The price of school readiness: A tool for estimating the cost of universal preschool in the states

This report details our approach to estimating the cost of a state-based, high-quality, universally accessible preschool program for children aged three through five. Our model is based on the assumption that a preschool system must be built from existing early childhood education arrangements and that a major factor contributing to quality is the presence of adequately trained and compensated teachers. The model also assumes that substantial investments would be needed in a number of infrastructure supports such as technical assistance and monitoring, professional development, assessment and evaluation, and facilities renovation and construction.

The model is meant to serve stakeholders in a number of ways. It is a tool to examine policy proposals that seek to either expand or universalize preschool service. It allows users to perform cost estimates in a timely manner by relying on secondary data sources and other readily available information. It is also a means for examining the relationship between service standards, quality, and costs.

The report first summarizes research on the benefits of high quality early childhood education for children, families, and communities. We then demonstrate how our model incorporates recognized components of quality and describe the model’s key components. The model assesses total costs by estimating program need and participation, direct service costs including teacher salaries and benefits and non-personnel costs such as occupancy and food, and infrastructure costs. The model accounts for costs in a range of possible service settings. We also suggest data sources where appropriate and point out alternative strategies for entering assumptions into the model. We conclude the report with a demonstration of how our model could work, using a fictitious state.