1. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 1 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Dennis K. Winters Vice President & Director of Research October 13, 2006 Law and Policy of Universal Preschool

2. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 2 Show you the fiscal benefits for K-12 Tell you how to sell this to local constituents Show you how the economy is changing Tell you why early education is important WHAT I WILL DO TODAY SHOW & TELL

3. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 3 THE EVIDENCE IS IN HUGE RETURNS Perry Scope 17 : 1 Chicago-Child Parent $7 to $1 total $4 to $1 public Abecedarian Educational Child Care $4 to $1 total Elmira Prenatal/Early Infancy Project $5 to $1 total $4 to $1 public

4. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 4 BENEFITS ARE SHARED ACROSS SECTORS  Personal Success – 20% of gains Higher Income Better Employment Attributes Better Health  Public Externalities – 80% of gains Lower Crime Less Social Intervention Greater civil contributions  Business More Skilled Workforce Higher Productivity Less Turnover

5. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 5 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.

6. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 6 SCOPE OF WISCONSIN STUDY FISCAL BENEFITS/COSTS Wisconsin 2002-03 data Benefits Limited to K-12 Fiscal Flows State & Milwaukee PS Analysis Parameters:

7. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 7 WISCONSIN STUDY ASSUMPTIONS Quality Programs Trained Staff – BS, Early Ed Certified Family Outreach – Home Visits @ 1 per 2 wks Universal Offering Attracts 32,102 more students Brings total to 48,153 Leaves 29% uncovered, 25,861

8. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 8 PROVISION OF PRE-KINDERGARTEN COHORT OF 4-YEAR OLDS Note: * Head Start programs are also available for 3-year olds. This table does not include demographic information on child care provision across the state. Sources: Census (2000); Wisconsin Department of Public Instruction; NIEER Yearbook (2003). Provision Types for 4-year Olds in Wisconsin Current Provision* Universally Available 4K Children aged 489,170 Public Early Childhood Special Education6,240 (7%)6,240 (7%) Federal Head Start8,026 (9%)8,026 (9%) Wisconsin Head Start890 (1%)890 (1%) 4K16,051(18%)48,153(54%) No public provision57,693(65%)25,861(29%)

9. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 9 WISCONSIN STUDY FISCAL COSTS & BENEFITS Costs Quality Staff Support Services Benefits Reduced Special Education Reduced Grade Repetition Better Teaching Environment Higher Job Satisfaction Lower Turnover Less Need for Substitutes Improved School Environment Reduced Support Programs

10. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 10 WISCONSIN STUDY FISCAL COSTS Costs Quality Staff Support Services Costing Formulas (32,102 new pupils statewide, 3,209 for Milwaukee) Unit Annual Cost Per Child Total Extra Wisconsin Investment ($ million) Milwaukee District Investment ($ million) Actual$3,518$112.93 $11.29 Guaranteed high quality4,468143.43 14.34 Comparable to Head Start6,445206.90 20.69 Notes: ‘Actual’ refers to current 2003 expenditures on 4K. ‘Guaranteed high quality’ requires 27% more resources than are needed for ‘Actual’. ‘Comparable to Head Start’ assumes that 4K providers will receive funds equivalent to Head Start funding. Sources: NIEER Yearbook (2003); Marshall et al. (2004); and Head Start data.

11. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 11 WISCONSIN STUDY FISCAL BENEFITS Benefits Reduced Special Education Reduced Grade Repetition

12. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 12 WISCONSIN STUDY SCHOOL SYSTEM FISCAL BENEFITS BENEFITS Reduced Special Education Reduced Grade Repetition Current Provision Cohort Entering Kindergarten in 2005 with Universally Available 4K Results Students Per Category (%): Regular education (non-repeater)83.384.1 Special education14.413.8 Repeats 1 grade2.32.1 Costs Per Category: Regular education (non-repeater) $ 94,733 Special education $ 181,513 Repeats 1 grade $ 101,775 PV K–12 Expenditures ($ million) $ 8,431$ 8,387 PV Cost-Savings ($ million): Reduction in special education$ 42.41 Reduction in grade repetition$ 0.95 Notes: Present Value (PV) figures are discounted over the child’s educational span from K–12 at a discount rate of 3.5%. Economic values are in 2004 dollars.

13. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 13 WISCONSIN STUDY FISCAL BENEFITS (continued) Benefits Better Teaching Environment Higher Job Satisfaction Lower Turnover Less Need for Substitutes Improved School Environment Reduced Support Programs

14. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 14 WISCONSIN STUDY FISCAL BENEFITS (continued) BENEFITS Learning Productivity Increases ($ million) Cohort Entering Kindergarten in 2005 with Universally Available 4K Results Teacher-related: Higher job satisfaction$51.33 Lower teacher turnover$18.48 Reduced need for substitute teachers$5.48 School-related: Improved school safety and climate$14.87 System-related: Reduced pressure for aid programs$7.44 Notes: Present Value figures are discounted over the child’s educational span from K–12 at a discount rate of 3.5%. Economic values are in 2004 dollars.

15. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 15 WISCONSIN STUDY FISCAL COSTS & BENEFITS BENEFIT/COST ANALYSIS Present Value Figures ($ million) Cohort Entering Kindergarten in 2005 with Universally Available 4K Investment (COST)$206.90 School System Benefits: Special education placement$42.41 Grade retention$0.95 Job satisfaction for teachers$51.33 Retention of teachers$18.48 Reliance on substitute teachers$5.48 Spending on school safety$14.87 Pressure on school support$7.44 Total Educational Benefits (BEN)$140.96 Net Fiscal Impact (BEN-COST)-$65.94 Benefit–Cost Ratio (BEN/COST %)68%

16. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 16 MILWAUKEE STUDY FISCAL BENEFITS Notes: Present Value (PV) figures are discounted over the child’s educational span from K–12 at a discount rate of 3.5%. Economic values are in 2004 dollars. Cost-Savings for Educational Budgets for Milwaukee from Expanded 4K Programs ($ million) Cohort Entering Kindergarten in 2005 with Universally Available 4K Results Placement-related: Lower special education$5.30 Lower grade retention$0.44 Teacher-related: Higher job satisfaction$5.16 Lower teacher turnover$1.86 Reduced need for substitute teachers$0.55 School-related: Improved school safety and climate$1.66 System-related: Reduced pressure for support programs$0.83

17. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 17 MILWAUKEE STUDY FISCAL COSTS & BENEFITS MILWAUKEE BENEFIT/COST ANALYSIS Present Value Figures ($ million) Cohort Entering Kindergarten in 2005 with Universally Available 4K Investment Cost (COST)$20.69 Total Educational Benefits (BEN)$15.80 Net Fiscal Impact (BEN-COST)-$4.89 Benefit–Cost Ratio (BEN/COST %)76% Notes: Present Value figures are discounted over the child’s educational span from K–12 at a discount rate of 3.5%. Economic values are in 2004 dollars.

18. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 18 WISCONSIN STUDY FISCAL COSTS & BENEFITS Costs $207 million Benefits $141 million Net Cost $66 million Returns 68 cents on the dollar Returns 76 cents on the dollar for Milw

19. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 19 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

20. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 20 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

21. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 21 HOW DO YOU SELL EARLY EDUCATION TO YOUR CONSTITUENCIES?  PUBLIC  BUSINESS  LEGISLATURE

22. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 22 EVOLUTION OF ECONOMIC PROSPERITY 19 th Century –  Bigger and Better Farms 20 th Century –  Bigger and Better Factories 21 st Century –  Bigger and Better Ideas

23. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 23 U.S. SECTOR EMPLOYMENT TRENDS (% SHARE) Other (Retail, Construction, Government, etc.) Private Services Manufacturing Agriculture YEAR

24. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 24 Old Economy Raw Materials Cost Race to Bottom Workers Chased Jobs Quality of Life was luck of the draw New Economy QoL attracts talent Businesses Chase Talent Value-Added Products Brain Power NEW ECONOMY CHANGED CONSTRUCT

25. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 25 DESIGNED HERE MANUFACTURED THERE Designed in California Assembled in China

26. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 26 KATHLEEN

27. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 27 Workforce development and economic development are interrelated and interdependent. Ed = ED

28. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 28 NEW ECONOMY TALENT BASED Carly Forina, former CEO HP – Don’t show me your highway interchange or TIF district, show me the number of college graduates

29. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 29 "The days are over when you could walk into a paper mill with a high school diploma and run one of the machines." – Patrick Schillinger, Wisconsin Paper Council President, Center will teach paper-industry technology, Milwaukee Journal Sentinel, JS Online, October 21, 2004. NEW ECONOMY HIGHER SKILL SET REQUIRED

30. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 30 “Today in most fields I know, the struggle is about creativity and innovation. There is no script.” – Robert B. Shapiro, former CEO & Chairman, Monsanto Corporation NEW ECONOMY NEED FOR CREATIVITY & INNOVATION

31. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 31 Source: Autor, Levy and Murnane, 2003. Nonroutine manual Routine cognitive Routine manual Nonroutine analytic. Nonroutine interactive WORKPLACE REQUIREMENTS CHANGES IN SKILLS USED AT WORK* Source: K-12 Education and Economic Summit presentation by Alan B. Krueger, Princeton University * Based on the Dictionary of Occupational Titles

32. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 32 NEW ECONOMY SCARCITY OF SKILLED WORKERS Former Federal Reserve Chairman Alan Greenspan voiced his concern about a growing earnings gap between highly skilled and unskilled workers. "It's a problem caused basically by our skill mix not keeping up with the technology that our capital stock requires," the Republican Fed chairman said....

33. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 33 THE NEW ECONOMIC EQUATION IN A KNOWLEDGE-BASED ECONOMY BRAIN POWER EARNING POWER =

34. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 34 Source: K-12 Education and Economic Summit presentation by Alan B. Krueger, Princeton University

35. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 35 THE EARNINGS GAP HAS WIDENED REAL $ TERMS Source: US Census Bureau; Postsecondary Education Opportunity Education. Income (2004 Dollars) Difference (High School vs. Other Degree) 1975200419752004 High School$27,538$28,631n/a Some College / Asso. Degree $29,452$32,010$1,914$3,379 Bachelors$43,298$51,568$15,760$22,937 Advanced$58,721$78,225$31,183$49,594

36. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 36 MEDIAN FAMILY INCOME BY EDUCATIONAL ATTAINMENT Source: U.S. Census Bureau

37. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 37 TAXES 25% (college graduates) OF THE WORKFORCE PAYS 51% OF THE INCOME TAXES

38. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 38 LOW INCOME GROWTH LEADS TO : DETERIORATION OF ECONOMIC CONDITION AND QUALITY OF LIFE Lower per capita income Decreased tax base / Budget deficits Lower bond ratings Decreased school funding and teacher salaries Less & fewer public services Lower quality of life

39. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 39 Import the talent Export the job Grow the Talent here THREE TALENT OPTIONS FOR PRODUCTION

40. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 40 WHY IS EARLY EDUCATION IMPORTANT?

41. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 41 Third Grade Reading Skills  Learn to Read Read to Learn Forty-Minute Assessment  80% Accurate WHY EARLY EDUCATION? AN EARLY FULCRUM

42. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 42 ACHIEVEMENT GAP ESTABILISHED EARLY

43. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 43 ACHIEVEMENT GAP DEPENDENT ON THE MOTHER’S EDUCATION Source: Prof. James Heckman, Nobel Laureate, University of Chicago

44. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 44 POVERTY v. EDUCATION USE THE CORRECT POLICIES  Ed ≠ f (Poverty)  Poverty = f (Education)

45. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 45 NEW ECONOMIC DEVELOPMENT MODEL USING THE RIGHT TOOLS Traditional economic development tools produce a zero public return or worse. – See A. Rolnick, Federal Reserve Bank of Minneapolis Returns to high-quality early-childhood initiatives produce huge returns. − Perry Preschool 40-year study reports $17-to-$1 total and $13-to-$1 public benefit-cost ratios.

46. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 46 WHAT MORE DO YOU NEED? THE QUESTIONS HAVE BEEN ANSWERED What are the returns?  17: 1 returns; 80% to the Public Is it fiscally prudent?  Tiny fraction of total public school funding What is the greatest job need?  Skilled, creative, interactive occupations What is your alternative investment?  Not a new mall !

47. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 47 Postponing the Investment only postpones the Rewards It’s Good for Kids, It’s Good for Business, It’s Imperative for the Future EARLY CHILDHOOD EDUCATION BETTER SOONER THAN LATER

48. © Copyright 2006, NorthStar Economics, Inc. All rights reserved. 10/13/06 ECONOMIC DEVELOPMENT AND EARLY CHILDHOOD EDUCATION Economic Development and Early Childhood Education Law and Policy of Universal Preschool Loyola University of Chicago Law School 48 Dennis K. Winters, Vice President & Director of Research Phone: (608) 441-8060 Email: nstar@northstareconomics.com Fax: (608) 441-8064 Website: www.northstareconomics.com