1. Early Childhood Development: Economic Development with a High Public Return
Art Rolnick and Rob Grunewald
Federal Reserve Bank of Minneapolis

2. High/Scope Study of Perry Preschool
123 children from low-income families in Ypsilanti, Mich.
Children randomly selected to attend Perry or control group.
Daily classroom session and weekly home visit.
Tracked participants and control group through age 27.   

3. Perry Preschool IQ Over Time
Prepared by W. Steven Barnett, Rutgers University

4. Perry: Educational Effects
Prepared by W. Steven Barnett, Rutgers University

5. Perry: Economic Effects at Age 27
Prepared by W. Steven Barnett, Rutgers University

6. Perry: Arrests per Person by Age 27
Prepared by W. Steven Barnett, Rutgers University

7. Perry Preschool Costs and Benefits Over 27 Years

8. Perry Preschool -- Return on Investment
Total Benefit-Cost Ratio = $8.74 to $1
Estimated Total Annual Rate of Return = 16%
Public Rate of Return = 12%   

9. Other Longitudinal Studies
Chicago, Child-Parent Centers
Half-day large-scale program in Chicago
public schools
Abecedarian, educational child care
Full-day year-round program in Chapel Hill, N.C.   

10. Vital Ingredients of an ECD Program
Fund at Perry Preschool level to achieve high return on investment.
Target at-risk children, but make available for all children.
Allow for competition and specialization among providers.
Test for program improvement and pay for demonstrated results.   

11. Cost estimate to educate all 3- and 4-year-old children from low-income families in Minnesota at a high-quality ECD program
3- and 4-year-old children living in poverty 20,000
Cost per child $9,500
Total $190,000,000
Current funds available $85,000,000
Total annual need $105,000,000   

12. Endowment for Early Childhood Development vs
Endowment for Early Childhood Development vs. Incentives to Relocate Businesses   
A $1.5 billion endowment could raise $105 million per year to meet current funding gap for ECD.
Proposals to build and renovate professional sports stadiums total over $1 billion.
Incentives used to relocate businesses in Minnesota have totaled over $500 million.