bang for your buck

Investing early in quality child care for at-risk kids pays off big later, research finds

A staff member works with preschoolers at Educare Denver at Clayton Early Learning.

New research reveals that despite hefty up-front costs, quality child care programs for disadvantaged children starting just after birth and continuing to age five produce major financial dividends over the long term.

Such programs yield an annual return of 13 percent per child — generating $6.30 for every $1 initially invested in the program, according to the research by University of Chicago economist James Heckman.

The rate of return, which Heckman described as “huge,” is significantly higher than the 7 to 10 percent rate he found in previous research focusing just on the impact of preschool.

“We think this is very strong evidence for supporting this kind of program going forward,” Heckman said during a media briefing Thursday.

The study, released Monday, was authored by Heckman and other researchers from the University of Chicago and the University of Southern California. Heckman is known for his groundbreaking research on the economics of early childhood education.

With many cities and states focused on the expansion of full-day kindergarten or preschool in recent years, the new findings bolster arguments for early childhood investments that also cover kids’ first three years.

“The public policy literature has understated the importance of the very early years,” Heckman said.

At the same time, the study further documents the non-educational benefits of quality child care for at-risk children, particularly when it comes to long-term health outcomes.

“We’re seeing an improved human being in terms of the health capacity…at age 35,” said Heckman. “That’s a big benefit and it’s not a benefit that’s been considered in looking at these early childhood programs in the past.”

He said the research team’s projections show lower risk of diabetes, cancer and heart disease among children who attended the high-quality programs studied, as well as a reduction in unhealthy habits like smoking and drug use.

”What we found is a substantial reduction in those health costs and a much healthier workforce going forward,” he said.

The new study compared children who attended two intensive child care programs in North Carolina starting in the 1970s — the Carolina Abecedarian Project and Carolina Approach to Responsive Education — with those in a control group who had lower-quality child care arrangements.

In 2014 dollars, the annual cost of the intensive programs would be more than $18,000 per child.

In addition to providing full-day, full-year care and regular health exams to the children, the two programs provided child care subsidies to the parents, enabling them to work. Researchers followed participants from eight weeks old until age 35, examining a variety of outcomes, including educational attainment, earnings, health and involvement in crime.

While the early intensive programs benefitted all children, they benefitted boys most.

Heckman said the finding points to the likelihood that boys are more vulnerable and less resilient than girls if placed in low-quality child care settings.

“There do seem to be more harmful consequences for boys than for girls,” he said.

Although the two programs studied operated 40 years ago, the research team noted that such comprehensive birth-age 5 programs exist around the world today. Heckman cited the national Educare network of model child care centers as one example.

Denver’s Clayton Early Learning houses one such center and President and CEO Charlotte Brantley said she welcomed the new study.

“The research is absolutely telling us this is worth the upfront investment,” she said. “I applaud him for coming out one more time, saying this yet again.”

Brantley said there are few programs as comprehensive as Clayton in the state, though some full-day, full-year Head Start and Early Head Start programs may offer something similar.

Clayton, which offers care for infants starting at six weeks of age, provides extensive staff training, in-depth assistance for parents and has very low staff-child ratios. Brantley said the center recently embarked on a pilot project to train other providers on some of Clayton’s key practices.

paycheck parity

How a rural preschool overcame an industrywide challenge and paid teachers more

PHOTO: Marcia Walter
Marcia Walter, a teacher and the director at Dragon's Wagon Preschool, reads to her students.

Marcia Walter has worked at Dragon’s Wagon Preschool in the small town of Holyoke in northeastern Colorado for more than 25 years — starting as a teacher’s aide and working her way up to director.

In August, she got some news that made her cry: She was getting a raise.

It wasn’t a modest cost-of-living raise. It was a whopping 44 percent increase that bumped her annual salary from $32,000 to $46,000. At the same time, the preschool’s board approved increases for other staff members, and for the first time, put in place a salary schedule.

The changes came out of a years-long process by the 10-member board to better match staff salaries with those of local school district employees. The effort represents a unique victory in a field where low wages are the norm and some child care employees earn so little they qualify for public assistance. It also provides a glimpse into the complicated funding puzzle that many preschools and child care centers face when it’s time to build their budgets.

