Paying for pre-K

To fund pre-K, advocates in Indiana pitch tax credit scholarships, ‘pay for success,’ tax hikes

PHOTO: Scott Elliott / Chalkbeat
Preschoolers at Shepherd Community Center.

Early childhood education advocates are suggesting new ways for the state to fund prekindergarten — by bringing in investments from local communities and corporations.

In a new report released Tuesday by the Indiana University Public Policy Institute and Early Learning Indiana, advocates recommended the state look into tax credit scholarships, social impact bonds, food and beverage tax revenues, or local referendums to pay for expanded pre-K access.

“I don’t think it should be shouldered just by the government or by the private sector alone,” said Madeleine Baker, CEO of the Early Childhood Alliance in Fort Wayne, who co-chaired the report’s advisory board. “I think there needs to be partnership across the board. Everybody has to have skin in the game.”

Tuesday’s report kicks off a renewed campaign to expand early childhood education in Indiana, which is shaping up to be a budget battle in the upcoming legislative session that starts in January.

It could be fairly easy for the state to launch tax credit scholarships for pre-K programs, since Indiana already spends $14.5 million on the school choice strategy. Businesses and individuals receive a 50 percent tax credit on donations to scholarship funds for students from low- and middle-income families to cover the cost of private school tuition in grades K-12.

With social impact bonds — often called “Pay for Success” models — private investors contract with the government to provide money up-front for early childhood initiatives, which is paid back if the programs are successful. Illinois, along with Idaho and Utah, uses the strategy.

Passing a local property tax increase or an option income tax is an increasingly popular option for funding early childhood education with long-term revenue. But raising taxes is a tough sell in Indiana, and likely more so in the state’s rural areas.

An effort to pass a local referendum for early childhood education in Indiana has failed before. In Columbus, voters refused to back a referendum in 2012 that would have supported a public-private partnership widely pointed to as a success.

The other new ideas for funding streams — tax credit scholarships and social impact bonds — also come with trade-offs, said Bruce Atchison, principal of early learning for the Education Commission of the States.

“If you have a big corporation that’s going to put half a million dollars into that, that’s great,” Atchison said. “But when the corporation moves from the state or has a downturn in profits, it might not be so willing. So the long-term sustainability of the social impact bond piece becomes a concern.”

While the report did not include a big-picture estimate for how much more money the state should spend on pre-K, it did put a price tag on the cost of not investing in early childhood.

Employers in Indiana lose $1.8 billion each year from workers taking time off or leaving their jobs because of child care issues, the report said. Those absences are equivalent to losing 31,000 full-time employees and result in costs to businesses for paying for parents’ time off, hiring and training new workers, and paying for overtime or temporary workers.

The report also said the state loses $1.1 billion in economic activity each year from people reducing their spending if they lose out on wages because of child care issues.

It’s a popular argument in support of pre-K: Early childhood education benefits the workforce, both this generation and the next. Advocates say increasing high-quality pre-K seats helps parents stay or get back into the workforce while preparing young children with essential skills.

“Economic development speaks to Republicans,” said former Indianapolis mayor Greg Ballard, a Republican himself who championed pre-K and co-chaired the advisory board. “I’m hoping they look at these figures and say, hey, maybe that’s something we should be looking at.”

He added that he hopes the ideas for public-private partnerships — which he used to launch Indianapolis’ pre-K program — will also speak to the Republican lawmakers who dominate the legislature.

“I don’t think there’s yet a general understand that this should be done for many reasons, not the least of which is economic development,” Ballard said. “It’s just not in our psyche yet that this is part of who we are as Hoosiers.”

The state’s pre-K program, known as On My Way Pre-K, is in the fourth year of its five-year pilot. At a cost of $22 million per year, it is available in 20 counties and pays for roughly 4,000 4-year-olds from low-income families to attend the high-quality pre-K provider of their choice.

If the state is to continue funding the pre-K program, advocates’ best shot for securing money is in the upcoming session, when lawmakers craft the state’s two-year budget.

Expanding pre-K is likely to have the support of Republican Gov. Eric Holcomb, who pushed in 2017 for an earlier expansion of the program to more rural areas of the state.

The issue has already won the support of Republican state schools chief Jennifer McCormick, who said earlier this month that too many Hoosier children enter kindergarten unprepared.

Advocates cite research showing the long-term returns on investment of pre-K and a study showing the success of pre-K in Oklahoma. They even point to research showing where Tennessee’s pre-K program fell short as an example of how important it is to maintain high quality standards for pre-K.

A recent report also showed that universal preschool in Washington, D.C., helped more mothers return to the workforce.

But funding is still likely to be a sticking point: How much money will lawmakers be willing to invest in pre-K?

“In a budget year, everyone has a request for something,” said Tim Brown, general counsel and director of policy for the Indy Chamber, in an interview last month with Chalkbeat.

Advocates say they are still struggling to convince people that pre-K is a worthwhile investment that amounts to more than daycare.

Indianapolis Mayor Joe Hogsett, a Democrat, said he believes pre-K has already proved its worth. Researchers have been studying the early outcomes of the state’s pilot program, which is showing both academic gains for children, and an increase in work and education opportunities for parents.

“I think the results of those programs are self-evident, that they do make a critical difference to get our young people off to a great start in life,” Hogsett told Chalkbeat recently. “So I hope that those results will speak volumes as the legislature crafts its next biennial budget.”

all aboard

Colorado’s top education officials support Gov. Polis’ full-day kindergarten proposal

PHOTO: Photo by AAron Ontiveroz/The Denver Post
Sophia Camacena sits with classmates in kindergarten on the first day of school at McGlone Academy in Denver on Aug. 15, 2018.

