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Stimulate the Economy by Investing in Children

From The Miami Herald, OpEd

By Modesto E. Abety, CEO and president of The Children's Trust

Need some economic wisdom you can bank on? A tip with a guaranteed return? Investing in children is good business, short and long term.

While policymakers on both sides of the political aisle debate a potential economic stimulus package that throws lifelines to major industries and employs legions of citizens to build bridges, repair roads and develop alternative sources of energy, they also must invest in programs and services that put people to work safeguarding, educating and developing our children and youth. Investing in children provides short-term economic stimulus with lasting impact.

The Children's Trust, a children services council serving Miami-Dade County and one of eight such councils created by voter referendum in Florida, employs 100 people and this year manages a budget of $140 million. Ninety-two percent of those dollars are invested in direct services. Hundreds of organizations that have expanded programs for children and families as a result of Trust funding in the first five years of our existence now provide jobs to 6,000 full- and part-time workers annually.

Multiply that kind of potential impact in every municipality from coast to coast. Imagine the economic stimulus created by employing more people in after-school and summer programs, school health initiatives, serving children with disabilities, teaching pre-school children how to read and express themselves through the arts, mentoring adolescents and so much more. Further, these programs aid working parents, allowing them to be more productive because they know their children are safe and receiving quality care and education. That's the short-term impact.

Now consider the long-term return on investment when we have nurtured and raised a generation of more educated, creative, resourceful and innovative workers. A wealth of studies have examined the benefit-cost ratios of early childhood development programs and found their net benefits both positive and large; on average, a $1 investment in quality early care and education provides between $4 and $8 in reduced costs associated with such social outcomes as lower rates of grade retention, special education placement, adolescent pregnancy, drug use and criminal activity -- at the high end this is a 17-percent return on investment. And that's no Ponzi scheme.

From research conducted for the Partnership for America's Economic Success, the longer-term economic impacts -- improved job growth and fiscal health at the state and federal levels -- are also substantial. For example, Timothy Bartik of Upjohn Institute estimates investment in universal Pre-K for all children results in $2.78 in state earnings per $1 cost, $3.79 in national earnings per $1 cost and generates 3.3 million jobs nationally.

This is certainly what Virginia Democrat Rep. Jim Moran refers to when he calls for ''a parallel investment in our human infrastructure'' to accompany the planned economic recovery package; it shouldn't take an economics degree to understand the wisdom of supporting these types of programs.

In mid-December, the Children's Leadership Council (CLC) launched its Invest in Children, Strengthen America campaign in Washington, D.C. The coalition of child advocates represents 35 leading national policy and advocacy organizations, with members in every state in the nation. Individually the organizations strive to improve the health, education and well-being of children and youth in order to prepare them for school, work and life. As one unified voice and with a singular mission, the campaign seeks to heighten public awareness and create the political will necessary to make greater federal investments in America's children and youth a reality.

In a recent interview, Bill Bentley, president and CEO of Voices for America's Children and founding member of the CLC, said, ``When we invest in children, we strengthen America by making all of our children -- from birth to young adulthood -- a priority; we secure our nation's future. Investments in quality health care, early childhood education and other programs will bring millions of children out of poverty and go a long way toward providing real solutions to our short- and long-term economic challenges.

The CLC is urging President-elect Obama and Congress to commit to specific economic recovery measures and long-term investments that can help keep more children and youth from falling into poverty. The group seeks funding for a range of children's programs that they argue are directly linked to getting the nation's unemployed workers back on the job. Their proposal includes $70 billion over five years for child care and early education.

'It's so incredibly important that we pool our efforts and the advocacy organizations' resources, both in terms of funds and people power, to make sure we speak with one voice on behalf of children in the United States,'' said U.S. Rep. Debbie Wasserman Schultz of Florida.

The massive stimulus package urged by President-Elect Barack Obama to address the worst economic crisis since the Great Depression is comprised of close to $800 billion in new spending and tax cuts. He wants an economic recovery oversight board created to monitor spending and ensure the accountability of the proposed package, and has pledged to work with Congress to enact spending controls and efficiency measures throughout the federal budget. All this to make sure the money is spent wisely.

The wisest investment that ''we the people'' can make is to ensure that sufficient dollars are directed to early childhood programs and education. There's no better return on investment, and that's a secret everyone needs to know.

Modesto E. Abety is CEO and president of The Children's Trust.