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News and Information

2007 Education and Economic Forum

High-quality early childhood education can reduce social costs and spending on K-12 education fuels the economy and promotes economic growth.

Those were among the messages that three national experts gave to more than 70 Nebraska policymakers and education leaders, including Nebraska First Lady Sally Ganem, during a January Education Forum co-sponsored by NSEA, the Nebraska Council of School Administrators, the Nebraska Association of School Boards and the Nebraska Department of Education.

"Early childhood education can produce a chain of effects that can increase high school graduate rates," said Dr. W. Steven Barnett of the National Institute for Early Education Research at Rutgers University.

Citing evidence from more than three dozen national studies, and three long-term studies in particular, Barnett said those effects include lower delinquency rates, reduced crime, increased employment, lower health costs and provide for a better quality of life.

"In effect, early childhood education makes your population more productive and less costly," said Barnett.

For example, Barnett said one long-term Michigan study found that by age 27, nearly 30 percent of the students who had been in pre-school earned more than $2,000 monthly, while only 7 percent of their non-pre-school counterparts earned as much. And 41 percent of the Michigan pre-schoolers had never been on welfare, while only 20 percent of the non-pre-schoolers could make that claim.

An economist, Barnett said the return in social cost savings on each dollar invested in the three long-term pre-school programs ranged from about 4-to-1 to 17-to-1, a very good rate of return when "1-to-1 is a success," he said.

Barnett said, however, that to be effective preschool programs need well-educated, adequately paid teachers; good curriculum and professional development; high standards and accountability; and small classes with reasonable teacher-to-child ratios.

Dr. Richard Sims, of the Sierra Institute for Applied Economics, has advised governors and legislators in half a dozen states. In almost every case, those leaders ask whether tax cuts would stimulate the economy.

The answer, Sims said, is no.

"Across the board, lower taxes are associated with lower growth. You can't have high-quality public infrastructure without taxes," he said.

For instance, Sims said the 10 states that spent the most on education in the last 10 years had an average personal per capita income growth of 4.3 percent. The 10 states that spent the least on education had 3.8 percent growth.

Sims noted that about 80 percent of a school district's budget is spent for personnel and nearly all of that money is spent by school employees in the local community or region, creating economic activity.

View the compelling findings and statistics from national experts: