Societal Benefits and Return on Investment of Early Childhood Programming

(July 2023) In 2022, more than 12,000 children and expectant parents in Kent County participated in quality early childhood services that would not have been available without the Ready by Five Millage. While many of these services are universally accessible to all families across the community, our intentional focus on children with the greatest needs and, thus, the potential for greatest impact is proving successful. Fifty-seven percent of young children and families served last year were from historically marginalized groups, and 45 percent live in households with incomes below $40,000 a year. Millage-funded services made the most significant inroads in zip codes that are most economically disadvantaged, both urban and rural.

The scale and reach of Ready by Five benefits not only the individual children served, but also their parents and the greater community. Young children who participate in high-quality early childhood programming require less special education throughout school, are less likely to repeat a grade, have fewer behavioral concerns, and graduate at a higher rate than those who do not. National research about the long-term public benefit of investing early shows fewer individuals enter the criminal justice system (juvenile and adult) and more adults are successful in the workforce. Many of the models currently funded by the Ready by Five Millage have well documented evidence of effectiveness or returns on investment based on long-term studies. Below we highlight some of the programs that have been researched and those that have demonstrated a measurable ROI.

Effective Programs that Work

Home Visiting programs are among the most researched and effective social programs as they provide a two-generation approach that addresses multiple factors related to child success. Ready by Five funding has increased the capacity of evidence-based parenting education that improves outcomes beginning in infancy, with benefits that grow as children continue with quality programming throughout their early years. Ready by Five funding has allowed Healthy Families America (HFA) and Strong Beginnings Healthy Start to expand their services above and beyond their previous reach; between both programs an additional 220 infants, toddlers, and young children were served in 2022.

HFA is an evidence-based home visiting model designed to work with overburdened families who are at-risk for adverse childhood experiences, including child maltreatment. This program supports the parent-child relationship, promotes healthy childhood growth and development, and enhances family functioning. The ROI is estimated to be $1.46 for each dollar invested, with greater benefits ($3.16) for families involved with child welfare services.1

Strong Beginnings Healthy Start home visiting program supports participants from pregnancy until their toddler turns 18 months old. The most recent evaluation shows individuals enter the program with multiple risk factors related to their physical health, psychosocial health, and within the social determinants of health. Participants in 2022 and thus far in 2023 had a 40 percent reduced risk of very preterm birth, 15 percent reduction for preterm births, and higher rates of participants completing postpartum exams 60 days after giving birth (87% of all participants). Corewell Health estimates an ROI with the decrease of preterm births at $1.18 for each dollar invested. Additional program components are not considered in this estimate so the actual ROI could be higher.

Early Learning is Crucial to Later Success

Language comprehension at three years of age – largely developed by being in an environment rich with words, conversation, and books – is the best predictor of future language-learning status 2. Data shows that the percentage of all Michigan parents who read to their children daily is 37.8, compared to 26.8 percent for families in low-income households.3 Ready by Five funds programs that have evidence of success with improving early literacy.

The Parents as Teachers (PAT) model (Bright Beginnings) enhances child development and school readiness by providing parents with knowledge and resources to prepare their kids for a stronger start in life and greater school success. The model includes personal home visits by parent educators, group meetings for parents, developmental screenings for children, and a resource network for families. Ready by Five funding increased PAT programming to reach an additional 130 expectant parents and young children in 2022.  Research estimates the ROI is $1.23 for each dollar invested.4

Reach Out and Read partners with pediatricians to advise parents about the importance of reading aloud and provide developmentally appropriate books during regular pediatric check-ups. National results from this model show that parents are two-and-a-half times more likely to read with their infants, toddlers, and preschoolers; and children show improved language development by 3-6 months and continue to improve with consistent exposure to Reach Out and Read.5 More than 10,000 young children were served across Kent County in 2022.

Successfully Connecting Families

Ready by Five funding allowed for the creation of an Outreach and Navigation (O&N) network, which is critical to connecting families to evidenced-based programs and other community resources. Outreach and Navigation providers help families assess their needs and then access health services; support for housing, food, and other essential needs; and evidenced-based early childhood programs, while also strengthening the overall connectivity of the early childhood system. Outreach and Navigation providers navigated more than 3,500 families in 2022, helping them access a wide range of programming, including 1,000 referrals to home visiting programs. Research is beginning to emerge on the impact of such screening and referral networks for people with social needs. While many families can benefit from these initiatives, cost savings are most significant when those with the greatest needs are served.

First Steps Kent and partners recognize an opportunity to expand the O&N network to help families navigate the child care system, ensuring they maximize all assistance for which they are eligible and helping them find affordable quality care. That will require additional Ready by Five funding and would bring significant benefit to local families struggling amidst the national child care crisis.

Addressing Developmental Concerns

Early developmental screening is a national best practice that is recommended by both the American Academy of Pediatrics and the Center for Health Care Strategy as earlier intervention is more effective and has been proven to reduce special education costs in the long-term.

During the 2021-2022 school year, for the 1,084 infants and toddlers enrolled in Early On services (IDEA Part C funding); the overall average cost was $7,428 per infant/toddler. Early Childhood Special Education (ECSE) (IDEA Part B funding that serves ages 3-5) for the 1,185 students served showed an average cost of $5,932 per student. In Kent County the average cost for a child to receive three years of Early On and two years of ECSE totals $34,148. As developmental delays and concerns are identified in later grades, the overall average cost is higher, standing at $12,996 per student per year.6 Ready by Five programs increase access to developmental screening to better identify concerns earlier as well as ensure barriers families may experience when enrolling in early intervention clinical services are reduced.

Ready by Five funds the Connections program that offers developmental screenings throughout early childhood and helps families access early intervention services if a delay or disability is confirmed. According to the CDC, about one in six children aged 3-17 have one or more developmental or behavioral disabilities, such as autism, a learning disorder, or a language delay.7 The agency adds, “Many children with developmental disabilities are not identified until they are in school, by which time significant delays might have occurred and opportunities for treatment might have been missed.”8 The Connections program was successful in completing 3,207 screenings reaching 1,701 children in 2022, and identifying 730 children having a possible concern.

Investing Earlier is Better

The famed Nobel Laureate economist Dr. James Heckman advises communities take the approach of the Ready by Five Millage – invest early, starting before birth whenever possible, and stack a variety of comprehensive programming and interventions for children and families facing the biggest disadvantages. “Providing health, early learning and care from birth produces a 13% return on investment per child, per annum, significantly higher than just preschool alone,” Heckman explains.

The exact numbers associated with the ROI vary based on which interventions were included in the analysis, but numerous studies demonstrate quality early childhood programs provide one of our greatest opportunities to address longstanding disparities in health, education, and employment, ultimately saving communities far more money than they have spent.9

While we are not going to know the full ROI for Ready by Five for years to come, we are gaining some early indication of its impact through the Ready by Five evaluation process. Basing success on the empirical measure of kindergarten readiness, the evaluation process will begin to determine the initial impacts for children who are school aged and have engaged in Ready by Five funded services. Initial evaluation results showing impact on k-readiness will be available sometime in fall of 2023, with additional results of ROI to follow in coming years, as children receiving services now as infants and toddlers start kindergarten.