“I’m proud of where we’ve come from and where we are now,” said Tracy Stegg, a Dragon’s Wagon board member. “They deserve it.”

On average, early childhood workers nationwide earn $10.60 an hour, according to a 2016 report put out by the U.S. Department of Education and the U.S. Department of Health and Human Services. Those with at least a bachelor’s degree earn $14.70, about half of what other kinds of workers with bachelor’s degrees earn.

At Dragon’s Wagon — where the classroom walls are painted with rolling green hills, kite-flying bunnies and shoe-nibbling puppies — the board began talking about raises a couple years ago. Aside from Walter, the preschool’s other employees had all turned over in the space of four years, said board member Deb Williamson, who is vice president of the local bank.

“It opens your eyes,” she said. “Maybe we need to look at why we’re losing people.”

The board began to think harder about the importance of consistency for the 67 children who spend four half-days a week at Dragon’s Wagon and the ease with which Walter, a lead teacher, could find better-paying work if she wanted to.

She was nurturing and dedicated. She’d gone back to school to get her bachelor’s degree at the board’s urging. And like all of the preschool’s employees, Walter didn’t get employer-provided health insurance.

To help settle on a new compensation system, the board looked at the salaries offered by the local school district as well as a handful of other child care providers in the region. In addition to Walter’s $14,000 raise, they decided to raise the salary of the assistant director, who’d been at the preschool for two years, from $26,000 to $32,000. Teacher’s aides also got a boost, moving from $8.50 an hour to $10.

So, how did they come up with more than $20,000 to increase staff pay?

There was no magic bullet. Board members said they’d accumulated a small “nest egg” by squirreling away money in years there was a budget surplus. In addition, they relied on grants, tuition money, fundraising dollars from the school’s annual spaghetti supper and auction, and state money they received for serving at-risk students and those with special needs.

Asked how other preschools or child care centers might achieve such salary improvements, Stegg said a proactive board and careful planning helps.

Walter, who started working at Dragon’s Wagon in 1989, said community buy-in is critical. Residents — many of whom work at nearby hog farms, the local grain elevator or the hospital — have relied on and supported the preschool for years.

Kathy Miller, a regional support specialist for the state’s Colorado Preschool Program, said she considers the salary increases a “beautiful example” but expressed concern that the changes can’t be easily replicated elsewhere.

“I think it’s a model,” said Miller, who works with child care sites, including Dragon’s Wagon, within an eight-school district region. “I just don’t know if it’s possible in all communities.”

There are tight state and school district budgets to contend with, the public misconception that early childhood teachers are glorified babysitters and the fact that busy preschool directors may not be forging close connections with local business leaders, she said.

For Dragon’s Wagon, the challenge ahead will be sustaining the raises.

“I hope they can keep that up,” Miller said.

Tuition, which has remained at $80 a month for the last eight years, may eventually increase, Williamson said. Preschool leaders are also highlighting the new pay structure in grant applications, after learning that some foundations are eager to know about such improvements.

For her part, Walter is confident that the board has done its due diligence. She’d been privy to conversations about staff salaries for years. In fact, back in August, she knew she’d be getting a raise herself— she just didn’t know how big it would be.

“It made me realize that they do appreciate everything we do and that we’re worth it,” she said.

Q&A

Denver’s citywide effort to help poor children read better — explained

PHOTO: Lisa Roy
Lisa Roy, Denver Public Schools' new executive director of early childhood, started in October

Lisa Roy became Denver Public Schools’ executive director of early education — a newly created position — in October.

She’ll play a key role in launching the “Birth to Eight Roadmap,” a community effort aimed at improving literacy outcomes among young children living in areas of concentrated poverty in Denver.

Before coming to DPS, Roy was executive director of the Denver-based Timothy and Bernadette Marquez Foundation and did consulting for Grantmakers for Education, a national network of education grant-makers. She’s also worked for two other Denver-based foundations: the Piton Foundation and the Daniels Fund.

