TKW Consulting

Early childhood education
This investment pays off for children and for companies

From Bertram L. Scott and Charles E.M. Kolb.
Scott is executive vice president, Strategy, Integration and Policy at
TIAA-CREF, and Kolb is president of the Committee for Economic Development:

America treats early education as an individual consumer choice rather than a public responsibility, putting the financial burden largely on working parents. Yet the absence of a comprehensive, public early-education system does not save money. Society suffers in many ways for failing to take advantage of the learning potential of all its children -- from lost economic productivity and tax revenues, to higher crime rates, to diminished participation in the civic and cultural life of the nation.

Leaving aside the social aspects of the issue, let's consider the business case for investment in early education.

The High/Scope Perry Preschool Study found that every dollar spent on preschool for poor children saves seven dollars in remediation, welfare, unemployment and other such "catch-up" costs. A systematic review of 17 studies led the Centers for Disease Control to conclude that early childhood programs are effective in preparing children for school, reducing rates of teen pregnancy and delinquency, and increasing rates of employment.

In a long-term North Carolina study, low-income children between birth and age 6 who participated in a model child care intervention program along with family support were more likely to attend college and be in a high-skilled job or in higher education at age 21 than their peers who were not offered the program.

In North Carolina, unscheduled absences cost small businesses an average of $60,000 annually and large companies an average of $3.6 million. Nearly one-quarter of unscheduled absences are due to family issues, including child care needs.

North Carolina is further along than we may realize in achieving a solution. This state boasts two nationally recognized programs, "Smart Start" and "More at Four," which expand access to early childhood education. But there is still much to be done to ensure that these two programs receive the funding necessary so that all eligible children in this state are able to participate in high-quality early education programs.

What can business leaders do about it? We can both speak out and be willing to put our money where our mouths are.

In a time of tight state budgets, we must have the foresight and resolve to declare early education a high priority for government investment.

The obstacles to funding early childhood education are matters of political will, not public sentiment. In North Carolina, 59 percent of all voters are more likely to support a legislator who votes to expand early childhood education programs.

When business leaders speak, politicians listen. The public has expressed the resolve to invest. Now business needs to recognize that early education is a "win-win" for business and for North Carolina families.