SFC

Preschool as Cash Cow

Editorial 1/31/2005

One in a series of editorials on the state's new early-education initiative

MASSACHUSETTS TAXPAYERS could get a lot out of preschool. A new study finds that for every $1 spent on two years of preschool for 3-year-olds, the state would recoup $1.18 in savings and additional revenue.

Study coauthor Clive Belfield, an economics professor at Queens College in New York, says send children to preschool now and they'll cost less later.

Belfield created an economic model for Strategies for Children, a local advocacy group. In this plan, the state would create 43,000 new preschool spots and upgrade the quality of 13,000 existing spots. Access would be universal, not just for low-income children. The total cost: $578 million. The total benefit: $680 million, yielding what the study calls "positive economic returns."

One can almost hear Mark Twain sputtering his famous quotation about lies, damned lies, and statistics. But Belfield's thoughtful analysis relies on conservative estimates.

Take special education. Belfield estimates that providing these K-12 services has a present value of $5 billion for one entering class of children going from kindergarten through the 12th grade. Various studies show that a high-quality preschool program could steer some children away from special education, resulting in a savings of $35 million to $49 million over time.

Other money would be saved because fewer students would repeat grades and because they would be less likely to incur health, welfare, and criminal justice costs over time. Tax revenues would increase because some parents would work while their children were at preschool, and eventually many preschoolers will go on to earn more than they would have without preschool attendance.

Preschool is not a magic pill. But it can shield children from early academic failures that snowball into later underachievement.

The focus on preschool's benefits has mostly been on disadvantaged children. But other children also gain. And a critical mass of preschoolers amplifies the positive effects. Belfield notes that administrators from schools with more former preschoolers report fewer discipline problems. Belfield's model is smaller and less expensive than the plan proposed by Strategies for Children, which includes spending on an early education department plus professional development and higher salaries for preschool teachers. But as even the most skeptical legislators plan for the state's new department of early education and care, which was approved last year, they should ask Belfield's question: Could universal early education save the state money?

Ultimately, an investment in high quality early education could pay off for children and for the state's economy.

 

617.330.7380        400 Atlantic Avenue, Boston, Massachusetts 02110        info@earlyeducationforall.org