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PRESCHOOL ANALYSIS
GRACE K. CANTU, PROJECT MANAGER
HUSNAIN RAMAY, BUDGET ANALYST
SAMANTHA RAMIREZ, COMMUNICATIONS DIRECTOR
DECEMBER 5, 2016
TABLE OF CONTENTS
Letter of Transmittal . pg. 3-4
Executive Summary .. pg. 5-6
History & Introduction to Research Question .. pg. 7-9
Issues Facing the Subsector.. pg. 10-11
Methodology & Sources of Data ... pg. 12-13
Results of Data Analysis . pg. 14-22
Discussion of Results .. pg. 23-25
Recommendations .. pg. 26-27
References.. pg. 28-29
Appendix pg. 30-38
December 6, 2016
Respectfully yours,
Grace Cantu
Husnain Ramay
Husnain Ramay
Program Manager
Budget Analyst
Samantha Ramirez
Samantha Ramirez
Communications Director
EXECUTIVE SUMMARY
Expanding access to high-quality early education is a rising topic of interest across the
United States. Because of President Bush and President Obamas passion for leveling the
playing field for all children entering kindergarten, there has been much focus in recent
years on establishing a universal preschool system in the U.S. This leads us to our research
question: How does to the move to universal preschool education affect nonprofits operating
in this subsector?
Over the past 20 years, many states have significantly increased their investments in statefunded preschool programs. For example, since 1995, California, Michigan and Texas have
taken great steps to implement strong state policies to provide preschool services for their
states preschool-age children. However, in 2015, we find states such North Dakota, New
Hampshire, Utah and Idaho have yet to provide state-funded preschool education for their
states youth.
The overall influx of state support for early education reform has led to an increase in
nonprofit activity in early education and a growing interest in expanding access to highquality preschool education for every child in America.
To understand how the move to universal preschool affects the nonprofit sector, our team
at Kids First delved into the transformation of preschools across the United States. By using
data from the National Center for Charitable Statistics (NCCS), we were able to determine
the size of the preschool nonprofit subsector. In order to fortify a cohesive understanding of
the growth pertaining to this subsector, we looked at three different variables: number of
total organizations, total revenue, and total assets. We gathered and analyzed this data for
all 50 states over a period of 20 years from 1995 to 2015 breaking these years up into
three different presidential administrations (Clinton, Bush, Obama).
In an effort to present a clearer, more accurate representation of the growth of the
subsector, we adjusted for inflation and population. To do this, we utilized the Consumer
Price Index (CPI), which we obtained from the Bureau of Labor Statistics. Lastly, in regards
to gathering information pertaining to children between the ages of 4 and 5, we utilized
information drawn from the Annie Casey Foundation.
Throughout our research, our team did come across some limitations, including:
Defining an age cap
Using secondary data sources
Data prior to 1995 is unavailable from NCCS, prohibiting us from completing
our research pertaining to Clintons administration
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Presence of outliers
External factors: Internal Revenue Service (IRS) filing process for 990 forms
Major findings in our data included a decrease in the total number of nonprofit-run
preschools organizations beginning in 2009, and an increase after 2013, which we expect
may be attributed to President Obamas Preschool for All Initiative. For the most part,
revenues remained analogous for states with and without an implemented policy, but the
gap between the two began to increase throughout the Bush and Obama administrations.
This can be attributed to their administrations push for stronger early education programs.
In order to effectively create a universal preschool system in the U.S., it is crucial that our
nations current preschool programs meet the set of quality preschool standards that are
currently in place. Due to many programs inabilities to meet this set of standards, there is
an increased nonprofit presence within this subsector. Once the U.S. is able to raise all of its
current preschool programs up to the suggested standards, we expect that the nonprofit
presence in this subsector would decrease, as there would be greater access to quality
state-provided preschool education.
In conclusion, we suggest the following recommendations:
States designate more funds to nonprofit-run preschool programs so that a
greater number of children may have access to early childhood education
Decrease the number of vigorous requirements for families trying to place
their children in preschools
Make preschool free so as to level the playing field for all children
Nonprofit-run preschools must make an effort to exceed the expectations laid
out for Head Start so as to remain a viable and comparable option for families
looking to give their children a quality preschool education
This ever growing need for preschool education led to the formation of numerous state,
private and nonprofit-run preschool programs across the United States (History of
Preschool).
