Investing in a brighter future through early education

Edward G. Rendell, Governor | Dr. Gerald L. Zahorchak, Secretary of Education | Estelle G. Richman, Secretary of Public Welfarewww.pde.state.pa.us | www.dpw.state.pa.us

OCDEL Executive Budget 2009-2010

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Investing in a brighter future through early education

Pennsylvania Departments of Education and Public Welfare

Office of Child Development and Early LearningExecutive Budget

2009-2010



I. Why investing in early education is so important today



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Not enough of our students are leaving school ready for a competitive workforce

Out of the 30 countries taking part in the 2003 Program for International Student Assessment, the average score of US students was only higher than students in five other countries.

Source: Education Week, “Losing Global Ground,” January 2007

China produced nearly 3 times more engineering and computer science graduates than the U.S. in 2004.

Source: Duke University

Six out of ten of Pennsylvania’s 12th graders do not have the science skills to compete in a high-tech economy.

Source: Pennsylvania Dept. of Education press release, ““Six in Ten Pennsylvania High School Students Fail State Science Test,” December 9, 2008



The success of our economy depends on the education of our children

• 70% of jobs in the next 10 years will require a college degree or some education beyond high school

• The unemployment rate for Pennsylvanians without a college degree is 4 times higher than for workers who graduated from college

• A high school graduate earns 37% more in a lifetime than a high school dropout

• A Pennsylvanian with a bachelor’s degree will earn twice as much in a lifetime as a person who only has a high school diploma



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Quality early learning opportunities are essential to our economic recovery today

• Working parents are more productive with access to reliable, quality early learning programs.

• The early education workforce is strengthened as teachers gain more degrees in child development and programs improve their management and accountability.

• Communities are more attractive to new families and new businesses looking for their next home when there are sufficient early education opportunities available.



Quality early learning opportunities are essential to our economic competitiveness tomorrow

• As adults, children from quality early education programs are less likely to commit crimes or require public assistance; and are more likely to retain good jobs and have higher earnings.

• Businesses can obtain higher skilled employees, requiring less training time and gaining higher productivity.

• Communities save tax dollars on special education, remediation, crime control and public assistance; earn more tax revenue, attract quality jobs.





II. What Pennsylvania Offers for Early Education



OCDEL’s Mission

The Office of Child Development and Early Learning (OCDEL) promotes opportunities for all Pennsylvania children and families by building systems and providing supports that help ensure access to high quality child and family services.

The office is a joint initiative between the Departments of Education and Public Welfare.



Select OCDEL Programs

• Child Care Certification• Child Care Works• Children’s Trust Fund• Early Intervention,

birth- five• Full-Day Kindergarten• Head Start Supplemental

Assistance Program

• Keystone STARS/ PA Early Learning Keys to Quality

• Parent-Child Home Program

• Pennsylvania Pre-K Counts

• Nurse-Family Partnership• Public-private

partnerships



PA’s Strategy for Building a Quality Early Education Continuum



III. Pennsylvania's Investment in Early Education is Showing Results



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Results: Pennsylvania Pre-K Counts

• Serving nearly 12,000 children in 315 programs.• At the end of the first year, approximately 94% of the

children finished the school-year with age-appropriate skills and behavior, or emerging age-appropriate skills and behavior-a stunning success rate.

• There was more than a 50% increase in the number of children showing age-appropriate pre-academic and social skills at the end of the school year than when they entered the classroom.



Results: Keystone STARS

Serving 170,000 children in 5,000 programs, this is the largest school readiness initiative in Pennsylvania.

Reversed the negative trend in declining quality in child care, and improved the quality of child care across Pennsylvania, through an independent study.

25% of STARS programs moved up at least one STAR level in 2007-2008.



Results: Child Care Works

Serving more than 135,000 families each month. Those served are up to 15% more likely to be

employed, stay off welfare, and have higher earnings.

Since 2007, 30% more of our most vulnerable children are receiving child care assistance in regulated child care programs.

