State Sen. Geoff Michel, April 8, 2011--Prospects for innovation in early childhood development--Taking note of Michel's leadership in the Legislature on early childhood issues, a member inquired whether a pushback from several legislators is going to derail early childhood action in this session. Michel said he's not yet given up.  He's impressed with leadership from Duane Benson and Arthur Rolnick and knows that the Governor, too, is supportive.

Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--It makes economic sense to be involved in early childhood

It’s a little bit unusual for the Federal Reserve to be involved in early childhood, Rolnick said, noting that his specialty is pre-civil war banking (when states as well as banks issued their own currency). A few years ago he became involved with a small group that would gather and invite a CEO to join and talk about a passion. They brought in Todd Otis of Ready4K, and others, to talk about early childhood.

 “They were making a moral argument that I agreed with,” Rolnick said, “but I told them that if you’re going to move this in policy you’ve got to have the economic argument as well.” They agreed, and soon came back with a request for Rolnick to become involved and help in making the case. “So I did.”

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--The science supports starting early

“Everything needs to be rooted in science,” Rolnick said, so far as it can be. “When it comes to understanding the importance of reaching young people as early as possible—pre-natal—the science is pretty clear.” This has significance for figuring an economic impact.

Rolnick described that in doing his initial research various studies led him to recognize the significance of early childhood development; this was particularly revealing in a case of brain imaging performed on Romanian orphans. The most poignant finding of that report was that orphans that had been starved of human attention had a brain one third the size of a normal, healthy child.

He explained that his mentor on the topic is Jack Shonkoff, who edited a book titled ‘From Neurons to Neighborhoods’ (http://tinyurl.com/243rgkr) and, “says the debate between ‘nature and nurture’ is over.” Brain development in early childhood is essential, Rolnick said, and it is all based on experience. If a child is neglected or abused, or if the communication is all one-way command interactions, then the rapid neuron connections made in the early years of development are stunted.

The studies that Rob Grunewald, Rolnick’s colleague at the Federal Reserve, looked at—“the classics”—began in Michigan in the early 60’s. One study took 123 at-risk families, and divided them into two groups. The first group received high quality early education options that involved focus and master-level teachers. This was contrasted with a control group. “What they did was invest $10,000 in today’s dollars in child care programming—quality programming—and found that the kids that were in the program were doing much better than those in the control group.”

Rolnick and Grunewald then did a study, projecting out dollars that could be saved by placing figures on various social costs, including dropouts and incarceration. They sought to determine how much money was saved over time in real terms, and so pegged the projected savings to the growth of the stock market—5.8 percent over the period of the study.

They found an average 16 percent annual inflation-adjusted return, with rates ranging from 8-20 percent. And he suspects the benefits reach much farther: “We found out later that the parent income also went up for those whose children were in quality care, and now we are just starting to get data on the children of the children.”

See a report here: http://tinyurl.com/2gxqcfs.

“We challenged the academic community to find a better investment for the public funds, and have received no response.”

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--The Minnesota Early Learning Foundation (MELF)

After some time working on the research and after beginning to design the outlines of a sound market system for early childhood, Rolnick met Warren Staley, CEO of Cargill, who was instrumental in bringing together a distinguished—but active—board that raised $20 million to put these ideas into practice. These funds were used to create the Minnesota Early Learning Foundation.

As an organization MELF provides three key components:

1.      Information on quality: Provides information on quality of early learning programs through the ‘Parent-Aware’ rating system (ratings are voluntary and ‘opt-in’; see: (http://tinyurl.com/27etyex)

2.      The means to utilize quality programs: Funds no-strings scholarships to be used at programs rated with three or four stars; gives parents list of programs and they pick.

3.      Mentoring for families: Outsources mentoring services to an established seven-county organization called Metro Alliance that forms relationships with families to identify their needs and explain options.

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--Bringing the model of the MELF system to practice

To bring this model to the real world Rolnick outlined five challenges that must be met:

1.      Start earlier than 3-4 years old

2.      Focus on parents

3.      Focus on at-risk children first

4.      Incentivize quality of program

5.      Ensure scalability of system

The question facing policy, Rolnick argued, is to determine how to set up a system that will meet all of these criteria at once. As two economists, Rolnick said, he and Grunewald focused on markets. They looked at higher education and thought about the need to empower ‘consumers’—which brought them to the idea of scholarships for programs.