We sat down with Roy this week to discuss her background, her new position and the road map’s recommendations.

The interview has been edited for clarity and length.

What was your own early childhood experience like?
My great-grandfather was the superintendent of schools for Frederick County, Maryland, and he built one of the first high schools for African-American kids. So he was what was called the Superintendent of Colored Schools at the turn of the last century.

My grandmother and all of her siblings were teachers, and so my early childhood experience was actually my grandmother. She was a stay-at-home grandmom and took care of me and my cousins and siblings and we got a great experience. Of course, there was the ruler when I mispronounced words — a little slap on the hand — and I had to do my little rhyming before I could eat lunch or breakfast.

What was it like when your school was integrated when you were in kindergarten?
I didn’t really think about it. I had seen white kids on television and in the supermarket. I don’t think that part was as shocking. As I got older, it was a little different because I realized I was invisible. Obviously, I tested well and was put in an advanced track. It was myself and one other schoolmate that went through this advanced track together until we graduated from elementary school.

For me growing up, there was also this dissonance around if you were doing well in school somehow that meant you were trying to assimilate as opposed to this was my family background. I didn’t know how else to be.

What is the Birth to Eight Roadmap?
It’s a partnership between the City and County of Denver, Denver Public Schools and a myriad of nonprofit partners to provide supports and services around language and literacy from birth to third grade.

We have 11 different recommendations — from having an early opportunity system which ensures that kids have the developmental screenings they need and are provided the services to keep them at grade level, to hubs, which could be community-based or school-based opportunities to provide supports and services to families.

Has Denver Public Schools done anything like this before?
No, not like this. DPS and the city did work hand-in-hand with then-Mayor (John) Hickenlooper on the first Denver Preschool Program ballot initiative (which provides preschool tuition assistance for Denver 4-year-olds through a city sales tax ), but it was a very discrete ballot initiative. It wasn’t meant to solve every issue around birth to age 8. It was 4-year-olds only.

This has never been done before because it’s crossing the boundaries of what DPS is responsible for and what the community and parents are responsible for. It’s this opportunity to collaborate with parents, collaborate with nonprofit programs and child care centers, collaborate even within the district, across departments.

What is the goal of the Birth to Eight Roadmap?
The ultimate goal is that kids are reading proficiently and above by third grade.

We understand that when kids get to kindergarten it’s too late. About 38% of our children have no formal pre-K experience. We want to ensure our teachers are able to individualize according to where kids are, and their backgrounds and experiences … but also to try to the raise the percentage of kids who have some type of exposure (to early learning).

Not all parents are going to pick formal pre-K. But some of them might be willing to do a play-and-learn group or join the family literacy program or do Parents as Teachers or Home Instruction for Parents and Preschool Youngsters. We want to provide more opportunities like that with the collaboration.

What will the resource hubs will entail?
One example that we have in Denver Public Schools already is College View Academy, which has everything from play-and-learn groups to English as a Second Language and GED (classes) for parents. They even have opportunities for parents who are interested in going into the teaching profession to start off as a paraprofessional.

Again, this underlying theme around language and literacy is there throughout the building— with other supports that families need to succeed. Keep in mind that every neighborhood looks different.

How many hubs will there be and where?
We’re hoping to launch five, but keep in mind these are not hubs from scratch. These are hubs that have a lot of comprehensive services (now).

Right now, we have College View Academy, Place Bridge Academy, a school for immigrants and refugees; Florence Crittenton High School, a school for pregnant and parenting teens; and Focus Points Family Resource Center, near Swansea Elementary.

What do you see as the biggest challenge in implementing the Roadmap recommendations?
Well, it could be like herding cats. When you’re dealing with a lot of different people that have to raise their own funding, that are in various communities … it makes an interesting avenue to launch this kind of work.

What’s the timeline for the Roadmap?
Some of these things will be going to go on into perpetuity I would hope. But for the next three to four years we’re going to intensively look at three different phases. By the end of four years, it will really take shape, in a way you can say, “Yes, that’s the result of the Birth to Eight Roadmap.”