    Appendix A

    The Critical Research on Early Learning

    Over the past our decades, a tremendous library o scientic research on early learning has been

    assembled. Rigorous longitudinal studies have assessed the eects o high-quality preK programs on

    program participants. These studies identiy the short- and long-term individual and societal benets

    o quality preK programs and have been instrumental in calculating early childhood education return

    on investments. Additionally, brain research on the development o young children has documented

    the vast capacity or learning during the early years and underscores the importance o early learning

    opportunities or school readiness. Following is a review o pertinent brain research, as well as synopses

    o the three most highly regarded scientic research studies conducted on early learning programs.

    Brain Research

    Research in neuroscience, molecular biology, genetics, developmental psychology, and child

    development has taught scientists a great deal about neural circuitry, genetics, and the eects o

    early experiences on brain architecture. This research also documents the interdependence o

    cognitive,social,andemotionalcapacities.JamesHeckman,NobelLaureateinEconomicSciences

    rom the University o Chicago, has analyzed and synthesized research ndings rom well-documentedstudiesconductedonbothhumansandanimals.Heconcludedthatearlylearningbegetslater

    learning, and skill begets skill. In other words, knowledge and skill build upon themselves; the

    strongerthefoundation,thegreaterthelaterattainment.Heckmanexplainedthesciencebehindhis

    conclusions as ollows.

    Neural circuits, which infuence our cognitive capacities, exist in a hierarchy and have sensitive

    periods during which they are most elastic and responsive to experiences. Lower level circuits, which

    perorm more basic unctions, close beore higher level circuits and are most sensitive during the

    early(juvenile)years.Higherlevelcircuitsdependonqualityinformationfromlowerlevelcircuitsto

    perorm their tasks. Consequently, there is a progression or ordering o the sensitive periods. As a

    result, research suggests a causal relationship between early environments and experiences and both

    cognitive and noncognitive outcomes.

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    It is through these sensitive periods that neural circuits mature. Experiences during the sensitive

    periods activate the circuits and have the ability to change their architecture, chemistry, and gene

    expression and can impact the behaviors they infuence. These changes then aect the ways that

    neural circuits process and respond to inormation. Early mastery o a range o cognitive, social, and

    emotional competencies makes learning at later ages more ecient and thereore easier and more

    likely to continue.27

    AccordingtoDr.JackShonkoff,professorofchildhealthanddevelopmentanddirectorofHarvard

    UniversitysCenterontheDevelopingChild,Nurturingandresponsiveinteractionsbuildhealthybrain

    architecture that provides a strong oundation or later learning, behavior, and health.28 Shonko

    urther explains that toxic stress, dened as extreme poverty in conjunction with continuous amily

    chaos, physical or emotional abuse, chronic neglect, severe maternal depression, substance abuse, or

    amily or community violence, intereres with the maturation o healthy neural circuits and aects the

    brains architecture.29This,inturn,affectsthebrainsstressmanagementsystems.BothHeckman

    and Shonko conclude that these impoverished early environments have a negative infuence on

    susceptible neural circuits during their sensitive periods and thereore reduce capacity.

    Basedonscienticresearchontheformationanddevelopmentofthebrain,Heckman,Shonkoff,

    and others rmly agree that early childhood education is likely more ecient and less costly than

    interventions later in lie.

    Rigorous Research Studies o Prekindergarten Participants

    TheHigh/ScopePerryPreschoolProgram, in operation rom 1962 to 1967, provided high-quality

    preK programs to low-income three- and our-year olds in Ypsilanti, Michigan. The program oered

    2.5 hours o prekindergarten each weekday or two academic school years, 1.5 hours o weekly home

    visits, meetings with parents, a small student-to-teacher ratio o 7:1, and high-quality teachers with

    training in early childhood development and special education.30 Program participants have been

    tracked or more than 40 years, and the longitudinal data indicate that the program contributed

    signicantly to their educational perormance, economic productivity, and social responsibility.