They then considered the question of how to reach children earlier than the program age of 3-4 years. This led to the idea of “scholarships-plus,” or getting trained mentors to reach out to families at-risk by going into homes and beginning to work with them earlier in life—pre-natally if possible.

After raising private funds to finance the Parent Aware quality rating system and the scholarships, MELF decided to do a pilot in St. Paul. “We publicized that if you live in Frogtown and your income is 125 percent of the poverty level, then congratulations, you have a scholarship.” It doesn’t matter if a family moves or wins the lottery, Rolnick said; the scholarship is theirs. Families are provided a map with programs in their area and the program mentors assist families in finding programs that fit.

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--Create a replicable market-based system, not particular programs

The motivation behind creating MELF was to construct a replicable system, not to favor particular programs. If the system is sound, with the proper information, means, and incentives for parents and providers, the quality and supply will be there to meet demand.

It is essential to be able to bring any good system to scale, Rolnick said. The Harlem Children’s Zone is a remarkable success, “but I’m not Geoffrey Canada—don’t know how to be Geoffrey Canada.” Instead, a system could be constructed that rewards people like Canada that create superior programs by providing the means for families to choose them and pay them. “Scholarships are very easy to bring to scale,” Rolnick said, “and the other components of the system (ratings, mentoring) are straight forward.”

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--Customize everything

“We customize everything,” Rolnick said—there is no one size that fits all. And he emphasized: MELF is a system that rewards quality-rated programs by providing families with scholarships to attend those programs. MELF and the Parent Aware rating system do not, themselves, promote any particular program models over others.

“We customize the experience through mentors, and by not being program-specific.” Instead the scholarships may be applied to any 3- or 4-rated programs anywhere, and the system is very flexible—there many different models with different pedagogies, and from faith-based to community based.

“I believe the more you can engage parents, the better you will do,” Rolnick said, and that “A sound system will see more diversity in educational approaches.”

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--Results will be observable and it will be easy to determine if the system is successful

“Within six months we will find out how successful our program is,” Rolnick asserted. Minnesota has a school readiness assessment; in St. Paul 50 percent of students don’t pass. “We expect that all of our scholarship children will pass. You will know if we succeed or if we fail.” MELF will be doing longitudinal studies out of the Humphrey Institute.

Rolnick said that he could tell already, anecdotally, that progress is being made. The quality of programs is rising, good program providers are coming in to new neighborhoods, and testimonies are coming in. He told a story of a mother who returned from service in Iraq, and was struggling to raise two young children herself—not doing well.  Her minister suggested she might qualify for MELF scholarships for her children, and she did. Her children entered high quality programs and the results have been remarkable. “She showed me drawings done by the children before and during program; you can see the colors change over time until they grew vibrant, and the imagery evolve.”

Some significant aspects of the program won’t be captured only by the children’s performance. Rolnick described the importance of reducing the stress on a family, and the effect that may have on improving health for the parents and children, and helping the parent to secure work.

Even so results must be observable, Rolnick argued. “Non-profit organizations are increasingly focusing on outputs, not just inputs—measureable outputs.” Steve Rothschild does this with his Twin Cities RISE program, and has been making a compelling economic argument. (See notes from his February discussion with the Civic Caucus here: http://tinyurl.com/2dn8nux)

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--Utilize publicity, word of mouth, and existing networks to identify participants

Metro Alliance has working relationships with communities and families. They form bonds with the families, helping to connect them to existing social services, even making sure members of the family are taking their medicine properly. This positions them well to contract with MELF to help explain the scholarships and options available to families for early childhood programs, as well.

“The mentors need to be well trained,” Rolnick noted. For the most at-risk families the mentors are particularly important. But they have to be qualified—they need to have medical and educational skills. “This takes some heavy lifting, but is not that expensive. It’s about $3,000 per year per family. When you tie that to the long-term impact, it is a small amount on the front-end” and is built in to the cost of the program.

He made sure to emphasize that mentors are different from caseworkers: “It’s a different frame of mind. Some critics say this is the government coming in and telling you what to do. No, the parents make all decisions. Others wonder if the parents aren’t so dysfunctional that they won’t actually use these scholarships. That’s just not true—with the help of these mentors, all do.”

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--Create healthier conditions for families

“People say we need to change the culture of low-income communities. I don’t know how to change the culture—but I do know if you empower parents then their outlook changes, behavior changes, and the students’ experience changes.”

