New Mexico PreK. New Mexico Early Childhood Development Partnership

Transcription

1 New Mexico PreK New Mexico Early Childhood Development Partnership Winter 2015

2 Table of Contents Executive Summary Policy Recommendations Recommendation 1: Expand Recommendation 2: Establish Parity for Teachers in Public and Private Programs Recommendation 3: Elevate Quality of Child Care Introduction: Why New Mexico Needs PreK What is PreK? Administration Standards Curriculum Finance PreK Benefits Over a Lifetime Short-term Impacts: Kindergarten readiness Medium-term Impacts: Elementary School Achievement Long-term Impacts: Education, Employment, and Outcomes for Adults Other Benefits Maximizing the Benefits of PreK Quality Quantity: More Hours, Better Outcomes Access Getting There: The Challenges of Scaling Up Community Capacity and Workforce Development Compensation Parity Physical Space Long-term Goals, Five-year Expansion Conclusion: Advancing an Effective Intervention Notes This report was authored by Dr. Kelly O Donnell 2

3 EXECUTIVE SUMMARY Executive Summary Breaking the cycle More than a third of children in New Mexico grow up in poverty. Too many families in our state are caught in a multigenerational cycle of economic disadvantage that is difficult to overcome. But when children get high-quality care and education early on, that cycle of poverty can be broken. By escaping the negative impact of poverty on brain development, children have a chance to succeed in school and life. The Realities More than 30 percent of New Mexico children grow up poor High-quality early care and education can break the cycle of multigenerational poverty NM PreK: A Voluntary, Mixed-Delivery System (NM PreK) is a voluntary PreK program created by the New Mexico Pre-Kindergarten Act and funded by the state of New Mexico. Since its establishment in 2005, NM PreK has provided half-day PreK services to more than 60,000 four-year-olds. And the program is growing: New Mexico piloted full-day services in the school year and three-yearold classrooms in Current funding allows NM PreK to provide half-day services to 10,783 children, while 2,155 children will receive full-day services during the school year. NM PreK is a mixed delivery system, meaning that roughly half of children are enrolled in programs administered by the New Mexico Public Education Department (PED). The other half receives services in community-based PreK classrooms funded by the New Mexico Children, Youth, and Families Department (CYFD). Priority for participation in NM PreK is given to children who attend Title I schools or live in a neighborhood with a Title I school. Title I schools are those in which at least 40 percent of students qualify for free or reduced price lunch. In New Mexico, 81 percent of the state s 170,700 public elementary school students attend Title I schools. Mixed Delivery System: NM PreK is a voluntary, state-funded PreK program New Mexico Public Education Department (PED) and New Mexico Children, Youth, and Families Department (CYFD) each administer one-half of NM PreK programs Since its establishment in 2005, NM PreK has provided half-day PreK services to more than 60,000 four-year-olds»» In the school year, NM PreK will provide half-day services to 10,783 children and full-day services to 2,155 children 3

4 Benchmarks of Quality Whether administered by PED or CYFD, all NM PreK program curricula are guided by the New Mexico Early Learning Guidelines (ELGs) a framework that identifies what children know and can do in all areas of early development and learning. Through annual site visits by state regulators, review of child assessment data and other markers, NM PreK ensures steady adherence to program standards. Increased funding Funding for NM PreK has increased more than 1,000 percent between 2005 and 2016, from $5 million to $51 million Implementing full-day : Approximately $6,450 per year for four-year-olds Approximately $7,418 per year for three-year-olds The New Mexico Early Learning Guidelines (ELGs) guide curricula for all programs, whether administered by PED or CYFD. Funding NM PreK State appropriations are the primary source of funding for NM PreK. Between the program s inception in 2005 and today, NM PreK has seen an increase in state funding of more than 1,000 percent from $5 million to $51 million, with the biggest jump taking place since In the school year, New Mexico was among the states with the largest percentage growth in PreK funding. Implementing full-day is approximately $6,450 per year for four-year-olds and approximately $7,418 annually for three-year-olds. Serving three-yearolds (3PreK) is more costly because PreK programs for three-year-olds require a 7:1 or 8:1 child-to-teacher ratio, whereas a 10:1 ratio is permissible for four-year-olds. 1 Benefits Present and Future A growing body of national research reveals that highquality PreK generates a raft of benefits. Early learning opportunities can improve children s achievement test scores, reduce rates of special education placements and grade repetition, lower juvenile delinquency, and boost high school graduation rates. Analyses tracking PreK attendees into adulthood have documented an array of long-term benefits, including greater rates of college attendance and higher earnings. Adults who have gone through quality PreK programs are less likely to fall into crime, become dependent on welfare, or engage in risky health behaviors. Evaluating NM PreK From , The National Institute for Early Education Research (NIEER) evaluated New Mexico PreK, using a set of 10 regulatory benchmarks. Based on kindergarten entry assessment scores, the NIEER evaluators concluded that, over a five-year period, NM PreK produced statistically significant positive impacts in language, literacy, and mathematics the three areas most critical to long-term academic success. 1 For single session programs Early PreK program group/class size must not exceed 16 children; Early PreK program adult-child ratio must be no greater than 1:8 with one lead teacher and one educational assistant. For double session programs: Early PreK program group/class size must not exceed 14 children; Early PreK program adult-child ratio must be no greater than 1:7 with one lead teacher and one educational assistant. See: New Mexico Children, Youth, and Families Department (March, 2015) New Mexico s Early PreK Program Standards for Program Year for New Mexico Early PreK programs funded by the Children, Youth and Families Department. Using marginal effects derived from a study of the impact of the Chicago Child Parent Center, the NIEER evaluators forecast the benefit-cost ratio for New Mexico s PreK initiative at $4.60 in benefits for every $1 in costs, 2 allowing for adjustments for inflation and current PreK costs. Based on this ratio, current net benefits per NM PreK cohort exceed $183 million. 2 The estimates in the NIEER report were expressed in 2005 dollars 4