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    Appendix A

    Compared with a similar group o nonparticipating children who were randomly assigned into the

    controlgroup,High/ScopePerryparticipantsexhibitedthesecharacteristics:

    Higherscoresonintelligenceandlanguageteststhroughageseven31

    Higheracademicachievementscoresatage1432

    Feweroverallarrestsandfewerdrug-relatedarrests

    Highermonthlyearnings

    Greaterhomeownership

    Greaterownershipofasecondcar

    Lessuseofwelfareassistanceorothersocialservices

    HighergraduationorGEDattainmentrates

    Longermarriages

    Fewerbirthsoutofwedlock33

    The average program cost per participant was $15,166 (in year 2000 dollars), while the individual net

    benets have been calculated at $243,722, a benet-cost ratio o 17:1. The net benets break

    down as ollows:34

    Participants:25%(primarilyintheformofincreasedearnings)

    Generalpublic:75%

    Crime savings: 66%

    Increased tax revenue: 5%

    Education savings: 3%

    Welare savings: 1%

    The Chicago Child-Parent Centers(CPC) are ederally unded interventions or low-income minority

    children rom high-poverty neighborhoods in Chicago. Created in 1967 and still in existence today,

    CPC oers a preK program, a kindergarten program, and at select sites an early elementary school

    program up to grade three. The preK program provides part-day services to three- and our-year

    olds or the academic school calendar, ocuses on early reading and math skills, maintains a child-

    teacher ratio o 17:2, employs teachers with a bachelors degree and certication in early childhood

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    education, pays teachers the equivalent o K12 salaries, and makes a parent-resource teacher and

    school-community representative available at each location to provide reerral services to amilies and

    conduct home visits.

    The Chicago Longitudinal Study, which ollowed program participants through age 24, ound that

    participants in the preK program or three- and our- year olds accomplished the ollowing:

    Achievedhigherreadingandmathscoresthroughgradenine

    Academicallyoutperformednonparticipants

    Werelesslikelytobeheldbackinschool

    Werelesslikelytobeplacedinspecialeducation

    Experiencedlowerratesofofcialjuvenilearrests

    The longer a child participated in a CPC program, the greater his or her academic achievement.

    Children who participated or more than our years yielded signicantly higher math achievement, lie

    skills competence, and lower rates o grade retention and special education placement.35 The study

    also shows that male participants beneted in the areas o achievement and educational attainment,while emale participants beneted more rom participation in ollow-on programs in reading and

    math. Additionally, children in the highest poverty neighborhoods beneted more than children in

    lower poverty neighborhoods in school achievement and educational attainment.

    The benet-cost ratio o this program was determined to be 7.14:1. The average program cost per

    participant is $6,692, while the average net benet to participants is calculated at $41,067 (in 1998

    dollars). The net benets break down as ollows:36

    Participants:46%(primarilyintheformofincreasedearnings)

    Generalpublic:54%

    Crime savings: 28%

    Increased tax revenue: 15%

    Education savings: 9%

    Welare savings: 1.6%

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    Appendix A

    The Carolina Abecedarian Project37inChapelHill,NorthCarolina,offeredhigh-qualitychildcareandpreK

    programs to low-income children rom birth to age ve. The program provided ull-day (10-hour) services

    each weekday or 50 weeks a year, instituted a child-teacher ratio o 3:1 or inants and toddlers and 6:1

    or preK and kindergarten-aged children, ocused on language development, and oered medical and

    nutrition services to participants.38 The study ound that students in the program age 18 months through

    program completion scored signicantly higher on intelligence tests than children who did not receive this

    care. Program participants were ollowed through age 21. Major ndings include higher reading and math

    scores, higher intelligence test scores, enhanced language skills, lower grade retention rates, lower special

    education rates, and higher postsecondary education enrollment rates. Further, program participants were

    signicantly more likely than nonparticipants to still be in school at age 21 (40% and 20%, respectively) and

    signicantly more likely to have ever attended a our-year college (35% and 14%, respectively).39

    The benet-cost ratio o this program is calculated to be 2.5:1. The average cost per participant over a

    ve-year period is $65,476, while the average net benets are calculated at $94,802 (in 2002 dollars).

