PRESS RELEASE: Maine Business Leaders Tout Economic Benefits of Early Learning Investments
READ THE REPORT: Strengthening Maine Businesses through Investments in Early Care and Education
For Immediate Release: April 19, 2011
Media Contact: Matthew McMullan
Cell: 703-403-9762; Desk: 202-464-5358
E-Mail: mmcmullan@americasedge.org
Maine Business Leaders Tout Economic Benefits of Early Learning Investments
Early care and education programs provide $180 million in economic activity for Maine, employ over 10,000 workers and improve future workforce, says trio
PORTLAND, ME – Maine business leaders gathered at a Portland medical facility today to discuss how investments in early care and education provide a surprising boost to local businesses and the economy and play an important role in helping Maine recover from the economic recession.
Participating in the news conference at Mercy Hospital’s Fore River Station were Eileen Skinner, CEO of Mercy Hospital; John Peters, President of Downeast Energy; Dana Connors, President of Maine State Chamber of Commerce; and Susan Gates, National Director of America’s Edge, a business leaders organization.
The business leaders cited a new report produced by America’s Edge, showing that investments in early care and education are generating immediate sales of local goods and services, creating jobs and aiding in long-term economic security.
“If we are serious about real economic development for Maine that will strengthen our communities and our businesses, building and protecting a high-quality early learning system is key,” said Skinner.
The report found that for every $1 invested in early care and education in Maine, $1.78 is generated in total spending within the state, a better return than investments in “traditional” economic sectors, such as transportation ($1.68), construction ($1.67), and wholesale trade ($1.64). The early learning sector even performs better than the farming, forest, fishing and hunting sector ($1.71).
“With limited funds available to help businesses and our economy get back on track, few investments make as much sense for our children’s future and local businesses’ balance sheets as investments in high-quality early care and education,” said Connors.
Maine’s early care and education sector employs more than 10,000 people in the state, including administrators, teachers and child care workers. Operating costs associated with early childhood services – wages, facility rentals and supplies – generate sales outside of the early learning sector, providing a significant economic boost in their immediate communities. Research from the Governor’s Economic Summit shows that the early care and education sector in Maine annually generates $180 million in economic activity in the form of sales of local goods and services from Maine businesses.
The business leaders were particularly concerned that proposals have been made in Congress to cut more than $1 billion from these programs. The America’s Edge report cautions that budget cuts to early care and education programs would reduce sales from Maine businesses and detract from the state’s economy, with a total of $1.78 lost for every $1 cut.
“That type of loss to Maine businesses is not something we can afford as our state’s economy begins to recover,” Connors stated.
The leaders urged the state’s Congressional delegation to maintain 2011 funding levels for critical early learning programs like Head Start, Early Head Start and the Child Care and Development Block Grant, the major federal supports for early learning.
Also included in the report is research documenting the long-term economic impact of quality early learning programs. According to the report, the global marketplace will require businesses to seek employees with advanced hard skills in math, reading and writing as well as the increasingly important “soft” skills like communication, collaboration and critical thinking. The U.S. Department of Education is cautioning that 60 percent of jobs created in the 21st century will require skills that only 20 percent of the American workforce currently has.
The study cites research showing children who participate in quality early learning programs: do better in math and reading; develop the social and emotional skills that transform into those important soft skills; have higher graduation rates; enter the workforce with higher skill levels; and earn more as adults.
“If we want to ensure that children enter school ready to succeed and ultimately graduate with the skills needed to enter the workforce, we have to start before the first day of kindergarten,” said Peters. “This means we need to focus on high-quality early education.”
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