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Benefits For All
The Economic Impact of the New Jersey Child Care
Industry INFANT/TODDLER, PRESCHOOL
AND OUT-OF-SCHOOL TIME PROGRAMS
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The New Jersey Child Care Economic Impact Council
(Established in August 2004)

• To commission and assist in the data collection
  for an economic impact study of the New Jersey
  child care industry. The National Economic
  Development Law Center from Oakland, California
  was hired to conduct the study (Phase I).
• To create new partnerships that build new policy
  paradigms to support the future state of New
  Jersey child care industry (Phase II).

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Wage Salary Forum Objectives

• Highlight the reports messages findings.
• Describe the intersection between the economic
  impact study and the need for raising
  compensation for early childhood professionals.

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Child Care and Early Education is Integral to
Family and Economic Life in New Jersey.

• The child care industry includes infant/toddler,
  preschool and out-of-school time formal programs
  in for-profit, non-profit and public settings.
• The knowledge base of the industry comes from
  the science of child development.
• Studies show that high-quality programs increase
  the quality of life in communities and reduces
  government spending.

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High-Quality Child Care Enables Future Economic
Success in New Jersey
High-quality child care and early education
programs lay the groundwork for New Jerseys
future economic success by preparing the next
generation with life and learning skills through
quality programs.
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A Significant Industry in New Jersey

• The child care industry in New Jersey
• Generates 2.55 billion in gross receipts.
• Serves as an economic driver that supports more
  than 65,300 full-time jobs.
• Serves 378,000 children at any given time, and
  demographic research shows that there is room for
  expansion now and in the future.

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High-Quality Child Care Enables Future Economic
Success in New Jersey
Effects of Abbott Preschool on Early
Effects of Abbott Preschool on Oral
Literacy Skills at Kindergarten Entry
Language Skills at Kindergarten Entry
100
100
90
90
80
80
Pre-K
Pre-K
Experience
70
70
Experience
60
60
Percent correct on
Standard Score on PPVT/TVIP
No Pre-K
Receptive Language Test
50
print awareness test
50
No Pre-K
Experience
40
40
Experience
30
30
20
20
Source Early
10
10
Source Early
Learning
Learning
0
0
Improvement
Improvement
Consortium

Consortium

Print Awareness
Receptive Awareness

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Child Care Supports New Jerseys Families and
Industries

• Child care benefits all industries in New Jersey
  by enabling parents to work productively outside
  the home and/or participate in training and
  education programs.
• Child care and early education provides working
  parents with economic opportunities that lead to
  self-sufficiency and participation in the
  economic growth of the state.

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Child Care Supports New Jerseys Families and
Industries

• Almost 1 in 5 workers has a child under age 13
  and lives in a household where all parents work.
  
• Together these working parents earn 20.2 billion
  every year.
• Quality, affordable and accessible child care
  increases employee retention, reduces
  absenteeism, enhances the recruitment of skilled
  workers and increases on-the job productivity.

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A Significant Industry in New Jersey
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A Significant Industry in New Jersey
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Number of Establishments

• 4,337 not-for-profit and for profit licensed
  centers in New Jersey.
• 41 of these licensed centers are tax-paying
  entities.
• 28 are owned by women
• 16 are minority owned

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South Jersey Child Care Data

• 838 licensed child care centers
• 897 family child care homes
• 54,516 child care slots and 4,665 slots in family
  child care homes

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South Jersey Child Care Data

• Average cost of infant care in home 7,326
• Average cost for infants in licensed centers
  9,309
• Average cost for Preschoolers 7,631
•  Note Varies from county to county.

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Raising Compensation

• Any approach to improving the staff standards in
  early care and education will fail unless it
  also raises compensation to keep more qualified
  people
• in the field.
• The Economic Policy Institute, Washington, D.C.

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Increasing Wages and Benefits

• It will help ensure that the educational
  attainment of child care workers will rise in all
  areas of the early childhood field.
• More investment will advance the New Jerseys
  child care workforce to a skill level that can
  provide high-quality child care.
• Economic Impact Study Full report, page 52.

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Raising the Bar for ECE Professionals

• Recent brain research during the early years has
  emphasized the importance of well-qualified
  teachers who are familiar with appropriate
  strategies for very young children.
• Children taught by teachers with specialized
  training and advance degrees are more likely to
  have positive outcomes.

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The Center for Child Care Workforce

• The child care teachers educational attainment
  impact child development.
• Children in settings with teachers who have
  bachelors degrees have a distinct advantage over
  children with similar backgrounds who do not.
  Bachelors degrees and specialized training in
  early childhood is a necessity (page 51).

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A System Approach to Quality

• A system approach to planning and providing
  professional development for program
  administrators, child care teachers and providers
  have proven the most effective and efficient
  means of ensuring quality in child care programs
  for children across the nation (p. 51).

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Building Momentum

• The word Momentum comes from two words
  movement and moment.
• Become the cheerleader so staff move up the early
  childhood career lattice from CDA to
  Infant/Toddler Credentials, then to an Associates
  degree, Bachelors, Masters, certification, etc.

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Financial Partners

• Childrens Futures
• Hispanic Directors Association of NJ
• New Jersey Department of Human Services
• Non-profit Finance Fund
• John S. Watson Institute for Public Policy of
  Thomas Edison State College

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For more information

• To obtain additional copies of the executive
  summary and the full report Call [phone]
  ext. 4290 or toll free [phone] ext. 4290
  or visit www.tesc.edu/aboutus/watson

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Project Contacts

• Ana I. Berdecia, Co-Chair of NJCCEIC Director
  for the Center for the Positive Development of
  Urban Children at the John S. Watson Institute
  for Public Policy of Thomas Edison State College
  [phone] ext. 4290 aberdecia_at_tesc.edu
• Allen Lamboy, Phase II Coordinator, NJCCEIC
  Vice President, JP Morgan Chase [phone]
  allen.c.lamboy_at_jpmchase.com