Public Policy Agenda for 2011-12

Overview: Effective Early Childhood Programs Produce a Solid Return on Investment

Early childhood development and education are key to Wisconsin’s competitive growth and long-term prosperity. An increasing body of research demonstrates convincingly that development in the first five years sets the foundation of intelligence and social skills that are essential for success. Research over the last quarter century has confirmed the extraordinary development in the first five years, including prenatal development. According to James Heckman, Nobel Laureate economist at the University of Chicago, early investment produces the greatest return in human capital. A 2010 report sponsored by U.S. Chamber of Commerce endorsed early learning as a prudent investment in workforce development, and a good short-term and long-term investment worth business support.

The 15-member Wisconsin Early Learning Coalition endorses the following agenda as effective steps for Wisconsin’s future, with a solid return on investment.

1. Implement a Strong YoungStar Program to Improve Child Care Quality

Wisconsin should continue to implement YoungStar, Wisconsin’s Quality Rating and Improvement System (QRIS. YoungStar will help child care centers and family child care homes provide effective early learning programs, with an emphasis on those receiving Wisconsin Shares funding. A well-designed child care program is an effective vehicle for providing children with essential early learning experiences and for strengthening families. Wisconsin should ensure that tax dollars going to child care programs is going to programs that meet reasonable standards of quality, and not going to programs that could be harmful to children. The 5-year plan approved in 2010 includes an essential ingredient to an effective YoungStar program: quality incentive payments that would reward child care programs that meet high standards. We strongly support providing higher payments for higher quality.

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2. Expand Evidence-based Home Visiting Programs

The parent-child relationship is the foundation of a child’s development. Wisconsin should expand voluntary evidence-based home visiting programs to help new parents and parents with very young children enhance their children’s healthy development and early learning, with an emphasis on children at risk.

Home visiting usually works with families before the birth of a child and through age two or beyond. Research indicates that well-designed home visiting programs are effective in strengthening parent-child relationships and improving child development and early learning, particularly when targeted to children where risk factors are present, including children with disabilities.

Additionally, home visiting programs have proven to be effective in improving school readiness, reducing child abuse, identifying physical, cognitive and social emotional delays early on, and enhancing birth and health outcomes. According to the Pew Center on the States, “Evidence-based home visiting programs are proven to produce positive outcomes that improve the quality of life for our citizens and deliver fiscal returns of up to $5.70 per dollar invested.”

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3. Begin Building a Statewide System for Early Learning
   
   Wisconsin should make steady progress toward a coherent statewide system that supports an effective early learning system to ensure that young children get a great start. The vast majority of our young children are served in early care and education settings prior to Kindergarten. Wisconsin needs a supportive system to make sure they are thriving in their first five years, including a focus on pre-natal services, infants and toddlers, and preschoolers.
   
   The system should include key elements of a functioning system:

• Engagement and outreach with parents, communities and practitioners to promote effective early learning
• Quality standards that ensure effective early learning
• Professional development and support to assure teacher and provider competency
• On-site technical assistance and consultation to caregivers, teachers, and home visitors
• Monitoring and accountability to ensure standards are met and progress on essential benchmarks are achieved
• Ongoing financial assistance linked to meeting standards and assuring a qualified workforce
• A systematic approach to serving children with disabilities in inclusive settings

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4. Ensure High Quality in 4-Year-Old Kindergarten Programs

Research shows that high-quality pre-kindergarten programs result in short- and long-term benefits and cost savings. While we assume that most 4K programs in Wisconsin meet the quality standards that bring a good return on investment, Wisconsin has no mechanism to assure high quality across the state. We are disturbed by reports that some 4K programs operate with a high number of children per teacher (25 to 30 children).

The Coalition supports an evaluation of the quality of public 4K programs in the state, including both school-based and programs with community approaches. The Coalition also supports the establishment of key quality standards to apply to public 4K programs, including minimum staff-child ratio standards. Annual reports by the National Institute for Early Education Research show that Wisconsin can demonstrate meeting only 5 of 10 quality standards consistently across the state.

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5. Increase Continuity of Child Care for Infants and Toddlers

Research shows that consistent, reliable caregiving is important to positive development for young children, especially those under age 3. Wisconsin should explore adjusting eligibility requirements and processes in Wisconsin Shares to increase the stability and continuity of care for children under age 3.

Continuity of care is particularly important for young children at a time their families are experiencing job loss and fluctuation, or where the child has special needs. The Coalition recommends an effort with the Department of Children and Families to explore options to increase continuity of child care funded by Wisconsin Shares and in child care programs overall. Several other states have made changes to address continuity of care in the subsidy programs and through licensing rules.

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6. Tax Credits/Deductions to Support Early Childhood Programs

Early care and education is mostly a market-driven service, helping parents to work and preparing children for school. The early care and education sector of the economy is much larger than most people realize. There are over 10,000 programs in Wisconsin, with an economic impact of over $2 billion annually. The Coalition supports exploration of tax credits/deductions in this business sector, such as:

• Consumer credit/deduction: adjust the child care deduction so it is worth more if parents pay for high-quality settings, (Maine, Vermont, and Arkansas)

• Contribution tax credit: a credit that reduces tax liability for an individual or business that contributes to early care and education programs (Oregon and Colorado)
  

Strategic tax credits can boost one of Wisconsin’s largest small businesses, expanding jobs, assuring strong child care for working parents, helping prepare our future workforce.

2009-11 Wisconsin Legislative Agenda

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