In 2002, President George W. Bushs Administration proposed the Good Start, Grow Smart
Initiative aimed at assisting states and local communities in their efforts to strengthen
current early learning programs. The goal of this initiative was to ensure that young
children would complete preschool equipped with the skills to begin kindergarten ready to
learn. By 2005, sixty-nine percent of preschool age children (ages 3-5) were enrolled in a
state-preschool program (Good Start).
Two years later in 2007, Congress passed the Improving Head Start for School Readiness
Act, which called for quality improvements of Head Start including education and staff
qualifications. The act also increased accountability of preschool programs through
improved monitoring and oversight (H.R. 1429).
Currently, most states offer families of preschool-age children a variety of early education
program options they could choose for their children, including, federally funded Head
Start programs, state-funded preschool programs, government-funded special education
programs, for-profit preschool education programs and non-profit preschool education
programs.
With research continuing to highlight the many positive effects of what a preschool
education can do for young, developing children, such as personal, social and emotional
development, communication, talking and listening skills, teamwork, self-help and social
skills, and improving overall literacy and mathematical awareness, expanding access to
high-quality early education has become an increasingly important topic of interest in
Washington (Core Knowledge).
Throughout his presidency, President Barack Obama was a strong supporter of early
childhood learning, this is demonstrated in his proposal for a Preschool for All Initiative,
which would expand access to high-quality preschools for all low-to-moderate income
preschool-age children in America. Per his 2013 State of the Union Address, President
Obama spoke passionately about his commitment to early education, stating, A zip code
should never predetermine the quality of any childs educational opportunities. Yet studies
show that children from low-income families are less likely to have access to high-quality
early education, and less likely to enter school prepared for success. By third grade,
children from low-income families who are not reading at grade level are six-times less
likely to graduate from high school than students who are proficient (Early Learning
Plan). President Obama also noted that children who participate in Head Start or other
preschool programs are more likely to do well in school, find and maintain good jobs, and
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are more likely to succeed in their careers than children who do not take part in preschool
education (Early Learning Initiative).
For those who have their doubts about the benefits of early childhood learning, research
shows that taxpayers receive a high return on investment (ROI) on high-quality preschool
education as there is an increase in labor productivity and a reduction in overall crime
(Early Learning Initiative).
As demonstrated in his speech, there is a growing need for preschool education programs
in the United States, so, our research question for the sake of this report is: How does the
move to universal preschool education affect nonprofits operating in this subsector?
Nonprofits have historically been present as a result of government failure, so, if the
government were to successfully launch a true Preschool for All Initiative, what would
happen to nonprofit-run preschool programs across the United States?
Policy
Benchmark
Comprehensive
57
Teacher Degree
BA
33
Teacher specialized
training
Specializing in pre-K
47
Assistant teacher
degree
CDA or equivalent
21
10
20 or lower
48
Staff-child radio
1:10 or better
49
Screening/referral and
support services
38
Meals
29
4. On average, preschool teachers in the United States make just above $28,000 per
year (How Much Can a Preschool Teacher). These low salaries fail to attract the
most qualified and caring teachers simply because in many states, this wage falls
well below the poverty line. If we want to ensure that our children are receiving a
quality education, and learning from quality teachers, it is crucial that we raise
wages for teachers of all grade levels. In some states, fast food workers make a
greater salary than do preschool teachers (It Doesnt Pay to be).
5. Lastly, the terms state-preschool and universal preschool are oftentimes used
interchangeably in public debate, which leads to a lot of confusion surrounding this
subsector. The incorrect notion that state-preschool is the same thing as universal
preschool, often leads to strong opposition from critics. In actuality, most states
with state-preschool programs limit enrollment to children from low-income
families, and even then, not all eligible children are able to enroll into a preschool
program, for the need outweighs availability (Setting the Record Straight).
Together, these issues facing the preschool subsector make it difficult to establish a true
universal preschool system. These issues have also led to the formation of numerous
nonprofit-run preschool programs across the United States dedicated to filling the unmet
need for early childhood education. As of this year, the National Center for Charitable
Statistics (NCCS) recorded 4,253 nonprofit preschool programs throughout the nation. This
number has steadily grown throughout the past couple years demonstrating the average
Americans interest in giving their children a preschool education, that will hopefully set
them up for a lifetime of success.
