Cost-Effective Early Childhood Development Programs from Preschool to Third Grade

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Cost-Effective Early Childhood Development Programs from Preschool to Third Grade Arthur J. Reynolds University of Minnesota May 22, 2008 Educational Testing Service

Key Points 1. Close to half of the achievement gap is present at school entry. 2. Many states continue to underinvest in preschool. 3. High-quality preschool shows high cost-effectiveness. 4. Evidence is strong that state-funded prekindergarten programs improve school readiness.

Key Points 5. Full-day kindergarten has small effects that do not endure. 6. PK-3 Interventions strengthen learning gains and have long-term effects. 7. School-age programs can make a difference, including small classes, and social skills training.

Key Points 8. Cost-effectiveness will occur only for high quality programs following key principles of effectiveness. 9. Strengthen programs for 4-year-olds.

1. Close to half the achievement gap is present at school entry.

ECLS-K Reading Learning by SES: K to 3rd Grade 130 120 110 100 90 Test Scores 80 70 60 50 40 30 20 10 5 6 7 8 9 Ages Lower SES Higher SES

Kindergartners who Attended Center- Based Preschool: ECLS-K Study Percentage 100 90 80 70 60 50 40 30 20 10 0 65 52 42 31 20 Low SES Low Middle Middle High Middle High SES

2. Many states continue to underinvest in preschool.

Leading States in State PreK Access, 2006 State % in State Pre-K, HS, or EI Rank (1-38) Oklahoma 70 1 Georgia 52 Vermont 47 Florida 47 Texas 44 2 3 4 5 West Virginia 40 6 Wisconsin 32 7

Lagging States in State PreK Access, 2006 State % in State Pre-K Rank (1-38) Alabama 1.7 38 Minnesota 1.8 Nevada 2.1 Nebraska 3.6 Missouri 4.0 37 36 35 34 Ohio 4.4 33 Iowa 4.5 32

3. High quality preschool programs show high costeffectiveness

Common Paths from Early Childhood to Adult Well-Being Early Childhood Ages 3-9 Ages 5-12 Adolescence to Adulthood Exogenous Conditions Gender Socio-Environmental Risk Neighborhood Attributes Program Participation Timing Duration Intensity MA= Motivational Advantage CA = Cognitive Advantage SA = Social Adjustment FS = Family Support SS = School Support MA CA SA FS SS Motivation Self-efficacy Perceived competence Persistence in learning Developed Abilities Cognitive development Literacy skills Pre-reading/numeracy skills Social Adjustment Classroom adjustment Peer relations Self-regulating skills Family Support Parent-child interactions Home support for learning Participation in school Parenting skills School Support Quality of school environment Classroom environment School-level performance MA CA SA FS SS Competence Behaviors School Achievement and Performance School Remediation Delinquency and Crime Child Maltreatment Participation in Social Services Health & Mental Health Educational Attainment Economic Well-Being Family Circumstances

Age at Follow-up for Early Childhood Interventions Program Type Age at Last Follow-Up High/Scope Perry Preschool Program Model 40 Carolina Abecedarian Project Model 21 Houston Parent-Child Development Center Model 18 Yale Child Welfare Research Program Model 15 Chicago Child-Parent Centers Large Scale 24 Milwaukee Project Model 14 Syracuse Family Development Program Model 15 Consortium for Longitudinal Studies Model 22 Infant and Health Development Program Model 18 Elmira Prenatal/Early Infancy Project Model 15 PSID Head Start Longitudinal Study Large Scale 25

Johnson Child-Parent Center

CPC Staffing Head Teacher Parent Resource Teacher School-Community Representative Teachers and aides School nurse, psychologist, social worker Preschool class size was 17 to 2 Kindergarten, school age was 25 to 2 School-age program had coordinator called curriculum-parent resource teacher

Parent Resource Room

CPC Preschool and Readiness 90 80 National Percentile 70 60 50 40 30 20 57 44 28 50 10 0 Two Years One Year None Nat. Norm

Selected CPC Preventive Effects 50 45 40 38.4 CPC preschool Comparison 35 Percentage 30 25 20 15 10 23 14.4 24.6 7.8 14.7 6.1 11.3 5 0 Grade retention Special education Maltreatment Out of home

Economic Returns for 3 Programs Benefits Costs Ratio CPC 67,595 7,384 10.15 Perry 138,486 15,844 8.74 Abecedarian 135,546 67,225 2.02

Adult Well-Being-Age 24 Prog Comp Diff HS completion 79.4% 70.7% 8.7%* Incarceration 20.4% 26.1% -5.7%* or jail Occupational 28.2% 21.5% 6.7%* prestige (>3)

Health Status/Behavior Prog Comp Diff Depressive 12.8% 17.4% -4.6%* symptoms Any health ins. 71.9% 61.0% 10.9%*

