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Public Sector Engagement

Public Sector Engagement . Agenda. Public Sector Engagement . Motivations: Increased performance of local education systems Alignment with community leaders Tensions: Process vs. action Lack of control over partnership priorities . Public Sector Engagement . Roles:

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Public Sector Engagement

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  1. Public Sector Engagement

  2. Agenda

  3. Public Sector Engagement • Motivations: • Increased performance of local education systems • Alignment with community leaders • Tensions: • Process vs. action • Lack of control over partnership priorities

  4. Public Sector Engagement • Roles: • Catalyzing partnerships • Convening partners • Initial staffing • Policy change / Resource allocation

  5. Panel Discussion • As you hear the initial presentations please capture questions you may have for our panelists on the index cards provided at your table.

  6. Tawa Jogunosimi: THRIVE Chicago

  7. Lee Parker: Raise DC

  8. Greg Landsman: Strive Partnership

  9. …And Graduating from High School Ready for Postsecondary Education and Careers …And Reading Successfully by the End of 3rd Grade… Quality Preschool Gets More Children Ready for School... 85% 8 2

  10. The Problem

  11. We Need to Grow Our Talent Pipeline High Child Poverty: Cincinnati is 3rd in the country. Low Income Mobility: Cincinnati ranked 27th of 30 cities. Low 3rd Grade Reading: 1 in 4 CPS 3rd graders (554) were not proficient readers. Low High School Graduation Rate: 1 in 3 CPS high school students don’t graduate. Skill Mismatch:There are 30,000 local job openings for which people are not qualified. 4

  12. Cincinnati Students: Percent Ready for Kindergarten Our community has been investing in early childhood and making incremental gains for years, yet nearly half of CPS kindergarteners are showing up unprepared. To see transformative change, we need to do more. Bold Goal: 85% 55.4% 44% 2006 2012 5

  13. Cincinnati Students who are Ready for Kindergarten are Twice as Likely to Be Proficient in Reading by 3rd Grade 85% Reading at 3rd Grade Ready for School 85% Not Ready for School 42 points 43% 43% Reading at 3rd Grade 6

  14. Students who are not reading successfully by the end of 3rd grade are 4 times more likely to drop out of high school than those who are. Low-income students who do not meet this benchmark are 13-17 times more likely to drop out. 7

  15. More Children Need Services in Ohio. A very small proportion of the number of eligible children are currently being served. 8

  16. 43% of Cincinnati Families are Under-Served by Existing Resources GAP Note: Most Head Start slots in Cincinnati are quality rated or in CPS public preschool. However, child care subsidies do not require parents to use quality-rated centers. The goal of the Cincinnati Preschool Promise is to incentivize parents to use quality centers, create a demand for higher quality centers among all parents, and increase the supply of quality-rated centers city-wide. 9

  17. We Have a Supply Shortage. Two-Thirds of Eligible Preschools in Cincinnati are Not Quality Rated. (20) (10) (82) Note: The state quality-rating system is changing from a 1-3 star scale to a 1-5 star scale in 2013. CPS 42 public preschool classrooms that are excluded because they were not eligible under the old rating system. Their public preschool classrooms are mostly Head Start. 10

  18. The Solution

  19. There are Three Ways to Solve the Talent Problem: Increase immigration Outsource labor Invest in quality education Source: Nobel Laureate James Heckman, “The Productivity Argument for Investing in Young Children,” 2004. 12

  20. Pillar 1 Pillar 2 13

  21. The Cincinnati Preschool Promise An independent, cross sector effort to ensure all Cincinnati children have the opportunity to attend quality preschool at age 3 and 4. 14

  22. How Will It Work?

  23. The Cincinnati Preschool Promise Will Provide: Tuition credits for all Cincinnati 3 and 4 year olds to attend quality preschool on an income-based sliding scale. A market for quality by providing more tuition assistance for parents who choose higher-rated centers. Support for centers to become quality-rated and increase their quality, including: • Teacher training, credentials, and professional development • Proven curriculum and teaching methods • Lower teacher to student ratios An accountable structure focused on effective stewardship of resources, transparency, and continuous improvement. 16

  24. Key Variables Impacting Cost: Participation Rates (Take up rates by income and total number of children served): Other cities and states have participation rates of 60-80%. After 5 years, 70% of 4 year olds in Denver use tuition credits to attend high-quality preschool. Full Day Preschool vs. Part Day Preschool: This is entirely dependent on parent choice. We are estimating a 50/50 split. Tuition Credit Sliding Scale: Tuition credits are provided on an income-based sliding scale. The amount of assistance provided impacts total cost. Demand for High Quality Centers: 90% of children in the Denver Preschool Program attend the highest quality-rated preschool centers. 17

