In the best-attended Leadership Series event of the year, Arthur Rolnick, senior vice president and director of research at the Federal Reserve Bank of Minneapolis, spoke about the public economic return on early childhood education including his own introduction to this cause. Rolnick, a board member at United Way and volunteer co-chair of our Early Learning Committee spoke to nearly 100 people at International Market Square in late October.

Rolnick put early childhood education in an economic light. He looked at the long-term economic returns of previous early childhood studies, described the ways in which programs can be successful and showed that by working together, we can have an impact on our children’s future.

Our Leadership Series is an annual speaker series featuring top local experts in philanthropy and community service. These exclusive events are open to members of United Way Emerging Leaders who give $10 or more weekly and United Way Community Builders—leadership donors that give $1,000 or more annually.

Putting an economic value on early learning

Six and a half years ago, when Rolnick started hearing arguments designed to convince him to support early childhood education, he didn’t like what he was hearing. He was convinced that we could look at the situation through an “economic lens,” rather than a moral lens, and put a monetary value on the benefits.

Although his work prior to this had mainly focused on pre-Civil War economics, Rolnick took the helm and became a major player in the cause of early childhood education. The work, he says, has taken him to different places, and he’s been able to meet people that he never expected to meet—from Andre Agassi to the Queen of Jordan.

Widening the view on existing studies

Rolnick’s research looked at the economic implications of several early childhood studies, most notable, the Perry Preschool Project, where an experimental group of children were taught by Masters-level teachers and their families received home visits while a control group did not get any of these services.

The project was initially thought to have been a failure, since the children in both groups maintained similar IQs; looking at it 30 years later, Rolnick and colleagues discovered the economic return on this program was in no way a failure.

The children who participated in the experimental group were more likely to have graduated from high school, avoided costly public services like special education, crime and welfare, and became tax-paying members of society; and by Rolnick’s claimed “conservative estimate,” created a 16 percent return on investment for the project. This, he noted, “is better than the stock market right now.”

In Minnesota, where we have a relatively good economy and one of the most educated workforces, Rolnick still feels there is work to be done preparing our children for kindergarten. As he puts it, “If we want long-term, sustainable economic growth—it’s not going to happen if we don’t educate our children, if they don’t get a high-school diploma.”

When kids start behind, they stay behind

Rolnick’s initial work focused on improving education among 3- and 4-year-olds in preparation for school. However, his work was challenged by neuroscientists who found that brain development actually occurs in the early years before age 3. Also alarming was the link they had discovered between high-stress environments like poverty, and poor brain development.

So Rolnick and colleagues devised four ways in which an early childhood program would be successful:

• Start early, beginning with prenatal care for parents
• Focus on engaging parents and teaching them
• Ensure that the plan will have measurable results
• Make it scalable—must be able to replicate it among a larger population

Three years ago, the state, based on these challenges to early childhood education, created a program—Minnesota's Early Learning Foundation (MELF) and convened a board of top local business leaders to find cost-effective ways to tackle this issue. In 2007-2008, United Way and MELF collaborated to raise an additional $4.5 million for early childhood education.

Today, United Way’s Early Learning Initiative and MELF are working to create a ratings system for early childhood programs that will look at not only the quality of the program, but its success among a diverse population of children.

Taking the lead

While there are many excellent programs out there, many have success that just can’t be replicated. But a simple solution taken from higher-education—scholarships—can be. Scholarships are the basis of a pilot program in the Frogtown neighborhood of St. Paul, a coordinated effort with Mayor Chris Coleman's office, MELF and the Federal Reserve Bank.

During pregnancy and the baby’s first years, families would receive home visits from a parent mentor. This is especially important for good prenatal care, which combats low birth weight and infant mortality. At age 3, children would receive scholarships to be used at a high-rated early education program.

This flagship program has already gained local and national attention. In fact, Allina Hospitals and Clinics are looking to fund a similar program in the Phillips neighborhood of Minneapolis.

“Use the market, empower the customer and get results,” Rolnick stated. “If you empower and engage parents, give them the tools they need, you’ll get a public return. Schools will be better, the economy will be better.”

Together we can make it happen

Rolnick is certain that between United Way and the business community in Minnesota, we can help improve early childhood education efforts in this community.

Rolnick knows that in this shaky economy, where money it tight, it’s hard to think about more big investments, but he’s optimistic. Maybe it won’t happen immediately, he says, but, “We’re in this for the long haul. United Way will be there for the long haul. And I’m confident we’ll get there.”

Learn More

• United Way's Early Learning Initiative
• Minnesota’s Early Learning Foundation
• Art Rolnick's Essays and Research
• Pilot Program: The Saint Paul Early Childhood Scholarship Program