Fathers are largely absent, a participant observed—and distant from the family. Here too, Rolnick said, he is not sure how to address the problem directly other than the mentors’ having some success incorporating the fathers as they come to know the family. “But we do know if they have the mom and baby bonding right, early on, we can have some very positive long-term results.”

It is especially important to relieve the stress in the family, so if the father is abusive that needs to be addressed.  Or, if bringing the father back into the family helps to relieve the stress then that can be helpful as well. The mentor is best positioned to assess this, but has a limited capacity to affect such change.

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--The supply of programs has been responding to demand

To a question from a participant, Rolnick said that as scholarships have become available both the quality and quantity of early childhood programs has responded. And, “I’m going to argue the market will continue to respond.”

Shortly after they announced the deployment of scholarships in the Frogtown area of St. Paul New Horizons broke ground on a new facility. At the same time St. Paul Head Start and Montessori expanded—and then programs near the area began improving in quality. Both the quality of existing programs improved and new, high-quality programs were introduced.

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--Seeking alternative ways to finance the program as it goes to scale

At present the ratings, scholarships, and mentors are financed by private donations that were raised at its inception and set to sunset in 2010. MELF is looking at different ways to fund the program. One option is tax credits for families, though an alternative—and Rolnick’s preference—would be to create a $1.8 billion endowed fund that could finance the scholarships and ratings system for Minnesota. There are three potential sources for these funds: One-third by redirecting a land endowment that presently goes to K-12; one-third through private sources; and one-third a federal match.

A participant wondered if there aren’t more options still for creating supply, and securing financing—encouraging the creation of programs for example that are built off partnerships with districts, or the chartering platform for creating public schools. This could tap into existing public support for education, including county aid for childcare.

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--The system has broad appeal, and interest

“This model has appeal beyond the Twin Cities,” Rolnick noted—including the White House. I ended up with a two hour meeting with Rahm Emanuel on this topic. I can tell the White House: I’ve got a ‘shovel-ready’ stimulus project.”

“I have been around the country talking about this, and am working with a number of governors on the issue. There is interest in New Orleans, and in Chicago.

“We think we have something that works. If this country could see that Minnesota is making this work, we could have a major impact.”

Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--So far it has been a challenging ‘sell’ to the legislature

“Run your thinking back over past legislative efforts,” a participant asked—what have been the results of efforts at securing money for early childhood?

There have been efforts at creating a national movement, Rolnick observed—but politicians have become frustrated because there is lack of focus. ‘You say we’re at A, and should go to B—but how do you go to B?’ The proponents haven’t brought a strategy, and the politicians have been unable to translate it. There was no model—no answer to the question, ‘how?’

“The scientific literature drove us to this market-based approach, but we had to go to private financing.”

So far the public financing has been elusive, and Rolnick argued it is a problem of priorities: stadiums get it; K-12 gets it. If any money becomes available, it gets absorbed, and certainly any new money is scarce. “These kids don’t vote; and their parents don’t vote; and the problem is kind of invisible. I’m the economist here, not the political scientist. Relationships are important though—we can build support around this.”

“But the question is the strategy,” a participant noted again. “Yes,” he agreed, “and MELF is the strategy. I’m trying to make St. Paul as visible as the Vikings. Make the point that we know how this works; make the argument and make it as visible as you can; make it concrete, and be persistent.”

Another option for financing could be to open up single-purpose charter authorizers to request innovative proposals for programs, and allow schools to work down to age 3, using the open and standing financing of public schooling to provide resources to programs. There may be a way to connect this to the sliding scale of the county’s early childhood financing program.

 Art Rolnick, HHH Institute, U of M, Nov. 19, 2010--A strategy for staged growth

“People say this kind of choice-based system hasn’t been tried before,” Rolnick said; “I say it has. I live out in Plymouth where there are young families with countless choices for early childhood. They have money and information.”

The next step is to develop new pilots. “The Heinz people told me: Start small, replicate.” So the plan is to begin launching pilots on the north side of Minneapolis and the White Earth Indian reservation. Rolnick is also in conversations in Detroit, Chicago, and New Orleans to do small-scale efforts there. He is building networks of civic support now.

Once the pilots are established, Rolnick said, “when you’re ready to go to scale it’s not hard. You need a board, and scholarships. You can outsource the mentor component. We’ve got the business model. I tell people: I want to see that you can connect with families, and if so, it will work.”

As a practical matter it helps to start a new pilot in a region that is adjacent to another region—probably wealthier—that already has quality programs running. It is easier for providers to migrate over to the underserved area.

