EARLY CHILDHOOD programs are rarely portrayed as economic development initiatives. However, studies find that well-focused investments in early childhood development yield high public as well as private returns.

Recent studies suggest early childhood development is grossly underfunded. However, investment in early childhood development, if properly funded and managed, yields an extraordinary return, far exceeding the return on most investments, public or private.

The returns to early childhood development programs are especially high when placed next to other spending by governments in the name of economic development. To contrast, if a subsidy is simply moving a business within the state, the public return is zero.

The return on investment in early childhood education is extraordinary, resulting in better working public schools, more educated workers and less crime. The costs of not making such an investment are just too great to ignore.

A collaborative program to prepare our children for school success

FIRST STEPS is a collaborative public-private economic development program being spearheaded by the Rochester Area Foundation to assure that our children are ready for school when they enter kindergarten. We are jeopardizing our economic future when children enter the kindergarten door not ready to succeed in school.

The economics of early-age education

The foundation to economic success is an educated workforce and education starts at birth. According to H.B. Fuller, CEO, and Al Stroucken, chair of the Minnesota School Readiness Business Advisory Council, "Minnesota is jeopardizing its economic future and exacerbating downstream public costs by allowing nearly half of our children to reach age 5 without being ready for kindergarten."

A 2003 study by Art Rolnick, Senior Vice President of the Minneapolis Federal Reserve, found that early-age education yields up to 16 percent annual return to taxpayers in terms of less remedial education costs later, increased taxes paid by those children as adults and the avoided costs of welfare, police, prison and other big ticket public intervention expenditures.

Learning begins at birth

Research has confirmed that 75 percent of a child’s brain development occurs by age 5. Early learning forms the emotional and intellectual foundations young children need to succeed in school – and in life. Without the right stimulation and caring attention, children fall behind and often never catch up.

In 2004, nearly 40 percent of Rochester Public School's kindergartners began school unready to learn. Unfortunately, the problems don’t end there. Children who lack the skills to succeed in school are much more likely to drop-out – often leading to low-wage jobs, unemployment and welfare dependence, among other consequences.

Workforce investment

The rising workforce participation rates by parents mean that, while they remain the primary factor in their children’s early development, many working parents cannot do it alone. They and the adult caregivers looking after their children need additional support and resources to provide sound preparation for kindergarten. Changing demographics of our community are also making preparation for school more challenging and even more urgent if children are to have a fair opportunity to succeed in school and in life.

In the short term, quality childcare programs can help attract better workers and assist working parents to better manage their careers and families. In the longer term, a community that has made the necessary investments to maintain a quality workforce over time is likely to be more competitive to prospective businesses.

Program outcomes

First Steps provides a comprehensive plan to meet the early education needs of our children, ages 0-6, and positions our community for future economic success. Key outcomes include:

• Informed parents and adult caregivers

• Collaboration and integration of community services for young children and their families

• Clear measures of quality and progress

• Accountability for improved results

• Children enter kindergarten prepared and ready for school