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Photo: Caroline Silber for Strategies for Children

Photo: Caroline Silber for Strategies for Children

In 20 years, children who are currently digging in sandboxes and hanging upside down from the monkey bars will have the chance to apply for high-tech jobs in Massachusetts. Sadly, however, what many of these children may not have in 20 years are the skills to fill the state’s future jobs.

It’s already a “war for us in terms of recruiting,” Tom Leighton, CEO of Akamai Technologies, said recently of finding skilled workers at this year’s Early Childhood Summit.

This skills gap is growing now, choking off the pipeline of future workers, and threatening the state’s economic well-being. It’s a problem that makes a powerful case for improving preschool programs and K-12 education across the state.

A new report — “Closing the Massachusetts Skills Gap: Recommendations and Action Steps” — released by the Commonwealth Corporation provides demographic details, noting that, “Although the Commonwealth’s workforce is the best-educated of all the states, … a very high concentration of our most educated workers are 45 years or older.”

“Our younger workforce is neither large enough, nor well educated enough, to replace those who will soon retire, and young workers between the ages of 16 and 24 are disproportionately unemployed,” the (more…)

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Photo: Micaela Bedell for Strategies for Children

Photo: Micaela Bedell for Strategies for Children

John E. Pepper Jr. and James Zimmerman, two prominent corporate leaders, recently took to the pages of The New York Times to declare universal access to high-quality pre-kindergarten “not only the right thing to do, but the smart thing to do.”

Pepper is a former chairman and chief executive of Procter & Gamble and a former chairman of the Walt Disney Company. Zimmerman is a former chairman and chief executive of Macy’s.

“Children who attend high-quality preschool do much better when they arrive in kindergarten, and this makes an enormous difference for their later success,” they write in a Times op-ed. “The data on preschool is overwhelmingly positive. Although some studies suggest that the positive impact decreases over time, this is mainly attributable to differences in the quality of preschool and of the schooling that follows — not a deficiency in preschool itself.”

Pepper and Zimmerman cite a 2010 report from the Institute for a Competitive Workforce, a program of the U.S. Chamber of Commerce, which notes future savings of $2.50 to $17 for each dollar invested in high-quality early education. They cite Nobel Prize-winning economist James Heckman’s estimate of a 7-10% return on investment. They cite research that finds children who struggle with reading in third grade are four times less likely than other children to finish high school by 19.

“The connections from preschool to reading proficiency to high school completion — a bare-minimum requirement in today’s economy — could not be clearer,” they write. “Universally available prekindergarten is not only the right thing to do, but the smart thing to do. Raising lifetime wages (and thereby tax revenues) and reducing the likelihood that children will drop out of school, get involved in crime, and become a burden on the justice system more than make up for the costs of early childhood education. …

“We have spent most of our careers in business and have come to support quality prekindergarten for all children, especially those whose families cannot afford it, because we know these programs work. The only question is how to bring them to a huge scale. Our nation’s future demands it. If there ever was a nonpartisan issue, this is it.”

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Photo: Micaela Bedell for Strategies for Children

Photo: Micaela Bedell for Strategies for Children

Eighty-seven business leaders from across Massachusetts have signed a letter in support of Governor Patrick’s proposed $131 million in new investments in early education and care. They “urge the Legislature to approve the Governor’s recommended FY14 budget package for early education and care and the revenue to fund it.”  (Read the letter.)

Signatories include Josh Bekenstein, managing director, Bain Capital, LLC; Jack Connors Jr, chairman emeritis, Hill, Holliday, Connors, Cosmopulos, Inc.;  John Cullinane, the Cullinane Group, Inc.; Steve Fischman, president, New England Development; Arnold Hiatt, former president, chairman and CEO, the Stride Rite Corp.; Peter S. Lynch,  co-founder, the Lynch Foundation; Paul O’Brien, president, The O’Brien Group, Inc., and former CEO, New England Telephone; Robert Pozen, former chairman, MFS Investment Management; Kitt Sawitsky, director, Goulston & Storrs, Counselors at Law; Tom Schwarz, former president, Dunkin’ Donuts, and former chairman, Grossmans; Stephen Silverstein, founder and CEO, Not Your Average Joe’s Restaurants; Jed Swan, founder and managing partner, Drydock Ventures; and Karen Walsh, senior vice-president and general manager, John Hancock Personal Financial Services.

“As business people, we want the skilled well-educated workforce our enterprises need to prosper and the commonwealth needs to compete in an increasingly sophisticated global economy,” the letter states. “Governor Patrick’s proposal is a thoughtful, comprehensive plan focused on three critical outcomes – increasing school readiness, improving third grade reading and closing the achievement gap. The bottom line is that investing in young children is one of the most cost-effective uses of the public dollar.”

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James Heckman

Nobel Prize-winning economist James Heckman has long championed investments in high-quality early education. Now, with President Obama proposing universal access to preschool, starting with children from low- and moderate-income families, Heckman has been busy explaining the benefits of high-quality early education in a number of media outlets.

Here is a sample of what Heckman, a professor of economics at the University of Chicago, has been saying:

“Quality really matters. That’s been pretty well documented…. In terms of the return on investment, per dollar return, the annual return for what you’d get on a bond or some kind of fixed income, you would have a rate that was 6-10 percent per year, which is extremely high. So even though it costs something, it’s about the return is to society and to the individuals…. I’m an economist. I would talk about both the benefits and the costs. And if the benefits really outweigh the costs, I think that’s something very rare. So it’s a good investment.”

