Starting Early to Build the Workforce and Customer Base of the 21st Century

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Starting Early to Build theWorkforce and
Customer Base of the 21st Century

• Early Care and Education Consortium
• Robert H. Dugger
• Managing Director, Tudor Investment Corporation
• Advisory Board Chair, Partnership for Americas
  Economic Success
• Robert.dugger_at_tudor.com

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Partnership for Americas Economic Success

• Intensifying global competition and steadily
  growing fiscal imbalances are important American
  challenges.
• 20 of workers are functionally illiterate we
  need children to become adults who are literate,
  numerate, job-ready, team-capable.
• Many (not all) of the traits that make good
  employees, neighbors and citizens begin in the
  first five years of life. The brain reaches 85
  of its adult weight in the first five years of
  life.
• Bottom line For best results, start early and
  keep going.

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Partnership for Americas Economic Success

• Background
• Established in 2006 by a collaboration of 12
  funders, business leaders, economists and early
  childhood experts.
• Robert Dugger of Tudor Investment Corporation is
  co-founder and Advisory Board Chair.
• Managed by and housed at The Pew Charitable
  Trusts director is Sara Watson of Pew.
• Purpose Make all childrens successful
  development the top economic priority for the
  nation.
• Strategy Strengthen U.S. competitiveness and
  achieve fiscal sustainability through
  evidence-based investments in young children
  prenatal to age five.

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Research Agenda Five Areas of Focus

• Microeconomics Economic gains from specific
  interventions
• Health Parenting
• Housing Early education
• Parental income Nutrition
• Macroeconomics Economic growth, job creation,
  fiscal sustainability, and global competitiveness
  implications of proven investments
• Sector Analysis Size of the youth human
  capital development sector
• Finance Policy Best ways to pay for proven
  investments commensurate with economic impact
• Communications How to communicate findings and
  inform policy discussion

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Why should business care?
Scan of normal three-year-old brain
Scan of three-year-old brain after severe neglect
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Why should business care?

• Children who start behind too often stay behind
• If 50 1st graders have problems reading,
• then 44 of them still have problems reading in
  4th grade.

First Graders
Fourth Graders
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Perry Preschool Economic Impacts at Age 40
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Research Results Closing the Poverty Gap

• Northwestern University (Greg Duncan)
• Early childhood poverty is associated with a
  range of adverse adult outcomes. Relative to
  their poor peers, children living at twice the
  federal poverty level
• Complete two more years of school
• Earn twice as much as adults
• Have much better health.
• Raising all poor U.S. children to the poverty
  line would almost pay for itself in adult
  earnings alone
• Cost 70,000
• Benefits
• Sharply increase adult earnings (53,000-99,000
  per child)
• Decrease welfare dependence (3,200 lifetime
  TANF, food stamps)
• Slightly increase schooling (0.2 years)

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Research Results Closing the Poverty Gap
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Despite These Results, We Are Not Investing

• Urban Institute/New America Foundation
• (Gene Steuerle)
• Federal investments in children are projected to
  decline by 14 to 29 percent as a portion of
  federal spending over the next decade
• Federal spending will rise by 650 billion, but
  investments in children will see only .01 percent
  of this increase
• Federal focus on consumption rather than
  investment programs jeopardizes our economic
  growth

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Using the Message in Seattle, Illinois, Minnesota
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The Message is Getting Out

• It's a mystery. With all the energy devoted to
  expanding prekindergarten programs, leaving no
  K-12 child behind, improving community colleges
  and sweetening aid for college students, how can
  the U.S be short of educated workers?
• Despite frequent assertions by advocates for one
  solution or another, there is no one sure cure
  for this. If only we got more kids into
  high-quality pre-K, it wouldn't be enough. If
  only we improved K-12 education, it wouldn't be
  enough. If only we got more teenagers to finish
  high school, it wouldn't be enoughWe have to do
  them all.
• Lack of Well-Educated Workers Has Lots of Roots,
  No Quick Fix,
• David Wessel, The Wall Street Journal

• Business leaders in South Dakota are taking an
  interesting approach to economic development.
  They're using money set aside for recruiting new
  businesses and investing it in preschool
  education. Studies show that every dollar spent
  on early education saves seven dollars down the
  road, on potential welfare and incarceration
  costs.
• South Dakota makes preschool a form of economic
  development
• Cara Hetland, Minnesota Public Radio

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Business Leader Support

• Jim Rohr, CEO of PNC Bank, leading 100 million
  PNC Grow Up Great
• Chamber of Commerce CEOs from Maine to California
• George Kaiser, CEO of Kaiser-Francis Oil, major
  supporter of early care and education in Oklahoma
• Ed Basha, CEO of Bashas Grocery Stores, led
  fight in Arizona for early childhood ballot
  initiative
• Massachusetts Strategies for Children campaign
  business leaders Mara Aspinall, CEO of Genzyme
  Genetics Ronald Sargeant, CEO of StaplesRichard
  Lord, CEO of Associated Industries of
  Massachusetts
• CEOs of Federal Reserve Banks in Richmond,
  Cleveland and San Francisco made statements in
  support of early investments as economic
  development
• Fed Chairman Ben Bernanke high returns that
  early childhood programs can pay 2007 speech
  to Omaha Chamber of Commerce

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Policy Progress on Investing in Children

• In 2007
• Pennsylvania votes 75 million for prek, child
  care
• Illinois commits to prek for all 3 AND 4 year
  olds health care for all AND increased for
  infant programs.
• Ohio approved over 200 million for prek, child
  care, mental health, etc.
• Texas raises home visiting funds by 7.9 million

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Partnership for Americas Economic Success -
Outreach

• Commissioned Research
• Over 20 studies on economic benefits of
  investments prenatal - 5
• Monthly Discussion Forums
• New findings, leaders, messages, campaigns -
  Toll-free call-in number or join in person in DC
• Fourth Annual PAES Conference
• July 9-10, 2008 at U.S. Chamber of Commerce in
  Washington, DC
• Second Annual Telluride Economic Summit
• September 21-23, in Telluride, Colorado -- By
  invitation only for senior business executives
• Getting the Word Out Presentations to
• Georgia Partnership for Educational Excellence
• Partnership for Wisconsins Economic Success
• Milken Global Conference
• University of Miami Forum on Costs of Inadequate
  Education

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Join Us, Pennsylvania!

• The nation needs a million voices join us
• Sign up to receive monthly PAES updates,
  including notices of PAES/Invest in Kids monthly
  forums at www.PartnershipforSuccess.org
• Participate in monthly forums, upcoming
  conferences
• Ask us for research findings
• Help us secure business leaders to disseminate
  this message to policy audiences, the public, the
  business community, and others
• Link to PAES website and send us items to be
  posted