Original Source: Asbury Park Press
Quality preschool is critical to a child’s future. But it’s also beyond the financial reach of many working families in New Jersey. Private preschools are expensive, public programs are limited and state subsidies for families in need are among the lowest in the nation. Charitable organizations can help fill some of the gaps, but not nearly enough. The United Way works closely with many of these families and understands both the growing need for more affordable preschool programs in the state and the value they bring to the community. We asked a top executive at one of the state’s United Way chapters, Kiran Handa Gaudioso, for some insights on the scope of the problem and potential solutions.
Can you first describe for us the importance of preschool in preparing children for their academic futures?
When you track an individual’s success backward from college or beyond, research shows that one of the best predictors is a student’s career in high school. And what’s largely recognized as the best indicator for graduating high school? Reading on grade level by the third grade. And the best predictor for being proficient in third grade? The number of words a child has in his or her vocabulary at the age of 3. High-quality preschool programs are where most children deepen those vocabulary and early language skills.
Kiran Gaudioso
Many parents seem to think that their children will catch up to other kids soon enough, even if they begin kindergarten behind some other students who attended preschool. Is that true, or are we talking about what amounts to a permanent disadvantage?
The achievement gap among low-income children beginning in kindergarten is well-documented and without dispute. Research shows that these children are unlikely to catch up, perpetuating a cycle of long-term economic and social inequity.
We’re not just talking about the educational benefits of preschool but long-term effects that extend into adult lives, affecting professional development and earning potential, isn’t that right?
Yes, top economists, including a Nobel Laureate, point out that every $1 invested in early childhood education saves all of us 7 to 10 percent in future costs by reducing dropout rates and crime and increasing lifetime earnings. Even politicians on both sides of the aisle agree that preschool works. Former Republican New Jersey governor and Pre-K Our Way champion Tom Kean and Democratic U.S. Senator Cory Booker agreed on this point at a public forum last year. Kean said: “Preschool education, it’s the one thing we know works. There is no argument. Every single piece of research I’ve seen in the last 20 years says that if you give kids preschool education you change their whole future trajectory.”
Let’s not forget that quality preschool also helps today’s workforce. When parents know their child is in good hands, they can focus on their jobs, to the benefit of employers and our economy.
What are the typical costs of a private preschool for which families would have to pay out of their own pockets?
Average costs can vary across the state from a high of $13,000 annually in Somerset County to a low of just under $8,000 in Cumberland County, according to the New Jersey Kids Count report published by the Advocates for Children of New Jersey.
That kind of cost is out of reach for many families, so what other alternatives are available?
Working parents who can’t afford these high costs may turn to a well-meaning, but unqualified and unlicensed family member, friend or neighbor. The setting may not be safe and they may not provide the same foundational social and educational skills that will prepare them for kindergarten.
The state does offer some subsidies for families in need, but presumably not enough, correct?
The state’s subsidy is just $26 a day, which is about half the market rate cost. In order to qualify for the subsidy, parents must be either in school or working full time, earning no more than $48,600 for a family of four. Yet, many preschools don’t accept the subsidy as a form of payment because it’s so low. Those that do are at a distinct disadvantage. Our state has one of the lowest subsidy rates in the country, according to the National Women’s Law Center, despite the well-known fact that we have one of the highest costs of living. The last time the state raised the subsidy for these working families was 2008. A lot has changed since then. The state has become even less affordable while wages have remained stagnant. We know from the United Way ALICE Report that the cost of basic necessities (including child care) has grown since that time by 19 percent.
To be clear, we’re not just talking about families in poverty unable to afford preschool, but many working-class and middle-class families. Is that a fair statement?
When you consider that it can cost a family more to send a child to a quality preschool than to community college there is no doubt that it’s out of reach for many families, not just those considered in poverty. At United Way of Northern New Jersey we use the term ALICE (Asset Limited, Income Constrained, Employed) to describe the growing number of New Jersey families who are living paycheck to paycheck, unable to afford the basics, including preschool. Nearly 30 percent, or 890,000, of our state’s households qualify as ALICE. On average, New Jersey families are spending one-quarter of their income for children in child care and preschool — that’s more than double the amount recommended by national standards.
What role has United Way played in trying to fill the funding gap?
Each year, our United Way has provided scholarship funding so that 1,000 children of financially strapped families can attend quality child care and preschools across our five-county region. We know that doesn’t even come close to addressing the need. Our partner centers tell us that the United Way funding helps, but it does not fully bridge the gap between the state subsidy, parent contributions and the true cost of running a quality program. Several schools have been in jeopardy of closing because of this funding gap. In addition to our scholarships, we’ve collaborated with partners like the Greater Morristown YMCA to keep open schools that predominantly serve ALICE families. Some centers, like Collinsville Child Care Center in Morristown, simply can’t overcome the financial hurdle. Sadly, this center closed its doors two months ago after 40 years of serving ALICE and families in poverty.
And when a center closes not only do the children and parents face upheaval, but so do the staff, many of whom are also ALICE. When parents can’t find reliable child care and when teachers lose their jobs, the ripple effects are felt across the community.
So if we were to look at the entire preschool system in New Jersey, what percentage of needed affordable preschool slots for children would you estimate are actually being provided today?
New Jersey’s publicly funded, nationally recognized preschool program serves some 50,000 3- and 4-year-olds living in 35 towns. There are roughly another 350,000 children attending a patchwork of some 4,000 licensed and unlicensed child care centers across the state with zero guarantee that they are attending quality programs.
Why do you believe that New Jersey, with among the nation’s highest costs of living and with a history of having invested significantly in K-12 education over the years, has been so deficient with its preschool investment? Is it a political thing, or do the problems run deeper?
New Jersey’s public preschool program has been a model for the country and politicians on both sides agree on the value of quality preschool. We recognize the state is facing serious budgetary challenges, but our state and federal lawmakers need to put expanding access to quality preschool at the top of their funding priorities. The state subsidy is largely funded by a federal grant that also hasn’t seen significant funding increases.
So what’s the solution? Would bigger subsidies do the trick, or do we need to rethink how preschool services are delivered in the state? Are there models in other states that might light the path?
A good first step would be to raise the subsidy and value children’s safety and education at vastly more than $26 a day. This is a good interim step as the state works toward affording an expansion of public preschool. And by no means do we believe the costs must be borne by taxpayers alone. There are interesting opportunities for investments by major corporations like the one modeled in Utah with Goldman Sachs. Initial results of this partnership reinforced that a quality program reduces remedial costs, pointing to a positive business investment. Legislation was proposed earlier this year that would make it possible for New Jersey to explore this possibility. Ultimately, this type of investment in a strong, well-educated future workforce, benefits all of us.
Kiran Handa Gaudioso is senior vice president of community impact and community relations for the United Way of Northern New Jersey, a nonprofit organization working to improve people’s lives and strengthen communities by focusing on education, income and health.