40% of children receiving Child Care Works are enrolled in Keystone STARS programs.



Results: Early Intervention

Serving more than 33,900 infants and toddlers and more than 43,800 preschoolers

Child assessment data from infants, toddlers and preschoolers who entered Early Intervention after July 1, 2007 and exited Early Intervention prior to June 30, 2008 shows that nearly every child (99%) made progress from entry to exit.

In one year, the number of children in Early Intervention receiving their services in typical early childhood programs (e.g. child care, Head Start, preschool) increased by 9% to 58% total.



Results: Nurse-Family Partnership

Serving 4,200 children and families NFP prevents nearly half of all cases of abuse or

neglect of at-risk children. According to Fight Crime: Invest in Kids, by the time the children in Nurse-Family Partnership had reached 15, both their mothers and the children had about 60% fewer arrests than mothers and children left out of the program.



Results: Head Start

• Serving more than 5,600 children through Head Start Supplemental; more than 35,300 children served through federally-funded Head Start

• The Head Start Family and Child Experiences Survey (FACES), shows that that Head Start: narrows the gaps between disadvantaged children and all children in vocabulary and writing skills during the Head Start year; improves the social skills of Head Start children; and leads to continued improvements in word knowledge, letter recognition, math skills and writing skills by Head Start children relative to other children during the kindergarten year.



IV. Pennsylvania Faces Gaps



Putting Progress in Perspective

• Children in every county at risk of school failure.

• More than one-third (36%) of Pennsylvania’s children under age five live in low-income families.

• We still only reach four in 10 children from birth to age five with a quality early education program.





Putting Progress in Perspective

• In our 15 highest risk counties, where children are at most risk of failing in school, – Approximately 50% of children under age five live in

low-income families;– Between 18% - 47% of 3rd graders scored below

proficient on the 2008 PSSA reading test– More than half of young children under age five do not

have access to publicly-funded quality early education opportunities.



Current challenges for PA

• Great parent demand for high quality pre-kindergarten– Only one in three preschoolers have access to high quality pre-kindergarten

• Approximately 4% of preschoolers participate in PA Pre-K Counts– More than 2,000 children on PA Pre-K Counts waiting list at start of 08-09 school

year• Great demand for quality early education from birth to age five

– Only 22% of children under five participate in state and/or federally funded high quality early childhood programs in Pennsylvania. (17% of children birth-5 in Keystone STAR 3 & 4 programs)

• Great need for child care assistance– 15,000 children on waiting list for Child Care Works in January 2009

• Greater demand for higher qualified teachers– New teacher education requirements for school-based pre-k, Pennsylvania Pre-K

Counts and Head Start



V. Moving Ahead in 2009-10



Pennsylvania's early education continuum needs us to:

1. Strive for higher quality and reach children and families that can benefit;

2. Refine accountability and documenting positive outcomes for children; and

3. Build leadership in our communities and state decisionmakers to make quality early education a priority for Pennsylvania.



Improving quality while increasing accessibility – Progress since 2003

• Several “firsts” improve access and quality:– First full-day kindergarten initiative, providing 65% of children in

the state with access to full-day kindergarten– First state-based pre-k program, PA Pre-K Counts– First state investment in Head Start

• Moved Keystone STARS from pilot to statewide initiative reaching 170,000 children, making this the largest school readiness initiative.

• Since 2003, the percent of 3 & 4 year olds participating high quality early education has nearly doubled from 18% to 35%.



Improving quality while increasing accessibility – Progress, cont’d

• Creation of the Early Childhood Education Career Lattice with professional development, technical assistance & higher education assistance.

• More preschool children with disabilities/delays participating in typical early learning programs as part of Early Intervention Inclusion Initiative.

• An increase in enrollments in Child Care Works and in Child Care Works families choosing Keystone STARS programs.

• Online accessibility for parents to search for child care programs and apply for Child Care Works.



