PRESS RELEASE: Michigan Business Leaders Tout Economic Benefits of State Early Education Investments
Click here to read the Report: Strengthening Michigan Businesses through Investments in Early Care and Education
For Immediate Release: March 21, 2011
Media Contact: Mike Kiernan
Cell: 202-412-7579, Desk: 202-464-7016
E-Mail: mkiernan@americasedge.org
Michigan Business Leaders Tout Economic Benefits of State Early Education Investments
Early care and education programs provide $2.1 billion in economic activity for the State, employ over 27,000 workers and improve future workforce.
LANSING, MI – Michigan business leaders gathered at the Radisson Hotel in downtown Lansing 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 Michigan recover from the current economic recession. Participating in the news conference were Nancy Moody, Director of State Government Affairs, DTE Energy, Dr. Olin Joynton, President of Alpena Community College, Milton Scales, CEO and President of ML Scales and Associates, and Susan Gates, National Director of America’s Edge.
The business leaders cited a new report by the national business 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. Further, 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 Michigan who qualify.
The leaders were pleased to point out that Governor Snyder has recommended maintenance-level funding in most areas of early childhood care and education. However, the report notes a gap in service and suggests that if all eligible Michigan children were given access to quality early care and education services it would cost an additional $1.4 billion. Moreover, that investment would yield $1.5 billion in additional sales to generate $2.9 billion in total new spending for Michigan businesses. Meanwhile, it would add upwards of 58,000 new jobs, including 12,000 jobs outside the early learning sector.
“Investments in quality early care and education produce real and proven economic returns on those investments for Michigan communities, creating an immediate infusion of dollars that will benefit local businesses and create jobs,” said Nancy Moody. Moody continued, “If we are serious about real economic development for Michigan that will strengthen our communities, building and protecting a high-quality early learning system is key. Moreover, these investments are the key to our future workforce.”
The group touted the economic development benefits from the early care and education sector that outperform investments in other major sectors often associated with economic development. The research shows that for every $1 invested in early care and education in Michigan, $2.11 is generated in total spending within the state. This strong economic boost for local businesses is higher than those investments generated by other major sectors such as construction ($1.95), retail trade ($1.76), manufacturing ($1.75), transportation ($1.94), and utilities ($1.49).
The report also cites research that shows 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.
Dr. Olin Joynton said, “With both a cement plant AND the world headquarters for the manufacturer of the machinery that produces cement blocks in northeast Michigan, it stands to reason that we have an internationally-recognized cement technology program at Alpena Community College. Our students need skills for that technology just as they do for nursing, medicine, teaching and other vocations that are placing our young people in jobs around the world.”
Joynton added, “If we want to ensure that children enter school ready to succeed and ultimately graduate with these skills, we have to start before that first day of kindergarten.”
Michigan’s early care and education sector employs more than 27,000 people in the state, including administrators, teachers, and child care workers. The wages from these employees, the facility rentals, and the supplies purchased to stock the early learning centers, and the other operating costs needed to carry out the early childhood services, all add to increased sales by local businesses that provide a significant economic boost in communities. The research shows that the early care and education sector in Michigan currently generates $2.1 billion in economic activity in the form of sales of local goods and services from Michigan businesses.
However, the report also cautions that budget cuts to state early care and education programs – like the Great Start Readiness Program, Head Start, high quality childcare and others – would reduce sales from Michigan businesses and detract from the state economy, with a total of $2 lost for every $1 cut. The business leaders agreed that these investments were important to Michigan’s economic recovery.
Milton Scales said, “Certainly, any loss would hurt our developing workforce. However, the type of economic loss to Michigan businesses would have an immediate impact and is not something we can afford as our state struggles to recover.” Scales added, “With limited funds available to help businesses and our economy get back on track, few investments – proven investments – make as much sense for our children’s future and local businesses’ balance sheets as investments in high-quality early care and education.”
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 now possessed by only 20 percent of the American workforce.
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