A new report out of New York offers another economics lesson, suggesting every dollar invested in early learning within that state generates $1.86 in new spending.

With New York struggling to cut its state budget, a Leading Edge report offers a compelling argument to spend more not less on early education, saying an infusion of $3.6 billion to give all of the state’s kids access to quality early child care and education would create $6.7 billion in spending on New York businesses.

“Business leaders are sending a clear message to Albany: investing in early education is essential for economic development in New York. The early care and education sector is an often-overlooked area that will immediately boost the economy and create long-term economic security,” John Cavalier, former chief executive officer at MapInfo, said in a summary of the report.

While a number of studies offer estimates on the long-term return-on-investment of early education, this report focuses on many short-term benefits, including $80 million in sales at local utility companies, $113 million at restaurants and $29 million in sales at supermarkets.

It also offers fresh evidence for an idea that is gaining momentum: Quality early learning plays an important though sometimes overlooked role in a region’s economic competitiveness, since it helps attract new businesses and skilled workers.

“Investing in early learning would also save New York businesses money every day through reduced absenteeism and turnover and would help increase the ability of New York businesses to attract skilled employees and new businesses. Quality early care and education programs allow working parents to be attentive to their jobs rather than worry about day care arrangements.” – New York Businesses Leaders See Major Economic Boost By Expanding Child Care and Pre-K (press release), America’s Edge, 3/11/10.

And if you want a little inspiration, check out the Heckman Equation’s Facebook post with highlights from last Thursday’s National Economic Forum on Early Childhood Investment.

“…early childhood education is like the foundation to a house. It the foundation is not sound, everything else suffers.” – Michael Mandel, former chief economist at BusinessWeek.

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