As Kalamazoo continues its drive to create a culture of learning across the community the most recent step comes from four area business leaders who released a report showing the relationship between the investment in high-quality early education and economic growth.
Early care and education can provide a billion dollar boost to local businesses in Michigan and play an important role in helping the state recover from the economic recession, the business leaders say.
Advancing the issue were David Tomko, PNC Southwest Michigan Regional President; Mike Larson, President & CEO, Greater Kalamazoo United Way; Sheri Welsh, President, Welsh & Associates and member of the
Learning Network and Steward Sandstrom, President and CEO, Kalamazoo Regional Chamber of Commerce.
Susan Gates, National Director of America's Edge, a nonprofit business leaders organization helped present the findings.
The
America's Edge report says early care and education should be a critical component of Michigan’s economic recovery. "If all Michigan’s children were given access to quality early care and education, with an investment of an additional $1.4 billion, that investment would generate $2.9 billion in total new spending in Michigan businesses."
According to the report, for every $1 invested in early care and education in Michigan, a total of $2.11 is generated in spending in the state. That compares to $1.95 for construction, $1.94 generated by transportation, $1.87 for wholesale trade, $1.76 in retail trade and $1.75 for manufacturing.
"Quality early learning investments in Michigan are generating sales of goods and services that are comparable to returns on investments in transportation, construction or manufacturing," says Tomko of PNC.
The study cites research showing children who participate in quality early learning programs perform 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.
"Each national class of high school dropouts will make $335 billion less over a lifetime than they would have had they finished school," says Welsh. "That is a staggering loss of spending power, and a huge loss of contribution to the tax base."
The United Way’s Larson also notes that research from Michigan State University shows that early care and education generates $2.1 billion in economic activity in the form of sales of local goods and services by Michigan businesses, providing a significant economic boost to local communities.
"Many people don't understand that early care and education represents a sizeable part of our economy," Larson says, and adds the sector employs more than 27,000 people in Michigan.
The America's Edge report also says: "With limited funds available to help businesses and our economy get back and stay on track, few investments make as much sense for Michigan businesses’ balance sheets as do investments in high-quality early care and education."
The business leaders called on state and federal legislators to make early learning programs a priority and protect them as they develop their budget proposals.
Writer: Kathy Jennings, Second Wave
Source: Matthew McMullan, America's Edge
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