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implemented a preschool policy from NIEER. We gathered this data for all 50 states over a
period of 20 years in an effort to examine how the subsector has evolved throughout
different presidential eras and how this affects the potential move to a universal preschool
system.
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In this section we graphically display the results of our findings pertaining to nonprofit
organizations acting in the preschool education subsector. The graphs seen throughout this
section were created with data pulled from NCCS, the Annie Casey Foundation, NIEER and
the U.S. Bureau of Labor Statistics. For larger representations of the following graphs, refer
to the appendix at the end of the report.
Graph A:
Figure A displays the total number of states with an implemented a preschool policy. Here
we can see a steady and stable upward trend in the number of states implementing
preschool policies in their regions. In 1995, there were 25 states with a preschool policy,
this number increased from 25 to 31 by the end of the Clinton administration, indicating an
increase of six states making a change in their policy. During the Bush administration, we
see the number of states with a preschool policy increase from 33 to 39, another six state
increase. Lastly, we see the number of states with an implemented preschool policy
increase by seven during the Obama administration from 39 to 46. This is in accordance
with many of our other results, indicating that the Obama administration has been most
successful and influential in promoting greater access to preschool education. As of 2015,
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there are only four states without a preschool policy initiative. See graph B for more
information.
Graph B:
Here, in Graph B, we present a visual representation of the U.S. states with (blue) and
without (red) a current preschool policy. As of 2015, the only four states in the U.S. without
a preschool policy include Idaho, Utah, North Dakota and New Hampshire. Through our
research we found these states to have the lowest rates of poverty, leading us to believe that
the policy makers in these states do not see a preschool education as critical factor in the
success of their states children as do states with higher rates of poverty.
Graph B.1:
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Graph C:
In this figure we display the total number of organizations serving in preschool education
subsector across a 20-year span of time. Through our research, and as seen in this graph,
we found that the total number of organizations acting in this subsector have remained
vastly consistent. It is shown that in 2009 the number of nonprofit-run preschool programs
reached just above 5,000, but since then, there has been a decrease in the number of
organizations filling the need in this subsector. We attribute this decrease to President
Obamas devotion to improving the access and quality of federal and state-run preschool
programs in the U.S.; with better access to state and federal-run preschool programs,
families are less likely to seek out nonprofit options.
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Graph D:
Graph D shows the total number of children between the ages of 4-5 per organization
providing a preschool education. Over a period of 20 years, the preschool population has
remained the same at around 1800 children per organization. However, the number itself is
very large, and frankly, quite alarming. This large number implies that there is a shortage of
nonprofit-run preschool organizations to provide much needed services to children across
the nation. Although the preschool subsector has been increasing, there is still much work
that needs to be done before we can bring down the number of children per organization to
a more acceptable and manageable level.
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Graph E:
In addition to Graph D, Graph E also shows the number of children per organization
receiving a preschool education, however, this graph is broken down by administration for
a look into how preschool populations have changed throughout the Clinton, Bush and
Obama administrations. From 1995-2001 you will find the Clinton administration, from
2002-2008, you will find the Bush administration and from 2009-2015 you will find the
Obama administration. In this graph we also show a representation of the difference in
children per organization by looking at the states with and without a preschool policy.
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Graph F:
Here, in Graph F, we see how total revenues of nonprofits organizations acting in the
preschool subsector grew from 1995 to 2015, while taking inflation into account. In this
figure we also compare the revenues between states with and without a policy as well as a
representation of how revenues in this subsector have changed with each presidential
administration.
Here it is made apparent that for the most part, during Clintons presidency, states with and
without a preschool policy has fairly similar revenues. However, as we go into the Bush and
Obama administrations we see the gap in revenues between states with and without a
policy begin to widen. This gap peaked during the Obama administration, due to his push
for stronger early learning initiatives.
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Graph G:
As for Graph G, this figure shows the mean revenue per child growing in the same direction
for states with and without an implemented preschool policy. However, during President
Clintons administration, we found that the mean revenue per child was actually greater in
states that did not have an implemented preschool policy. This trend changed halfway
through President Bushs administration where we can see revenue per child greatly
increasing in states with a preschool policy, and revenue per child decreasing in states
without a preschool policy. The gap between states with and without a preschool policy
peaked during the final years of President Obamas administration.
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Graph H:
The above figure displays mean assets per child growing in the same direction for states
with and without a preschool policy until the middle of President Bushs administration. At
this point we see mean assets per child grow exponentially in states with a preschool policy.
