Transcript What business can do with help from YCPO and PAES

Investing in Kids is
Economic Development
Young Children Priority One
and
Partnership for America’s Economic Success
Robert Dugger, Advisory Board Chair, PAES
Sara Watson, Director, PAES/Senior Officer, Pew Center on the States
Wil Blechman, Past President, Kiwanis International
[email protected] / 202-552-2134
Why should business care?
 Youth human capital is one of the highest-return
economic development strategy there is. The
economic returns for pre-k for disadvantaged
kids are over 10% per year..! (Minneapolis Fed)
 Youth human capital sector is big..! And if we
don’t raise and educate kids right, it really
doesn’t matter what else we do. (Invest in Kids
Working Group)
 If we want it done right, business has to be
involved to make sure the Telluride Principles
are followed. (Telluride Summit)
Painful facts
 Intensifying global competition and steadily growing fiscal
imbalances mean we have to focus on the future, the next
generation and our kids have to do well.
 20% of workers are functionally illiterate; we need children to
become adults who are book-smart, team-capable and jobready.
 Many (not all) traits that make good employees, neighbors and
citizens begin in the first 5 years of life. Infant brain forms 700
neural connections per second, reaching 85% of its adult weight
in the first 5 years.
 Bottom line: Need policy change -- in addition to great actions
by individuals and companies. Business has to be involved..!
Partnership for America’s Economic Success
• A collaboration of individual business leaders, business
organizations, economists, funders and policy activists. 13
funders, including Pew.
• Goal: Make the life success of every child in America the top
economic priority of the United States
• Strategies:
 Document economic benefits of proven investments in children
prenatal to five
 Support business leaders as champions for effective early
childhood policies and use of evidence/ROI in decisionmaking
 Build a network of business organizations to educate and
engage their members
• Managed by the Pew Center on the States
Telluride Principles
For all state and national policies and programs -1. The first priority should be the lifetime success of every child.
2. Parents, families and other caregivers should be directly
involved.
3. Resources should be allocated on the basis of best evidence and
proven practices.
4. Projects should have quantified goals and be performance
evaluated.
5. Projects should be scalable and make best use of private and
public incentives.
Why we need business champions – the big squeeze
Total Mandatory Spending Will Exhaust All Federal Revenue Resources by 2024
(Note: Tax expenditures are added back to federal revenue and shown
separately as an expense to clarify their size and significance)
35
35
Exhaustion Point
30
30
25
25
20
20
Tax Expenditures
15
10
15
National Debt Interest
10
Other Mandatory Expenses
Medicare/Medicaid
5
5
Social Security
0
1990
2000
2010
2020
2030
0
2040
Calendar Years
Source: Government Accountability Office, Long-Term Fiscal Simulation, January, 2008, alternative fiscal scenario, which assumes continuation of current policy. Other
Mandatory spending, CBO March, 2008 baseline and 1.9% of GDP after 2018. Tax expenditures are assumed to be 8.0% of GDP throughout.
Percentage of GDP
Percentage of GDP
Federal Revenue Plus Tax Expenditures
Is the next generation’s success our top priority now?
How does Investment in Children Compare?
(Measurements from 2006-2017)
$700
$647.1
$600
Billions of $2006
$500
$400
$300
$200
$100
$0
$0.09
0.01%
-0.9%
-$5.8
-$100
Increase in kids'
education and
research
$26.3
4.1%
1
Increase in kids'
education and research
+ work supports
Increase in kids'
education and research
+ work supports
+ social supports
Increase in total
domestic spending
Source: The Urban Institute, 2007. Authors' estimates and projections, based on the Budget of the U.S. Government FY 2008, its Appendix, Analytical Perspectives, and
CBO's Budget and Economic Outlook, 2008-17.
Big problem in the US – but not only the US
Education: USA ranks 26th out of 32 countries on PISA 2006 Math scores
3 Percentage change (5-yr moving average)
2
Labor Force is
Declining
1
Personal Saving Rate
has Declined
0
1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080
Source: GAO analysis of data from the Office of the Chief Actuary, Social Security Administration. Note: Percentage
change is calculated as a centered 5-yr moving average of projections based on the intermediate assumptions of the 2008
Trustees Reports.
Source: GAO analysis of Bureau of Economic Analysis data.
Why should business care?
Today’s Youngest Kids are Tomorrow’s Employees and Customers
Scan of normal
three-year-old
brain
Scan of three-yearold brain after severe
neglect
If 50 first graders have problems reading,
then 44 of them still have problems reading
in fourth grade (
)
Journal of Educational Psychology
First Graders
Fourth Graders
What do we already know?