    The net benets break down as ollows:40

    Participants:94% Generalpublicandthegovernment:6%

    Current StudiesIn addition to these long-term studies, a variety o new reports have ound that

    current state-unded preK programs are having an impact. For example, an evaluation o the New

    Mexico program rom 2006 to 2008 ound signicant benets in the areas o early language literacy,

    and math, with an estimated $5 return in New Mexico or every dollar invested by the statean 18%

    return.41 A study o New Jerseys Abbott Preschool Program ound signicant academic gains, as well as

    a 30% less grade retention in rst grade among children who attended one year and up to 50% less or

    those who attended at both ages 3 and 4.42

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    Addressing the CriticsAlthough the research on these long-term studies is thorough, some critics question its applicability to

    current publicly unded programs or the ability to replicate results given current levels o unding. The Perry,

    Abecedarian, and CPC programs are known or being programs o the highest quality. They were well unded,

    employed highly credentialed and well-compensated teachers, maintained small student-teacher ratios,

    established meaningul relationships with parents, and provided health services and other supports to amilies.

    While todays high-quality programs may not have the resources aorded to the Perry, Abecedarian,

    and CPC programs, many highly eective preK programs are positively impacting students today.

    Many serve as models and are being replicated or scaled up. There is growing evidence that state-

    unded programs are producing results. Although it will take time to ensure that every program is o

    the highest quality, there is no reason to lower our preK program expectations.

    Some critics are also skeptical o the benets o preK because o a misconception that some academic

    gains ade-out by third grade. What is actually happening in these studies is not that children are losing

    their skills, but that some children who didnt go to preK appear to catch up in terms o knowledge

    that can be measured. This may be due to those children receiving intensive (and expensive) remedialprograms. On the other hand, the comparison children may have been dierent rom the children in

    preK programs in terms o amily income, education, or other actors that help them catch up. Also,

    while the IQ advantage that preK participants have over their peers can ade, the advantage they gain

    in specic academic skills in reading and math and in social and emotional development do not. Those

    skills are an even greater determinant o nal outcomes, such as graduation, employment, and lawul

    behavior, than academic knowledge.43 Another study in the United Kingdom, which oers preK to all

    children, ound that benets o high-quality programs last beyond kindergarten.44

    There is some evidence that children who do not participate in preK programs can catch up, but

    it is unclear why. Research is under way to discover whether intensive (and expensive) remedial

    programs or amily income and education are the reason. Additionally, the concept o ade-out

    neglects to take into account the quality o elementary schools that preK program participants attend.

    It is highly possible that ade-out is more closely associated with elementary school quality than with

    early childhood education quality, thus making the case or elementary school improvement and the

    alignment o early childhood education with the early elementary grades.

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    Appendix B

    The Straight Facts

    To put the early childhood education debate into perspective, the ollowing statistics give an idea o where

    the country stands on measures o school readiness, academic and personal success, well-being, and

    workorce readiness and participation. These statistics provide the big picture o education in America

    and highlight the skills gap among students. While the K12 and postsecondary education systems need

    signicant improvement to better serve all students, starting with high-quality early learning and preK

    programscanhelpbuildastrongfoundationforlearningandlong-termsuccess.However,greatstridesin

    program expansion and quality improvements are necessary i we are to ensure that every child has the

    opportunity to participate in highly eective early learning programs.

    National Employer Statistics

    Ninetypercentofthefastest-growingjobsinAmericarequiresomepostsecondaryeducation.

    Fortypercentofhighschoolgraduatescannotreadataneighthgradelevel.45

    TwentypercentofU.S.workersarefunctionallyilliterateandinnumerate.46

    International Comparisons

    U.S.15-year-oldsrank25thoutof30industrializednationsinmath.47

    U.S.15-year-oldsrank21stoutof30industrializednationsinscience.48

    TheUnitedStatesranks20thoutof28OrganisationforEconomicCo-operationandDevelopment

    (OECD)countriesinhighschoolgraduationrates.49

    TheUnitedStatesranks15thof27OECDcountriesincollegegraduation.50

    TheUnitedStatesranks2ndoutof27countriesinthepercentageofstudents(morethan40%)

    who enter college and leave without earning a degree. Fewer than 60% o U.S. students complete

    their undergraduate education.51

    K12AcademicProciency

    Thereisnotasinglestatewhere50%ormoreofthechildrenareprocientinreadingormath.

