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July 19, 2012

Gregg lays out plans for early childhood education program

Sue Loughlin The Tribune-Star

TERRE HAUTE — Indiana gubernatorial candidate John Gregg is proposing a pilot pre-kindergarten program and child care tax credits as part of a plan to improve early childhood education in the Hoosier state.  

Gregg, a Democrat, announced the plan Wednesday to reporters outside Deming Elementary in Terre Haute. He is running against Republican Mike Pence.

Studies show that pre-kindergarten programs increase high school graduation rates, improve test scores and prepare children for greater success in school, Gregg said.

“We’re one of only eight states … that spends zero dollars on funding for pre-kindergarten programs,” he said. “We just can’t afford that anymore.”

The plan includes a pilot pre-kindergarten program for 4-year-olds that would benefit middle-class and working families; a state child care tax credit for low- and moderate-income working families; and continued support for full funding of all-day kindergarten.

The Legislature would have to approve the proposals and their funding, Gregg said. He identified the state’s surplus as a potential source of funding, but ruled out increased taxes.

Gregg said the pilot pre-kindergarten program would be aimed at parents who can’t afford private preschool and don’t qualify for federal programs that benefit low-income children.

The initiative would be modeled after Wisconsin’s “4K”  program, partnering with elementary schools, existing child care facilities and Head Start programs.  

“We will start [the pilot] small so we can kind of get an idea of the cost and how long it would take to implement it and what the curriculum could be,” he said. A cross sections of schools with diverse backgrounds would be involved.

Right now, costs are estimated at $2,500 to $4,500 per student, he said.

He also wants to institute a Hoosier State child care tax credit. A tax credit “is right off the top — it’s money back in your pocket,” he said.

He noted that 23 percent of Hoosier children age 4 and under are in families living below the poverty line, while the average annual cost of full-time day care for a 4-year old is about $8,000.

That poses a major barrier for low-income families with children, which perpetuates the cycle of poverty, Gregg said.

His plan would create a state child care tax credit to help offset the costs of quality child care for low and moderate-income working families, something a majority of other states already do, he said. For families to benefit, the children would have to attend programs that have “some type of education component,” he said.

There could be two ways to structure the program, Gregg said. One would be to give a tax credit to all families regardless of income. The other would be to offer it based on a sliding scale, “where the less you make, the more of a credit you get,” he said.

Gregg also supports continued full funding of all-day kindergarten. “That will be a priority,” he said.

He did give credit to Gov. Mitch Daniels, who has  “done a lot of good work on this issue,” he said.

Asked about funding for his proposals, Gregg pointed to the state’s surplus, although he’s skeptical about numbers released by the state.

“Right now we have a surplus, supposedly, but we don’t know really what we’ve got,” he said. “That’s going to take an independent audit to find that out.” Once that is known, funding priorities — including early childhood education — can be established, he said.

The state has released figures stating it has a structural surplus (the amount of revenue exceeding ongoing expenses) of about $500 million. In addition, its overall cash reserves top $2.15 billion, according to figures released by the state auditor.

Gregg was clear about how the early education proposals won’t be funded. “We’re not planning on raising taxes” to fund them, he said.

According to Gregg, studies suggest the programs he has proposed will save the state money. “Studies show that every dollar invested in pre-K programs saves state taxpayers $7,” he said.

 

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