Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--Purpose of the Minnesota Early Learning Foundation (MELF)--MELF is a tax-exempt educational organization with the purpose of identifying cost-effective ways of ensuring that Minnesota's children ages prenatal to 5, from low-income or challenged families, are ready for success in school.  MELF's website states that the organization "will support programs and initiatives that educate, inform, and empower parents, particularly in Minnesota's fast-growing immigrant communities and other under-served communities." 

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--MELF Board of Directors--The MELF Board includes the CEOs of Best Buy, Ecolab, BlueCross/Blue Shield of Minnesota, United Healthcare, the University of Minnesota, Liberty Diversified, Taylor Corporation, United Way, Minnesota Business Partnership, the retired chairman of Cargill, leaders of the Federal Reserve Bank of Minneapolis, the McKnight Foundation, and others.   

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--A temporary, not a permanent organization--Benson said that MELF, founded in 2005, will be discontinued on December 31, 2011.  It is funded only with private funds, with a fund-raising objective of $30 million during its years of existence.

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008-- Main objective--Governmental jurisdictions are investing in Minnesota now some $700 million a year on children from pre-natal to age 5, Benson said  In addition another $1.4 billion is estimated to be spent annually privately via cash or in-kind expenditures (including family-member child care), he said.   The current system is characterized by (1) no common vision or shared goals (2) numerous, unaligned collaborative efforts, (3) no single mandated authority to align program and policy, and (4) no statewide mechanism to coordinate across funding streams.

            To illustrate his point about lack of overall direction, Benson distributed a chart that MELF has prepared to illustrate how some 25 different parties involved with care and education of pre-school children relate to one another on funding and on collaboration.  The chart is an effort to illustrate that no one can make sense of the system today.

            MELF's objective, he said, is to prepare a plan for intelligent use of the dollars and to give parents the tools to evaluate and make choices among competing providers, public and private.   Currently the system is supply-driven;  MELF wants to make it demand-driven, he said.

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--The need--MELF believes that success of the K-12 system depends upon what happens in pre-natal through pre-school.   About 50 percent of the children who today arrive at the K-12 system are ready for kindergarten, he said.  MELF has a goal of increasing the percentage to at least 85 percent.   The vast majority of brain development occurs before a child reaches five years of age, he said.

            Benson repeated findings outlined by Art Rolnick, a board member of MELF, in a Civic Caucus interview on January 3, 2008.   In that interview, Rolnick reported on a study conducted by the Highscope/Perry Preschool Study in Ypsilanti, MI, which tracked 123 low-income African-Americans over 40 years, beginning when the individuals were three and four years old.  For five years in the mid-1960s, teachers worked with the children closely and visited them once each week in their homes.   The study demonstrated that the children who received extra attention were more likely to graduate, had lower crime rates, and had a higher income than their peers who didn't participate.  Rolnick said the Highscope/Perry study report demonstrated that for every dollar invested, $17 was returned on the investment.   That figure was calculated as money saved because the public didn't have to incarcerate or remediate the formerly at-risk people, and money earned because they got jobs and paid taxes.

Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--Projects under way--MELF's latest annual report outlines its major areas of activity: 

                        --A parent aware quality rating system that provides parents with an online system to choose early learning providers based on objective ratings.  Some 180 providers had signed up by the end of 2007 to participate in the rating system.

                        --An early childhood scholarship program was started in St. Paul to assess gains in reading readiness if low-income parents (a) were supported by parenting mentors and (b) were provided with resources to allow them to afford consistent, quality care. 

                        --Pilot projects have been launched in north Minneapolis, two neighborhoods in St. Paul, Wayzata/Plymouth and in Blue Earth and Nicollet Counties.  These projects are intended to increase learning readiness among low income families by funding a well-integrated set of best-practice strategies for early childhood education and development.

                        --An evaluation process has been launched with the University of Minnesota and three other nationally-known evaluators. 

