The Foundation for a Thriving The Foundation for a Thriving New Mexico Economy: New Mexico Economy:

Success Begins at BirthSuccess Begins at Birth Early Childhood Investment Early Childhood Investment

CommitteeCommittee

20082008Lt. Governor, Diane Denish

NM Children’s CabinetEarly Childhood Action Network

We All Hold the We All Hold the Core Value That…Core Value That…

Every child Every child

deserves an deserves an

equal start in lifeequal start in life

……andand

No parent should No parent should

have to sacrifice have to sacrifice

their child’s well-their child’s well-being to support being to support their familytheir family

We Also Know That…We Also Know That…

The success of The success of our children our children determines the determines the future of our future of our statestate

Success Begins at Birth Because…Success Begins at Birth Because…

80%80% of the brain develops of the brain develops between birth and age 5between birth and age 5

During this time, one’s ability to During this time, one’s ability to learn and attitude toward learn and attitude toward learning are shaped learning are shaped for lifefor life

Early Brain Development is the Early Brain Development is the Foundation for all Learning to ComeFoundation for all Learning to Come

““Both brain architecture and Both brain architecture and developing skills are built developing skills are built ‘‘from the bottom up,’ from the bottom up,’ with simple circuits with simple circuits providing the providing the scaffolding for more scaffolding for more advanced circuits and advanced circuits and skills over time.” skills over time.”

Source: Center on the Developing Child at Harvard University (2007). Source: Center on the Developing Child at Harvard University (2007). A Science-Based Framework for Early A Science-Based Framework for Early Childhood Policy: Using evidence to Improve Outcomes in Learning, Behavior, and Health for Vulnerable Childhood Policy: Using evidence to Improve Outcomes in Learning, Behavior, and Health for Vulnerable

ChildrenChildren. http;//www.developingchild.harvard.edu.. http;//www.developingchild.harvard.edu.

Human Human Brain Brain

at Birthat Birth6 Years 6 Years

OldOld14 Years 14 Years

OldOld

Source: Federal Reserve Bank of Minneapolis

The Consequences of Failing to The Consequences of Failing to Nurture the Developing Brain:Nurture the Developing Brain:

Healthy brain

Brain of a nurture-starved child

Source: Neal Halfon: UCLA Center for Infant & Early Childhood Health Policy

School Success Leads to a School Success Leads to a Well-Prepared Work Force: Well-Prepared Work Force:

Early Childhood Development is the FoundationEarly Childhood Development is the Foundation

Educational LevelEducational Level Expected EarningsExpected Earnings

With a Bachelor’s degree With a Bachelor’s degree $45,221$45,221

Without a College DegreeWithout a College Degree $26,123$26,123

Without a High School DiplomaWithout a High School Diploma $15,250$15,250

Source: U.S. Census Bureau, 2006 American Community Survey

Early Childhood Development: Early Childhood Development: The Foundation for School SuccessThe Foundation for School Success

Healthy Child DevelopmentBirth to 5 Years Old

Children Enter Kindergarten Ready To Learn

Reading Proficiency in Fourth Grade

High School Graduation

New Mexico Faces Challenges: Early Childhood New Mexico Faces Challenges: Early Childhood Development Makes a Big DifferenceDevelopment Makes a Big Difference

New Mexico ranks 48th in the nation for high school dropout rates

Source: KIDS COUNT Data Book: State Profiles in Child Well-Being, Annie E. Casey Foundation, 2006

In 2006-07, 54.4% of New Mexican fourth graders were reading at or above proficiency

Source: 2008 New Mexico Children’s Cabinet Report Card

The Costs of Bad ResultsThe Costs of Bad Results

Juvenile JusticeJuvenile Justice

Child WelfareChild Welfare

Medicaid (1/3)Medicaid (1/3)

WelfareWelfare

Corrections (1/2)Corrections (1/2)

State & Federal ExpendituresState & Federal Expenditures

20032003 $1.1 billion$1.1 billion

20042004 $1.13 billion$1.13 billion

20052005 $1.19 billion$1.19 billion

2005 costs represent 10% of New Mexico’s $11.1 billion state and federal fund expenditures

Source: 2007 New Mexico Early Childhood Children’s Budget. 2005 State Expenditure Report, National Governor’s Association (NGA), National Association of Budget Officers (NASBO)

Brain Development Compared to Brain Development Compared to Public SpendingPublic Spending

