New report: Cost savings analysis of school readiness

Posted by on February 08, 2010

Pre-K: the biggest bang for your education buck

A new study by Wilder Research of St. Paul, Minn., undertaken at the behest of Michigan nonprofit Early Childhood Investment Corp., finds that Michigan preschool programs over the past 25 years are saving the state $1 billion this year in crime and education costs, as well as contributing to increased state productivity. Michigan school superintendent Mike Flanagan said the study shows the state should spend much more than it does getting pre-kindergarten children ready for school, and suggested that the state and districts consider reducing the cost of school employee benefits and using the savings to expand preschool programs. “In a K-12 system, we spend $1 billion a grade, but we don’t spend anywhere close to that where it would get the biggest bang for the buck.” Among the savings cited in the study were a $220 million savings to public schools because fewer students repeat grades and there is less need for special education instruction; $584 million less for programs for juvenile corrections, child abuse, and welfare; and $347 million less in social costs as a result of less crime and substance abuse, as well as increased income for parents. It also affected state unemployment, and boosted work productivity when children enter the workforce.

See the report: http://www.greatstartforkids.org/content/study-early-childhood-programs-save-mi-1b-annually