DeLauro Calls for GAO Study on Impact of Investment in Child Care and Early Education

DeLauro Calls for GAO Study on Impact of Investment in Child Care and Early Education

WASHINGTON, D.C. - Congresswoman Rosa L. DeLauro (Conn.-3) today requested the Government Accountability Office (GAO) conduct a study analyzing the economic impact of services delivered by federal, state and local child care and early education programs. Numerous studies show that the child care industry provides millions of jobs, pays billions of dollars in wages, and purchases billions more in goods and services and in gross receipts.

"When we passed welfare reform in 1996, Congress also promised to provide increased funding for services such as child care and transportation to assist families' ability to work and achieve self-sufficiency," said DeLauro. "Some improvement followed, however, public investments in early child education and child care have stalled again. This GAO study will help Congress explore the impact of our investment on child care and early education."

DeLauro recently joined Legal Momentum and The MIT Workplace Center at the Sloan School of Management to release academic and advocacy-based research on the short- and long-term benefits of investment in early care and education. Using evidence from studies conducted across the country, the research was compiled into a report: Early Childhood Education for All: A Wise Investment, which makes a powerful case that early education contributes significantly to our national economy.

The full text of the letter follows.

May 17, 2005

The Honorable David M. Walker

Comptroller General

U.S. General Accounting Office

441 G. Street, NW

Washington, DC 20548

Dear Mr. Walker:

Research from Legal Momentum and The MIT Workplace Center at the Sloan School of Management recently reported that there is a considerable body of academic and advocacy-based research on the short- and long-term benefits of investment in early care and education. In particular, Early Childhood Education for All: A Wise Investment, using evidence from studies conducted across the country, makes a powerful case that early education contributes significantly to our national economy.

In addition, a study conducted over forty years by Perry School/High Scope Foundation showed major savings to taxpayers investing in this area, finding that child care services can have the single greatest impact on producing children who become successful, contributing members of society. Numerous others studies show that the child care industry provides millions of jobs, pays billions of dollars in wages, purchases billions more in goods and services and in gross receipts. In my own state of Connecticut, child care businesses generate $1 billion annually -- for a state known for its pharmaceutical industry, we actually have more citizens working in the field of child care.

As the government entity charged with assessing the necessity and implications of public policy, I am requesting that the Government Accountability Office conduct a study analyzing the economic impact of services delivered by federal, state and local child care and early education programs.

Specifically, I would like the GAO to assess:

· What role do federal, state and local child care and early education programs play in promoting the future economic viability of the children they serve? What do those served by child care programs earn as adults and pay in taxes?

· What are the benefits federal child care and early education subsidies have on the American economy? Specifically, what do child care and early education businesses funded in part by federal programs generate in federal, state and local revenues?

· What impact do federal child care and early education programs have on the training and skill levels of employees working within the industry? And what is the effect such programs have on the salaries of child care workers?

· How does the return on investment for taxpayers on such programs compare to other economic development initiatives supported in whole or part with federal subsidies ?

· What difference do these findings make to the cost of public education spending in terms of dropouts, special education enrollment, and repeat grades? And what are the savings to our criminal justice and welfare systems?

GAO has a significant role to play in assessing the Federal government's contribution to economic impact of child care and early education efforts across the country. I look forward to your response. Thank you for your consideration of this request.

http://www.house.gov/delauro/press/2005/May/earlyed_study_05_17_05.html