Here we also see mean assets per child greatly decreasing in states lacking a preschool
policy. Like many of our other graphical representations, the gap between states with and
without a preschool policy was greatest during the Obama administrations, specifically in
the year 2014 just one year after his State of the Union Address in which he expressed his
devotion for expanding access for quality preschool education for all children across the
U.S.
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Graph I:
The above figure shows how total assets of nonprofit organizations serving in the preschool
subsector grew from 1995 to 2015, taking inflation into account. The trend that we see here
is similar to Graph H, in which total assets remain fairly similar for states with and without
policy in the first half of the Clinton administration. We then see the gap begin to widen
during the second half of Clinton administration and continued to widen throughout the
Bush and Obama administrations, which we attribute to both presidents push for stronger
preschool education programs across the U.S.
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DISCUSSION OF RESULTS
The nonprofit sectors role over the course of history has been attributed to stepping into
action when the government fails to adequately provide a given service or good. With this
in mind, our team expected to see an overall decrease in the number of nonprofit
organizations acting in this subsector as policies were mandated by government. On the
contrary, one major finding we came across in our data countered our expected outcome,
which may be seen in Graph C. Here we see an increase in nonprofit participation in
supporting the governments efforts to provide greater access to early education for
preschool-age children.
The figure below demonstrates a decrease in the total of nonprofit-run preschool
organizations past 2009. This decrease is primarily due to the updated regulations set by
the IRS in 2008. In 2013 we see an increase, which is very likely to be attributed to
President Obamas Preschool for All Initiative. In conclusion, we expect to see a gradual
decrease in the total number of organizations serving in this subsector over the next
several years as the federal and state levels of government make greater strives to establish
a universal preschool system.
Graph C:
In addition to the previous key finding, we were surprised to see that in 2015 only four
states had yet to approve a state policy that funded preschool programs. Graph B displays
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an overall view as to which states have yet to implement a statewide early education
preschool system. The states without policy are as follows: New Hampshire, North Dakota,
Utah and Idaho.
Graph B:
When presented with this information, our team decided to further evaluate the
characteristics of these four states so as to determine why they are not seeking to establish
early education programs within their states. This led us to research the differences
between high and low poverty states. By using a national overview poverty map, we were
able to see the poverty rankings for each of the 50 states, however, we were most interested
in learning more about the four states lacking a preschool policy. Our assumption was
proven wrong as the following information was recorded: New Hampshire ranked 1 st in
lowest poverty rate, North Dakota is ranked 9 th , Utah is 12th and Idaho is 31st overall.
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Graph B.1:
In Graph B.1, we can see that these states serve a significant number of preschool-aged
children. By looking to the Annie Casey Foundation website, we were able to see that in
2015 North Dakota reported a population of 20,042 preschool-age children. New
Hampshire had a similar population with a total of 26,885. Idaho had a little over twice as
much North Dakota with a population of 46,825. And lastly, Utah had a total of 102,270
preschool-age children Interestingly, these states have yet to prioritize early education
funding as preschool education tends to be focused on serving lower income families.
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We, as a nation, should not hastily move to create a universal preschool system until
our current preschool programs collectively meet quality standards.
o Until we are able to get our current preschools programs up to their intended
standards, we can expect there to be a steady/increased presence
(depending on the given State) of nonprofits activity in the preschool
subsector.
In order to help our early education centers operate most effectively, we
recommend that each state make an effort to designate more funds to nonprofits
acting in the preschool education subsector.
o Nonprofits acting in this subsector are providing a great service to the
communities in which they are located. The need for preschool education far
outweighs the number of slots available, and nonprofits offer many children
the opportunity to receive the early education that they rightfully deserve.
Many nonprofits serving in the early education sector are underfunded and
are in great need of extra assistance so that they may properly serve their
preschool communities.
o Designating extra funds to nonprofits-run preschools would allow them to
increase the quality and services that they offer, which in turn, would have a
positive impact on the children utilizing their services.
Decrease requirements for families trying to place their children in preschool.
o Applying for preschool is a vigorous and highly competitive process, and
enrolling ones child into preschool should not be such a difficult task. In an
effort to ensure that all eligible children are in fact being enrolled early
education programs, we suggest that the states decrease the number of
requirements for families simply trying to give their child an opportunity to
succeed throughout their educational career.
