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Pennsylvania House of Representatives
06/03/2024 02:30 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20130&cosponId=14945
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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: June 25, 2014 04:17 PM
From: Representative Todd Stephens
To: All House members
Subject: Private Investment in Pennsylvania’s Future: Pre-K Impact Financing
 

In an effort to reduce state spending on special education, public welfare and corrections, I will be introducing legislation to create a Pre-K private investment financing pilot program for early childhood education services. This program will use private capital from investors to finance early childhood education programs now, in exchange for a portion of the savings the state/school district realizes in future years. The private investors share in the savings when specific outcomes are achieved. If a program fails to achieve the required benchmarks/school savings delineated in the contract, the investor is not paid. This approach, often referred to as “Pay for Success,” is being implemented across the country to help reduce state spending and improve outcomes for children.
Countless studies have shown high-quality early childhood education programs:
  • reduce the need for costly special education services;
  • increase high school graduation rates;
  • decrease corrections expenses through lower incarceration rates; and
  • allow parents to return to the workforce reducing the need for government assistance.
Despite the savings realized through early childhood education, only 1 in 6 children - or 18% of Pennsylvania’s 3 and 4 year olds – are able to access high-quality, publicly-funded Pre-K programs. Additionally, almost 6,000 children are on a waiting list for childcare that will enable their parents to go back to work. Increasing access to these programs through private investments will save taxpayer dollars.

In addition to generating future savings for the state, high-quality Pre-K programs prepare children to enter kindergarten ready to learn, which provides a greater opportunity for success in school and in life. High-quality early learning is especially cost-effective for, and beneficial to, children whose educational opportunities are hindered by poverty or other circumstances. Pre-K saves taxpayer dollars while helping our children, our schools and our Commonwealth.

Please join me in co-sponsoring this legislation to create a Pre-K Impact Financing Pilot Program for early childhood education services in the Commonwealth.