    Only20%,oflow-incomeandminorityfourthandeighthgradersareprocientinreadingandmath.

    Only32%offourthgradersand29%ofeighthgradersareprocientinreading.52

    Only39%offourthgradersand31%ofeighthgradersareprocientinmath.53

    AverageperpupilspendingforK12educationis$8,973(adjustedforregionalcostdifferences).54

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    HighSchoolGraduation,CollegeReadiness,andCollegeCompletion

    Only70%ofninthgradersgraduatefromhighschoolwithinfouryears.55

    OnlyhalfofHispanicandblackninthgradersgraduatefromhighschoolwithinfouryears.56

    Anestimated53%ofallcollegestudentstakeatleastoneremedialEnglishormathcourseduring

    their college experience.57

    Morethanhalf(54%)ofcollegefreshmangraduatewithabachelorsdegreeinsixyears.58

    Child Well-being

    Atotalof4.2millionchildrenunderageve,or21%ofallchildrenintheUnitedStates,livebelow

    the poverty line.59

    Low-incomechildrenhear3millionwordsayear,middle-incomechildrenhear6million,and

    upper income children hear 11 million.60

    Thirty-vepercentofchildreninsingle-parenthomeshaveamotherwhoisahighschooldropout.61

    A2007UNICEFreportfoundthattheUnitedStatesisinthebottomthirdofrankingsinmanyof

    the six dimensions o child well-being (i.e. material well-being, health and saety, educational well-

    being, amily and peer relationships, behaviors and risks, and subjective well-being).62

    Forchildrenwhomovethreeormoretimesbetweentheagesoffourandseven,theprobabilityoftheir high school graduation decreases 13% below the baseline average o 82%.63

    Motherswithlessschoolingprovidelesscognitiveandemotionalstimulationtotheirchildren.64

    EarlyLearningWorkforce

    Itisestimatedthatonly30%ofthenearly400,000earlylearningteachersandadministrators

    in the United States have a bachelors degree in any eld. And ew teachers have a teaching

    credential, expertise, or specialized training in early care and education66

    TheChildDevelopmentAssociate(CDA)NationalCredentialingProgramsupportstrainingand

    professionaldevelopmentfortheearlychildhoodworkforceandproduces15,000newCDA

    credentialedteachersannually.TheCouncilforProfessionalRecognitionadministerstheCDA

    credentialing program. More inormation is available at http://www.cdacouncil.org/ab_his.htm.

    One-third(1,349)oftheinstitutionsofhighereducationthatofferanassociates,bachelors,

    masters, or doctoral degree in any eld oer an early childhood teacher preparation degree.67

    PreKteachersearnanaverageof$21,000annually,comparedwithelementaryschoolteachers

    who earn an average o $42,000 annually.68

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    Appendix B

    PreKFunding69 Nationally,statesspendanaverageof$4,061perchildenrolledinpreK programs.

    StatespendingonpreK programs ranges rom $1,686 per pupil in Maine to $10,989 per pupil in

    New Jersey (these amounts exclude local spending).

    Nationally,HeadStartexpenditures(whichcovercomprehensiveservicesforparticipants)average

    $7,909 per pupil.

    Nationally,familiespay60%ofearlycareandlearningcostsforchildrenunderageve;local,

    state, and ederal governments pay 39% o the costs; the private sector (businesses and

    philanthropies) pays the remaining 1%.70

    Early Learning Return on Investment

    DisadvantagedchildrenareassociatedwithahigherpreK program rate o return than their more

    advantaged peers.

