U.S. Chamber of Commerce

Early Childhood Education Policy Declaration

Introduction:

In the face of an increasingly competitive global economy building a highly skilled workforce is more important than ever. Ensuring all students are able to read by 3rd grade, improving our nation’s high school graduation rate, and expanding access and completion of postsecondary education are all key factors toward reaching this goal. However, this will not be accomplished without the business community’s increased focus, attention and support for early childhood education (ECE) programs, serving students from birth to age 5.

I. Why Early Childhood Education Matters to Employers

According to the U.S. Census Bureau, 10.8 million children under age five with working mothers are in a childcare arrangement.* For many children, families, and employers high-quality ECE is an economic necessity – preparing children to succeed in kindergarten and beyond, allowing parents to work, and benefiting employers with a productive workforce.

Having reliable, high quality ECE options for parents has bottom line implications for business. It is estimated that lack of childcare or breakdown in care costs U.S. business $3 billion annually. In addition, childcare issues can negatively impact employee productivity and also have implications for increasing costly staff turnover.

While the quality of early childhood education varies tremendously, the positive impacts of high quality early childhood education (ECE) have been well documented. This includes improving reading ability by the 3rd grade, reducing the need to hold students back in kindergarten, and lowering the incidence of students’ placement into special education. In addition, these programs can improve high school graduation rates and increase college attendance.

These positive outcomes reflect research showing the importance of a strong learning environment at an early age. In fact, research suggests that 90% of brain growth occurs by the time a child reaches age 5. While strong family engagement can and must play a large role, a quality educational foundation in the early years is critical for future success in school and beyond.

* This includes care through relatives, organized facilities such as day care, preschool, and Head Start, or is in other non-relative care.

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Early childhood education programs also make good economic sense. Numerous studies have quantified the significant return on investment for these programs, based in part on increased educational attainment and reducing the need for more costly social services.

II. Foundations of a Successful Early Childhood Education System

While the benefits of early childhood education are clear, the reality is that the United States ranks 26th among OECD nations when it comes to the percentage of 4 year olds enrolled in these programs. Furthermore, the U.S. ranks 31st in availability of preschool education. Access to high-quality early education and care is particularly lacking for many children in low-income families, reflected in part by extensive waiting lists to enter programs such as the Child Care and Development Block Grant and Head Start. In many communities, it’s not uncommon to have thousands of families waiting for the next available spot in these programs. It is estimated that only 17% of working families are able to access subsidies under programs such as the Child Care Development Block Grant. (GAO 2010). The challenges are even greater when it comes to having access to full-day, full-year quality programs. Such programs have been found to provide low-income children with consistency and better outcomes. While other countries have implemented successful strategies to meet these demands, the United States is falling behind – a situation that could have long-term consequences both for students and the competitive advantage of our nation as a whole.

However, the Chamber believes the solution for expanding access and participation in early childhood education must not rely upon the creation of new programs or a massive expansion of federal investments. Instead, federal, state and local policymakers must work together to maximize efficiencies and leverage limited resources through a more commonsense system to accomplish these goals.

A. Streamline Current Patchwork of Early Childhood Education Programs

According to the General Accountability Office (GAO) there are 45 separate federal funding streams supporting these activities. Other research has estimated that as much as $22 billion is expended at the Federal level each year for these programs. While debate continues over exactly how many programs and how much funding is available, policymakers must at least take into account the current landscape of federal support for ECE in developing a more commonsense system.

At a minimum, there must be efforts to improve coordination and the ability for states to better align their own program rules and services to those at the federal level. Such effort should build upon efforts already underway in many states that have worked to maximize investments by establishing coordinating councils or reorganizing state agencies responsible for carrying out ECE services.

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B. Establish a Coordinated, Market-Driven, High Quality System of Early Childhood Education

Current federal funds supporting early childhood education should be directed toward a unified or highly coordinated system. To be successful, this system must be driven by market forces as reflected by encompassing the following key characteristics:

1. Choice in Providers

There are a wide range of providers that have demonstrated the ability and capacity to carry out high-quality early education programs. These include groups such as community-based organizations, private non-profits, for- profits, schools and faith-based organizations. However, to often, within the current maze of federal and state programs, community based providers are left out from even being able to compete to provide these services, thus limiting options for parents. A market-driven ECE system must enable the participation of a mixed set of high-quality providers.

Within a mixed provider delivery system with high expectation for quality, parents must be empowered to take funds to a provider best suited to meet the needs of their child. In addition, services should be facilitated through a enrollment process having clear and consistent rules and which is parent, child and provider friendly.

2. Prioritizing Services to Low-Income Families

Federal investment into early childhood education has the ability to increase access to for those least able to afford quality options and services. These investments must be leveraged by empowering parents to make choices in selecting providers of ECE. Equally important in serving the needs of low- income families is ensuring programs rules make it possible for parent to navigate particularly with respect to arraing for contiute of care for children as they age out of particular settings.

3. Put Useful Information into the Hands of Parents

Despite being collected by states and local agencies (typically through licensure reports), parents often have limited access to information on providers that can be critical for making decisions on where best to place their child in an early childhood education setting. At a minimum, parents should be provided information on teacher qualifications, staff ratios, curriculum, and to the extent they are available, learning outcomes.

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4. Quality Assurance Systems

As a condition of federal ECE funds, states must agree to establish and enforce state-developed quality baseline standards for providers serving children under this system. Standards should ensure the health, safety and well-being of children and address issues including professional qualifications, staff ratios, and positive developmental and educational outcomes for children. We also strongly believe that states should incentivize continuous quality improvement through implementation of the state-driven Quality Rating and Improvement System (QRIS) or national accreditation.

5. Promote Innovation

States must be empowered to implement innovations having the ability to increase both the access and quality of early childhood education programs. Many states are already participating in such efforts. This includes through strategic business investments and partnerships; building networks at the state level for promoting quality standards and through local networks to promote technical assistance and address instructor quality; and through the creation of shared services models in which publicly funded preschool programs promote collaboration with private and community based providers.

Having a more streamlined system of federal support will greatly expand such efforts, all of which have significant benefit to the collective marketplace.

III. Conclusion

The Chamber is committed to promoting efforts to improve and expand access to quality ECE programs. We believe that our policy proposals can help us achieve these goals and greatly benefit children and parents, as well as advance our nation’s future economic competitiveness.

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