Steve Kelley, HHH Institute, Oct. 15, 2010--Early childhood improvements require a broader view of community

“A lot of the education reform efforts have focused on school. And I’m convinced they need to take a wider view of things. You look at generational poverty, and education, and health disparities, and these things are obviously connected.”

He described Geoffry Canada and the Harlem Children’s Zone, working to take a whole-family, whole-neighborhood approach. “What Canada is trying to do is cut off the effects of poverty for the next generation. Ideally we would start with very good prenatal care, so that children do not start out badly because they were born to a poor family.

We have to understand that we can’t do this during 6-7 hours a day at school, then not pay attention to what happens in the hours outside of school, and in the years before school. At the Humphrey Institute, Kelley said, they are trying to connect a network of science and math teachers, and community institutions to work toward enrichment activities after regular school hours. “If we’re really going to have an impact on students we need to be there all along the way.”

David Jennings, former House speaker, former school superintendent Aug. 20, 2010--The educational achievement gap is about the early years--To a question about early childhood education, Jennings said that he is cautious about the terms. “Early-childhood is a type of program and has a particular meaning. I’m a believer that the achievement gap is about the kids not being ready when they come to school.” Minneapolis’ own data shows that if a student comes to school unprepared it is nearly impossible for the system to “catch them up”. If they come to school ready, it is possible—despite all the other negative factors—that the system can help them. The battle over who will prepare pre-K kids and how in the current situation  “is a fight over turf and limited dollars; it doesn’t have to do with what’s coherent and best for kids.” ECFE programs have an agenda. Head Start programs have an agenda. Private pre-school and daycare providers have an agenda. All of them seem more interested in their agenda than in “what works best.” That “what works best” question can only be answered by policymakers.

He is not convinced that parent choice alone has the capacity to drive improvement of schools. “The challenge for school districts when making decisions for poor kids is that many students don’t have a caring and responsible adult in their lives that is capable of and  willing to make the decisions.”

State Sen. Larry Pogemiller, Feb. 19, 2010--upport for early childhood education--The Senator likes to say that if he “has one dollar (he’d) like to see it go to early childhood because research shows that’s where it’s at.” But not just because of the importance of early intervention—there is another reason: “because of market forces,” and parents' ability to direct. “They have problems,” he said; they are not perfect. But the front and back-ends of our education processes have degrees of openness and flexibility that are basic and necessary for the K-12 system.

A member asked the Senator if he is referring to a voucher system. He was clear that,  in principle, he believes strongly in a consumer-driven system of education, from the early years through college. “Access is the key,” he said.

Speaking about the opening of the education system, the Senator said “Politically, whoever gets there first will be viewed very positively in the future.”

Joe Nathan, HHH Institute, University of Minnesota, Dec. 12, 2008--Controversy over success of charter schools--A Civic Caucus member noted recent publicity about a study by the Institute for Race and Poverty (IRE) at the University of Minnesota claiming that charter schools perform worse than comparable district schools on state tests and intensify racial and economic segregation.

(http://www.startribune.com/local/stpaul/35109429.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD3aPc:_
Yyc:aULPQL7PQLanchO7DiUJ

·         Nathan responded that the study missed a great deal, and presented very questionable information.  For example, he pointed out that some of the most effective public schools with African American students in the state are charters like Harvest Prep in Minneapolis, Higher Ground in St Paul, and Tarek Ibn Ziyad in Inver Grove Heights.

In legislative testimony earlier this month, legislators learned the following from Eric Mahmoud of Harvest Prep and Bill Wilson of Higher Ground.  Legislators were surprised and impressed.

Percentage of African American Students proficient in Mn Statewide reading and math tests, by district

School /           %A/A proficient in reading       % A/A proficient in math

District*

Harvest Prep               62%                             56%

Higher Ground             53%                             55%

Tarek Ibn Ziyad            67%                             86%

Mpls district                 31%                             22%                            

St. Paul district            38%                             29%

Eden Prairie                45%                             31%

Edina                           50%                             40%

(http://education.state.mn.us/ReportCard2005/index.do)

*  This chart shows, for example, that 62% of African American students at Harvest Prep in Minneapolis are proficient on the Minnesota’s statewide reading test, compared to 31% of African American students in Minneapolis, 38% of African American students in St Paul, 45% of African American students in Eden Prairie and 50% of African American students in Edina.

·          Minnesota Charters are legally considered districts for accountability purposes, although they do not have the power to levy taxes, as more traditional districts do.