The Colorado State Board of Education has put its support behind a proposal for the state to cover the cost of full-day kindergarten.

Gov. Jared Polis campaigned on this plan, and earlier this week, he announced that he could pay for it without cutting other programs because local property taxes are bringing in more revenue, freeing up money at the state level.

In a press release, the State Board of Education, made up of four Democrats and three Republicans, said it had adopted a resolution in support of that plan.

“We know that high-quality kindergarten programs can help us close opportunity and achievement gaps and ensure that all students have a strong foundation for success throughout their school years,” board chair Angelika Schroeder, a Boulder Democrat, said in the release.

Vice Chair Steve Durham, a Colorado Springs Republican, said leveraging the strong economy to pay for kindergarten is the right approach.

“The proposal doesn’t create a new mandate for districts or for parents, but it enables districts to offer free, full-day kindergarten for all, and it will help ensure all students are on the path to success,” Durham said.

Right now, about 50,000 students attend full-day programs and another 13,000 attend half-day programs. Many districts charge tuition for the extra half-day — the governor’s office estimates at least 30,000 families pay hundreds of dollars a month, though the state education department doesn’t track this — while others use a combination of federal money for high-poverty schools, state funds to support early literacy, dedicated local taxes, and their own operating funds to cover the cost.

When Polis announced the plan, key Democratic lawmakers on the Joint Budget Committee raised concerns about using so much additional revenue for kindergarten when there are other needs, particularly transportation. Polis estimates paying for kindergarten will cost an additional $227 million a year, plus a one-time $25 million expenditure for implementation costs such as  curriculum and supplies.

“The governor’s budget doesn’t really touch on transportation, for example,” Joint Budget Committee Chairman Dominick Moreno, a Democrat from Commerce City, told The Denver Post. “And that’s something we’ve heard loud and clear from our constituents — that they are tired of sitting in traffic. They want better infrastructure.”

But on Wednesday, when Polis formally presented his budget requests to the committee, those same lawmaker asked no questions and later issued official statements that indicated support for kindergarten, even as they included a few caveats about long-term fiscal responsibility.

“After meeting with Gov. Polis to learn more about his budget proposal, I believe his ideas are a solid blueprint which we can build upon for our next budget,” Moreno said in a press release.  “I look forward to continued conversations between the JBC and the governor to see how we can best fulfill these requests and fund these programs in the long-term.”

Early Education 101

Here’s how Detroit, Flint, and Grand Rapids advocates are trying to put early childhood education on the state policy agenda in Lansing

PHOTO: Getty Images

With scores of new Michigan lawmakers sworn in this month, and new leadership taking shape in Lansing, parents and advocates from across the state are ramping up efforts to put the needs of the state’s youngest children on the political agenda.

Parents from Detroit, Flint, and Grand Rapids plan to converge on the capitol next week for an “Early Education 101” session with lawmakers that organizers say is the first significant early-childhood event to be held in the capitol in about a decade.

“We decided to do this together so that we can speak with a collective voice,” said Denise Smith, who heads the Flint early childhood collaborative and runs an early childhood center called Educare Flint. “These are not just Detroit or Flint concerns.”

Organized advocacy like this has long been common in Michigan when it comes to K-12 education. Lansing veterans are used to seeing busloads of parents arrive to push for funding or policy changes. But early childhood education advocates haven’t invested the resources to organize events like these in recent years.

Advocates hope that next week’s event will to put the needs of young children and their parents on the radar of lawmakers  as the process for thinking about policy and budget priorities for the upcoming legislative session begins.

Among major concerns for parents across the state is a third-grade reading law that, starting next year, will require schools to hold back students who aren’t reading at grade level by the third grade.

Elementary schools have been working to ramp up their reading instruction, but advocates say the work has to begin much earlier, starting with getting children ready for school when they’re babies or toddlers.

“We need to have the resources and the other investments in early childhood so we can insure that fewer children will be retained,” Smith said.

One of the efforts behind the event is the Hope Starts Here initiative in Detroit, which is a $50 million campaign led by the Kresge and W.K. Kellogg foundations to improve the lives of the city’s youngest children. (Kresge and Kellogg also support Chalkbeat. Read our code of ethics here).

Hope Starts Here has brought parents, advocates, educators, and others together in Detroit to set priorities, such as making early childhood programs more affordable, improving their quality and expanding their reach.

“We have a lot of momentum right now,” said Camarrah Morgan, who is helping to lead community engagement and advocacy efforts for Hope Starts Here.

It’s not just parents and educators pushing the cause, she said. “We have corporate partners at the state level who are advocating for child care because they’re trying to recruit and retain workers … This is about helping policymakers understand why childcare is important.”

Organizers say that 165 lawmakers or members of their staffs have signed up for the Jan. 22 “lunch and learn” event in Lansing, including new and returning officials. There also will be 75 parents from across the state.

The parents will be learning too, said Felicia Cash, a parent and community advocate from Detroit’s east side who plans to participate.

“Success would be the parents being fired up once we come back,” Cash said. “It can’t just be a one-time event. We have to have the energy and the perseverance to continue lobbying, to continue writing, to continue having town hall meetings here in the city, to return back to Lansing. This is our voices being lifted up, our voices being taken seriously.”