PRESS RELEASE: Illinois Business Leaders Tout Economic Benefits of State Early Education Investments
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Click here to read the Report: Strengthening Illinois Businesses through Investments in Early Care and Education
Metro East Business Leaders Tout Economic Benefits of State Early Education Investments
State early care and education programs provide $2.1 billion in economic activity for Illinois, employ over 55,000 workers and improve future workforce
EDWARDSVILLE, IL – Illinois business leaders were joined by a local mayor today to show how the state’s investments in early care and education are providing a surprisingly big boost to local business sales and playing an important role in helping Illinois recover from the economic recession.
Participating in the news conference were Monica Bristow, President, River Bend Growth Association; Kevin Weinacht, President, Weinacht and Associates, also Chairperson of Collinsville Economic Development Commission; Hon. John Miller, Mayor of Collinsville; and Tim Carpenter, State Director, America’s Edge Illinois.
The business leaders cited a new report by the national business leaders group, America’s Edge, showing that state investments in early care and education are generating immediate local business sales, creating jobs and also aiding in long-term economic growth and security.
The report shows that for every $1 invested in early care and education in Illinois, $2.17 is generated in total spending within the state. This strong economic boost for local businesses is higher than what investments in other major sectors would generate, such as transportation ($2.03), construction ($2.00), wholesale trade ($1.95), retail trade ($1.81), and manufacturing ($1.83).
As the economy recovers over the next several years, America’s Edge recommends an expansion of quality early care and education programs to serve more children in Illinois who qualify. The report notes that if all qualifying Illinois children were given access to quality early care and education services at a cost of an additional $1.2 billion, the state would generate $2.6 billion in total new spending for Illinois businesses, including $104 million in Madison and St. Clair Counties, and create up to 39,000 new jobs.
They said that in these difficult economic times, a determination must be made on which investments will deliver immediate relief and grow our economy for the future. The group touted that the significant economic boost from the early care and education sector, which outperforms investments in other major sectors often associated with economic development such as construction, manufacturing, and transportation. “Investments in quality early care and education produce real and proven economic returns on those investments for Illinois communities, creating an immediate infusion of dollars that will benefit local businesses and create jobs. It is a shovel-ready industry and a substantial economic sector,” said Collinsville Mayor John Miller.
Tim Carpenter noted that over 2,000 children from Madison County participate in the state-funded Preschool for All Program, and thousands of families with working parents benefit from subsidized childcare. He stated: “A quality early learning program in our communities is a key component to competing successfully for skilled workers and new businesses as we come out of the recession.”
Illinois’s early care and education sector employs more than 55,000 people in the state, including administrators, teachers, and child care workers. When these teachers and child care employees are paid and when early learning centers purchase the supplies and services they need to operate, that increases sales of local businesses, providing an economic boost to that community.
Governor Quinn has proposed full restoration of a Fiscal Year 2009 cut to state-funded quality early learning programs in his budget. America’s Edge calculates that this investment will generate an additional $445 million in economic activity in the form of sales of local goods and services from Illinois businesses. This adds up to a total of $824 million in economic activity in Illinois. In order to realize these economic impacts, Illinois must take steps to ensure providers of these services are paid on-time.
“The findings of this report make it clear that continuing investments in early care and education is an essential strategy for continuing Illinois’s economic recovery during these difficult times,” said Monica Bristow. “These investments are providing an immediate economic boost to local businesses in every economic sector, helping them stay in business and generating more buying power for consumers.”
The report also cautions that budget cuts to state early care and education programs – like Preschool for All and high-quality childcare – would reduce sales from Illinois businesses and detract from state’s economy, with a total of $2.17 lost for every $1 cut. The business leaders agreed that this type of loss to Illinois’s businesses is not something we can afford to do as Illinois’s economy struggles to recover.
“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 Kevin Weinacht.
Also included in the report is past research documenting the compelling long-term economic impact of quality early learning programs. According to the report, the 21st century global marketplace will require businesses to hire employees with advanced hard skills in math, reading and writing and refined soft skills like communication, collaboration and critical thinking. Unfortunately, the U.S. Department of Education is cautioning that 60 percent of new jobs in the 21st century will require skills that only 20 percent of the American workforce has.
The report 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.
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