A new cost-benefit analysis by Scioto Analysis finds that universal pre-kindergarten in Ohio could deliver significant economic returns. The firm estimates the program would generate $3.80 in benefits for every $1 in costs per new child enrolled. With more families facing the rising costs of childcare and early childhood learning gaps widening, this analysis presents an effective solution to these problems.
This cost-benefit analysis estimates returns ranging from $220 million to $750 million depending on how many children enroll in the program. These benefits primarily accrue from increased future earnings, reduced prison time, reduced special education services, and reduced grade school repetition.
Key Findings:
For every dollar spent, the program could create $3.80 in benefits. The program generates $28,000 in net benefits per child.
Scioto’s simulation of 10,000 enrollment scenarios based on the participation rates in universal prekindergarten programs in New Mexico and West Virginia produced consistently positive outcomes.
Ohio could see 9,300 more children enrolled in universal pre-kindergarten if the program has enrollment levels similar to those seen in New Mexico. With enrollment levels that mirror West Virginia, 29,000 more children would enroll.
The analysis also showed the benefits of universal prekindergarten as a workforce development program.
“$7 of every $10 of benefits generated by a universal prekindergarten program come from future labor market earnings of children,” said Scioto Analysis Principal Rob Moore. “According to the evidence we have, universal prekindergarten could be a strong long-term economic development investment for Ohio.”