Report Reveals "Investment Gap" in Preschool Education

In February 2004, Voices for America's Children, a national organization that aims to increase the overall well-being of children, released Early Learning Left Out: An Examination of Public Investments in Education by Child Age. The report, which is based on research conducted by member organizations in 12 states, highlights the need for-and potential future payoffs of-increased public spending on preschool education programs.

The Early Childhood Investment Gap

The authors of Early Learning Left Out found that little public spending on education focuses on children 3 and under. Although many of today's parents are members of the workforce, they are still expected to educate their young children at home-an arrangement that leaves many kids lagging behind developmentally.

These early disparities have a strong socioeconomic aspect, and are likely to persist throughout a child's educational career and beyond. The authors point out that as many as half of all families with very young children have no ability to increase their personal spending on their children's early education and development. That means that even with federal programs such as Head Start, most 3- and 4-year-olds from lower income families will not participate in a pre-kindergarten program.

The study is part of a growing trend among education advocates toward emphasizing money spent on pre-kindergarten programs as a valuable investment for the nation's future. Last year, both the Federal Reserve Bank of Minneapolis and the Business Roundtable, an organization of CEOs from leading U.S. corporations, published articles linking strong government commitments to early childhood education with future economic success. Similarly, Voices for America's Children calls paltry spending on early childhood education a "major investment gap." The report says that children who receive formal education early in life are likely to earn higher salaries and have fewer social problems than children who don't, and cites studies that peg the long-term rate of return on investments in high quality preschool programs at $4 or more for every dollar spent.

Government Responses: Lip Service or Gradual Change?

Advocates' efforts to present early childhood education programs as economic development initiatives may be slowly changing the way government leaders and policymakers think, but preschool still isn't a top priority in most states. According to the Trust for Early Education, of the 46 governors that gave a State of the State address this year, 16 mentioned the importance of investing in preschool. However, of the 41 states that currently devote funds to early childhood education programs, only 11 governors' budget proposals included increased spending on such programs, and 4 governors planned to cut spending. Despite overwhelming evidence showing that early childhood education is a financially sound investment, states continue to fund preschool programs modestly or not at all. One noteworthy exception is Arkansas, whose governor proposed a 200 percent spending increase-to $53 million-on the state's public pre-kindergarten program in response to a court mandate to improve education.

For an overview on preschool issues and links to key advocacy and policy organizations in this area, see our Web site's section on early childhood education.

Prepared April 30, 2004