Economic Returns for Disadvantaged Children
(2002 dollars, 3% discount rate)
Cost
Benefits
B/C
$15,386
$262,642
17.1
Chicago Child Par. Ctr (3-4) $ 7,384
$ 74,981
10.1
Abecedarian (0-5)
$35,864
$130,666
3.6
Nurse Family Prtnrshp. (0-2) $ 9,118
$ 26,298
2.9
Perry Pre-K (3-4 year olds)
Abecedarian (0-5 early care and parenting support)
Abecedarian
: Academic
Benefits
Program
group
No-program group
31%
Special Education
49%
34%
Grade Repeater
65%
67%
HS Graduation
4 Yr College
0%
51%
36%
13%
10% 20% 30% 40% 50% 60% 70% 80%
Barnett, W. S., & Masse, L. N. (2007). Early childhood program design and economic returns: Comparative benefit-cost analysis of the Abecedarian program and
policy implications, Economics of Education Review, 26, 113-125; Campbell, F.A., Ramey, C.T., Pungello, E., Sparling, J., & Miller-Johnson, S. ( 2002). Early
childhood education: Young adult outcomes from the Abecedarian Project. Applied Developmental Science, 6(1), 42-57.
Economic Impacts of Other Aspects of Early Childhood
Birth Outcomes (Johnson, U. of CA and Schoeni, U. of MI)
• Being born low weight: ages you by 12 years in middle age,
increases the odds of dropping out of high school by 5 percentage
points, lowers achievement scores, lowers labor force participation
by 5 percentage points, and reduces labor market earnings by 14%
Housing (Haveman, Wolfe and Spaulding, U. of WI)
• Moving at least 3 times between the ages of 4 and 7 is associated
with a 19% decrease in high school graduation.
Family Income (Duncan, Northwestern University)
• Raising family income to 100-150% of poverty during ages 0-6
pays for itself, on average, in terms of the child’s earnings and use
of benefits as an adult
Business Support for Pre-K and Early Childhood
Chambers of Commerce
• Maine
Los Angeles
• Memphis
San Francisco
• Nashville
Oakland
• Richmond
Fairfax, VA
Kansas City
Houston
Brownsville, TX
Calhoun County, AL
National Association of Manufacturers
2008 Public Policy Positions: “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.”
Federal Reserve Banks: Chairman Bernanke, as well as leaders in
Minneapolis, Richmond, Atlanta, Cleveland, San Francisco
Other Examples of Business Leadership
• Pennsylvania: Many leaders -- PNC CEO James Rohr and other
PNC executives; Phil Peterson, Aon Consulting; members of
Early Investment Commission
• Massachusetts: Strategies for Children campaign business
leaders: Mara Aspinall, CEO of Genzyme Genetics; Ronald
Sargeant, CEO of Staples; Richard Lord, CEO of Associated
Industries of Mass.
• Louisiana: Blueprint LA, Louisiana Association of Business and
Industry, Louisiana Industrial Development Executives Assn.
• Arizona: Ed and Nadine Basha, of Basha’s Grocery Stores, led
successful fight for ballot initiative to fund 0-5 services
The message is getting through…
What business can do with help from YCPO and PAES
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Support YCPO programs
Connect with advocates to know what the state agenda is
Build early childhood into the state Kiwanis agenda
Collaborate with other clubs
Make your voice heard – Op-eds, letters to editors,
blogs, talk radio
• Tell your colleagues – presentations at business events
on investments in children as an economic strategy
What business can do with help from YCPO and PAES
• Encourage business groups to make a public statement
• Participate in media/public events
• Invite early childhood businesses to join civic
organizations – they are part of the economy too
• Talk to policymakers and candidates (on a nonpartisan
basis) – find out if any are Kiwanians
• Attend or apply to join early childhood advisory bodies
to share business perspective
• Pennsylvania example
PAES’ job is to make your job easier
• Support education of Kiwanis members through:
 National conference of business peers – Telluride Economic
Summit on Early Childhood Investment, Sept. 20-22
 National forum to train diverse audiences on engaging
business, early 2010
 Connect you to 17 state business leader summits sponsored
by PAES
 Provide speakers for events
 Advocacy/communications tools on our website
• Many other ideas at www.PartnershipforSuccess.org –
call on us
Bottom line
We are organizing a national movement to
engage business leaders as champions for
policy change to help young children become
successful adults.
It’s not only the morally right thing to do, it’s the
fiscally prudent thing to do.
We hope you will join us.