5 The NIEER team went on to recommend that New Mexico PreK expand in order to provide high-quality PreK services to more four-year-olds in New Mexico. NIEER recommended that classroom quality improve as well, primarily though professional development and higher education opportunities for early education professionals, which can be made possible through increased state investment. To derive the most benefit from its investment in PreK, New Mexico must provide: Access: Use outreach and capacity building to ensure access and maximum participation by children of all backgrounds, especially those at the highest risk of poor outcomes Quality: Sustain the highest level of quality by enforcing standards and supporting continuous quality improvement at the teacher, program, and system levels Quantity: Provide the right volume of PreK services, in terms of both number of hours each year and number of years per student A spectrum of benefits NM PreK produces positive impacts in language, literacy, and mathematics More than 90 percent of children who attended NM PreK in the school year made measurable improvements in school readiness More than 78 percent of children who completed NM PreK in the school year scored at the level of Accomplishing or Exceeds on the PreK Observational Assessment Quality is Essential No factors are more critical to the quality of PreK programs than the quality of interactions between child and teacher and the teacher s effective use of curricula. While relational aspects of classroom quality are difficult to regulate, standards for classroom size, child-toteacher ratios, and staff qualifications can help foster supportive and stimulating teacher-child interactions. Cost Savings of PreK North Carolina recently documented a 32 percent reduction in special education placements through PreK. Assuming comparable results in New Mexico, the state s investment in PreK investment could save New Mexico about $3 million per grade per year or about $12 million for children in kindergarten through third grade. When a child completes high-quality PreK, studies show he is less likely to repeat a grade between kindergarten and third grade. In fact, his chances of being held back decrease by at least 24 percent and potentially more than 50 percent. Based on these statistics, participation in the should prevent between 124 and 259 kindergarteners from being retained. That s a cost savings of between $672,000 and $1.4 million, if the cost of grade repetition is simply the present value of an additional year of school. Total savings between first and third grade could range from $1.7 million to $3.5 million per cohort. Meeting NIEER benchmarks: In 2002, New Mexico met two of the NIEER benchmarks Today, the state meets eight NIEER benchmarks Research shows that for every $1 in PreK costs, there are $4.60 in benefits 5

6 Significant financial savings By reducing special education placements, New Mexico s investment in PreK could save the state about $3 million per grade per year or about $12 million for children in kindergarten through third grade. High-quality PreK reduces a child s likelihood of being held back between kindergarten and third grade by at least 24 percent and potentially more than 50 percent. Decreased grade retention could generate total savings ranging from $1.7 million to $3.5 million. Strengths of NM PreK One of NM PreK s greatest strengths is its professional development consultation model, which gives teachers, educational assistants, and administrators ongoing professional development opportunities. At least once a month, PreK experts visit the classroom to provide on-site training and coaching, with an emphasis on supporting teachers in a curriculum planning process 3 based on observation, planning, and documentation. Between site visits, these experts support teachers and administrators remotely, generating a continuous stream of mentorship and consultation that helps maintain consistency and fidelity across the spectrum of NM PreK programs. NM PreK aligns with a range of early education programs. These include New Mexico s kindergarten standards; the standards for the Individuals with Disabilities Education Act (IDEA) Part B and Title I preschool programs; and FOCUS, the state s tiered quality rating improvement system (TQRIS), which is used both to rank the quality of early childhood programs and to reward providers who invest in quality. Chief strengths of NM PreK Ongoing professional development for educators and administrators Alignment with other early education programs 3 In NM PreK, curricular planning is based on a cycle of observation, reflection, planning, and implementation. Teachers observe and document the experiences of each child and implement strategies and modify activities to meet their individual needs. Program Length When compared to half-day programs, research suggests that full-day PreK brings greater benefits including increased school readiness, better attendance, enhanced social and emotional development, and better physical health. With the school year, NM PreK marks its second year of full-day PreK and its pilot year of threeyear-old classrooms. Advances like these suggest New Mexico is on its way toward a comprehensive, statewide PreK system. Still, reaching the goal of providing two years of full-day PreK to every family that wants it regardless of income and location, and with the quality needed to make a positive difference will take time, resources and coordination. Research indicates that two-year PreK programs are more beneficial than one-year programs. To explore the benefits of two-year PreK, New Mexico is piloting PreK for three-year-olds for the first time during the school year. Research ties full-day PreK to a range of benefits, including positive strides in school readiness, attendance, social and emotional development, and physical health. PreK Needs a Strong Workforce Unfortunately, many of the communities who need PreK programs the most lack the workforce to staff and administer them. In order to effectively expand into rural and underserved communities, NM PreK needs more qualified educators. To cultivate a more robust and widely distributed workforce, the state must invest in both pre-service and in-service professional development in direct proportion to program expansions. It must establish, fund, and promote incentives to recruit and retain qualified educators throughout New Mexico. 6

