Pre-K payoff

Who benefits from Head Start? Kids who attend — and their kids, too

PHOTO: Jessica Glazer

Early childhood education benefits more than the kids who participate — it also helps their kids, even decades later.

A new study of Head Start, the large federally funded pre-kindergarten initiative that started in the 1960s, found that the children of kids who participated were substantially more likely to graduate high school and attend college, and less likely to commit crime and become a teen parent.

It’s the latest signal that a substantial investment in early childhood education, particularly when paired with well-funded K-12 schools, can have long-lasting benefits — and offers a striking extension of that research into a second generation.

“Our findings indicate that societal investments in early childhood education can disrupt the intergenerational transmission of the effects of poverty,” write researchers Andrew Barr of Texas A&M and Chloe Gibbs of Notre Dame.

Since the study focuses on the effects of Head Start as it existed decades ago, it’s unclear if today’s program would have the same positive effects. Still, the research is relevant to the nationwide debate on whether to expand, maintain, or reduce spending on early childhood education.

The program currently serves about 40 percent of three- and four-year-olds in poverty nationwide.

Critics of Head Start have pointed to evidence that test-score boosts from the program fade in early grades, and some have advocated cutting the program entirely. But the latest study, which has not been formally peer-reviewed, adds to previous research showing that Head Start can lead to major benefits in adulthood.

To determine the effects of Head Start, the researchers looked at children whose grandmothers did not have a high school diploma and whose mothers lived in counties where the program first launched. In order to isolate the effect of the program, Barr and Gibbs compared children of mothers who grew up in places where Head Start was initially rolled out to those who did not have the option to attend; the researchers could not directly measure whether someone actually enrolled.

The study finds that disadvantaged women who had access to Head Start seemed to benefit from the program in ways that helped their children down the line. Because of the program, crime in the second generation fell by 15 percentage points and high school graduation increased by 12 percentage points. Rates of teen parenthood dropped by nearly 9 percentage points and rates of college attendance rose by 17 percentage points.

The study does not examine the income of those second-generation beneficiaries, but the authors point out that a number of the outcomes, like graduating college high school or avoiding crime, are associated with avoiding poverty.

It’s not entirely clear why the program had such big effects years later. The mothers benefitted directly from Head Start — including in the form of higher adult earnings and greater educational attainment — and this may have translated in a number of ways to their children. Other research has shown that increases in family income improve children’s well-being and academic achievement.

The findings also suggest that previous estimates may miss the true cost-effectiveness of Head Start by failing to account for its effects across multiple generations. If investing in the program now reduces poverty later, that saves society money — potentially including resources spent on Head Start.

Still, changes in Head Start, and in America, make it unclear whether the program will have similar effects today.

Head Start was originally intended to provide comprehensive support to students and families, including health services. That goal remains, but Gibbs says the program now focuses more on improving kids’ cognitive skills, and that students entering the program are likely much less disadvantaged than they were 50 years ago. Alternatives to Head Start may also have changed in quality over the last several decades, and home environments for students not attending pre-K may have, too.

But her finding, Gibbs says, “is a proof of concept that an early childhood program can in fact have important anti-poverty implications in the second generation.”

Sticker shock

In Illinois, child care costs eclipse rent, making it one of least affordable states  

The average annual cost of child care now outpaces what families spend on a year of rent in Illinois, according to a new report that examines child care costs nationwide.

Illinois is one of the 15 least affordable states in the country, according to the report from the Virginia-based nonprofit Child Care Aware of America. The nonprofit examined costs across the United States and adjusted them for median income and cost of living.

“Families are seeing that child care is a significant portion of the bill they have to pay,” rivaling the cost of college tuition, rent, and even sometimes mortgage payments in some areas of the country, said Dionne Dobbins, senior director of research at Child Care Aware.  

The average annual cost of center-based care for an infant in Illinois has reached $13,474 — which is a staggering 52 percent of the median income of a single-parent family in the state and nearly 15 percent of the state’s median married couple’s income.

That figure put it 13th among the least affordable states, which were ranked by the percentage of a single-parent family’s income spent on child care. Massachusetts topped out at nearly 65 percent of a single-parent family’s median income for center-based infant care.

In Illinois, care for toddlers and older children before and after school also consumed a greater percentage of a family’s income compared with other states. Illinois ranked 14th for toddler care as a percentage of median income, with an average cost of $11,982 for full-time toddler care at a center.

The state was among least affordable for the cost of three months of summer care.

 

Illinois offers a child care subsidy intended to offset the costs of care for low-income working families, but that program has been rocked by shifting eligibility requirements and compliance issues. Participation in the program has dropped by a third since 2015, when Gov. Bruce Rauner’s administration changed eligibility requirements.

Dobbins said that, across the United States, child care subsidy programs are under pressure as states tighten compliance and lower reimbursement rates. In some states like Illinois, rising minimum wages have rendered some families ineligible for subsidies or staring down co-pays that they can’t afford.

Dobbins said that nationally, only one in six children eligible for subsidized child care actually ends up using it.

 

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.”