While all the schools have room for growth, Nathan asked – might not there be something valuable to learn, rather than criticism from places like Harvest Prep, Higher Ground and Tarek?

·         Nathan also quoted Formerly ST. Paul city council chair Bill Wilson (the first African American chair of the city council) and founder of Higher Ground in St. Paul recently responded at a state legislative hearing re IRE’s charges that schools such as Higher Ground and Harvest Prep represent “segregation.”

Wilson testified quietly, “I don’t know whether Professor Orfield has experience segregation.  I have.   While a student in Evansville, Indiana, I was bused past 3 schools because of my skin color, to an inferior school, just for people like me.  That’s segregation.   

"Giving low-income people the power to decide for themselves among various schools – including ours is not segregation.  It’s giving low income people, and people of color, the kind of power to make decisions that wealthy white people have had for many years.”

·         Nathan pointed out that a study of charters in Minneapolis he conducted several years ago showed 5 of 7 Mpls charters over two years, and 6 of 8 charters in Mpls over one year showed more progress in reading, math or both than district public schools. He pointed out that the IRE study did not look at growth or progress

·         Nathan urged Civic Caucus members to read Paul Tough’s Nov 26, 2006 NY Times Sunday Magazine article cited above.  Most of these Tough serve all or virtually all students of color, and that they embody ideas also used by some of Minnesota’s most effective charters that were vigorously criticized in the IRE report.

            Nathan said the IRE report is often factually incorrect and reflects a bias toward moving inner city students to more affluent communities.  Nathan said this works sometimes.  Nathan noted that neither the recent IRE report nor the Star Tribune story about it cited data from the Minnesota Department of Education report on the Minneapolis to suburban choice program showing that

·         For the most recent year in which data are available, students staying in Minneapolis made more progress in reading at every grade level measured than did those who went to the suburbs

·         For the recent year in which data are available, students who went to the suburbs and students who stayed in Minneapolis made similar progress in math

·         62% of students who participated in this program have withdrawn within one year.

Nathan asked, “Is this the kind of program we want to rely on entirely to close the achievement gap, or should we also try to replicate much more successful programs?”

Joe Nathan, HHH Institute, University of Minnesota, Dec. 12, 2008--Early childhood education important--In response to a question, Nathan said a high priority in Minnesota and nationally is making high quality early childhood available to ALL students from low income and limited English speaking families.  It is in the top five issues that need action in 2009.  

 Nathan’s mother was the first Head Start director in Kansas.  The 1985 National Governors’ Association report that Nathan coordinated urged making high quality early childhood education available for all low-income families.  We would be much further along with that recommendation had been carried out.  But all early childhood programs are NOT equally effective.  Nathan believes one of Minnesota’s problems is that we have spread money around on a variety of early childhood programs rather than focusing first on the highest quality programs for low-income families.  Moreover, he thinks it is as important for schools to be “ready for students and families” as it is for students to be “ready for kindergarten.”  He thinks student readiness has received a great deal of focus – school readiness for students and families has received less focus.  Both are important. Governor Tim Pawlenty recently appointed Nathan to the state Early Childhood Advisory Committee.

John Hamann and Joann Knuth, MN Secondary School Principals Association, Dec. 5, 2008--Strong support for early childhood education--Minnesota should provide pre-kindergarten education for all children who need it as well as all day kindergarten for all children, Knuth said.   Early childhood education returns $7 to $12 of benefit for every dollar invested, she said.

            Knuth said that pre-kindergarten years ought to be handled organizationally in the public school system just as are K-12.  The delivery of this education should be coordinated with and through community education and must be developmentally and cognitively appropriate.  Pre-K teachers would be certified just as all other teachers are.   Non-public schools can provide pre-K education, too, just as they now provide K-12, she said. 

            Asked about where funding will come from for pre-K, Knuth said that education is key to the state's economic vitality.  Lawmakers need to set priorities in a strategic way and fund early education for children of need to insure that all who enter kindergarten are ready for it.

            Hamann noted that many public schools already are providing education for 3, 4, and 5-year-olds.  Asked about whether funding for high schools would be reduced so that pre-K children could be served, Hamann said the existing formula for distributing state revenue to school districts is confining because pupils of different grade levels are weighted differently.  He supports a proposal by Rep. Mindy Greiling and State Sen. Terrii Bonoff to count all students the same, regardless of grade level, as included in their bills.

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.