Wednesday, June 27, 2007
Groundbreaking Study Touts Fiscal Benefits Of Investing In Preschool
Study Shows Iowa Will Get Back $8.40 for Every $1 Spent on Preschool
(Iowa City) An analysis by the nonprofit, nonpartisan Economic Policy Institute demonstrates that state investments in high-quality prekindergarten programs, such as the recent investments made in Iowa, have the potential to provide impressive returns to state and federal budgets, through increased earring potential and decreased expenditures on crime.
On May 11th, 2007, Governor Chet Culver signed into law House File 877 – a bill to expand access to quality preschool to nearly every four-year-old in the state of Iowa.
According to the groundbreaking Economic Policy Institute report, for every dollar spent in Iowa on universal, quality preschool, by 2050 the state would receive $8.40 back due to decreased spending on other state programs, higher pay for individuals and savings from reduced crime.
“I am very proud of the work we did this session to expand preschool to nearly every four year old in the state,” said Governor Culver. “The bill I signed in May will increase the number of Iowa children who have access to quality, state-supported preschool programs – from less than five percent to over 90 percent. While the educational impact is important, this study shows that there are tremendous long-term budget savings as well. There is no doubt in my mind that expanding preschool is a critical component of strengthening our workforce and moving Iowa forward.”
According to the study’s author, economist Robert G. Lynch, “Investing in high-quality pre-K isn’t only good for children and society, it’s also great for government budgets. Governments can realize huge savings in areas such as remedial education, law enforcement, and child welfare, and will experience increases in tax revenues. Add to that the benefits of less crime and a more highly skilled workforce that is more likely to be employed and better paid – and that makes pre-K spending one of the smartest moves governments can make.”
With the bill Governor Culver signed into law in May, the state will spend $60 million over the next four years to
increase access to quality preschool from less than five percent to almost 90 percent. The law requires:
- Iowa preschools are required to employ a licensed teacher for a minimum of 10 hours of instruction per week.
- Participating school districts will follow the Iowa Early Learning Standards. Each program also must meet rigorous and nationally recognized program standards.
- These programs will all have to meet nationally recognized standards, including class sizes of 20 or lower and staff-child ratios of 1 to 10 or better.
Today, Iowa ranks 32nd in the nation in 4-year-old access to quality preschool. The highest participation rate in the country is 70%. Iowa is on track to lead the nation in access to quality preschool.
Information on Iowa’s preschool program can be found at:
http://www.iowa.gov/educate/content/view/940/1103/
The press release on the Economic Policy Institute study can be found at:
http://www.epi.org/books/enriching/mediakit/enriching_release.pdf
A link to the state-by-state analysis can be found at:
http://www.epi.org/books/enriching/mediakit/lynchtable9.pdf