New Research, Top Business Executives Tout Economic Benefits of High Quality Early Childhood Education

WASHINGTON, July 25 /PRNewswire/ -- Bolstered by new research that confirms the enormous economic returns from investments in high-quality early childhood education, the Committee for Economic Development (CED), a business- led public policy research organization, today hosted a forum in Washington, D.C. to more broadly disseminate the important new findings. The event also featured the release of a list of 70 public business endorsers of CED's new policy statement, The Economic Promise of Investing in High-Quality Preschool: Using Early Education to Improve Economic Growth and the Fiscal Sustainability of States and the Nation. The report details the growing body of credible research that strongly illustrates the long-term socio-economic benefits of early childhood education. It also provides concrete recommendations for implementing high-quality prekindergarten initiatives in an era of tight state and federal budgets.

James Rohr, Chairman and Chief Executive Officer of PNC Financial Services Group, Inc. (NYSE: PNC) , one of the nation's leading diversified financial services organizations, stressed the importance of business involvement in early childhood education in his keynote remarks. He specifically discussed PNC Grow Up Great, his company's ten-year $100 million effort to prepare children, from birth to age five, for success in school and in life through early childhood education. "Today's children are tomorrow's workers and consumers. And systemic educational deficiencies result in reduced productivity and purchasing power," said Rohr. "As the United States continues to confront global challenges to its economic prosperity, education, especially in the early years, is proving to be a key contributor to the nation's competitiveness."

Mr. Rohr was joined by Robert H. Dugger, Managing Director of Tudor Investment Corporation in Washington, DC, and Daniel Rose, Chairman of Rose Associates, Inc. in New York City. The three CED Trustees served as co-chairs of the CED subcommittee that produced the new study. "High-quality preschool represents a worthy and cost-effective use of limited public funds," stated Mr. Dugger. "Not only does the public sector have a societal obligation to strengthen communities and families by investing in children, but the economic returns through reductions in crime and a more productive workforce make such investments a national priority. The private sector must be active in encouraging these investments and in helping to implement quality preschool programs across the country."

The Economic Promise of Investing in High-Quality Preschool makes a compelling case for universal, voluntary prekindergarten. According to the report, implementing preschool initiatives for all students whose parents want them to participate is expected to generate significant public and private benefits, including producing $2 to $4 in net present-value benefits for every dollar invested, having a positive impact on state budgets and boosting long- term economic growth.

A December 2005 CED-commissioned Zogby International poll of business leaders shows that more than 80 percent agree that public funding of voluntary prekindergarten for all children would improve America's workforce and economic competitiveness. The positive impact of preschool on students' lives increases the likelihood that these students will become net economic and social contributors.

"The world's most successful economies are those with the best educated workers. If we can provide quality early education to all American children, we will see returns in our children, our economy, and our society, for years to come," added Mr. Rose.

For years, CED has been in the forefront of efforts to quantify the economic benefits of investments in high-quality early education, and in building support among the business community for voluntary, universal preschool. Endorsers of CED's recommendations announced today include a diverse array of business leaders from across the country, including the chief executives of Avaya, Bashas' Supermarkets, Bausch & Lomb, Great Plains Energy, Guardsmark, ShoreBank, and State Farm Insurance.

The Pew Charitable Trusts, a long-time supporter of improving early education in the United States, provided generous funding for The Economic Promise of Investing in High-Quality Preschool as part of its national initiative, Advancing Quality Pre-K For All. Over the past five years the Trusts has invested over $50 million in research and public education campaigns in over half the states that show the benefits of voluntary, high- quality pre-kindergarten for all three- and four-year olds. In 2005, 26 states increased their early education investments by over $600 million, giving 120,000 additional children the opportunity to attend pre-k. According to Susan Urahn, Director, State Policy Initiatives, The Pew Charitable Trusts, "This nation is at a cross roads. We can either take the steps needed to keep our country competitive or cede that ground to other countries. The business community has recognized that investing in quality pre-k not only benefits young children's education, it makes smart fiscal sense for our states and our nation and contributes greatly to our communities' and our country's bottom line."

CED recommendations from The Economic Promise of Investing in High-Quality Preschool:

Communities, states and the nation should make access to publicly funded, high-quality preschool programs an economic and educational priority.

    * The economic benefits of preschool will be greatest when all states
      implement high-quality, publicly funded early education programs and
      make preschool available to all three- and four-year-old children
      whose parents want them to attend.
    * Maximizing program access and efficiency will require federal and
      state governments to coordinate publicly funded prekindergarten, Head
      Start, and child-care programs.
    * Business should advocate preschool programs and other complementary
      childhood programs and services, emphasizing the strong returns on
      investment and the leveraging of current expenditures.

Publicly funded preschool programs should meet the quality standards necessary to deliver their potential economic benefits.

    * To provide the greatest economic benefits possible, state
      prekindergarten programs and the federal Head Start program should
      assess their existing program standards and realign them with the
      factors known to contribute to improved early childhood learning and
      development.
    * Preschool programs should adopt an age-appropriate, research-based
      curriculum that embraces whole-child development and is aligned with
      content standards in kindergarten and elementary education.
    * All publicly funded preschool programs should employ high-caliber
      teachers with bachelor's degrees and specialized early education
      training.

Federal, state, and local governments should consider the broad economic benefits of preschool when deciding how to allocate resources in the face of competing uses and demands.

    * Funding provided for preschool programs should be commensurate with
      the cost of providing a high-quality education to fully capture the
      economic benefits of these programs.
    * Business should encourage states to fully fund preschool programs
      through a dedicated funding source.
    * Preschool funding should allow for teacher compensation that is
      commensurate with the compensation of public elementary school
      teachers.

The Economic Promise of Investing in High-Quality Preschool: Using Early Education to Improve Economic Growth and the Fiscal Sustainability of States and the Nation, an executive summary, and the list of endorsers can be found at http://www.ced.org/.

CED is a non-profit, non-partisan organization of more than 200 business leaders and university presidents. Since 1942, its research and policy programs have addressed many of the nation's most pressing economic and social issues, including education reform, workforce competitiveness, campaign finance, health care, and global trade and finance. CED promotes policies to produce increased productivity and living standards, greater and more equal opportunity for every citizen, and an improved quality of life for all.

  Contact: Chris Dreibelbis (202) 296-5860 x 24
           chris.dreibelbis@ced.org
           Morgan Broman (202) 296-5860, x 14
           morgan.broman@ced.org