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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
0%
10%
20%
30%
40%
1983 1986 1989 1992 1995 1998 2001 2004
center-based ECE
all workers
Source: KRC analysis of the CPS Basic Montly Survey
Percent with a college degree or more
In mid-80s, Younger Teachers were More Often College-Educated than Older Teachers -- Like the
Workforce as a WholePercent of Teachers and Administrators in Center-based Early Childhood Education with At Least A
Four-Year College Degree by Age
0%
10%
20%
30%
40%
50%
60%
24 27 30 33 36 39 42 45 48 51 54 57 60
Age (five-year averages; e.g., 24 means the average for ages 22-26)
1983-1987
Many College-Educated ECE Teachers and Administrators Near Retirement
Percent of Teachers and Administrators in Center-based Early Childhood Education with At Least A
Four-Year College Degree by Age
0%
10%
20%
30%
40%
50%
60%
24 27 30 33 36 39 42 45 48 51 54 57 60
Age (five-year averages; e.g., 24 means the average for ages 22-26)
1983-1987
1988-1992
1993-1997
Many College-Educated ECE Teachers and Administrators Near Retirement
Percent of Teachers and Administrators in Center-based Early Childhood Education with At Least A
Four-Year College Degree by Age
0%
10%
20%
30%
40%
50%
60%
24 27 30 33 36 39 42 45 48 51 54 57 60
Age (five-year averages; e.g., 24 means the average for ages 22-26)
1983-1987
1988-1992
Many College-Educated ECE Teachers and Administrators Near Retirement
Percent of Teachers and Administrators in Center-based Early Childhood Education with At Least A
Four-Year College Degree by Age
0%
10%
20%
30%
40%
50%
60%
24 27 30 33 36 39 42 45 48 51 54 57 60
Age (five-year averages; e.g., 24 means the average for ages 22-26)
1983-1987
1988-1992
1993-1997
2000-2004
Today, Younger Teachers Are Less Often College-Educated than Older Teachers -- Unlike the
Workforce as a WholePercent of Teachers and Administrators in Center-based ECE with At Least A Four-Year College Degree by Age
0%
10%
20%
30%
40%
50%
60%
24 27 30 33 36 39 42 45 48 51 54 57 60
Age (five-year averages; e.g., 24 means the average for ages 22-26)
1983-1987
2000-2004
Education Lowest for Home-Based ECE
56%
46%
32%
37%
11%
17%
0%
10%
20%
30%
40%
50%
60%
Home-Based ECE Center-Based ECE
High School or Less
Some College
College-Degree or More
Source: KRC analysis of the CPS Basic Monthly Survey 2000-2004
ECE Workers Also Paid Less
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
1984 1987 1990 1993 1996 1999 2002
Inflation Adjusted Median Wages 1983-2004
Female College Graduates
All Workers
Center-Based Teachers and Administrators
Source: KRC analysis of the CPS MORG data 1983-2004.
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 home-based 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
(202) 331-5537
Steve Herzenberg
(717) 255-7145