  25. What the Funds Will Provide Total Children Served by Cincinnati Preschool Promise Tuition Credits: 5,025 18

  26. Estimated Use Tuition Credits 71% of tuition credits are going to families below 200% of the poverty line. * The number of children using tuition credits below 100% FPL does not include children who are covered by current Head Start slots in the City of Cincinnati (approximately 2,740). 19

  27. Jack Carol Tiffany Who Are We Impacting? • Jack • Age: 4 years old • Neighborhood: East End • Last year, Jack attended the Cincinnati Early Learning Center site at Riverview East. His parents used child care subsidies to support the tuition and paid the weekly co-pay. Recently, Jack’s dad got a small raise at work… but it was just enough to push him over the income limit for the subsidy. They couldn’t afford the tuition without help, so Jack started staying home with his grandmother. • Keyonte • Age: 3 years old • Neighborhood: Pleasant Ridge • Keyonte’s dad works in marketing for a mid-size Cincinnati company and his mom used to work at a small nonprofit. They have two small children, and she’s stayed home since he was born. They can only afford preschool if she goes back to work, which will require full day care for both of them. The tuition would be almost as much as her paycheck, so she’s decided to stay home another two years. • Tiffany • Age: 3 years old • Neighborhood: Mt. Auburn • Tiffany is the youngest of 5. Her single mom just lost her job. She’s eligible for Head Start but the slots are full. Tiffany’s mom doesn’t qualify for the child care subsidy, in this case because she isn’t working. As a result, Tiffany stays home, often in front of the TV. 20

  28. How Should We Fund It?

  29. The Options We Have Considered Private Philanthropy, Public/Private Partnerships: Tax avoidance, but an annual fundraising campaign and budget volatility can compromise sustainability. Earned Income Tax Increase in the City of Cincinnati: Minimal per capita cost, but paid in part by businesses and non-City residents. Sales Tax Increase in Hamilton County: Would serve more children, but the larger scope creates significantly higher costs and administrative challenges. Property Tax Increase in the City of Cincinnati: Paid only by City residents, but already over-burdened. The City has a millage limit and is near the ceiling. School District Income Tax: Paid only by City residents, but risks undermining the school district’s ability to pass K-12 levies, expensive per capita (can only be raised in 0.25% increments). 22

  30. The Preschool Promise will be open to anyone who lives or works in the City. (20) (10) (82) What this means for taxpayers: A 0.1% increase to the city’s earned income tax would result in an incremental gain of $50/year for every $50,000 of annual income. The total business contribution could be expected to rise from approx. $43M/year to $45M/year. 23

  31. Why the Preschool Promise is a Necessity for Cincinnati

  32. Economists Have Spent Decades Finding the Best Investment for Growing Talent. The Answer? Quality Pre-K. Fewer Kids Being Held Back at 3rd Grade: Savings to CPS of $5-7M per year in additional teachers, specialists, and tutors. Less Need for Costly Special Education Spending: Pennsylvania found quality preschool can eliminate at least 70-80% of special education needs in a school district, and the resulting price tag of $13,000 per student, per year. At Least 460 New Jobs for Cincinnati Pre-K Teachers Minimal Public Costs: Public expenditures for the Preschool Promise average $3,000 per child. This is 1/5 the per pupil cost for K-12 education in CPS. 25

  33. More High School Graduates, More Earnings, Less State Spending Compared to Graduates, a High School Drop Out is: • Twice as likely to live in poverty • Three times as likely to be unemployed • Eight times as likely to be incarcerated Reduced Prison Costs: A 5% increase in male high school graduation rates in Ohio could save $126M in incarceration costs and prison-related expenditures. Increased Lifetime Earnings: • A high school drop-out earns an average of $7,650 less per year than a graduate • More than 39,000 Ohio students did not graduate high school in 2011 • The lost lifetime earnings for that class of dropouts alone totals $4.8 billion 26

  34. The Cincinnati Preschool Promise Will: • Increase kindergarten readiness • Save costly expenditures in special education • Improve 3rd grade reading • Save district spending – fewer kids held back at 3rd grade • Help improve high school graduation rates • Help build our local talent pipeline • Provide a unique marketing message for local employers to attract workers and businesses to the city 27

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