    PreKprogrambenet-costratioshavebeencalculatedtorangefrom2.5:1tothebestcase

    scenario o 17:1.71

    ArthurJ.Rolnick,then-seniorvicepresident,andRobertGrunewald,associateeconomist,ofthe

    Federal Reserve Bank o Minneapolis calculated an annual, infation-adjusted rate o return o16% or preK programs.72

    JamesHeckman,NobelLaureateinEconomicSciences,ndsthatthereturnstohumancapital

    investments are greatest or the young or two reasons:(1) skill begets skill, and (2) younger

    persons have a longer horizon over which to recoup the ruits o their investments.73

    Interventionslaterinlife,includingjobtraining,adultliteracy,prisonerrehabilitation,and

    education programs or disadvantaged adults (although benecial), yield low economic returns

    compared to early interventions, such as preK programs.74

    Theperformanceofchildrenbenetingfromearlyinterventionsisbetterthanthatofchildrenwho

    beneted rom later interventions, according to multiple studies.75

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    Acknowledgments

    The Institute or a Competitive Workorce would like to thank the ollowing

    people who made this paper possible: primary researcher and writer Elena

    Rocha; advisors Sara Watson, Elanna Yalow, and Nina Rees; and reviewers

    Cornelia Grumman, Eric Karolak, Craig Pascal, and Joan Walters.

    The Institute or a Competitive Workorce would like to thank The Pew

    Charitable Trusts, Knowledge Universe, and PNC Bank or their generous

    support o the Early Childhood Education Initiative. The opinions expressed

    are those o the authors and do not necessarily refect those o the unders.

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    Endnotes

    1 Summary o Essential Findings: A Science-

    Based Framework or Early Childhood Policy,

    HarvardUniversityCenterontheDeveloping

    Child, 2007.

    2 Rob Grunewald and Arthur J. Rolnick,

    EarlyChildhoodDevelopment:Economic

    DevelopmentwithaHighPublicReturn,

    FedGazette (March 2003). Accessed April

    12, 2010 at http://www.minneapolised.org/publications_papers/pub_display.

    cm?id=3832.

    3 The Eects o Oklahomas University Pre-K

    Program on School Readiness: An Executive

    Summary, 2004, by William Gormley, Jr., et al,

    Center or Research on Children in the United

    States, Georgetown University.

    4 Albert Wat, The Pre-K Pinch: Early Education

    and the Middle Class, Pre-K Now,

    November 2008.

    5 MariaShriver,HeatherBoushey,andAnn

    OLeary, The Shriver Report: A Womans

    Nation Changes Everything, Center or

    American Progress, 2009.

    6 U.S. Census Bureau, 20052007 American

    Community Survey. Available at: http://

    actnder.census.gov/servlet/ACSSAFFFacts?_

    submenuId=actsheet_1&_sse=on.

    7 U.S. Census Bureau, Population Estimates,

    May 2006. Estimates are based on the

    2005 U.S. population. See also http://

    www.washingtonpost.com/wp-dyn/content/

    article/2006/05/09/AR2006050901841.html.

    8 U.S. Census Bureau, Current Population

    Survey, Annual Social and Economic

    Supplement, 2007. See table POV01 at

    http://pubdb3.census.gov/macro/032008/pov/

    new01_100_01.htm.

    9 Child Care in America, National Association

    o Child Care Resource & Reerral Agencies.

    Availableathttp://www.kaccrra.org/PDFs/

    EMPpds/CCinAmericaReport_Naccrra.pd.

    10 Working Mothers Need Child Care,

    National Association o Child Care Resources

    & Reerral Agencies. Available at http://

    www.naccrra.org/policy/background_issues/

    working_mothers.php.

    11 Karen Schulman and W. Steven Barnett,

    The Benets o Prekindergarten or Middle-

    Income Children, National Institute or Early

    Education Research, March 2005. Available

    at http://nieer.org/resources/policyreports/

    report3.pd.

    12 Albert Wat, The Pre-K Pinch: Early Education

    and the Middle Class, Pre-K Now,

    November 2008.

    13 DianaStone,FundingtheFuture:States

    Approaches to Pre-K Finance, Pre-K Now,

    February 2006.