James Heckman: In Early Childhood Education, “Quality Really Matters,”  Washington Post Wonkblog, February 14, 2013

“The results have been found from randomized trials where children are followed into age 40, and now plans will follow to age 50. We have very comprehensive measures of their crime. We have comprehensive measures of their earnings and so forth. So I would defend very strongly these high rates of return because they actually have been carefully evaluated. They include the cost of taxation. They include all of the cost of the public of actually taxing and using tax dollars.”

President Obama’s Plan for Universal Preschool, Diane Rehm Show, NPR, February 18, 2013 (Listen)

“There is a core set of values, a core set of capabilities that transcend the religious, the social and ethnic differences. In other words, I would argue every parent would want their child to actually have the capacities to succeed, to be able to acquire knowledge and to function on their own, to have autonomy, to have what some would call agency in the sense of being able to be self-propelling and self-controlled, being able to essentially shape their own life in their own terms. And it’s that universal core that has to be focused on and nested in a cultural context.”

Study: Pre-K Investment Pays Off with Higher Income, Reduced Crime, NPR All Things Considered, February 14, 2013 (Listen)

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“Access to high-quality early education and learning opportunities is integral to helping today’s children prepare for the highly competitive, fast-paced global economy.”

National Association of Manufacturers, “Education and the Workforce,” 2012

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Photo: Kate Samp for Strategies for Children

Photo: Kate Samp for Strategies for Children

National business organizations and economists have long touted the benefits of investing in high-quality early education.

“With current early childhood education resource levels, too many kindergartners will continue to begin school ill-prepared,” the U.S. Chamber of Commerce says, “and businesses will lack the necessary workforce to fill the jobs of the future.”

And there’s this from the National Association of Manufacturers: “Access to high-quality early education and learning opportunities is integral to helping today’s children prepare for the highly competitive, fast-paced global economy.”

And this from the Committee for Economic Development: “Our nation now faces tough choices to renew the economy, but fiscal prudence cannot be served at the expense of under-investing in the well-being and future of our children – and thereby preventing unnecessary remedial expenditures. CED believes it is vital for our country’s future that investments in our youngest children remain a major national and state-level priority,”

A few statistics underscore the need in Massachusetts:

  • 68% of Massachusetts’s jobs in 2018 will require a college degree, but only 54% of young adults in the state have completed college.
  • 39% of Massachusetts third graders scored below proficient in reading on the 2012 MCAS – including 60% from low-income families – and performance has been virtually stagnant since 2001.
  • Children who struggle with reading in third grade (more…)

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“It is highly desirable and valuable to society for state governments to support universal early childhood education. In doing so, governments will be putting in place an essential component of economic development, a component that will provide both a long-run foundation for their states’ economic development and an immediate boost to their states’ economic progress.”

Economist Arthur MacEwan, University of Massachusetts, “Early Childhood Education as an Essential Component of Economic Development,” 2013

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Photo: Caroline Silber for Strategies for Children

Photo: Caroline Silber for Strategies for Children

When Massachusetts Governor Patrick unveiled his plan for major new investments in high-quality early education last week he said, “This is not only about their social and economic future; it’s about ours.”

A new report from the Political Economy Research Institute at the University of Massachusetts/Amherst summarizes the research behind this statement. (See Early Childhood Education as an Essential Component of Economic Development with Reference to the New England States.)

“The economic development impact of K-12 and higher education is widely acknowledged, but the role of early childhood education is often given insufficient attention,” writes UMass economist Arthur MacEwan.

“It is highly desirable and valuable to society for state governments to support universal early childhood education. In doing so, governments will be putting in place an essential component of economic development, a component that will provide both a long-run foundation for their states’ economic development and an immediate boost to their states’ economic progress. Moreover, they will be providing an important service to families and strengthening equality of opportunity.”

MacEwan cites benefits that high-quality programs have on everything from children’s educational attainment to their improved later earnings and reduced social burden. (more…)

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“Investing in high-quality child care and early education builds a strong foundation of cognitive and social skills in young children that can improve their engagement in school and increase per capita earnings and economic development. Business leaders and policymakers should consider investment in young children one of the most effective strategies to secure the future economic strength of their communities and the nation.”

Committee on Economic Development, “Unfinished Business: Continued Investment in Child Care and Early Education is Critical to Business and America’s Future,” June 2012

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Photo: Caroline Silber for Strategies for Children

Photo: Caroline Silber for Strategies for Children

Conversation about the benefits of high-quality early education often focuses on long-term benefits such as increased employment and earnings and reduced reliance on public assistance. A recent brief from ReadyNation, a national business partnership for early childhood and economic success, reminds us that many benefits are short-term. (See “Savings Now, Savings Later: Smart Early Childhood Programs Pay Off Right Away and for the Long Term.”)

“We don’t have to wait 10 or 20 years to see strong returns on our investments in young children. Some programs create real savings in a year or less. Early education also improves third-grade scores,” the brief notes. It highlights three areas:

  • “Quality home visiting/parent mentoring programs can reduce costs and improve outcomes now,” through such outcomes as reducing low-birthweight births and reducing child abuse and neglect.
  • “Effective pre-kindergarten programs reduce costly grade retention, special education and other services right away.” A Pennsylvania program, (more…)

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