Source: Neal Halfon: UCLA Center for Infant & Early Childhood Health Policy

$ Public Expenditures

Brain’s Development

Birth0

80%

50%

100%

2 4 6 8 10 12 14 16 18 20 22 24

Strategies That WorkStrategies That Work

Early Childhood Development programs that Early Childhood Development programs that research demonstrates yield the greatest research demonstrates yield the greatest benefits:benefits:

Prenatal and Infant ECD ProgramsPrenatal and Infant ECD Programs

High Quality Early Care and High Quality Early Care and EducationEducation

Voluntary Pre-K ProgramsVoluntary Pre-K Programs

Source: Rand Corporation: Proven Benefits of Early Childhood Interventions, 2005

40-Year Study: Perry Preschool40-Year Study: Perry Preschool

In the early 1960s, 123 children from Ypsilanti, Mich. In the early 1960s, 123 children from Ypsilanti, Mich.

Children randomly selected to attend Perry or control Children randomly selected to attend Perry or control group.group.

High-quality program with well-trained teachers, High-quality program with well-trained teachers, daily classroom sessions, and weekly home visits.daily classroom sessions, and weekly home visits.

Tracked participants and control group through age Tracked participants and control group through age 40.40.

Source: Federal Reserve Bank of Minneapolis

Perry Preschool — Perry Preschool — Estimated Return on InvestmentEstimated Return on Investment

Benefit-to-cost ratio = $17 to $1Benefit-to-cost ratio = $17 to $1

Annual rate of return = 18%Annual rate of return = 18%

$100,000 savings in criminal costs$100,000 savings in criminal costs

$62,000 savings in judicial system costs$62,000 savings in judicial system costs

$60,000 more in annual earnings$60,000 more in annual earnings

Source: Federal Reserve Bank of Minneapolis

Benefit-to-Cost Ratios for Other Benefit-to-Cost Ratios for Other Long-Term StudiesLong-Term Studies

Abecedarian (NC) Educational Child Abecedarian (NC) Educational Child CareCare = $4 to $1 $4 to $1

Chicago (IL) Child-Parent CentersChicago (IL) Child-Parent Centers= $7 to $1 $7 to $1 = $2.88 to $1 – Nurse Family Partnership Program$2.88 to $1 – Nurse Family Partnership Program

Source: Rand CorporationSource: Rand Corporation

Elmira (NY) Prenatal/Early Infancy Elmira (NY) Prenatal/Early Infancy ProjectProject = $5 to $1$5 to $1 Source: Federal Reserve Bank of Minneapolis

Early Learning in New MexicoEarly Learning in New Mexico

Children benefit from our Pre-K Children benefit from our Pre-K program:program:

54% increase in vocabulary54% increase in vocabulary 40% increase in early math skills40% increase in early math skills 118% increase in understanding print 118% increase in understanding print

conceptsconcepts

Early childhood education works; Early childhood education works;

it’s time for a bigger investmentit’s time for a bigger investment

Why Early Childhood DevelopmentWhy Early Childhood Development Now?Now?

Our economy has changedOur economy has changed

Today’s jobs require more education than Today’s jobs require more education than everever

New Mexico needs New Mexico needs a better-prepared a better-prepared workforce to workforce to stay competitivestay competitive

Lessons Learned: Lessons Learned: Characteristics of Effective Characteristics of Effective

Early Child Development ProgramsEarly Child Development Programs

Universally availableUniversally available

Invest in qualityInvest in quality

Involve parentsInvolve parents

Start earlyStart early

ConclusionsConclusions

Quality early childhood Quality early childhood development benefits us all:development benefits us all:

Children are prepared for schoolChildren are prepared for school

Parents can participate in the Parents can participate in the workforceworkforce

School success breeds life successSchool success breeds life success

Our tax investments earn the best Our tax investments earn the best possible rate of return possible rate of return

Call to ActionCall to Action

The Investment Committee Charge:The Investment Committee Charge:

To develop To develop

An Investment Plan andFinancing Strategies

Call to ActionCall to Action

The Investment Committee Tasks:The Investment Committee Tasks:

To understand the needs of New Mexico’s youngest children and their To understand the needs of New Mexico’s youngest children and their families and the current fiscal situation in NM.families and the current fiscal situation in NM.

To recommend specific short term and long term policy and financial To recommend specific short term and long term policy and financial strategies to promote optimum development of ALL of New Mexico’s strategies to promote optimum development of ALL of New Mexico’s young children.young children.

To identify long term funding sources to maintain and sustain the To identify long term funding sources to maintain and sustain the state’s early childhood development system into the future.state’s early childhood development system into the future.