Quality child care is critical in the development of local economic development. Investments in quality child care programs that support parents, promote the health and safety of children and improve access to high-quality child care help everyone, including businesses.
Looking at child care and early education from the economic development lens – here are some facts:
• For every $1.00 invested in quality child care and early education programs, there is a long-term benefit of $7.00 in public savings by increasing the likelihood that children will stay in school and become employed, and by reducing dependence on public assistance (High Scope Perry Preschool project in Ypsilanti, Michigan).
• Every state dollar invested in child care and early education programs leverages $3.00 in federal funds, and each new federal dollar generates almost $2.00 in economic activity (Investing in the Child Care Industry: An Economic Development Strategy for Kansas, Mid-America Regional Council).
• The internal rate of return (the interest rate received for an investment consistent of payments and revenue that occur at regular periods) from child care and early educations programs exceeds the amount invested in them. (Early Childhood Development: Economic Development with a High Public Return, Rolnick and Grunewald, The Minnesota Fed Bank).
The Early Care and Education Collaborative is a project of The Women’s Foundation and a partnership of private and corporate philanthropies. This partnership offers a unique opportunity for donors and nonprofit organizations to make a critical difference in the lives of women and their young children.
The Early Care and Education Collaborative will work to improve the access to quality, affordable early care and education for low-income, women-headed families in the Washington metropolitan area. It invests in local organizations–Grantee Partners–to improve early care and education through grantmaking and training and technical assistance.
PNC Bank, an ECE Collaborative partner, has made a commitment to child care and early education and is recognizing the importance of subsidized child care as a work support. In a Washington Business Journal editorial, "Subsidized child care is good business", Mike Harreld, Regional President of PNC Bank, Greater Washington, D.C. area, says, “When low-income working parents are forced to leave the work force, not only do they and their children suffer an immediate loss of pride, income and quality early learning experiences — our companies and communities lose as well.”
In the winter of 2002, 89 percent of the 9.8 million preschools of employed mothers and 31 percent of the 8.2 million preschoolers of non-employed mothers were in at least one child care arrangement on a regular basis (Household Economic Studies, US Census Bureau).
Child care has become the “norm” for young children. Interest in the use of child care has grown as more and more low-income women are entering the labor force. Child care options and costs associated in selecting “quality” child care are important issues for all working women, as well as relatives, child care providers, policy makers, and anyone concerned about young children!
Access to quality child care for low-income women is not only necessary for economic sufficiency, but also for long-time sustainable economic success. The Women’s Foundation focuses attention on the necessity of low-income women’s access to quality early child care and education. This access is essential for the easy transition for women for the work force, ensuring children are ready for school, and helping to establish the viability of the regional business community.
In his article, Harreld states, “As employers, we count on reliable employees who are fully focused and ready to work. This can only happen when employees know their children are safe and in good care during the workday.”
Additional resources about the economic impact of child care in Washington, D.C. region:
The Insight Center worked with the CityBridge Foundation and the Center for Applied Research and Urban Policy at the University of the District of Columbia to analyze the economics of the District’s ECE system and make recommendations for strengthening the industry. At the release of the report on June 18, 2007, Mayor Adrian Fenty, City Council Chairman Vincent Gray, and D.C. Chamber of Commerce President Barbara Lang spoke of the economic importance of ECE and committed to working to make it stronger.
America’s Edge is a national non-profit organization established in 2007 to help engage leaders of the business community more extensively in support of local, state, and national efforts to improve the quality of public education. In a global economy, the ability of American businesses to compete depends on the talent, knowledge, and skills of employees at every level; and the demands are rapidly changing. The availability of competent employees depends substantially on the quality of public education in the communities where they work. To develop those talents and to produce the knowledge and skills required in the 21st Century, that education needs to be of high quality and must begin at the earliest years of a child’s life.
Fairfax Futures was launched in June 2004 at the Early Learning is Good Business Summit to highlight the importance of investing in quality early childhood education as an important investment in the future of Fairfax County. Through the generous support of the Freddie Mac Foundation and strong commitment from Fairfax County’s Office for Children, Fairfax Futures launched a dialogue between early childhood educators who work with our county’s youngest residents. In April 2005, more than 200 early childhood educators came together to talk about building a common framework for school readiness. (Summary of the Early Learning Symposium). Fairfax Futures continues to build partnerships with the business community, public sector agencies, early childhood educators, community organizations and families who support the school readiness of Fairfax County’s youngest residents and, as a result, help to guarantee the economic and social vitality of the county.
HyeSook Chung is currently working as a consultant with The Women’s Foundation on their child care and early education work.