Starting early

For a struggling Colorado school district, full-day preschool — and the unusual way it’s paid for — shows promise

A staff member works with full-day preschoolers at Fairview Elementary School in 2016,

Promising first-year results from a study of full-day preschool in a high-poverty suburban Denver school district have stoked optimism about a new financing approach officials are testing there.

It’s called Pay For Success and has gained traction nationwide in recent years as a way to pay for social programs that yield long-term dividends but are expensive to launch.

The struggling 9,600-student Westminster Public Schools is using a version of the complicated financing model, also known as social impact bonds, to fund and rigorously evaluate full-day preschool.

While similar projects in Salt Lake City and Chicago have been underway longer, Westminster’s three-year pilot project provides the first Colorado case study of Pay For Success as a preschool expansion tool.

It’s also a key component of the early childhood efforts outlined in the district’s state-mandated improvement plan. Only about a third of Westminster kindergartners meet expected benchmarks when they start school.

This year, about a quarter of the district’s 600 preschoolers attend full-day programming — at a cost of about $10,000 per student.

The full-day classrooms are the most expensive in the district because of state class size and student-teacher ratio requirements, but not as pricey as some high-quality preschool programs elsewhere.

The idea behind Pay For Success financing is that private investors or philanthropists pay upfront for social programs and get repaid with interest if those programs save public money by preventing the need for costly services such as special education or reading remediation. If a project doesn’t yield the hoped-for savings, the investors lose some or all of their money.

Westminster Public Schools dipped its toes into Pay For Success waters last year, offering full-day preschool to 112 4-year-olds at seven elementary schools. Two foundations — Gary Community Investments and the Ben and Lucy Ana Walton Fund of the Walton Family Foundation — put up a combined half million dollars for the project.

(The Walton Family Foundation and Gary Community Investments — through the Piton Foundation — are Chalkbeat funders).

Westminster’s pilot is not a full-fledged Pay For Success transaction because the state is not a partner in the agreement as would typically be the case. In addition, the project agreement doesn’t require the two funders to be repaid fully if the district’s full-day preschool program yields the hoped-for savings.

However, the gold standard study by outside evaluators comparing full-day and half-day preschoolers is standard Pay For Success fare. It’s also a key part of what funders and other school districts may be looking at as they consider preschool expansion efforts.

So far, Westminster’s results look good.

Full-day preschoolers there performed better than their half-day peers on a bevy of early childhood assessments that measure everything from early literacy to social and emotional development.

“We’re seeing some real statistical significance in terms of full-day (preschool),” said Mat Aubuchon, the district’s director of early childhood education.

Further evaluations over the next two years will provide more definitive results, he said.

In addition to preliminary data gleaned from the official evaluation, Aubuchon said the district has discovered some unanticipated benefits of the full-day program. These include higher attendance rates in full-day preschool classrooms and increased likelihood that full-day preschoolers will come back for kindergarten.

While 60 percent of half-day preschoolers returned for kindergarten this year, that number was 76 percent for full-day preschoolers.

Asked if the district’s full-day preschool initiative might continue beyond year three as a full-blown Pay For Success project, Aubuchon said, “I certainly hope so.”

Steffanie Clothier, investment director for child development at Gary Community Investments, said Westminster’s project will provide a valuable evidence base for other districts interested in preschool expansion even if they don’t use Pay For Success.

“I think Pay For Success is a great way to help understand the financing and short term and longer term savings from preschool programs,” she said. “But I don’t think it’s essential as a funding stream.”

leading the state

Three things we heard at a gubernatorial candidates forum on early childhood

PHOTO: Ann Schimke | Chalkbeat
Jared Polis, the Democratic candidate for Colorado governor, and Lang Sias, the Republican lieutenant governor candidate, spoke at forum on early childhood issues.

Stark differences in how Colorado’s two would-be governors plan to tackle early childhood issues were clear at a candidate forum Monday evening.

U.S. Rep. Jared Polis, the Democratic nominee, envisions free full-day preschool and kindergarten for all Colorado children — a sweeping and pricey expansion of what’s currently available.

Republican lieutenant governor candidate Lang Sias, who stood in for gubernatorial candidate Walker Stapleton, said Republicans would focus public funds on narrower programs that benefit the poorest children.