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008-- Distinction between MELF and Early Childhood Family Education (ECFE)--A major difference between MELF and ECFE, a program of the Minnesota Department of Education, is that MELF works exclusively with at-risk children, while ECFE, according to Benson, provides the bulk of its support for middle-class families.   A Civic Caucus member also noted that Head Start is a long-standing federally-supported early childhood program.  Benson said whatever the final outcome of MELF's work, its recommendations will be designed to integrate with ECFE and Head Start, not to be an add-on.   

            A Civic Caucus member said that two-parent, two-earner middle income families probably regard child care as their No. 1 need, because the child care is making it possible for both parents to work.  Ultimately, he said, he's confident that the MELF work will present great value to everyone because of its quality rating system.

            Benson mentioned a program in Grand Rapids, MI, known as "Savvy Source", which is somewhat of a model for MELF's efforts.

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008-- Overcoming protectionist mindsets--Among public and private organizations and providers in Minnesota there's a lot of what Benson called "underbrush" with an "I can do it best" mindset.  But he is confident that empowering parents will change the situation.  Already, he said, day-care providers in St. Paul are asking what they need to do to receive a four-start rating in the competitive environment.

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--Better success with recent immigrant groups--Looking at the total of all at-risk children and families in the state, Benson said that recent immigrants seem to be seeing the need best and responding best to a new system of parent-based choice.  Too many others continue to think almost exclusively of "day care", instead of "early childhood learning", he said.

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--Long term management of the rating system--Since MELF is scheduled to sunset on December 31, 2011, a question was raised where the early childhood rating system will be permanently located.   Benson said his preference is for an independent rating organization, but he has not yet succeeded in that objective.   His second preference would be the Minnesota Department of Human Services, and his third preference, the Minnesota Department of Education. 

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--Importance of health and human services involvement--Benson highlighted the importance of identifying at-risk children even before they are born, by working with at-risk parents.  That's an area of health and services involvement, he said, not public education. 

            The idea of placing early childhood learning in the Department of Education extends also to the way the Legislature is structured, Benson said.  The House has a stand-alone Early Childhood Finance Division, separate from K-12, while early childhood is under the Senate K-12 Education Budget Division. 

Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--Whether changes in K-12 are needed--In response to a question Benson said MELF's chief interest is on preparing pre-natal to pre-kindergarten children for kindergarten.  MELF is not directly addressing the question of whether the K-12 system needs changes to better deal with the children it receives.   Benson suggested the Civic Caucus might want to visit with Steve Shank, founder of Capella Education Company, the parent of Capella University, an on-line university, for a discussion on how to change the system.  As a member of the board of Minnesota State Colleges and Universities, Benson said he is fascinated by the good job that is being done by the on-line universities.  Many professors in the state system are moonlighting at the online institutions.    Shank's message, Benson said, is that you can't change the system internally.   It must be done externally.   That's why moving from a supply-driven system to a demand-driven system is so important in pre-kindergarten and, he said, probably in the K-12 system.

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--Big K-12 investment in special education--A Civic Caucus member noted that special education, a big specialty area with its own certification, is receiving an ever larger share of the school budget.   A big part of special education, the member said, is working with the children who are not ready for kindergarten when they arrive.  

            Benson said of the 50 percent who aren't ready for kindergarten, about 20 to 25 percent will catch up by the third grade.  The other 20-25 percent can't read in the third grade and ultimately are most likely to drop out of high school.

Duane Benson, Minnesota Early Learning Foundation, July 10, 2008-- Fear of taking the easy way out on legislation--A Civic Caucus member noted that legislators need a fairly sophisticated approach in dealing with child care, to understand, for example, the nature and implications of overlapping funding and objectives.   The member recalled a similar situation with Congress, involving foster care.  The temptation of lawmakers is to pass the simplest parts of a proposal, the member said.  Thus, he suggested, MELF needs to realize that the Minnesota Legislature, while respecting the need to keep early childhood evaluation independent, might end up handing the responsibility to a party of interest, such as the Department of Education. 