7 In order to grow, NM PreK needs more qualified educators, distributed evenly across all communities. A Space to Grow Workforce is not the only element that must grow as NM PreK expands physical capacity, too, must increase. Public school expansions will require greater capital investment from the state, and New Mexico may also need to take a more active role in helping private providers gain access to expansion capital, particularly in areas underserved by commercial lenders. Wage Parity is Vital Public schools typically pay preschool teachers more than private providers. They also offer better benefits and job security, prompting many qualified teachers to leave community-based programs for PreK jobs in public school. Some states Georgia, New Jersey, New York, and North Carolina, among others have established compensation parity by requiring community-based PreK providers to pay equal salaries for equivalently qualified teachers. Others, like Oklahoma, have placed teachers employed by the public schools in private PreK programs. Parity in teacher qualifications and compensation is particularly essential in a public/private mixed delivery model like NM PreK. Value of Coordination Close coordination with other early learning systems can help NM PreK expand over time. For example, by coordinating with the state s Child Care Assistance program, NM PreK can help ensure that low-income, working families can access high-quality care for their children both outside the school day and over the summer. Through technical assistance, providers can learn how to combine the two programs in a costeffective way that serves families who need support the most. By coordinating with the state s Child Care Assistance program, NM PreK can help ensure that children from low-income families can access high-quality extended care. Comprehensive PreK: Within Reach A comprehensive, statewide system of PreK would bring tremendous benefits to thousands of families and children. And the goal is achievable. If 80 percent of New Mexico s three-and-four-year-olds had access to voluntary, high-quality, full-day PreK services, a projected 24,558 additional children would enroll in state PreK. At a total additional cost of $183.6 million, plus the current $51 million PreK expenditure, this expansion would bring the state s annual PreK expenditure to $234.6 million. A successful public/private mixed delivery model relies on parity in teacher qualifications and compensation.»» If the state of New Mexico offered access to high-quality, full-day PreK services to 80 percent of New Mexico s three-and-fouryear-olds, an additional 24,558 children would likely enroll in state PreK. 7

8 POLICY RECOMMENDATIONS Policy Recommendations Based on the data and analyses presented in this report, the New Mexico Early Childhood Development Partnership (NMECDP) makes three essential recommendations: 1. Provide full-day services to 80 percent of the state s three-and four-year olds within five years 2. Achieve wage parity between community-based (NM PreK) programs and those offered in public schools 3. Over a five-year period, ensure that all infants and toddlers receiving subsidized child care are in highquality settings The five-year timeline presented draws from the successes of other states, which suggest that making steady, sustained progress toward an established, longterm enrollment goal is essential to scaling up without compromising quality. The cost of implementing NMECDP s recommendations is $285.5 million over five years, with a cost of $57.1 million in the first year. However, the present value of the long and short-term benefits to the State of New Mexico and all New Mexico residents at more than $1.3 billion per year at full implementation far outweighs the costs. Costs and benefits of NMECD Recommendations The cost of implementing NMECDP s recommendations is $285.5 million over five years, with a cost of $57.1 million in the first year»» The present value of the long and short-term benefits to the State of New Mexico and all New Mexico residents at more than $1.3 billion per year at full implementation far outweighs the costs 8

9 Recommendation One: Expand To implement full-day PreK for 80 percent of New Mexico three-and four-year-olds, the state must create or reclassify 35,341 NM PreK slots. This requires expanding the NM PreK budget by $258.9 million $183.6 million in recurring costs and $75.3 million in non-recurring capital costs (see Table 1). FULL-DAY PREK: TOTAL DIRECT COST Recurring Net Cost Non- Recurring Net Cost Total Cost Three-year-olds $146.8 million $58.6 million $205.4 million Four-year-olds $36.8 million $16.7 million $53.5 million TOTAL $183.6 million $75.3 million $258.9 million Transitioning to full-day PreK requires shifting 10,783 half-day slots into full-day slots and adding 24,558 new full-day slots. At full implementation, 44,901 New Mexico children would receive publicly funded full-day PreK services 7,405 through 100 percent federally funded programs 4 and 37,496 through NM PreK. Recommendation 1 2 COST ESTIMATES FOR NMECDP RECOMMENDATIONS Voluntary full-day NM PreK for children ages three and four Total Cost $258.9 Year One Cost (Five-year phase-in) Recurring $183.6 $36.7 million Non-recurring $75.3 $15.1 million Qualification and compensation parity for lead teachers in public school and community-based settings $17.0 $3.4 million TABLE 1 The estimate of annual cost per child includes these key elements: 5 Technical assistance to child care providers in order to help them respond to the NM PreK Request for Proposals and meet program reporting requirements Annual provider payments of $6,000 per fouryear-old and $7,000 per three-year-old T.E.A.C.H. scholarships for teachers, directors, and educational assistants 6 On-site professional development using the NM PreK coaching and consultation model Off-site NM PreK trainings 7 Transportation Start-up and safety grants to new Children, Youth, and Families Department (CYFD) providers External evaluation Data management Program administration Recurring net cost represents the expense of additional PreK services, less the savings to the New Mexico child care assistance program, as a result of NM PreK serving three- and four-year-olds for the majority of the day. The total cost estimate provided here includes an additional $75.3 million in non-recurring start-up costs that are not already included in the per-child rate. Capital costs are expected to rise as PreK expansion absorbs the supply of vacant space appropriate for PreK within existing facilities. 3 High-quality care for infants and toddlers $9.6 $1.9 million Total $285.5 $57.1 million 4 Special education and Head Start TABLE 2 5 Services apply to both PED and CYFD programs unless otherwise noted 6 T.E.A.C.H. Early Childhood provides scholarships for early childhood program staff. Increased utilization of TEACH constitutes about $1.7 million of the additional annual recurring cost of the PreK expansion 7 Professional development and technical assistance are key components of New Mexico PreK. Consultants provide PreK-specific training and on-site, job-embedded classroom coaching and consultation. 9

