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Summary of "Investing in the Early Years" by Lynn A. Karoly

Core Content

This report examines the importance of investing in early childhood development in New Hampshire, focusing on the costs and benefits of evidence-based early intervention programs. It highlights the challenges faced by young children, particularly those from low-income families, and the potential economic and social returns from targeted investments in their early years.

Main Points

• Early Childhood Risks: A significant portion of New Hampshire's young children (ages 0 to 5) are at risk due to low income and other adverse factors, such as poor birth outcomes, environmental stressors, and limited access to educational resources.
• School Readiness and Outcomes: Children from low-income families enter school less prepared, leading to achievement gaps and lower graduation rates. For instance, only 77% of economically disadvantaged New Hampshire high school students graduate on time, compared to 93% of their higher-income peers.
• Program Coverage Gaps: Public investments in early childhood programs, such as home visiting, child care, and preschool, do not reach all at-risk children, especially those above the federal poverty level (FPL).
• Economic Returns: Evidence-based programs like the Nurse-Family Partnership (NFP) offer strong economic returns, with a benefit-cost ratio of $4 to $6 for every dollar invested. A high-quality preschool program provides a return of about $2 for every dollar, with even higher returns for the poorest children.
• State-Level Investment Challenges: New Hampshire has been slower to increase early childhood investments compared to other states, with limited access to programs like state-funded preschool and insufficient quality in child care services.
• Risk Factors Beyond Income: Other risk factors include low birth weight, teenage and unmarried motherhood, parental education levels, and exposure to environmental and social stressors.
• Multiple Risk Exposure: Many New Hampshire children face multiple risk factors, intensifying their vulnerability and reducing their chances of long-term success.

Key Findings

• Poverty Trends: The young child poverty rate in New Hampshire has been increasing, with about 12% of children under age 6 living below the FPL in 2015.
• Self-Sufficiency Thresholds: Using MIT's self-sufficiency budget, the income required for a family to be self-sufficient in New Hampshire is three times the FPL, meaning 45% of children under age 6 are below this standard.
• Birth Risk Indicators: In 2015, about 6.9% of New Hampshire babies were born with low birth weight, 4.5% were born to teenage mothers, and 34% were born to unmarried mothers.
• School Performance Gaps: Economically disadvantaged students in New Hampshire lag behind their peers in academic proficiency and graduation rates, with a 10–13 percentage point gap in test scores and a 16 percentage point gap in graduation rates.
• Need for Expansion: There is a clear need to expand access and improve the quality of early childhood programs in New Hampshire to better serve the vulnerable population.

Policy Implications

• The report emphasizes the importance of scaling up evidence-based early childhood interventions to improve long-term outcomes for children and the state's economy.
• It suggests that current programs are not reaching all at-risk children and that the state should consider increasing investment in home visiting, high-quality child care, and preschool programs.
• The economic analysis is based on data from other states, as there is limited local evaluation evidence for these interventions in New Hampshire.

Conclusion

Investing in early childhood in New Hampshire is critical for improving the long-term health, education, and economic outcomes of its children. While the state has made some progress in laying the groundwork for policy change and collaboration, more needs to be done to expand and enhance access to early intervention programs, especially for those at risk due to low income and other adverse conditions. The potential for economic returns is significant, with evidence showing that every dollar invested can yield $4 to $6 in benefits, underscoring the importance of prioritizing early childhood investment as a strategic public policy initiative.