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Don Owens
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Louisiana Pre-K Pays Off, According to New Report on Program's Economic Benefits

First-ever statewide analysis of fiscal implications of expanded pre-k shows significant return on investment

(Baton Rouge, LA) - Pre-K Now today released the first-ever Louisiana statewide study detailing the economic benefits of pre-kindergarten for the state's youngest learners. An Economic Analysis of Pre-K in Louisiana was prepared by Clive Belfield, Ph.D., an economist at Queens College, City University of New York, and provides compelling economic evidence of the cost savings associated with high quality pre-k.

"High-quality pre-k is a remarkable return on investment," said Libby Doggett, executive director of Pre-K Now. "Dr. Belfield's research shows that pre-k can be more than just a working-families or education issue in Louisiana, it is critical for economic improvement."

According to this analysis the financial return on pre-k is similar to studies conducted in Wisconsin, Ohio, Massachusetts and New York: For every $1 invested in pre-k, Louisiana would recoup $2.25 in future savings.

Additionally, the economic analysis found that:

• Implementing a high quality, voluntary pre-k system available to all four year olds would amount to $270 million in cost savings. Even with a very cautious model, the cost savings would exceed $192 million over the 13-year period when a child progresses through school;
• The largest proportion of cost savings is in reduced crime and incarceration costs (38%), with one-third of the benefits accruing in savings to the education system (34%) through fewer children needing special education and repeating grades; and,
• Multiple state agencies would share the fiscal benefits such as, the Louisiana Department of Education, the Louisiana Department of Revenue and the Louisiana Department of Corrections.

As Louisiana focuses its efforts on rebuilding communities after Hurricane Katrina, it is critical to build high-quality early childhood centers and programs that will contribute significantly to fortifying the state's economy. Providing increased access to high-quality pre-k is a positive step toward achieving this goal.

"The Louisiana Department of Education will always face tremendous competition for public dollars," said Superintendent Cecil Picard, of the Louisiana Department of Education. "This report shows the potential effectiveness of a program that will return many more dollars than it currently consumes."

** Download a PDF version of the report by clicking this link:
An Economic Analysis of Pre-K in Louisiana

Pre-K Now collaborates with state advocates and policymakers to lead a movement for high-quality, voluntary pre-kindergarten for all three and four year olds. The following funders have contributed to making this important work possible: The Pew Charitable Trusts, the David and Lucile Packard Foundation, the Schumann Fund for New Jersey, the Foundation for Child Development, the W.K. Kellogg Foundation, the Joyce Foundation and the McCormick Tribune Foundation.

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