Panel Paper:
Social Efficiency of City-Led Preschool Education Initiative: A Benefit-Cost Analysis
*Names in bold indicate Presenter
This study examines the social efficiency of one such initiative, San Antonio’s Pre-K 4 SA, through a benefit-cost (BC) analysis. Like other cities’ initiatives, Pre-K 4 SA seeks to address the challenge of access and quality through expanding local public funding for high-quality preschool education. San Antonio achieved this through a sales tax rate increase of 1/8 cent, which was voted and approved by its citizens in 2013. The initiative is multidimensional in nature and combines: direct provision of prekindergarten education to 4-year-old children; parent engagement and support; city-wide pre-k educator Professional Development; and grant opportunities for local school districts, parochial schools, charter schools, and child care service providers. Prior evaluations show the program quality at Pre-K 4 SA centers improved overtime and was on average above a threshold that research indicates, and that growth on cognitive, literacy, mathematics, oral language, physical, and social-emotional skills for children who attended Pre-K 4 SA centers were greater than nationally representative normed sample (Westat, 2015; 2016; 2017; 2018). Whether the social benefits generated by this initiative exceeded its cost is a critical yet unanswered policy question.
The BC analysis carefully evaluates both the economic costs and benefits of Pre-K 4 SA. The benefit estimation considers a broad array of program outcomes that has economic values based on existing literature on the economic benefits of early childhood education (e.g., Currie, 2001; Barnett & Masse, 2007; Duncan & Magnuson, 2013; Institute of Medicine & National Research Council, 2014; Temple & Reynolds, 2015; Karoly, 2012, 2016). These outcomes include but are not limited to third-grade state test scores and special education placement of children who previously attended Pre-K 4 SA education centers, as well as labor-force participation and educational attainment of parents who qualified for afterschool childcare services. Cost estimation applies the ingredients method, a rigorous and most-accepted methodology to evaluate the opportunity cost of educational interventions (Levin, McEwan, Belfield, Bowden, & Shand, 2018). The BC-ratio of this study will serve as a basis for comparison with other city-led initiatives in the future.