            A Civic Caucus member said leadership by an enlightened Governor might help improve the legislative product.  Benson replied that he is doing his best, now, two years before the next election for Governor, to meet one-on-one with potential candidates to improve their understanding of early childhood learning.

            A member suggested that the early childhood movement needs to find a way to differentiate itself from "education", because of the strong correlation of that word with the traditional K-12 system.  

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--Dilemma facing legislators--A Civic Caucus member speculated that legislators have a difficult time dealing with the early childhood issue.   The existing early childhood system is characterized by comparatively lower pupil-teacher ratios and comparatively lower pay than is present in the K-12 system.  Legislators fear the cost implications of placing early childhood into the K-12 system if the result is keeping the pupil-teacher ratios low while increasing salaries to the K-12 level. 

 Duane Benson, Minnesota Early Learning Foundation, July 10, 2008--Possible other thought leaders on early childhood--Asked who might be invited to discuss the early childhood issue with the Civic Caucus, Benson suggested Robert Ostlund, former superintendent of the Wayzata Public Schools; Art Rolnick of the Minneapolis Federal Reserve Bank; Warren Staley, retired chairman of Cargill and MELF board member,  and Rob Johnson, formerly with Cargill and MELF board member.   Ostlund, Benson said, has a particularly strong commitment to investing in early childhood learning. 

            Benson asked Civic Caucus members to suggest foundations that might be open to providing more support for early childhood learning.

Keesha Gaskins, Minnesota League of Women Voters, July 3, 2008--Racism in Minnesota--Gaskins said that Minnesota, whose residents usually view themselves as progressive, is among the most racist states in the nation in terms of delivery of social services to children.   She cited data from the Children's Defense Fund Children's Defense Fund Minnesota's Annual KIDS COUNT Data Book  and the Women’s Foundation report on the Status of Girls in Minnesota indicating the large number of underserved children in the state. 

State Sen. David Senjem, Jan. 10, 2008--Importance of early childhood development--Senjem said he favors an approach that would emphasize the needs of at-risk children.   His only concern, he said, is budgetary impact.   A member of the Civic Caucus noted that Art Rolnick is emphasizing that funds for early childhood should be regarded as an investment. 

Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Background on (MELF)--MELF is a private, non-profit organization, whose board of directors includes CEOs from large companies, including Cargill, Best Buy, and Blue Cross Blue Shield of Minnesota.   Its executive director is Duane Benson, former legislator and former head of the Minnesota Business Partnership.  

            Working with parents and at-risk children from before birth to age five is the most cost-effective approach to assuring that children from low-income families are ready for kindergarten, Rolnick said. 

            A key part of MELF is empowering parents, he said.  Working with mentors, parents are fully in charge of where scholarship money--up to $13,000 a year--will be spent. 

Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Private funding--MELF has raised $30 million privately to cover costs of scholarships for the Frogtown-North End demonstration, Rolnick said.   Already MELF is being contacted by national organizations, including foundations associated with Bill Gates and Warren Buffett, plus a half-dozen governors around the nation.   Among cities interested are Omaha, Sioux Falls, Hartford and Seattle.  These areas are anxious to follow MELF's progress.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Keys to success--Rolnick said his research has demonstrated that keys to success are (a) to start early, before birth as necessary to give help to parents, (b) to make sure parents are engaged at all steps in the process, including the right to choose where the scholarship money is invested, and (c) to start with the at-risk population.  Working with this population offers the greatest return on investment. 

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--A $2 billion endowment is sought--Rolnick said that Minnesota needs a $2 billion endowment for early childhood development scholarships for at-risk children.   This approach will assure that the program continues in perpetuity.    Such an investment offers vastly more benefits to the economy than comparable investments in sports stadiums, he said.

Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Data demonstrates substantial return on investment--Rolnick described a study conducted by the Highscope/Perry Preschool Study in Ypsilanti, MI, which tracked 123 low-income African-Americans over 40 years, beginning when the individuals were three and four years old.  For five years in the mid-1960s, teachers worked with the children closely and visited them once each week in their homes.   The study demonstrated that the children who received extra attention were more likely to graduate, had lower crime rates, and had a higher income than their peers who didn't participate.  

            He said the Highscope/Perry study report demonstrated that for every dollar invested, $17 was returned on the investment.   That figure was calculated as money saved because the public didn't have to incarcerate or remediate the formerly at-risk people, and money earned because they got jobs and paid taxes.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--St. Paul demonstration now under way--Parents in the Frogtown-North End area of St. Paul now are receiving information and being invited to apply for scholarships.  Several organizations are gearing up as potential vendors, including Montessori, Head Start, New Horizons, and the St. Paul school system.   Rolnick expects more vendors to appear.  

            A key requirement of vendors, he said, is that all children who participate will be expected to pass a school readiness test given to all four-year-olds.   Currently about 50 percent of at-risk children pass that test, he said.   Vendors will be free to try different approaches for preparing children. 

            In the first year 1,200 scholarships will be available, he said, divided approximately as follows:  400 for pre-natal; 400 for three-year-olds for two-year scholarships, and 400 for four-year-olds for one-year scholarships. 

            The pre-natal program will involve public health nurses who will meet regularly with mothers, before and after birth, helping them with diet and other aspects of care, including on-going interaction with the child. 

Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Staying free from political and bureaucratic interference--MELF had to reject some public money early on, because of potential governmental requirements, he said.    Some bureaucrats didn't want to allow illegal immigrants, for example.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Some skepticism among public educators--Some educators in the K-12 system aren't happy with the plan, he said, because they fear that allowing parents to choose their early childhood vendors could set a precedent for some kind of voucher system for K-12. 

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--MELF sunsets after five years--MELF is the vehicle to get the program started, he said.  After five years a $2 billion endowment should be generating $100 million a year that will fund the program state-wide for the long-term.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Important to focus on mothers--Some existing child care programs don't focus on mothers, which is a key part of the MELF scholarships. 

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Good cooperation from St. Paul schools--Rolnick praised the work of the St. Paul school superintendent, Meria Carstarphen, for her cooperation in the MELF program.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Pre-natal mentors' role outlined--Rolnick explained that a public health nurse will be assigned to serve as a mentor to a family in the pre-natal category.   MELF is working with a metropolitan association of public health nurses and educators.   A public health nurse will be assigned to about 30 or 40 scholarship families and be paid about $60,000 a year from MELF funds.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Evaluation team hired--MELF has contracted with the Stanford Research Institute, Rolnick said, to conduct evaluation of the entire program and to state whether MELF succeeded or failed 

Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Whether impact of early childhood development fades over time--Responding to a question, Rolnick said the Perry pre-school study indicated that the impact of gain in IQ faded with some students by the time they got to third grade.   However, these same children were more inclined to stay in school, get jobs and stay off welfare.   The program won't succeed 100 percent, he said, but it would be a huge benefit if 50 percent succeeded.    

            Rolnick again emphasized that MELF is working towards readiness for school as the main element of measuring success.   If four-year-olds are ready for school, that then reduces the need for other expensive efforts, such as special education. 

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Scholarships will follow the parent--If a Frogtown-North End child receives a scholarship from MELF and the family moves out of the neighborhood, the scholarship will still be in effect no matter where in Hennepin or Ramsey Counties the family relocates.

            Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Long-term legislative effort--Rolnick said that beginning efforts will occur in the 2008 Legislature to seek support for a long-term $2 billion endowment to permanently fund early childhood development in the state.   MELF leaders believe it is reasonable that one-third of the endowment would be paid for by the state of Minnesota; one third, by private contributions, and one-third, by the federal government.

            To illustrate that the $2 billion is within reach, Rolnick said the gross state product is about $220 billion annually.  

