The Costs &  Benefits of Universal Preschool in California

The California debate about the merits of Proposition 82, which would institute a voluntary, free preschool program for all four-year olds in the state, centers on financial and social benefits that may occur in the long term. Much of the debate centers on research done by the RAND Corporation in a study to evaluate a program in Chicago, Illinois. To help Californians apply the findings of that research to their current ballot box decision on June 6, 2006, the RAND researchers have released a version of the findings that only considers the features of the program proposed by Proposition 82.

The RAND research assumes a one-year, universal, high-quality program. A two-year program would generate greater benefits but probably not in proportion to the higher cost. A program targeted at disadvantaged children would be less costly and generate more benefits per dollar expended. However, it would incur administrative costs of determining eligibility, would risk stigmatizing participants, and would unavoidably miss some children in families who could benefit but do not meet the eligibility criteria or are confused about the eligibility rules. Attempting to save money by reducing the emphasis on high quality would presumably reduce benefits, but it is not possible to say by how much.

RAND researchers noted two further lines of reasoning that support adoption of a universal preschool program in California:

• If viewed as an economic development strategy (because of its long-term economic benefits), universal preschool compares favorably with other such strategies e.g., expansion of local infrastructure, business assistance, and workforce education and training. Such alternatives may "generate" jobs that would have been created anyway or may simply draw jobs that would have been generated in neighboring communities
  
   
• Public-sector investment in K-12 education has been justified as a critical investment in human capital with long-term benefits. Notably, K-12 education is a universal program. The same argument could be made on behalf of preschool. Public funds would be used to make an investment having a long-term payoff for society as well, whether in the form of lower government outlays or a higher future standard of living

Excerpt