WestEd Report: Funding Preschool May Help Solve Budget, Social Woes
Investing immediately in a national preschool program would yield high returns - including shoring up Social Security system - says economist Robert Lynch in a new WestEd report. "From an investment point of view, the returns are greater than if we invested the same amount of money in the stock market. It's an ingenious way for our tax dollars to beat average Wall Street returns while benefiting society at the same time," says Lynch.
(PRWEB) June 22, 2005
Investing immediately in a national preschool program would yield high returns - including possibly shoring up an ailing Social Security system - says a new WestEd report.
According to economist Robert G. Lynch, funding a national, high-quality, early childhood development program would help balance cash-strapped government budgets by creating year-over-year incremental savings. This includes the Social Security program, which some experts project will begin facing financial difficulties in the year 2018, about the time when the first class of today's preschoolers would enter the workforce.
By selecting all three - and four-year-olds who fall below the poverty line, Lynch's proposed national preschool program would enroll the very 1.6 million youngsters who, as they grow up, would otherwise cost taxpayers most. A national preschool program would also directly benefit the children and families it would serve. When poor children are provided access to high-quality preschool, research shows they perform much better in school, experience higher graduation rates, and tend to stay out of trouble with drugs, alcohol, and crime.
"From an investment point of view, the returns are greater than if we invested the same amount of money in the stock market. It's an ingenious way for our tax dollars to beat average Wall Street returns while benefiting society at the same time," says Lynch.
Lynch estimates the annual preschool cost per child at $12,000. If the national program were fully implemented next year, by the time the first preschoolers entered the workforce, they would contribute substantially to Social Security and help counteract the demands aging baby boomers will place on the system. As adults, they would enter the workforce at higher skill levels, earning larger salaries and paying higher taxes into the system.
Although the up-front costs of the program would be substantial, the payoff is huge. In addition to helping Social Security, such a publicly funded early childhood development program is expected to have enormous positive impacts on our society by improving the quality of life for millions of children and lowering crime rates. It would also benefit the U. S. economy by raising the Gross Domestic Product, helping to balance government budgets, and strengthening global competitiveness.
In response to the report, J. Ronald Lally, co-director of WestEd's Center for Child and Family Studies, emphasized the importance of high-quality preschool. "As a society we have ignored too long the indisputable research demonstrating the clear benefits of high quality out-of-home care for children from birth to age six. Now is the time to act."
WestEd's peer-reviewed report follows on the heels of a March 2005 RAND study showing the economic benefits of a preschool program for all children in the state of California.
The full report is available free of charge at www. wested. org/cs/we/view/rs/772 (http://www. wested. org/cs/we/view/rs/772).
The Proposed National Preschool Program At a Glance
High-quality preschool enrollment for all poor three - & four-year-olds Affects 20% of all three - & four-year-old children nationwide Impacts 1.6 million children in the program's first year Every dollar spent generates $3.78 or more in benefits Full implementation in 2006, running a surplus by 2021 By 2050, the budgetary surplus grows to $167 billion
Fast Facts About High-Quality Preschool: Benefits Extend Throughout Life**
In elementary school:
Higher scores on math & reading tests Greater language abilities Less grade retention Less need for special education & remedial work Improved nutrition & health Lower rates of child abuse & neglect
In middle and high school:
Lower teen pregnancy & parenting rates Lower dropout rates Higher high school graduation rates Higher scores on math & reading tests Fewer criminal acts Lower rates of alcohol & drug use Lower incarceration rates
In adulthood:
Higher employment Higher earning rates Payment of more taxes Less dependence on welfare Lower rates of alcohol and drug use Fewer criminal acts Lower incarceration rates
**Research references included in the full report, available free of charge at www. wested. org/cs/we/view/rs/772 (http://www. wested. org/cs/we/view/rs/772).
About WestEd:
WestEd, a national nonprofit research, development, and service agency, works with education and other communities to promote excellence, achieve equity, and improve learning for children, youth, and adults. WestEd has 16 offices nationwide, from Washington and Boston to Arizona and California. Its corporate headquarters are in San Francisco. More information about WestEd is available at WestEd. org.
About the Author:
Robert G. Lynch is a Professor and Chair of the Department of Economics at Washington College. He also serves as a consultant to private businesses, government, labor unions, and research organizations. His areas of specialization include public policy, public finance, international economics, economic development, and comparative economics. Lynch can be reached at 410.810.7163 or rlynch2@washcoll. edu.
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