            The one-third contribution to the endowment from the state could come from an already-existing public land trust fund that was established for education when Minnesota became a state in 1858, Rolnick said.  That trust fund is about $600 million, which represents nearly the one-third state contribution for the proposed endowment.  The trust fund now generates about $30 million to $40 million a year that is given to K-12 education.   He recommends that the Legislature dedicate the trust fund yield to early childhood development.   To replace the $30 million to $40 million a year that K-12 would lose, Rolnick said a state economic development program known as JobZ provides questionable benefit, and that $20 million to $30 million could be found there.  In addition K-12 would save dollars over the long term because of early childhood investment.

            A Civic Caucus member observed that perhaps the state could begin to distinguish between operating funds and investment.  The early childhood money needs to be regarded as an investment, not just paying for operating expenses, the member said.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Potential leadership by lawmakers--A Civic Caucus member observed that Governor Pawlenty and Larry Pogemiller, Senate Majority Leader, while on opposite sides of the political fence, both are on record for strong support of early childhood development.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Parental involvement first; bureaucracy later--Rolnick said some existing providers of early childhood development want the long-term organization established before the scholarship program is up and running.  Rolnick said MELF is concentrating on involving the parents first and getting the program up and running.  The bureaucracy, he said, can come later, as needed.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Efforts not restricted to Frogtown-North End--A similar program for at-risk children is active in providing scholarships in western Hennepin County, through an interfaith partnership with the Wayzata public schools, he said.    Also the Blandin Foundation has been providing scholarships in northern Minnesota for some 135 children.  The Wilder Foundation provided a very positive evaluation of the Blandin effort, he said.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Where public school teachers stand--Responding to a question, Rolnick said the teachers union has been working mainly on trying to require all-day kindergarten and hasn't emphasized the earlier years.  Rolnick said he is seeking support among leaders in the teachers union.

 Art Rolnick, vice president, Federal Reserve Bank, Jan. 3, 2008--Whether to concentrate exclusively on at-risk children--Rolnick said some critics advocate that early childhood programs ought to be offered equally to all children, irrespective of whether they are at-risk.   Rolnick repeated his point that the return on investment is highest among the at-risk population.   In the long run, he said, he expects that income eligibility, now at 185 percent of federal poverty guidelines, will be modified so that the dollar value of scholarships will gradually phase out as income levels rise above the 185 percent level.

State Sen. Larry Pogemiller, Dec. 13, 2007--Challenges in the upcoming session--Pogemiller said a major challenge will be to balance the budget in the 2008 session.  There won't be much available.  Asked about the need for such functions as early childhood development, Pogemiller said the state has the capacity to fund such needs.   It's the political will that is lacking. 

State Sen. Larry Pogemiller, Dec. 13, 2007--Early childhood development an area of potential consensus--It was noted that Governor Pawlenty and Sen. Pogemiller both have come out in favor of early childhood development.   Pogemiller said that is an area where a consensus is possible, although it will be very difficult if the Governor sticks with a no new tax pledge.   Early childhood development shouldn't need a sales tax, Pogemiller said, but if a penny increase in the sales tax were suggested for early childhood, he would support the idea. 

Former Gov. Al Quie, March 23, 2007--Early childhood education--Quie said his chief interest and advocacy is for early childhood education.    He cited data that 38 percent of children are proficient in reading at the 4th grade and only 50 percent fully prepared for kindergarten.  Some 70 percent of parents of pre-kindergarten children are working outside the home.    Asked about reluctance of Republicans to support DFL initiatives on early childhood education, Quie said that many conservatives are very nervous about certain "ready for kindergarten" programs that would place early childhood responsibilities in the traditional public K-12 system.  These conservatives are not pleased with what has happened to children in K-12 and don't want to turn over their pre-K children to that system.  He said that 44 percent of youth in north Minneapolis have chosen to enroll in charter schools or other districts.  He likes the idea of empowering poor parents to find the preschool help they need for their children with an "allowance" using the tax system.   It is good news when both the governor and senate DFL leadership support the same concept.