Articulating the Value of Early Childhood Investments in Virginia
- Misha Talley
- Apr 30, 2024
- 2 min read
In a groundbreaking study commissioned by the Virginia Early Childhood Foundation (VECF), the transformative impact of investing in early childhood care and education (ECCE) services in Virginia has been unveiled. Against the backdrop of historic low unemployment rates and soaring labor force participation, the demand for publicly funded ECCE services has surged among parents across the state. Delving into Virginia's recent investments in ECCE, the study, conducted by the esteemed Prenatal to 3 Policy Impact Center at Vanderbilt University, sheds light on the significant short- and long-term value these investments bring to the Commonwealth.
The study, released today, showcases the remarkable economic benefits stemming from Virginia's additional $309 million investment in ECCE services for fiscal year 2023 compared to fiscal year 2019. This funding facilitated ECCE services for an additional 11,151 children under the age of five, laying the foundation for a brighter future for Virginia's youngest residents. The findings are nothing short of astounding.
In the coming year alone, Virginia's investment is projected to yield a return of over $364 million in increased family earnings and disposable income. With 10,710 additional mothers entering the workforce, the state stands to gain $324.6 million in annual income, alongside an additional $39.7 million in disposable income. Moreover, the investment is anticipated to boost state tax revenue by at least $30.4 million—a testament to the far-reaching economic ripple effects of investing in ECCE.
Looking beyond the immediate future, the study forecasts a lifetime return on investment of $413.7 million for the 11,151 children who received care in fiscal year 2023. This encompasses a myriad of benefits, including fewer children requiring special education services, decreased grade retention rates, and increased high school graduation rates. In total, the combined cost savings and economic benefits across the lifetime of these children are estimated to exceed a staggering $778 million—an impressive return on Virginia's investment.
Yet, the impact doesn't end there. The report highlights the ripple effects of ECCE investments, pointing to substantial cost savings from reductions in child poverty and maltreatment, as well as positive outcomes for an additional 3,939 school-age children served by this investment. This comprehensive analysis underscores the invaluable role of ECCE in nurturing school-ready children, empowering work-ready parents, and fostering thriving communities.
As Virginia continues its journey towards a brighter future, armed with the insights from this report, the case for investing in early childhood care and education has never been clearer. It is a cornerstone for building a more prosperous and equitable society—one where every child has the opportunity to flourish, every parent can pursue their aspirations, and every community thrives.
Read the Full Brief here:
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