Make preschool free so as to level the playing field for all children
o The cost of a preschool education in some states has reached a record high of
$9,589, which in some areas, is actually higher than the cost of in-state
college tuition (Sahadi, J.). How, as a nation, can we claim to want every child
to have equal access to an early childhood education if that education costs
as much as college? This is an issue that must be corrected.
o Accordingly, our team proposes that each state make an effort to make
preschool education free for all children. The purpose of a preschool
education is to ensure that all children begin their educational careers on an
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even playing field, and granting the opportunity of early education to those
who have $9,000 of disposable money is not the way to do accomplish this
goal.
Nonprofit-run preschools must make an effort to exceed the expectations laid out
for Head Start in order to remain an effective partner for government-run preschool
programs, and for the families who seek their services.
o Lastly, in order for nonprofit run preschools to remain a desirable option for
families seeking to give their child a jumpstart on their educational career, it
is crucial that nonprofit-run preschools make an effort to exceed the set of
standards and expectations that are laid out for Head Start programs.
o One of the main forms of criticism that nonprofits acting in this subsector
face is that they fail to hire real teachers. Many believe that poor quality
teachers actually have the ability to prevent children from reaching their full
potential later in life, so as a way to negate this negative criticism, we
propose that nonprofits acting in this area make a greater effort to hire
higher quality teachers, and strive to exceed Head Starts set of
standards/expectations.
To conclude this report on the preschool education subsector, we at Kids First would like to
leave you with a quote from President Barak Obama, said during his 2013 State of the
Union Address, Expanding access to high quality early childhood education is among the
smartest investments that we can make. Research has shown that the early years in a
childs lifewhen the human brain is formingrepresent a critically important window of
opportunity to develop a childs full potential and shape key academic, social, and cognitive
skills that determine a childs success in school and in life (Early Education Plan).
We, at Kids First, whole heartedly believe in President Obamas passion and dedication to
improving the access and quality of preschool education for all American children. Every
child, no matter their background, deserves the opportunity to receive a high-quality
education so they may live a life full of success and happiness. We are confident that the
information detailed throughout this report will have a positive impact on preschool
education in the United States and will better the lives of the children and families who
utilize our nations early education programs.
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REFERENCES
Core Knowledge Sequence: Content and Skill Guidelines For Preschool. Core Knowledge,
2016.http://www.coreknowledge.org/28arva/28arvauploads/documents/494/CKF
Sequence_PreK_Rev.pdf. Accessed 20 Nov. 2016.
Do We Already Have Universal Preschool? | Brookings Institution. Brookings, 2016,
https://www.brookings.edu/research/do-we-already-have-universal-preschool/.
Accessed 20 Nov. 2016.
Good Start, Grow Smart: The Bush Administrations Early Childhood Initiative.
Georgewbush-Whitehouse.Archives.Gov, 2016, https://georgewbushwhitehouse.archives.gov/infocus/earlychildhood/earlychildhood.html. Accessed 18
Nov. 2016.
H.R.1429 110Th Congress (2007-2008): Improving Head Start For School Readiness Act
Of 2007. Congress.Gov, 2016, https://www.congress.gov/bill/110thcongress/house-bill/1429. Accessed 20 Nov. 2016.
History Of Preschool In The United States | K12 Academics. K12academics.Com, 2016,
http://www.k12academics.com/systems-formal-education/preschooleducation/history-preschool-united-states#.WA9rBvkrLmE. Accessed 18 Nov. 2016.
How Much Can A Preschool Teacher Expect To Get Paid? Money.Usnews.Com, 2016.
http://money.usnews.com/careers/best-jobs/preschool-teacher/salary. Accessed
20 Nov. 2016.
Interactive Poverty Map | State And County Level Poverty Information. 2016,
http://www.povertyusa.org/the-state-of-poverty/poverty-map-state/. Accessed 22
Nov. 2016.
It Doesnt Pay To Be An Early-Childhood Teacher. NPR.Org, 2016,
http://www.npr.org/sections/ed/2016/06/14/481920837/it-doesnt-pay-to-be-anearly-childhood-teacher. Accessed 18 Nov. 2016.
Past Caring: A History Of U.S. Preschool Care And Education For The Poor 1820-1965.
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APPENDIX
Graph A
30
Graph B
31
Graph C
32
Graph D
33
Graph E
34
Graph F
35
Graph G
36
Graph H
37
Graph I
38
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