10 FULL-DAY PREK: TOTAL RECURRING DIRECT COSTS OF EXPANSION Targeted F/T enrollment in public PreK Current F/T equivalent public PreK enrollment* Net additional F/T equivalent enrollment Recurring cost per F/T slot Recurring net cost** Three-year-olds 22, ,512 $7,418 $146.8 million Four-year-olds 22,481 14,800 7,680 $6,450 $36.8 million TOTAL 44,901 15,708 29,193 N/A $183.6 million *Current NM PreK enrollment expressed as full-time equivalent slots (e.g. 10,783 half-time lots = 5,392 full-time slots), Head Start, and federal special education preschool slots. ** Adjusted to reflect child care assistance savings TABLE 3 The expansion will require 1,729 new PreK classrooms at full implementation. The estimate of non-recurring costs assumes that each new classroom requires a one-time capital investment of $43, NM PreK is funded to serve 12,938 children 10,783 with half-day services and 2,155 with full-day services in school year FULL-DAY PREK: TOTAL DIRECT START-UP COSTS New classrooms Start-up costs per additional classroom Total nonrecurring cost Three-year-olds 1,345 $43,557 $58.6 million Four-year-olds 384 $43,557 $16.7 million TOTAL 1,729 N/A $75.3 million Expanding NM PreK Reaching the goal of providing full-day PreK to 80 percent of three- and four-year-olds in New Mexico means: Shifting 10,783 half-day slots to full-day slots Adding 24,558 new full-day slots At full implementation, 44,901 New Mexico children would receive publicly funded full-day PreK services 7,405 through federally funded programs 9 and 37,496 through NM PreK. TABLE 4 8 The assumed per-classroom capital cost is the average of the $15,000 Start-up and Safety funding allotted to new CYFD PreK classrooms and $72,113 per new PED NM PreK classroom, an estimate derived from the capital outlay allocation for PED NM PreK sites. In School Year , the Public School Capital Outlay Council of the New Mexico School Facilities Authority awarded $1,799, to renovate and/or construct PreK classrooms in 10 school districts with PED PreK programs 9 Special education and Head Start 10

11 Recommendation Two: Establish Parity for Teachers in Public and Private Programs Two major policy changes are necessary to implement recommendation two: 1. Require that every NM PreK lead teacher hold a bachelor s degree and early childhood teaching license, no matter the program in which they teach 2. Raise pay for community-based PreK teachers to match that of public school PreK teachers The most effective state-run PreK programs in the country share two hallmarks consistency in teacher qualifications and wage parity. In particular, state PreK programs in Georgia, West Virginia, the District of Columbia, and Oklahoma serve more than 60 percent of four-year-olds. Each of these programs meets at least eight of the 10 National Institute for Early Education Research (NIEER) quality benchmarks used to demonstrate success. All these programs require lead teachers to be degreed and certified. And because, in each case, the state established and funded mandatory salary floors in community-based programs, compensation for community-based PreK teachers now approaches or equals that of public school teachers. Implementing full-day NM PreK for 80 percent of three and four-year olds, as described in recommendation one, will require 1,729 new PreK classrooms and at least as many new lead teachers and educational assistants. If new classrooms are distributed equally between PED and CYFD programs, community-based providers will need to hire at least 590 new lead teachers. Compensating these teachers at a level comparable to public school teachers will cost an additional $28,816 per teacher per year, or $17 million annually. 10 Consistency in teacher qualifications and wage parity for teachers are defining features of the nation s most effective PreK programs Implementing full-day NM PreK for 80 percent of three- and four-year-olds will require 1,729 new PreK classrooms and at least as many new lead teachers and educational assistants Recommendation Three: Elevate Quality of Child Care NM PreK is a key element within New Mexico s larger early childhood system. Expanding NM PreK to serve a greater number of three-and four-year-olds represents an opportunity for more private providers to participate in NM PreK and in the child care assistance program. It s essential that the quality of infant and toddler care continue to improve in New Mexico. Currently, 4,429 infants and toddlers receive subsidized child care through the state s Child Care Assistance program. i Subsidized child care takes place in a range of settings from minimally-regulated, registered homes to five-star centers accredited by The National Association for the Education of Young Children (NAEYC). If all infants and toddlers currently receiving subsidies got care in five-star 11 centers, it would cost the state an average of $181.5 more per child each month at current FOCUS reimbursement rates. The cost differential would total $9.6 million per year. Expanding NM PreK to serve a greater number of three- and four-year-olds represents an opportunity for more private providers to participate in NM PreK and in the child care assistance program. 10 Assumes lead teachers in CBOs earn $23,184 for ten months of full-time employment ($12/ hour, 40 hours/week, 42 weeks/year and 15% fringe) and public school teachers earn $52,000 ($40,000 and 30% fringe) 11 FOCUS star level 5 standards are roughly equivalent to requirements for accreditation by the National Association for the Education of Young Children (NAEYC) 11