    14 Since 2005, there has been a $2.3 billion

    increase in state pre-K program spending and

    the percentage o our-year-old children served

    has increased rom 14% in the 200102

    school year to 24% in the 200708 school year.

    Currently, 40 states have state-unded pre-K

    programs, and Arkansas and Rhode Island

    have pilot pre-K programs. Florida, Georgia,

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    and Oklahoma have universal access subject

    to unding or all our-year-olds; these state

    programs now serve more than one million

    children. A number o other states, including

    Illinois, Iowa, Louisiana, New York, and West

    Virginia, are working toward statewide voluntary

    access programs. The remaining 10 states

    (Hawaii,Idaho,Indiana,Mississippi,Montana,

    NewHampshire,NorthDakota,SouthDakota,

    Utah, and Wyoming) do not oer state-unded

    pre-K programs. O these states, several have

    created early learning councils or commissions,

    plannedpilotprograms,orsupportHeadStart

    and other early care and learning programs.

    15 AnneMitchell,LouiseStoney,andHarriet

    Dichter,FinancingChildCareintheUnited

    States: An Expanded Catalog o Current

    Strategies, 2001 Edition, 2001.

    16 EarlyChildhoodDevelopmentDirectlyAects Economic Vitality, Greater Richmond

    Chamber o Commerce.

    17 Stone, Funding the Future.

    18 Minnesota Business or Early Learning Web

    site, http://www.mnbel.org.

    19 EarlyChildhoodDevelopment:Economic

    DevelopmentwithaHighPublicReturn,

    Federal Reserve Bank o Minneapolis, March

    2003; and Winning Start: A Plan or InvestingWiselyinEarlyChildhoodDevelopment,

    Minnesota School Readiness Business Advisory

    CouncilPolicyTaskForce,December2004.

    20 Minnesota Early Learning Foundation

    Annual Report, Minnesota Early Learning

    Foundations, April 2008.

    21 Organizational Research Services,

    Parent-ChildHomeProgram/Play&Learn

    GroupDemonstrationProject,Summary

    o Evaluation Findings, The Seattle

    Foundation, October 2008. Available

    at http://www.seattleoundation.org/

    newsarticle.cfm?articleID=10022624&PTSi

    debarOptID=19793&returnTo=page28211.

    cm&returnToname=Foundation%20Ma

    terials&SiteID=1851&pageid=28211&S

    IDEPAGEID=28211.Seealsothe2009

    Business Partnership or Early Learning

    Annual Report, The Seattle Foundation,

    2009, at http://www.seattleoundation.org/

    newsarticle.cfm?articleID=10022623&PTSi

    debarOptID=19793&returnTo=page28211.

    cm&returnToname=Foundation%20Materia

    ls&SiteID=1851&pageid=28211&SIDEPAGE

    ID=28211.

    22 Based on 2007 National Assessment oEducational Progress (NAEP) data rom the

    U.S.DepartmentofEducation,Instituteof

    Education Sciences, National Center or

    EducationStatistics,andNAEPDataExplorer.

    23 Jay P. Greene and Marcus Winters, Public

    HighSchoolGraduationandCollege-

    Readiness Rates: 19912002, The

    Manhattan Institute, February 2005.

    24 Organisation or Economic Co-operation and

    Development(OECD).PISA2006:Science

    Competencies or Tomorrows World, Executive

    Summary(Paris,France:OECDPublications,

    2007), Tables 2 and 5. Available at

    http://www.oecd.org/

    dataoecd/15/13/39725224.pd.

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    38 INSTITUTE FOR A COMPETITIVE WORKFORCE

    Endnotes

    25 Eighth-grade NAEP reading test results.

    26 JamesJ.HeckmanandKimitriyV.Masterov,

    The Productivity Argument or Investing

    in Young Children, Executive Summary,

    University o Chicago, October 2004.

    27 JamesHeckman,TheTechnologyand

    Neuroscience o Skill Formation, PowerPoint

    presentation, Invest in Kids Working Group,

    CenterforEconomicDevelopment,Partnership

    or Americas Economic Success (July 17, 2006).