Age 25 CPC Preschool Benefits Per Participant ($2007) Benefit ($) % of total benefit School remediation 6,197 7.3 Child welfare 8,900 10.5 Juvenile treatment 5,747 6.8 Victim savings 18,494 21.9 Adult corrections 3,171 3.8 Victim savings 14,269 16.9

Age 25 CPC Preschool Benefits Per Participant ($2007) Benefit ($) % of total benefit Lifetime earnings 17,615 20.8 Tax revenue 6,243 7.4 Substance/mental 2,113 2.5 health treatment Child care 2,108 2.5

Common Elements of Programs Showing High Returns 1. Opportunity for More than 1 Year of Participation. 2. Well-trained and Compensated Teachers. 3. Class Sizes under 18 and Child to Staff Ratios less than 9 to 1. 4. Instruction that is Diverse & Literacy Rich. 5. Comprehensive Family Services. 6. Average Yearly Cost per Child no Less than $5,000 (2004 dollars).

Samples and Context Program Control Context Abecedarian 57 54 Rural CPC 989 550 Innercity Perry 58 65 Urban

Program Elements Length Ratios Context Abecedarian 5 years 12 to 2 Health services CPC 1-2 years 17 to 2 Parent program Perry 1-2 years 23 to 4 Home visits

Validity Analysis: 3 Studies Internal validity External validity Policy relevance Generative mechanisms

Amount of Evidence: Preschool IV EV PR GM CPC H M H H Perry H L L M ABC H L L L

Sex Family Background Race/Ethnicity Family Support -Parent involvement -Abuse/Neglect CPC Preschool program ITBS Scores, age 6 Grade retentions Later achievement Educational Attainment School Support -Magnet school -School Mobility Sources of Long-term Effects from the CPC Program

Economic Returns from 3 Policy Simulations Focus RAND, 2005 Universal 2.62 Aos, 2004 58 studies 2.36 Targeted Benefit- Cost Ratio Lynch, 2007 Targeted 12.10 Universal 8.20

4. Evidence is strong that state-funded prekindergarten improves school readiness.

Evidence for State PreK Programs Effect size In Months New Mexico.37 3-4 Arkansas.30 3 New Jersey.32 3-4 Oklahoma.26 3 Tulsa, OK.58 6 Synthesis of.36 3-4 7 states/cities

5. Full-Day Kindergarten has small effects that do not endure.

Full-Day Kindergarten Effects Synthesis of 23 studies Effect size Months Kindergarten.18 2 Grades 1-4.01 0 Grades 2-3.05 0 Grade 4.00 0

6. PK-3 Interventions strengthen learning gains and have long-term effects.

Rationale for PK-3 Help sustain learning gains from preschool education Promote better early transitions Greater dosage will help children at risk

Key Principles of PK-3 Programs Continuity: Promoting consistency Organization: Staffing, leadership, services Instruction: Aligning curriculum, encouraging communication Family support services

Johnson Child-Parent Center

Reading Achievement over Time by Extended Program Groups 120 110 100 Test Scores 90 80 70 60 P+K P+K+SA Nat. Norm 50 40 30 5 6 7 8 9 10 Ages

CPC PK-3 Cost-Effectiveness Benefits Costs Ratio Original 27,154 4,447 6.11 Add intangible 40,245 4,447 9.05 crime savings

7. Early school-age programs can make a difference.

Class Size Reductions in Early Schooling Benefits Costs Ratio Tenn. STAR 23,913 8,454 2.83 CPC school-age 6,928 3,268 2.12

STAR High School Graduation No link between small classes and graduation in total sample Link was found among low-income students with 3 and 4 years in small classes

Social Skills Training, Grades 1-6 Benefits Costs Ratio Skills, Opport. 14,810 4,712 3.14 and Recognition

Reading Recovery Relatively large short-term effects on reading achievement. Small effects by third or fourth grade Impacts may return about a third of program costs

Benefit-Cost Ratios for Child Programs 10.00 Present Value of Benefits per Dollar invested ($) 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00-1.00-2.00 3.07 3.54 6.02 0.00 2.47 0.30 3.14 WIC Infant programs Preschool programs Full-Day K Small classes Reading Recovery SOAR

8. Cost-effectiveness will occur only for high-quality programs.

Key Elements of Effectiveness Timing-Earlier is generally better Duration-More is better Comprehensive family services Intensity of instruction, services Small class sizes

Key Elements of Effectiveness Well-trained, compensated staff Transition-to-school services Compensatory focus Strong accountability system Primary focus on children at risk

Recommendations 1. Increase investments in programs for 4-year-olds based on key principles of effectiveness. 2. Increase state investment in evidencebased school transition programs and services. 3. Use results of cost-benefit analysis to better prioritize funding.

Recommendations 4. Develop funding mechanisms to support timely implementation. 5. Increase R & D investment for program assessment.

Further Information Early Childhood Research Collaborative www.earlychildhoodrc.org Chicago Longitudinal Study www.cehd.umn.edu/icd/cls/ ajr@umn.edu