12 EXPANDING NEW MEXICO VOLUNTARY PreK Introduction: New Mexico Needs PreK More than a third of New Mexico children grow up in poverty. 12 ii For families of young children, economic hardship is especially acute. 13 In a sobering correlation, childhood poverty links to a spectrum of risk factors that can lead to negative outcomes in academics, health, and employment. Indeed, many New Mexico families are caught in a multi-generational cycle of economic disadvantage: Childhood poverty is the strongest predictor that an individual will raise his or her own children in poverty. iii While many factors contribute to poverty, some of the most potent precursors academic under-achievement, poor physical and/or behavioral health, and teen pregnancy are set in motion early in life. The negative consequences of early economic hardship are often starkly visible when children begin kindergarten. The cognitive and socio-emotional deficits they bring to their first days of school make it difficult for them to keep up with their peers. Falling behind early, they re likely to be held back or placed in special education programs. Ultimately, they re more likely to drop out of school altogether. Quality early learning programs, including public PreK, have been shown to improve both short- and longterm outcomes for children of all socio-economic backgrounds. iv But early learning is particularly beneficial for children living in economic hardship. Programs like NM PreK help reduce the negative impact of poverty on brain development. Through PreK, a child living in poverty has a better chance of succeeding in school from the start, which can lead to success in other areas of life and increase the likelihood that the cycle of poverty ends with him. In this report is a portrait of NM PreK as it exists today. The report also reveals how the program could look in the future with the right combination of funding and oversight. Drawing on the findings and successes of other states, this report describes possible trajectories for an expansion of NM PreK and details the benefits and costs involved. Making a difference for children in poverty More than a third of New Mexico children grow up in poverty»» Quality early childhood programs like public PreK are particularly beneficial for children in disadvantaged homes Helping reduce the impact of poverty on brain development Enabling children in poor families to succeed in school Paving the way to success in all areas of life Helping increase the odds of breaking multi-generational cycles of poverty 12 An additional 35 percent of children reside in low-income households defined as income less than twice the poverty level percent of children five and under live in impoverished households. Source: US Census Bureau American Community Survey

13 What is PreK? PreK prepares three- and four-year-old children for kindergarten by providing them with high-quality early learning experiences designed to ensure their academic success through third grade. PreK programs share three defining characteristics: 1. Early learning services provided to four-year-olds and sometimes to three-year-olds 2. High program standards 3. Intense focus on school readiness v NM PreK is a voluntary, state-funded PreK program created by the indergarten Act. 14 Since its establishment in 2005, NM PreK has served more than 60,000 children. Until 2015, NM PreK provided only half-day services to four-year-olds. In the school year, the state began piloting extended-day services for four-year-olds. Classrooms for three-year-olds are being piloted in the school year. NM PreK: Is a voluntary, state-funded PreK program created by the indergarten Act Has served more than 60,000 children since 2005 Administration In NM PreK s mixed delivery system, New Mexico Public Education Department (PED) and New Mexico Children, Youth, and Families Department (CYFD) divide program administration roughly in half. PED NM PreK programs are located at public schools, while CYFD-funded NM PreK classrooms are located in a variety of community settings child care centers, state-licensed child care homes, Head Start centers, faith-based programs, and early care and education (ECE) programs run by universities and local governments. NM PreK contracts are awarded to providers through a competitive process. Totaling $3,000 per child each year, basic service (half-day) contracts require programs to provide 450 hours of classroom services and 90 hours of other services each year. Although providers are allowed discretion as they allocate their funding, most provide a half-day (2.5 to 3.5 hour) PreK program five days a week during the traditional school year. Enrollment, ,000 12,938 12,000 10,000 8,980 8,000 7,674 6,000 4,000 2,000 1,540 2,194 3,570 4,745 4,963 4,435 4,559 5, Source: New Mexico Legislative Finance Committee, 2015 Post Session Fiscal Review FIGURE 1 14 Children s Code, Article 23, Sections 32A NMSA

