Why is this important?
Funding a quality program for impoverished children from birth to 5 years old actually has a payback on those dollars invested, as high as $16 for every dollar spent.

Summary

Children that show up ‘kindergarten ready’ require fewer services from the school system, throughout their education and are more likely to graduate.
• As they move through life, they will be less likely to require additional government subsidies.
• They are more likely to become taxpayers.
• They are less likely to go to prison.

When does payback occur?

The payback starts when the children enter school. Services like remedial classes and special services are reduced. While these costs can be calculated some improvements are less apparent.

Intangible benefits include a more productive class room, with teachers spending more time teaching rather than providing social services for their students.

As these children move through life the payback continue with more productive lives.

Research
This research makes a solid case to establish the Minnesota Foundation for Early Childhood Development, and it explains a significant return on investment.

Early Childhood Development: Economic Development with a High Public Return. Arthur J. Rolnick | Senior Vice President and Director of Research, 1985-2010 Rob Grunewald | Economist
(http://www.moccrrn.org/PDFs/Early%20Childhood%20Development%20with%20a%20High%20Public%20Return.pdf)

“The most extensive analysis on the cost-benefit of pre-K comes from the High/Scope Perry Preschool Program. This program gives us the most thorough analysis because the participants are over 40 years old, so researchers have had several decades of evidence to work with. And the research shows benefits that substantially outweigh costs. At the age 19 follow-up, the ratio of benefits to costs was $6.87 per $1 invested. At the age 27 follow-up, the ratio of benefits to costs was $8.74 per $1 invested and at the age 40 follow-up, the benefit had increased to a return of $16.14 per $1 of invested. ” (Reynolds et al., 2011).

“The oft-touted $16 return for every $1 invested in early education applies only to high-quality programs for at-risk children.” Dr. Karen Cadigan was the founding director of the Minnesota Office of Early Learning