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.

Wanna go outside?

Less plastic, more trees: New effort seeks to reinvent preschool playgrounds and capture kids’ imaginations

This play structure at Step By Step Child Development Center in Northglenn will go away under a plan to create a more natural and engaging outdoor play space.

Michelle Dalbotten, the energetic director of a Northglenn child care center called Step by Step, doesn’t like her playground.

Sure, it’s spacious, with a high privacy fence bordering an adjacent strip mall parking lot. It’s also got a brightly colored play structure surrounded by lots of spongy rubber mulch.

But Dalbotten and her staff have long noticed that the kids get bored there. They clump together in the small shady area or on a few popular pieces of equipment. Sometimes, they start throwing trucks off the play structure or shoving their friends down the slide.

Something about it just doesn’t work.

Recently, Dalbotten found a solution in the form of a new grant program called the ECHO initiative, which aims to reinvent more than 100 preschool and child care playgrounds across Colorado over the next few years. Think mud kitchens, looping tricycle trails, vegetable gardens, stages, shady reading nooks and dump truck construction zones.

The idea is to create outdoor spaces that capture kids’ imagination, connect them with nature and keep them active in every season. Such efforts grow out of a recognition in the education field that healthy habits start early and boost learning.

The current preschool playground at Step by Step is covered by rubber mulch.

Step by Step staff members had talked many times about their stagnant play space. But it was hard to envision anything different until they attended a design workshop with experts from ECHO, a partnership between the National Wildlife Federation, Qualistar Colorado and the Natural Learning Initiative at North Carolina State University.

“We knew we were missing the boat somewhere because (the children) weren’t super-engaged and we had a lot of behavioral issues,” Dalbotten said. “But we just couldn’t see past it, I guess.”

For child care providers, it’s a common challenge, said Sarah Konradi, ECHO program director with the regional office of the National Wildlife Federation

“This is a very new idea to a lot of folks,” she said. “It’s hard to sort out as a layperson.”

ECHO, borne out of a decade of research from the Natural Learning Initiative, will hand out $355,000 in grants over the next three years. The initiative prioritizes centers that serve children from low-income families or other vulnerable populations.

Fourteen centers — Step by Step and Wild Plum Learning Center in Longmont are the first two — will get $10,000 awards for serving as demonstration sites willing to host visits for other Colorado providers.

Leaders at Step by Step say kids and teachers often congregate in the limited shady spots.

Around 100 other centers will receive ECHO’s $5,000 seed grants and expert assistance to revamp their outdoor spaces.

Such transformations can have a big impact on children who may spend thousands of hours a year at such centers, said Nilda Cosco, director of programs at the Natural Learning Initiative.

“When we do a renovation of the outdoor learning environments as we call them — not playgrounds — we see increased physical activity … more social interactions among children … less altercations,” she said.

“The teachers have to do less because the children are so engaged. There is so much to do.”

ECHO, which stands for Early Childhood Health Outdoors, is the latest iteration of a program Cosco started a decade ago called “Preventing Obesity by Design.” That effort revamped outdoor space at about 260 child care centers in North Carolina, South Carolina and Texas.

Cosco said such makeovers can ”prevent obesity by counteracting sedentary lifestyles. Children walk more, exercise more, are conversant with healthy eating strategies.”

Dalbotten and her staff have big plans for their play areas, which sit behind a plaza that houses a bingo hall, Dollar Tree and Big D’s Liquor store. They’ll get rid of the colorful play structure and the rubber mulch in favor of a more natural look. There will be trees, shrubs, small grassy hills and a winding trail leading to a wide array of activity areas.

This porch will get new lighting, fencing and foliage to make it a more attractive outdoor space at Step by Step.

The center’s smaller toddler playground will get a similar reboot and its tiny yard for babies — mostly bare except for a couple low-hanging shade sails — will be expanded to include a shaded deck where teachers can sit or play with babies. A barren concrete porch on the side of the building will be remade into a cozy activity area decorated with bird houses, planter gardens and butterfly-attracting foliage.

