The Foundation for a Thriving New Mexico Economy: Success Begins at Birth Early Childhood Investment Committee 2008 Lt. Governor, Diane Denish NM Children’s Cabinet Early Childhood Action Network

We All Hold the Core Value That… Every child deserves an equal start in life

…and No parent should have to sacrifice their child’s well- being to support their family

We Also Know That… The success of our children determines the future of our state

Success Begins at Birth Because… 80% of the brain develops between birth and age 5 80% of the brain develops between birth and age 5 During this time, one’s ability to learn and attitude toward learning are shaped for life During this time, one’s ability to learn and attitude toward learning are shaped for life

Early Brain Development is the Foundation for all Learning to Come “Both brain architecture and developing skills are built ‘from the bottom up,’ with simple circuits providing the scaffolding for more advanced circuits and skills over time.” Source: Center on the Developing Child at Harvard University (2007). A Science-Based Framework for Early Childhood Policy: Using evidence to Improve Outcomes in Learning, Behavior, and Health for Vulnerable Children. http;//

Human Brain at Birth 6 Years Old 14 Years Old Source: Federal Reserve Bank of Minneapolis

The Consequences of Failing to Nurture the Developing Brain: Healthy brainBrain of a nurture-starved child Source: Neal Halfon: UCLA Center for Infant & Early Childhood Health Policy

School Success Leads to a Well-Prepared Work Force: Early Childhood Development is the Foundation Educational Level Expected Earnings With a Bachelor’s degree $45,221 Without a College Degree $26,123 Without a High School Diploma $15,250 Source: U.S. Census Bureau, 2006 American Community Survey

Early Childhood Development: The Foundation for School Success Healthy Child Development Birth to 5 Years Old Children Enter Kindergarten Ready To Learn Reading Proficiency in Fourth Grade High School Graduation

New Mexico Faces Challenges: Early Childhood Development Makes a Big Difference New Mexico ranks 48 th in the nation for high school dropout rates Source: KIDS COUNT Data Book: State Profiles in Child Well-Being, Annie E. Casey Foundation, 2006 In , 54.4% of New Mexican fourth graders were reading at or above proficiency Source: 2008 New Mexico Children’s Cabinet Report Card

The Costs of Bad Results Juvenile Justice Child Welfare Medicaid (1/3) Welfare Corrections (1/2) State & Federal Expenditures State & Federal Expenditures $1.1 billion $1.1 billion $1.13 billion $1.13 billion $1.19 billion $1.19 billion 2005 costs represent 10% of New Mexico’s $11.1 billion state and federal fund expenditures Source: 2007 New Mexico Early Childhood Children’s Budget State Expenditure Report, National Governor’s Association (NGA), National Association of Budget Officers (NASBO)

Brain Development Compared to Public Spending Source: Neal Halfon: UCLA Center for Infant & Early Childhood Health Policy $ Public Expenditures Brain’s Development Birth 0 80% 50% 100%

Strategies That Work Early Childhood Development programs that research demonstrates yield the greatest benefits: Prenatal and Infant ECD Programs Prenatal and Infant ECD Programs High Quality Early Care and Education High Quality Early Care and Education Voluntary Pre-K Programs Voluntary Pre-K Programs Source: Rand Corporation: Proven Benefits of Early Childhood Interventions, 2005

40-Year Study: Perry Preschool In the early 1960s, 123 children from Ypsilanti, Mich. In the early 1960s, 123 children from Ypsilanti, Mich. Children randomly selected to attend Perry or control group. Children randomly selected to attend Perry or control group. High-quality program with well-trained teachers, daily classroom sessions, and weekly home visits. High-quality program with well-trained teachers, daily classroom sessions, and weekly home visits. Tracked participants and control group through age 40. Tracked participants and control group through age 40. Source: Federal Reserve Bank of Minneapolis

Perry Preschool — Estimated Return on Investment Perry Preschool — Estimated Return on Investment Benefit-to-cost ratio = $17 to $1 Benefit-to-cost ratio = $17 to $1 Annual rate of return = 18% Annual rate of return = 18% $100,000 savings in criminal costs $100,000 savings in criminal costs $62,000 savings in judicial system costs $62,000 savings in judicial system costs $60,000 more in annual earnings $60,000 more in annual earnings Source: Federal Reserve Bank of Minneapolis

Benefit-to-Cost Ratios for Other Long-Term Studies Abecedarian (NC) Educational Child Care Abecedarian (NC) Educational Child Care =$4 to $1 Chicago (IL) Child-Parent Centers Chicago (IL) Child-Parent Centers =$7 to $1 = $2.88 to $1 – Nurse Family Partnership Program Source: Rand Corporation Elmira (NY) Prenatal/Early Infancy Project Elmira (NY) Prenatal/Early Infancy Project =$5 to $1 Source: Federal Reserve Bank of Minneapolis

Early Learning in New Mexico Children benefit from our Pre-K program:  54% increase in vocabulary  40% increase in early math skills  118% increase in understanding print concepts Early childhood education works; it’s time for a bigger investment

Why Early Childhood Development Now? Our economy has changed Our economy has changed Today’s jobs require more education than ever Today’s jobs require more education than ever New Mexico needs New Mexico needs a better-prepared workforce to stay competitive

Lessons Learned: Characteristics of Effective Early Child Development Programs Universally available Universally available Invest in quality Invest in quality Involve parents Involve parents Start early Start early

Conclusions Quality early childhood development benefits us all: Children are prepared for school Parents can participate in the workforce School success breeds life success Our tax investments earn the best possible rate of return

Call to Action The Investment Committee Charge: To develop To develop An Investment Plan and Financing Strategies

Call to Action The Investment Committee Tasks: To understand the needs of New Mexico’s youngest children and their families and the current fiscal situation in NM. To understand the needs of New Mexico’s youngest children and their families and the current fiscal situation in NM. To recommend specific short term and long term policy and financial strategies to promote optimum development of ALL of New Mexico’s young children. To recommend specific short term and long term policy and financial strategies to promote optimum development of ALL of New Mexico’s young children. To identify long term funding sources to maintain and sustain the state’s early childhood development system into the future. To identify long term funding sources to maintain and sustain the state’s early childhood development system into the future.