Improving quality while increasing accessibility: Moving ahead in 09-10

• Enroll more children in Child Care Works, PA Pre-K Counts and Early Intervention for infants, toddlers & preschoolers.

• Support achievement of Early Childhood Education certificates and credentials for teachers in OCDEL programs.



Accountability & documenting positive outcomes for children: Progress since 2003

• Creation of PA Early Learning Standards, birth – 2nd grade

• Creation of Office of Child Development and Early Learning (OCDEL)

• Development of accountability measures for OCDEL staff, providers of OCDEL programs, and early childhood staff – Independent ERS assessments– Regional specialists such as STARS specialists, Preschool

Program Specialists, Early Intervention Advisors, and Subsidy Coordinators



Accountability & documenting positive outcomes for children: Progres, cont’d

• Creation of OCDEL’s Program Reach and County Risk Report

• Implementation of Pennsylvania’s Enterprise to Link Information for Children Across Networks (PELICAN) for Certification, Child Care Works (CCIS), Early Intervention and Pennsylvania Pre-K Counts

• Establishment of common child outcome reporting across all OCDEL quality programs



Accountability & documenting positive outcomes for children: Moving ahead in 09-10

• Provide revised early learning standards and new guides for parents and teachers

• Continue implementation of one reporting system for assessment of children in ALL quality programs of OCDEL



Building leadership at all levels: Progress since 2003

• Early Childhood Community Engagement Groups

• Creation of Pennsylvania Early Learning Council and Early Learning Investment Commission

• Pennsylvania’s Promise for Children



Building leadership at all levels: Moving ahead in 2009-2010

• Engage business leaders through the Early Learning Investment Commission

• Support local community leadership

• Ongoing public-private partnerships



Governor’s Budget Proposal for 2009-10Serve additional families in:• Child Care Works Subsidized Child Care Program –

Expanding to reach 141,000 children (monthly average) by adding 3,700 slots -- 640 TANF slots, 1,066 former TANF slots and 2,000 Low income slots; freezing provider rates for traditional care; freezing evening and weekend rates for providers with a STAR 2-4 rating, reduction in evening/weekend rate for all other providers.

• Early Intervention – Expanding to reach to 81,920 children (35,840 infants and toddlers and 46,080 preschoolers) by adding 1,870 infants and toddlers and 1,100 preschoolers; freezing provider rates and implementing additional cost-containment strategies with selected preschool Early Intervention programs.

• Pennsylvania Pre-K Counts – Expanding to reach to 12,850 children by adding 1,050 children and freezing provider rates.



• Head Start Supplemental – Sustaining for 5,620 children; freezing provider rates.

• Keystone STARS – Making it possible for programs to achieve higher STAR levels and provide higher quality early learning opportunities for over 170,000 children.

• Nurse-Family Partnership –Sustaining for 4,200 children and families; freezing provider rates.

• Parent-Child Home Program – Sustaining for 1,500 children and families; freezing provider rates.

Governor’s Budget Proposal for 2009-10Sustain progress in:



Fiscal controls within OCDEL: 2009-2010• Continue cost containments begun in 2008-

2009- no impact on direct services• Freeze provider rates in all programs• Adjust evening and weekend care rates in Child

Care Works– Keystone STAR 2-4 programs – rate freeze– All other programs – rate reduction

• Implement additional cost containment strategies with selected preschool Early Intervention programs



Other Education Initiatives: 2009-2010

• $300 million increase to make the 2nd year investment in helping all school district reach adequate resources through Pennsylvania’s new funding formula

• Emergency tuition relief for Pennsylvania students at community colleges and state universities

• PHEAA - $45 million increase ($10 million reserved for community college students)

• Community colleges- $7 million increase (operating and capital funding)

• State System of Higher Ed - $65 million increase (capital funding)



