Why Target ECE Workforce? • General economic returns/benefits – To workers/multiplier effect – To society/better child outcomes • Political, economic potential – Increased public, business, union support – Economic recovery – window of opportunity • Fix Market failures – Inability to pay – Lack of information Getting from Here to There • Current workforce: – Low education levels – Very low compensation – Little or no career ladder • Keys to enhancement: – Route to higher education – Better compensation – Career ladder ECE Worker Qualifications Declining 40% Percent with a college degree or more all workers 30% 20% center-based ECE 10% 0% 1983 1986 1989 Source: KRC analysis of the CPS Basic Montly Survey 1992 1995 1998 2001 2004 In mid-80s, Younger Teachers were More Often College-Educated than Older Teachers -- Like the Workforce as a Whole Percent of Teachers and Administrators in Centerbased Early Childhood Education with At Least A Four-Year College Degree by Age 60% 1983-1987 50% 40% 30% 20% 10% 0% 24 27 30 33 36 39 42 45 48 51 54 Age (five-year averages; e.g., 24 means the average for ages 22-26) 57 60 Many College-Educated ECE Teachers and Administrators Near Retirement Percent of Teachers and Administrators in Centerbased Early Childhood Education with At Least A Four-Year College Degree by Age 60% 1983-1987 50% 1988-1992 1993-1997 40% 30% 20% 10% 0% 24 27 30 33 36 39 42 45 48 51 54 Age (five-year averages; e.g., 24 means the average for ages 22-26) 57 60 Many College-Educated ECE Teachers and Administrators Near Retirement Percent of Teachers and Administrators in Centerbased Early Childhood Education with At Least A Four-Year College Degree by Age 60% 1983-1987 50% 1988-1992 40% 30% 20% 10% 0% 24 27 30 33 36 39 42 45 48 51 54 Age (five-year averages; e.g., 24 means the average for ages 22-26) 57 60 Many College-Educated ECE Teachers and Administrators Near Retirement Percent of Teachers and Administrators in Centerbased Early Childhood Education with At Least A Four-Year College Degree by Age 60% 1983-1987 50% 1988-1992 1993-1997 40% 30% 2000-2004 20% 10% 0% 24 27 30 33 36 39 42 45 48 51 54 Age (five-year averages; e.g., 24 means the average for ages 22-26) 57 60 Today, Younger Teachers Are Less Often CollegeEducated than Older Teachers -- Unlike the Workforce as a Whole 60% Percent of Teachers and Administrators in Center-based ECE with At Least A Four-Year College Degree by Age 1983-1987 50% 40% 30% 2000-2004 20% 10% 0% 24 27 30 33 36 39 42 45 48 51 54 57 Age (five-year averages; e.g., 24 means the average for ages 22-26) 60 Education Lowest for Home-Based ECE 60% High School or Less 56% Some College College-Degree or More 50% 40% 46% 37% 32% 30% 20% 17% 11% 10% 0% Home-Based ECE Source: KRC analysis of the CPS Basic Monthly Survey 2000-2004 Center-Based ECE ECE Workers Also Paid Less $25.00 Inflation Adjusted Median Wages 1983-2004 $20.00 Female College Graduates $15.00 All Workers Center-Based Teachers and Administrators $10.00 $5.00 $0.00 1984 1987 Source: KRC analysis of the CPS MORG data 1983-2004. 1990 1993 1996 1999 2002 Proposal and Cost • Enhance qualifications, skills, pay @ each level of 1.85 million ECE workers: – Below HS HS CDA: (~50%) – CDA AA ? BA/ECE PD (~30 – 50%) • Cost: – Lowest-paid in field, lift from $8-$12 to $13-$17 – Mid-level ECE workers, those entering the field, add PD, $5/hr, ladder – TOTAL: $18.5 billion - $23 billion (with benefits) Policy Strategies • New funding: tax incentives/legislation linking quality to reimbursement/salary • Reallocated dollars – Race to the Top ECE – Reinvest prison savings – Workforce Development Initiatives – Social Investment Bonds Tying funding to quality • Through tax credits: individual/ teacher, reimbursement to ECE center , business, parents (LA) • Through scholarships: T.E.A.C.H. • Through legislation (PA STARS) Reallocation Policy I: RTT • Race to the Top offering new ECE grants – Target program quality – Focus on systems-building, collaboration – Sustainability key • Opportunities for job creation/growth – Using RTT $ to tie quality to compensation – Using RTT $ to enhance worker skills Reallocation Policy II: Corrections • Logical connection: At-risk children drive many corrections costs, quality ECE helps • Financial and political opportunities: – Huge prison budgets w/ little/no safety benefit – ECE relatively small budget, so small % of set-aside can fund thousands of children – Same fiscal conservatives that support prison cuts can back ECE funding Reallocation III: Workforce Initiatives • Federal/state grants for partnerships— training tied to ECE career ladders • Preference for funding to proposals that – increase compensation with training/step up – have a funding sustainability plan – Strengthen business/labor engagement • Use some $ to move unregulated homebased providers onto first rung of ladder Reallocation IV: SIBs • In use in other countries, policy contexts • ECE presents opportunities, challenges – Evidence of future payoff – Prevention major cost savings – Business, philanthropists taking interest BUT – Estimating short-term savings difficult – Different savings by risk group, cohort, family and community factors – how to incorporate? Contact information Elaine Weiss eweiss@epi.org (202) 331-5537 Steve Herzenberg herzenberg@keystoneresearch.org (717) 255-7145