Currently, Colorado funds early childhood programs for some of its young children. The state provides half-day preschool to 4-year-olds with certain risk factors, but the program covers only some of those who qualify. In addition, the state reimburses districts for just over half the cost of full-day kindergarten, leaving districts to pay for the rest or pass on the cost to families through tuition. Last spring, lawmakers expanded the state income tax credit for child care costs, but most families still need to come up with hundreds or even thousands of dollars a month.

Monday’s event at the Denver Museum of Nature and Science represented a rare opportunity to hear candidates address early childhood issues, which are often overshadowed on the campaign trail by topics such as housing, roads and health care. While the forum highlighted some of the big early childhood ideas championed by each campaign, it also left plenty of unanswered questions.

Stapleton, Colorado’s state treasurer, was originally slated to speak at the forum, but backed out citing family obligations. Sias, a state representative from Arvada and a member of the House Education Committee, spoke in his place.

Polis and Sias didn’t debate each other at Monday’s forum, or otherwise interact. Polis went first, giving a short statement about his early childhood platform then answering several questions posed by moderator Bill Jaeger, vice president for early childhood and policy initiatives at the Colorado Children’s Campaign. Sias followed suit.

The event was sponsored by Constellation Philanthropy, a group of funders focused on early childhood issues. (Constellation is a Chalkbeat funder.)

Here are three things we learned from the forum:

The candidates have different ideas about which young children need help and how to provide it

In discussing his plans to create universal full-day preschool and kindergarten, Polis talked about using a public-private financing mechanism that’s sometimes called “social impact bonds.”

In this kind of financing — also called “pay for success” — private investors or philanthropists pay up front for social programs and get repaid with interest if those programs save public money by reducing the need for costly services such as special education or reading remediation. If a project doesn’t yield the hoped-for savings, the investors lose some or all of their money.

Polis said if he wins in November, he’ll immediately “work out how to partner with philanthropy to create more early childhood education for all income levels.”

Currently a version of social impact bonds is being used to pay for full-day preschool for some students in the Westminster school district north of Denver, a fact Polis mentioned Monday. Still, the financing mechanism is relatively untested in Colorado’s education sphere and it’s unclear how it might be scaled to pay for something as ambitious as statewide full-day preschool and kindergarten.

When talking about the Republican ticket’s early-education priorities, Sias described early childhood education as “incredibly important” but “very inequitably distributed.”

“We want to focus our public spending on those who are least able to afford it on their own,” he said.

He cited a proposal for education savings accounts that allow families to set aside money tax-free for educational expenses, including early childhood education.

“We realize that is more focused on middle-class and above families,” he said, “but by targeting that money using that program, we feel we will have more available to target the folks at the bottom of the spectrum who really cannot avail themselves of that opportunity.”

Education savings accounts don’t typically work for low-income parents because they have no extra money to set aside for future expenses.

The candidates would take different approaches to strengthening the early childhood workforce

In a field marked by low pay and tough working conditions, recruiting and retaining qualified teachers is a chronic problem. The candidates had ideas about how to bulk up the workforce.

Sias advocated for a residency program to help turn out new early childhood teachers, similar to what he’s previously proposed to help address the K-12 teacher shortage. He said such programs are data-driven, helping retain teachers for longer periods and improving student results.

He also floated the idea of recruiting midlife career-changers to early childhood work — “folks north of 50” — and hinted that they would work in the low-paid field.

“Is that an opportunity to tap into … folks who would like to fill those spots who maybe don’t have the same set of issues that millennials do in terms of how long they want to stay and how long they need to be committed, and frankly how much they need to be paid?”

While some middle-aged people do enter the field, mediocre pay, a maze of state regulations, and the growing push to boost providers’ education levels could make it a tough sell.

Polis talked about creating partnerships with colleges to beef up the credentials of people who currently work in the early childhood field.

He said it’s important to “bridge the skills gap” for those whose hearts are already in the work. He didn’t address how he could dramatically expand preschool and kindergarten simply by focusing on the existing workforce, where turnover can be as high as 40 percent annually.