Other Education Initiatives: Fiscal controls 2009-2010

• Examine options for school district consolidation and similar efficiencies

• Use the purchasing power of school districts to cut health care costs

• Eliminate excuses for failing schools

• Improve public confidence in charter schools



Potential Impact of Federal Stimulus Package as of 2/2/09

• Child Care: PA would receive $30 million a year for two years; funds would flow through the Commonwealth

• Head Start: Programs in PA could get up to $30 million a year for two years, with new slots for both Early Head Start & Preschool Head Start

• Early Intervention for Infants & Toddlers: $8 million a year for two years

• Preschool Early Intervention: $8 million a year for two years• School Districts: Districts in PA could get significant new Title I

money; Senate bill calls for 15% set aside for early education.• State Education Agency: Major new funds; only Senate bill allows

for investment in early education



Still, federal stimulus won’t fill the gap

• Early education spending is controversial part of the package; OCDEL proposed budget not relying on federal stimulus

• 15,000 children on Child Care Works waiting list = $80 million annually

• Head Start reaching about 2/3 of eligible children– 40,000 eligible infants and toddlers not being served– 12,000 eligible preschoolers not being served, at least 2,000 on

waiting lists now

• No provisions for PA Pre-K Counts



Children served by select OCDEL programsFY 2002-2003, FY 2008-2009 and 2009-2010

Program FY 02-03 FY 08-09 1 FY 09-10 1 Program FY 02-03 FY 08-09 1 FY 09-10 1

Did not exist 16,705 2 16,705 2 Head Start

Child Care Works Federal Head Start 30,986 35,311 2 35,311 2

TANF 33,939 31,988 32,628

Head Start Supplemental Assistance Program Did not exist 5,620 5,620

Former TANF 20,000 42,663 43,729 Keystone STARS

Low Income 45,908 62,614 64,614Estimated Children in Keystone STARS 45,745 170,935 170,935 2

TOTAL (monthly average) 99,847 137,265 140,971

Number of Providers in Keystone STARS 898 4,798 2 4,798 2

Early Intervention Nurse-Family Partnership 3,092 4,287 4,287 2

Birth to 3 Program 22,020 33,972 35,844 Pre-K

3 to 5 Program 33,726 44,976 46,083

School Based Pre-K and K4 2,684 18,022 2 20,551 2

Full Day Kindergarten 42,015 77,505 77,505 2 PA Pre-K Counts Did not exist 11,800 12,850

1 Fiscal Year End Goal or Projection 2 Projection based on Current FY Participating

Class Size Reduction (K-3rd Grade)



2009-2010 Highlights: State and Federal Investment (in thousands)

FY 2008-09 FY 2009-2010 ChangeChild Care WorksKeystone STARS/Keys to Quality

Child Care Services - State Funds 171,720$ 171,720$ -$ Child Care Services - Federal Funds 224,778$ 228,467$ 3,689$ Child Care Assistance - State Funds 224,063$ 210,074$ (13,989)$ Child Care Assistance - Federal Funds 173,522$ 181,851$ 8,329$ Total State 395,783$ 381,794$ (13,989)$ Total Federal 398,300$ 410,318$ 12,018$

Total ALL funds 794,083$ 792,112$ (1,971)$

Early InterventionEarly Intervention Birth - 3

State Funds 118,336$ 134,821$ 16,485$ Federal Funds 48,657$ 48,497$ (160)$ Total Funds 166,993$ 183,318$ 16,325$

Early Intervention 3-5 -$ State Funds 185,133$ 189,013$ 3,880$ Federal Funds 31,669$ 32,975$ 1,306$ Total Funds 216,802$ 221,988$ 5,186$

Total Birth -5 EI Funds 383,795$ 405,306$ 21,511$

State only Funded ProgramsPennsylvania Pre-K Counts 86,412$ 95,053$ 8,641$ Head Start Supplemental 39,480$ 39,480$ -$

Nurse Family PartnershipState Funds 9,978$ 13,805$ 3,827$ Federal Funds 6,371$ 2,544$ (3,827)$

Total Funds 16,349$ 16,349$ -$



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Investing in a brighter future through early education