14 Full-day contracts are $6,000 for 900 annual classroom hours. A typical full-day program is 5.5 hours, Monday through Friday. Funding PreK NM PreK is a voluntary, state-funded PreK program New Mexico Public Education Department (PED) and New Mexico Children, Youth, and Families Department (CYFD) each administer one-half of NM PreK programs Standards NM PreK programs must adhere to the New Mexico PreK program standards, which establish mandatory minimum service levels for all settings. The standards also provide extensive guidance for seven essential program components: 1. Family and community collaboration 2. Professionalism 3. Health, safety, and nutrition 4. Child growth, development, and learning 5. Developmentally appropriate content and learning environment and curriculum implementation 6. Assessment of children 7. Evaluation of programs vi Except for teacher qualifications, the same standards apply in both PED and CYFD classrooms. Lead teachers in PED classrooms are required to have a bachelor s degree and early childhood teaching license. Public school teachers who aren t licensed in early childhood education must be actively working toward an early childhood birth-through-grade-three teacher license. Lead teachers in CYFD-funded programs are not required to be degreed or licensed, although teachers lacking these credentials must be working toward them, earning at least six college credits annually toward an approved professional development plan. Assistant teachers in both PED and CYFD settings must have or be actively earning an associate degree in early childhood education (ECE). NM PreK programs must adhere to the New Mexico PreK program standards. Curriculum NM PreK curricula are guided by the New Mexico Early Learning Guidelines (ELGs), vii which describe what children should know and can do in all areas of early development and learning. Through annual site visits by state regulators, review of child assessment and other data reported by NM PreK grantees, NM PreK ensures consistent adherence to program standards. New Mexico has revised the ELGs to align with the kindergarten common core state standards. In addition to staff qualifications, the NM PreK standards include: A maximum 20 four-year-olds in each class A maximum 10 four-year-olds per teacher At least one meal each day Individualized professional development plan for educators, with ongoing professional development opportunities Required screening, referral, and support services Parent involvement, including parent conferences and home visits Use of the New Mexico Early Learning Guidelines (ELGs)»» The New Mexico Early Learning Guidelines (ELGs) guide curricula for all NM PreK programs, whether administered by PED or CYFD. 14

15 Finance NM PreK is financed primarily through state appropriations, although the program has also received funding through federal Temporary Assistance for Needy Families (TANF) funds during fiscal years 2015 and Construction and renovation of NM PreK sites in public schools are funded through state capital outlay funds. Between the program s inception in 2005 and today, NM PreK has seen an increase in state funding of more than 1,000 percent from $5 million to $51 million, with the biggest increases occurring since Like New Mexico, many states have boosted their PreK investments in recent years. In the school year, New Mexico was among the states with the largest percentage growth in PreK funding. viii Looking ahead, the FY 2016 PreK appropriation for CYFD includes $9.4 million for basic services, $13.9 million for full-day services, and $3.3 million to pilot PreK for three-year-olds. The PED appropriation includes an additional $1.8 million of state general funds and $3.5 million of TANF funds to increase enrollment. PED also received $1 million in state capital outlay to renovate public school NM PreK classrooms. ix NM PreK Funding ($ Millions) $60 $51 $50 $40 $40 $30 $27 $20 $14 $19 $20 $15 $14 $19 $10 $5 $ Source: New Mexico Legislative Finance Committee, 2015 Post Session Fiscal Review FIGURE 2 15

16 NEW MEXICO PREK FUNDING BY AGENCY, PROGRAM, AND REVENUE SOURCE FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Four-year-old Basic Services General Fund $8.2 $9.2 $8.5 $4.6 $3.3 TANF $6.1 $6.1 Tobacco Settlement Fund $3.1 CYFD Four-year-old Extended Day Services General Fund $8.4 $8.4 TANF $5.5 Three-year-old Extended Day Services General Fund $1.3 $1.3 TANF $2.0 Total CYFD PreK $8.2 $9.2 $11.6 $20.4 $26.6 Four-year-old Basic Services General Fund $6.3 $10.0 $15.0 $17.7 $21.0 PED TANF $3.5 Four-year-old Extended Day Services General Fund $1.5 TANF Total PED PreK $6.3 $10.0 $15.0 $19.2 $24.5 TOTAL $14.5 $19.2 $26.6 $39.6 $51.1 Source: New Mexico Legislative Finance Committee, 2015 Post Session Fiscal Review TABLE 5 Other Sources of Public Preschool Funding The federal government funds preschool programs in New Mexico through Head Start, Title I (Education for the Disadvantaged) Preschool Grants, and the Preschool Grants for Children with Disabilities Program (Section 619 of Part B of the Individuals with Disabilities Education Act [IDEA B]). Head Start is a comprehensive preschool program currently serving 7,692 New Mexico three- and four-year-olds and their families. In addition to PreK programs, Head Start provides extensive health and nutrition services and a focus on parental involvement. The federal Office of Head Start provides grants to local public and private non-profit and for-profit agencies to administer Head Start programs. IDEA B and Title I preschool funds are used by public schools to serve disabled and disadvantaged children ages three to five; these funds may be used to supplement other PreK funds. In this way, the cost of a single PED PreK slot may be covered with two or more distinct funding streams, causing potential overlap in the number of children served by each of the programs listed in Table 6. 16

