1. Wisconsin is Open for Business April 4, 2014 ROI of ECL 1 Workforce development and economic development are interrelated and interdependent. Ed = ED

2. Wisconsin is Open for Business April 4, 2014 ROI of ECL WHAT IS THE BEST ECONOMIC INVESTMENT TOOL AVAILABLE?

3. Wisconsin is Open for Business April 4, 2014 ROI of ECL 3 EARLY EDUCATION HUGE RETURN ON INVESTMENT (Per participant in 2000 constant dollars discounted 3% annually) Larry Schweinhart, High/Scope Educational Research Foundation, www.highscope.org

4. Wisconsin is Open for Business April 4, 2014 ROI of ECL 4 HIGH/SCOPE PERRY PRESCHOOL ECONOMIC EFFECTS Barnett, W.S. (1996). Lives in the balance: Benefit-cost analysis of the Perry Preschool Program through age 27. Monographs of the High/Scope Educational Research Foundation. Ypsilanti, MI: High/Scope Press. Graphic from National Institute for Early Education Research.

5. Wisconsin is Open for Business April 4, 2014 ROI of ECL 5 ABECEDARIAN ACADEMIC BENEFITS Barnett, W. S., & Masse, L. N. (2007). Early childhood program design and economic returns: Comparative benefit-cost analysis of the Abecedarian program and policy implications, Economics of Education Review, 26, 113-125; Campbell, F.A., Ramey, C.T., Pungello, E., Sparling, J., & Miller-Johnson, S. ( 2002). Early childhood education: Young adult outcomes from the Abecedarian Project. Applied Developmental Science, 6(1), 42-57. Graphic from National Institute for Early Education Research.

6. Wisconsin is Open for Business April 4, 2014 ROI of ECL 6 ECONOMIC RETURNS TO EARLY INTERVENTION Cost BenefitsB/C  Perry Pre-K $15,386 $262,642 17.1  Chicago P/C$ 7,384$ 74,981 10.1  Elmira Prenatal$ 7,109$ 49,217 6.9  Abecedarian$35,864*$130,666 3.6  Nurse-Family$ 9,118$ 26,298 2.9 *Marginal cost, net or existing child care costs. Barnett, W. S., & Masse, L. N. (2007). Early childhood program design and economic returns: Comparative benefit-cost analysis of the Abecedarian program and policy implications, Economics of Education Review, 26, 113-125; Belfield, C., Nores, M., Barnett, W.S., & Schweinhart, L.J. (2006). The High/Scope Perry Preschool Program. Journal of Human Resources, 41(1), 162-190; Temple, J. A., & Reynolds, A. J. (2007). Benefits and costs of investments in preschool education: Evidence from the Child-Parent Centers and related programs. Economics of Education Review, 26(1), 126-144. (In 2002 dollars, 3% discount rate)

7. Wisconsin is Open for Business April 4, 2014 ROI of ECL 7 WISCONSIN STUDY FISCAL FLOWS IN K-12 Title The Economic Returns to Wisconsin’s Education System from Investment in Four-year-old Kindergarten Sponsors Trust for Early Education The Pew Charitable Trusts Pre-K Now Authors Professor Clive R. Belfield Queens College, CUNY Dennis K. Winters NorthStar Economics, Inc. http://dpi.wi.gov/ec/ec4yrpag.html

8. Wisconsin is Open for Business April 4, 2014 ROI of ECL 8 WISCONSIN STUDY EXPANDED COSTS & BENEFITS BENEFIT/COST ANALYSIS Present Value Figures($ million) Cohort Entering Kindergarten in 2005 with Universally Available 4K Results Investment (COST)$206.90 Total School System Savings (BEN)$140.96 OTHER BENEFITS Tax Revenue Gains48.44 Criminal Justice System142.18 Health Expenditures Savings7.00 Total Other Benefits$197.62 Grand Total Benefits$338.58 Net Fiscal Impact (BEN-COST)$131.68 Benefit–Cost Ratio (BEN/COST %)1.64

9. Wisconsin is Open for Business April 4, 2014 ROI of ECL 9 FISCAL COSTS & BENEFITS PERSPECTIVE $66 million < 1% of State Education Budget Huge Returns to Individual and Society Imperative to Workforce Development Imperative to Economic Development

10. Wisconsin is Open for Business April 4, 2014 ROI of ECL 10 WHAT MORE DO YOU NEED? THE QUESTIONS HAVE BEEN ANSWERED What is the greatest job need?  Skilled, creative, interactive occupations What are the returns?  17: 1 returns; 80% to the Public Is it fiscally prudent?  Tiny fraction of total public school funding What is your alternative investment?  Not a new mall !

11. Wisconsin is Open for Business April 4, 2014 ROI of ECL Third Grade Reading Skills  Learn to Read Read to Learn WHY EARLY EDUCATION? AN EARLY FULCRUM

12. Wisconsin is Open for Business April 4, 2014 ROI of ECL ACHIEVEMENT GAP ESTABILISHED EARLY

13. Wisconsin is Open for Business April 4, 2014 ROI of ECL ACHIEVEMENT GAP DEPENDENT ON THE MOTHER’S EDUCATION Source: Prof. James Heckman, Nobel Laureate, University of Chicago

14. Wisconsin is Open for Business April 4, 2014 ROI of ECL POVERTY v. EDUCATION USE THE CORRECT POLICIES  Ed ≠ f (Poverty)  Poverty = f (Education)

15. Wisconsin is Open for Business April 4, 2014 ROI of ECL 15 “ By 5, it is possible to predict, with depressing accuracy, who will complete high school and college and who won't.” – David Brooks, David Brooks: Schools and Skills The New York Times; Editorial WHAT THEY SAY

16. Wisconsin is Open for Business April 4, 2014 ROI of ECL 16 Questions ?

17. Wisconsin is Open for Business April 4, 2014 ROI of ECL 17 Dennis Winters Phone: 608-267-3262 Email: dennis.winters@dwd.wisconsin.gov Website: www.dwd.wisconsin.govwww.dwd.wisconsin.gov OEA website: www.dwd.wisconsin.gov/oeawww.dwd.wisconsin.gov CONTACT INFORMATION