Neither candidate talked about how he would boost compensation for early childhood workers, whose median pay in Colorado is $12.32 an hour, Jaeger said.

Both candidates agree that Colorado can do much better by its youngest residents

When asked how Colorado is doing overall in supporting young children and their families, both candidates agreed that the state has a long way to go.

Sias emphasized that low-income children continue to be left out. Polis talked about the lack of uniform access to full-day kindergarten.

Both candidates expressed interest in working with bipartisan coalitions on solutions.

“There’s so many people in our state who want to do right by their kids,” said Polis. “It’s really going to take folks from across the spectrum coming together.”

Sias, who argued for a combination of business-minded acumen and public money for early childhood, asked the audience to partner with lawmakers in finding what programs work.

He said he and Stapleton are “more than willing to work across the aisle with folks that we like and respect, and have knowledge in this area.”

Threes please

As 4-year-old preschool programs become the norm, Denver looks to reach 3-year-olds next

PHOTO: Ann Schimke | Chalkbeat

The Denver Preschool Program, most well-known for providing millions of dollars to help the families of 4-year-olds pay for preschool, is expanding its scope.

Starting this month, the nonprofit will put a share of its funding from a citywide sales tax toward improving preschool classrooms for 3-year-olds — something it has long done in 4-year-old classrooms. Those improvements could take the form of teacher training or coaching, teacher scholarships for educational programs, or new blocks and playground equipment.

The $700,000 initiative pales in comparison to the $15 million that the Denver Preschool Program will spend on tuition assistance for the city’s 4-year-olds this year. Still, it’s another sign of growing recognition that investments in younger children help amplify the benefits of widespread and politically popular 4-year-old prekindergarten programs.

The push to serve more 3-year-olds can be seen around the state and nation. Colorado’s two largest school districts — Denver and Jeffco — both plan to add new preschool seats for 3-year-olds if tax measures for education pass in November.

Last year, New York City school leaders began phasing in free universal preschool for the city’s 3-year-olds, an expansion of the city’s ambitious Pre-K for All program, which served about 70,000 4-year-olds in 2017-18. In 2008, Washington, D.C., passed a major preschool overhaul law, which helped make it one of the few places in the country where a large majority of 3-year-olds attend free preschool.

Jennifer Landrum, president and CEO of the Denver Preschool Program, said when city voters first passed a sales tax in 2006 to fund the program, the ballot language specifically earmarked the proceeds for 4-year-olds. But in 2014, when voters approved a 10-year extension of the sales tax, they also OK’d language that allowed spending on 3-year-olds.

The expanded age range fit with the shifting national policy conversation at the time, which increasingly emphasized the importance of starting with children younger than 4, said Landrum.

Research shows that early childhood programs can produce huge long-term gains for children, particularly those from low-income families. But there’s a caveat: The programs must be high-quality.

That’s part of the reason the Denver Preschool Program will focus its new 3-year-old funding on boosting quality.

“It’s such a logical next step when you can see the gains 4-year-olds can make in that one year of high-quality preschool,” said Landrum. “It just makes sense.”

The improvement efforts will focus on the preschool classrooms of about 3,400 Denver 3-year-olds.

Unlike the city’s 4-year-olds, those 3-year-olds will not get tuition help from the Denver Preschool Program. There’s not enough money for that, said Landrum.

In Colorado, a fraction of 3-year-olds attend publicly funded preschool through Head Start or the Colorado Preschool Program, a statewide program that pays for preschool for young children with certain risk factors. Some 3-year-olds also qualify for free preschool because they have disabilities.

Denver district officials say they hope to add 500 new preschool seats for 3-year-olds if the statewide ballot measure, Amendment 73, passes in November. Right now, there are long waitlists for that age group.

In Jeffco, which serves 3- and 4-year-olds together in the same classrooms, expansion plans also hinge on the outcome of November’s election. A proposed district bond measure would help renovate 70 classrooms for the preschool set, for a total of about 1,100 additional seats. Currently, the district serves about 3,500 preschoolers — about half of them 3-year olds.

And if Amendment 73 or the district’s mill levy override  — or both — pass, district officials say it would allow them to convert more half-day preschool slots to full-day slots, hike teacher pay, and improve the qualifications of early childhood staff.