17 PUBLICLY FUNDED PRESCHOOL IN NEW MEXICO Children Served Funding (2016) 12,938 $51 million 1 Head Start Preschool 7,692 $54 million Three- and four-year-olds receiving subsidized child care in level four and five (FOCUS and AIM HIGH) child care centers (2016) 2,148 $16 million 2 Title I Preschool 8,000 $3 million 3 IDEA Part B Section 619 (2016) 5,021 $3.5 million TOTAL N/A* $127.5 million SOURCE: 1. Head Start Program Information Report (PIR) 2. US Dept. of Health and Human Services 3. Early Childhood Technical Assistance Center 4. Because a single PreK slot may be paid for with two or more funding streams summing this column would yield an over-estimate of the number of children served. TABLE 6 State funding for PreK State appropriations are the primary funding source for NM PreK Funding for NM PreK has increased more than 1,000 percent between 2005 and 2016, from $5 million to $51 million Cost of full-day : Approximately $6,450 per year for four-year-olds Approximately $7,418 per year for three-year-olds 17

18 PreK Benefits Over a Lifetime A growing body of national research reveals that high-quality PreK generates a raft of benefits both to children and society as a whole. Early learning opportunities can improve children s achievement test scores, reduce rates of special education placement and grade repetition, reduce juvenile delinquency, and boost high school graduation rates. Analyses tracking PreK attendees into adulthood have documented an array of long-term benefits, including greater rates of college attendance and higher earnings. Adults who participated in high-quality PreK programs as three- or four-year-olds are less likely to face incarceration, find themselves in need of social services, or engage in behavior that is detrimental to their health. Short-term Impacts: Kindergarten Readiness High-quality early learning experiences improve school readiness 15 by nurturing the development of early language, literacy, and math skills. A significant and growing body of evaluation research documents the immediate, short-term benefits of PreK, including better performance on learning and developmental assessments designed to gauge school readiness. x In turn, multi-year studies suggest that high scores on these assessments can predict higher earnings potential in adulthood and many other benefits. xi From , NIEER evaluated New Mexico PreK, using a set of 10 regulatory benchmarks. Based on kindergarten entry assessment scores, the NIEER evaluators concluded that NM PreK produced statistically significant positive impacts in language, literacy, and mathematics the three areas most critical to long-term academic success. The evaluators also determined that, whether administered by PED or CYFD, NM PreK programs yielded consistent outcomes. xii 15 School readiness is the predictive cognitive, social, and emotional foundation for school success. New Mexico isn t the only state experiencing the positive short-term impacts of PreK. Children who attended PreK at the Chicago Child Parent Center (CPC) were three months ahead of their peers at kindergarten entry. xiii Other evaluations of large-scale public PreK programs, including those in Oklahoma, California, and Arkansas, xiv have shown significant cognitive gains between fall and spring of the PreK year and/or upon entry into kindergarten. Although NIEER s evaluation of NM PreK finished in 2010, analysis of assessment results remains integral to and it shows that more than 90 percent of children who attended New Mexico PreK in the school year made measurable improvements in school readiness. More than 78 percent of children who completed NM PreK scored at the level of Accomplishing or Exceeds Expectations 16 xv on the PreK Observational Assessment. Improving school readiness High-quality early learning experiences improve children s readiness for school More than 90 percent of children who attended NM PreK in school year made measurable improvements in school readiness More than 78 percent of children who completed NM PreK scored at levels of Accomplishing or Exceeds Expectations on the state s PreK Observational Assessment Medium-term Impacts: Elementary School Achievement For children who have completed high-quality PreK, the benefits continue well beyond kindergarten. xvi Both grade repetition and special education placements xvii are greatly reduced by high-quality PreK, according to a growing body of research. And, unlike some of the other cognitive and socio-emotional benefits of PreK, the cost savings that occur by lowering early grade repetition and special education placements are quickly and easily quantified. 16 Combined score across all seven domains evaluated 18

19 Lowered Special Education Placement: Benefits and Cost Savings Longitudinal analyses of PreK programs in Louisiana, New Jersey, Texas, and Chicago have shown reduced rates of special education referrals. Evaluation of Texas targeted PreK program found that PreK participants were 13 percent less likely to be assigned to special education at third grade than children who didn t attend PreK. New Jersey s Abbott PreK program reduced special education placements by 31 percent. xviii Children who attended The Chicago CPC PreK had a 41 percent reduction in special education placement, relative to a comparison group. xix Students who participated in Pennsylvania s PreK Counts program had fewer special education referrals in kindergarten than peers who didn t. xx And nearly 20 percent of students who had been identified as either having or being at risk for developmental delays when they began PreK Counts found themselves in the typical range of functioning by the program s end. Maryland kindergarteners attending full-day PreK required less than half of the special education services required by their peers who hadn t attended PreK. xxi And a 2015 study of North Carolina s More at Four found that PreK reduced the likelihood that a child would need special education in third grade by 32 percent. xxii Nearly 13 percent of New Mexico students in kindergarten through third grade receive special education services. xxiii Annual operating expenditures for special education students exceed those of typical students by $6,894 xxiv for each child, and New Mexico pays 83 percent of the additional cost of special education placement. xxv Thus, every time a child avoids special education placement, New Mexico saves $5,722 annually. North Carolina recently documented a 32 percent reduction in special education placements through PreK. Assuming comparable results in New Mexico, the state s investment in PreK investment could save New Mexico about $3 million per grade per year or about $12 million for children in kindergarten through third grade. 17 Greater success in elementary years PreK has been shown to improve children s experiences both in and out of school during the elementary years High-quality PreK reduces special education placements and saves costs to the state Lowered Grade Retention: Benefits and Cost Savings Most children who repeat a primary grade are held back either in kindergarten or first grade. xxvi In New Mexico, around four percent of kindergarteners and three percent of first graders are retained. xxvii Research showing the short- and long-term negative impacts of grade retention on children is significant. But research also suggests that high-quality PreK reduces a child s likelihood of being held back during the first four years of school by at least 24 percent and potentially more than 50 percent. So participation in the New Mexico PreK cohort could prevent between 124 and 259 kindergarteners from being retained. Studying programs throughout the nation shows that, like special education placement, grade retention goes down in the presence of high-quality PreK. Participants in Texas targeted PreK program, for example, were 24 percent less likely to have repeated a grade than children who didn t attend PreK. New Jersey s Abbott PreK program reduced grade retention rates by 40 percent. Compared to non-participants, children who attended The Chicago CPC PreK had 40 percent less grade retention than a comparable group ,938 entering kindergarteners who attended PreK *12.7% special education placement rate*32% reduction in special education placement*$6,894 annual additional state and local cost of special education*.83 state share of special education spending. 19