    28 Jack P. Shonko, The Science o Early

    ChildhoodDevelopment,ClosingtheGap

    BetweenWhatWeKnowandWhatWeDo,

    PowerPointpresentation,HarvardUniversity

    (November 30, 2005).

    29 NationalScienticCouncilontheDeveloping

    Child, The Science o Early Childhood

    Development,ClosingtheGapBetweenWhatWeKnowandWhatWeDo,Centeronthe

    DevelopingChild,HarvardUniversity,January

    2007. Available at http://www.developingchild.

    net/pubs/persp/pd/Science_Early_Childhood_

    Development.pdf.

    30 AlbertWat,DollarsandSense:AReviewof

    Economic Analysis o Pre-K, Pre-K Now,

    May 2007.

    31 Ibid.

    32 Ibid.

    33 SignicantBenets:TheHigh/ScopePerry

    PreschoolProject,High/ScopeEducational

    Research Foundation 2005. Available at

    www.highscope.org/Research/PerryProject/

    perrymain.htm.

    34 Schweinhart,TheHigh/ScopePerry

    Preschool Study Through Age 40, Ypsilanti,

    MI.Formoreinformation,seeWat,Dollars

    and Sense.

    35 Chicago Longitudinal Study Newsletter,

    Waisman Center, University o Wisconsin-

    Madison, August 2000. Available at http://

    www.waisman.wisc.edu/cls/NEWSLETN.PDF.

    36 Reynolds, Temple, Robertson, and Mann,

    Age 21 Cost-Benet Analysis o the Title I

    Chicago Child-Parent Centers. For more

    information,seeWat,DollarsandSense.

    37 Early Learning, Later Successes: The

    Abecedarian Study, Executive Summary,

    TheFrankPorterGrahamChildDevelopment

    Institute, The University o North Carolina

    atChapelHill.Availableat

    http://www.pg.unc.edu/~abc/summary.cm.

    38 Wat,DollarsandSense.

    39 The Carolina Abecedarian Project,

    Age 21 Follow-up, Executive Summary, Early

    Learning, Later Success: The Abecedarian

    Study,FPGChildDevelopmentInstitute,

    UniversityofNorthCarolinaatChapelHill

    [[date?]]. Available at http://www.pg.unc.

    edu/~abc/#summary_ollow_up.

    40 Barnett and Masse, Comparative Benet-

    Cost Analysis o the Abecedarian Program and

    Its Policy Implications. For more, see Wat,

    DollarsandSense.

    41 The New Mexico Pre-k Evaluation, 2009, by

    JasonHustedtetal,NationalInstituteforEarly

    Education Research at Rutgers University. http://

    nieer.org/pd/new-mexico-initial-4-years.pd.

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    U.S. CHAMBER OF COMMERCE 39

    Why Business Should Support Early Childhood Education

    42 Ellen Frede et al., The Apples Blossom: Abbott

    Preschool Program Longitudinal Eects Study

    (APPLES) Preliminary Results Through 2nd

    Grade Interim Report, (New Brunswick: National

    Institute or Early Education Research, Rutgers,

    The State University o New Jersey, 2009).

    43 Personal communication, Pro. Steve Barnett,

    4/25/2010.

    44 Preschool Infuences on Mathematics

    Achievement, Science, 321, 2008, by Edward

    C. Melhuish et al.

    45 HeckmanandMasterov,TheProductivity

    Argument or Investing in Young Children:

    Executive Summary. .

    46 Ibid.

    47 OECD,PISA2006:ScienceCompetenciesfor

    Tomorrows World, Executive Summary, Tables

    2 and 5.

    48 Ibid.

    49 OECD,EducationatGlance2008(Paris:OECD

    Publications, 2008), 52. Rates are below the

    average or the 19 European Union countries

    andtheOECDaverage,andrepresentarate

    that has been stagnant over the last decade.

    50 OECD,EducationatGlance2008,75.

    51 Ibid., pp. 92 and 94.

    52 The Nations Report Card, Reading 2007,

    National Assessment o Educational Progress

    atGrades4and8,U.S.Departmentof

    Education, Institute o Education Sciences,

    National Center or Education Statistics, 2007.

    53 The Nations Report Card, Mathematics

    2007, National Assessment o Educational

    ProgressatGrades4and8,U.S.Department

    o Education, Institute o Education Sciences,

    National Center or Education Statistics, 2007.

    54 Quality Counts 2008, Editorial Projects in

    Education, January 2008.

    55 Jay P. Greene and Marcus Winters, Public

    HighSchoolGraduationandCollege-Readiness

    Rates: 19912002, The Manhattan Institute,

    February 2005.

    56 GreeneandWinters,PublicHighSchool

    Graduation and College-Readiness Rates.

    57 AmericanDiplomaProject,ReadyorNot:

    CreatingaHighSchoolDiplomaThatCounts,

    Achieve Inc., 2004. Available at http://www.

    achieve.org/node/552.

    58 Cracks in the Education Pipeline: A Business

    LeadersGuidetoHigherEducationReform,

    CommitteeforEconomicDevelopment,May

    2005. Available at http://www.ced.org/docs/

    report/report_highered.pd.

    59 U.S. Census Bureau, Current Population

    Survey, Annual Social and Economic

    Supplement 2007. See table POV01, available

    at http://pubdb3.census.gov/macro/032008/

    pov/new01_100_01.htm.

    60 B.HartandT.R.Risely,Meaningful

    DifferencesintheEverydayExperienceof

    YoungAmericanChildren,PaulH.Brooks

    Publishing Company 1995.

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    40 INSTITUTE FOR A COMPETITIVE WORKFORCE

    Endnotes

    61 JamesHeckmanandDmitriyV.Masterov,

    The Productivity Argument or Investing in

    Young Children, PowerPoint presentation,

    December3,2004.

    62 Child Poverty in Perspective: An Overview o

    Child Well-being in Rich Countries, United

    Nations Childrens Fund, 2007. Available at

    http://www.unice-irc.org/presscentre/presskit/

    reportcard7/rc7_eng.pd.

    63 TheHiddenCostoftheHousingCrisis:The

    ImpactofHousingonYoungChildrensOddsof

    Success, Partnership or Americas Economic

    Success, Issue Brie #7, July 2008.

    64 HeckmanandMasterov,TheProductivity

    Argument or Investing in Young Children.

    65 StephenHerzenberg,MarkPrice,and

    DavidBradley,LosingGroundinEarly

    ChildhoodEducation:DecliningWorkforceQualications in an Expanding Industry,

    19792004, The Economic Policy

    Institute, 2005. Available at http://www.

    earlychildhoodworkorce.com/losingground/

    ecepd/losing_ground-ull_text.pd.

    66 Valora Washington, Role, Relevance,

    Reinvention:HigherEducationinthe

    Field o Early Care and Education, Aspire

    Institute, The CAYL Institute, The Council or

    Proessional Recognition, National Black ChildDevelopmentInstitute,NationalHeadStart

    Association, National Louis University, Pre-K

    Now, and Wheelock College, September 2008.

    67 Ibid.

    68 Facts and Figures: The Promise o

    Preschool, The National Institute or Early

    Education Research. Available at http://

    nieer.org/docs/?DocID=42.Inadditionto

    pay disparities, pre-K program teachers lack

    the benets and career ladder opportunities

    aorded to K12 teachers.

    69 W.StevenBarnett,DaleJ.Epstein,AllisonH.

    Friedman, Judi Stevenson Boyd, and Jason T.

    Hustedt,TheStateofPreschool2008,

    The National Institute or Early Education

    Research, 2008.

    70 Mitchell,Stoney,andDichter,FinancingChild

    Care in the United States.

    71 Wat,DollarsandSense.

    72 For low-income children in high-quality

    preschools.

    73 J.L.Heckman,InvestintheVeryYoung

    (Chicago: Ounce o Prevention Fund, 2000).

    74 Heckman,TheTechnologyandNeuroscience

    o Skill Formation.

    75 Ibid.

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