As is true in most states, Kentucky is fighting budget battles on a yearly basis. All too often, education at all levels--from Pre-K to the state universities--suffers from the budgetary ax. This year, Governor Beshear submitted a two-year budget that included $36 million in new spending on preschool education for 3- and 4-year-olds, only to see House Democrats allocate only $26 million to that purpose in their version of the budget. Well, a newly released report suggests that, at least in Kentucky, investment in early childhood education reaps an economic reward that outstrips those stemming from investment in manufacturing, services, and transportation. This information is a potential "game changer" when it comes to the bang-for-the-buck discussions in which cuts in education funding are usually shrouded.
Follow me below the Colophon d'Orange for the details...
In separate press conferences today, both Governor Beshear and Stu Silberman (head of the state's Pritchard Committee for Academic Excellence) put the matter in plain terms:
FRANKFORT — For every $1 invested in early education in Kentucky, there's a return of $1.64 in new spending across the state. That's the upshot of a new report from America's Edge, a national business non-profit group that is studying several state economies, including Kentucky's.
"You can't get that investment return anywhere, so we hope that that will resonate with folks across the commonwealth," said Stu Silberman, director of the Prichard Committee for Academic Excellence. "Conversely, if we're cutting early childhood, were losing that 64 cents."
[...]
"The very best thing Kentucky can do for its future is build a healthier, more educated work force and that starts with our children," [Governor] Beshear said Thursday during a Capitol news conference.
Now, I'm a source-material kind of guy, so I went to the report itself for greater detail.
"Strengthening Kentucky Businesses through Investments in Early Care and Education", produced by America's Edge, provides the results of their economic model in terms of cold, hard cash:
The early learning sector in Kentucky generates more additional spending in the economy than other major economic sectors:
Economic Sector Output Multiplier
Early Care and Education $1.64
Construction $1.62
Mining,Oil,Gas $1.61
Retail Trade $1.59
Transportation $1.58
The report goes further, breaking down the nature of where that 64 cents-on-the-dollar goes:
Construction/Real Estate 18%
Retail/Wholesale 14%
Insurance/Money/Finance 17%
Health Services 11%
Services 22%
Other 18%
Despite the tunnel vision so often applied to education spending, it's clear that an investment in early childhood education is a "rising tide that lifts all boats." The benefit of this spending across Kentucky's economy is stronger than that of any other area subject to government funding.
(Interested parties should take a look at the America's Edge website; they've done similar research for several other states, and you may find their results useful.)
Education advocates have also reached out to major Kentucky employers for their perspective, and one of the largest employers in the state came down squarely in favor of further investment in our children. As the topmost linked article reported:
The study is of particular concern to Kentucky businesses. Helen Carroll, community relations manager for Toyota, said their biggest problem is "the lack of folks who are prepared to come to work and building our vehicles. Our evaluation of the root cause for the lack of a prepared work force goes directly to early childhood education."
So, investing in early childhood education prepares our children, boosts the local economy, and is good for business. I fail to see a problem here.