20 New Mexico Special Education Enrollment by Grade, ,000 26,684 25,996 25, ,347 4,883 2,870 3,287 Kindergarten Grade 1 Grade 2 Grade 3 Special Education Total Funded Enrollment Source: New Mexico Public Education Department FIGURE 3 Michigan s Great Start Readiness Program (GSRP) lowered the likelihood of grade retention before third grade by 36 percent. xxviii Participation in the statefunded Virginia Preschool Initiative reduced the chance of grade retention in kindergarten by more than 50 percent. xxix Participation in Georgia s state PreK program decreased a child s chance of repeating kindergarten by 50 percent and first grade by 25 percent. xxx A study by South Carolina First Steps to School Readiness correlated South Carolina s early childhood education programs with a 52 percent reduction in first grade 18 xxxi retention rates over 10 years. Among a range of negative impacts, grade retention xxxii carries negative financial consequences for both the individual and society. The most readily quantifiable cost of retention to the public sector is the price of an additional year of public education for each child retained. Because an extra year of schooling won t appear as a net increase in total enrollment until one year after the child would have graduated had they not been retained, the cost is best expressed as the present value of an additional year of school 11 years into the future. 18 The First Steps analysis lacks the experimental design and rigorous methodology of the other studies cited and does not link nor attribute the entire decline in grade retention to PreK programs; but the First Steps results are consistent with those of programs subject to more rigorous evaluation. By reducing the likelihood that a child will be required to repeat a grade, PreK generates profound and measurable cost savings. If the cost of grade repetition is the present value of an additional year of school ($5,407 per child), the first year savings from reduced retention attributable to PreK will be between $672,000 and $1.4 million. The total savings during the primary grades will range from $1.7 million and $3.5 million. Other PreK benefits documented during the primary grades include lower reported rates of child maltreatment and fewer incidents of juvenile delinquency. xxxiii Lowering grade retention Most children who repeat a primary grade are held back in kindergarten or first grade High-quality PreK reduces a child s likelihood of being held back in kindergarten through grade three by at least 24 percent and potentially more than 50 percent The total savings of lowered grade retention during the primary grades could exceed $1.7 million 20

21 Long-term Impacts: Education, Employment, and Other Outcomes for Adults According to rigorous longitudinal analysis, the benefits of PreK extend far into adulthood. Even decades after the fact, an array of positive outcomes economic, social, and health as well as reduced risk behaviors and negative outcomes, can be traced to highquality PreK. For example, children who attended preschool at the Chicago CPC were more likely than children who did not attend PreK to complete high school, attend college, and possess health insurance. In adulthood, CPC alumni were less likely to receive any form of public assistance, be arrested for or convicted of a felony, or face incarceration. xxxiv While it s too early to know exactly how NM PreK will alter the futures of children who enroll, researchers from NIEER have used the CPC results to predict that NM PreK participants will have better educational outcomes, higher earnings, reduced dependence on welfare, and be less likely to engage in crime. xxxv Lasting benefits of PreK Overall Economic Return Using marginal effects derived from a study of the impact of the Chicago CPC, the NIEER evaluators sought to forecast the potential long-term impact of New Mexico s PreK initiative. xxxvi Benefits to New Mexico were quantified by applying the rate differentials calculated for CPC to New Mexico-specific demographic and cost data. As seen in Table 7, the current cost per pupil of NM PreK half-day services is $3, This table also shows New Mexico s per-child savings, calculated by NIEER and adjusted to 2015 dollars, as well as the total benefit or cost based on the size of the 2016 NM PreK cohort all necessary to calculating benefits and costs of PreK. Allowing for adjustments for inflation and current PreK costs, NIEER evaluators forecast the benefit-cost ratio for NM PreK initiative at $4.60 in benefits for every $1 in costs. Based on this ratio, current net benefits per NM PreK cohort exceed $183 million. The current ratio of benefits to costs of NM PreK is $4.60 to $1. Current net benefits per NM PreK cohort exceed $183 million. Research shows that PreK benefits last well into adulthood NIEER evaluators predict positive outcomes for NM PreK alumni in their adult lives, including better education and higher earnings 19 Derived by dividing the total 2016 NM PreK appropriation ($51 million) the 2016 expected cohort (12, 938) 21