At the recent design workshop Dalbotten attended, ECHO leaders displayed photos from other centers around the country that have gone through outdoor transformations. She saw one that stuck with her.

“There were kids everywhere,” she said. “It was super cool looking. I was like, ‘Oh look, we can be that. We can have kids everywhere.’”

PHOTO: Natural Learning Initiative
The play space at Johnson Pond Learning Center in Fuquay-Varina, NC, after a makeover.
PHOTO: Natural Learning Initiative
The outdoor play space at Spanish For Fun Academy in Chapel, Hill, NC, after a makeover.

Starting early

For a struggling Colorado school district, full-day preschool — and the unusual way it’s paid for — shows promise

A staff member works with full-day preschoolers at Fairview Elementary School in 2016,

Promising first-year results from a study of full-day preschool in a high-poverty suburban Denver school district have stoked optimism about a new financing approach officials are testing there.

It’s called Pay For Success and has gained traction nationwide in recent years as a way to pay for social programs that yield long-term dividends but are expensive to launch.

The struggling 9,600-student Westminster Public Schools is using a version of the complicated financing model, also known as social impact bonds, to fund and rigorously evaluate full-day preschool.

While similar projects in Salt Lake City and Chicago have been underway longer, Westminster’s three-year pilot project provides the first Colorado case study of Pay For Success as a preschool expansion tool.

It’s also a key component of the early childhood efforts outlined in the district’s state-mandated improvement plan. Only about a third of Westminster kindergartners meet expected benchmarks when they start school.

This year, about a quarter of the district’s 600 preschoolers attend full-day programming — at a cost of about $10,000 per student.

The full-day classrooms are the most expensive in the district because of state class size and student-teacher ratio requirements, but not as pricey as some high-quality preschool programs elsewhere.

The idea behind Pay For Success financing is that private investors or philanthropists pay upfront for social programs and get repaid with interest if those programs save public money by preventing the need for costly services such as special education or reading remediation. If a project doesn’t yield the hoped-for savings, the investors lose some or all of their money.

Westminster Public Schools dipped its toes into Pay For Success waters last year, offering full-day preschool to 112 4-year-olds at seven elementary schools. Two foundations — Gary Community Investments and the Ben and Lucy Ana Walton Fund of the Walton Family Foundation — put up a combined half million dollars for the project.

(The Walton Family Foundation and Gary Community Investments — through the Piton Foundation — are Chalkbeat funders).

Westminster’s pilot is not a full-fledged Pay For Success transaction because the state is not a partner in the agreement as would typically be the case. In addition, the project agreement doesn’t require the two funders to be repaid fully if the district’s full-day preschool program yields the hoped-for savings.

However, the gold standard study by outside evaluators comparing full-day and half-day preschoolers is standard Pay For Success fare. It’s also a key part of what funders and other school districts may be looking at as they consider preschool expansion efforts.

So far, Westminster’s results look good.

Full-day preschoolers there performed better than their half-day peers on a bevy of early childhood assessments that measure everything from early literacy to social and emotional development.

“We’re seeing some real statistical significance in terms of full-day (preschool),” said Mat Aubuchon, the district’s director of early childhood education.

Further evaluations over the next two years will provide more definitive results, he said.

In addition to preliminary data gleaned from the official evaluation, Aubuchon said the district has discovered some unanticipated benefits of the full-day program. These include higher attendance rates in full-day preschool classrooms and increased likelihood that full-day preschoolers will come back for kindergarten.

While 60 percent of half-day preschoolers returned for kindergarten this year, that number was 76 percent for full-day preschoolers.

Asked if the district’s full-day preschool initiative might continue beyond year three as a full-blown Pay For Success project, Aubuchon said, “I certainly hope so.”

Steffanie Clothier, investment director for child development at Gary Community Investments, said Westminster’s project will provide a valuable evidence base for other districts interested in preschool expansion even if they don’t use Pay For Success.

“I think Pay For Success is a great way to help understand the financing and short term and longer term savings from preschool programs,” she said. “But I don’t think it’s essential as a funding stream.”