A new study conducted by the Center for Benefit-Cost Studies for Columbia University’s Teacher College shows that for every dollar invested in training in social-emotional learning, there is a return of investment of eleven dollars.
See this 64 page report by Dr. Clive Belfield, et al, here. Dr. Belfield also conducted a study in 2009 (see below) showing how much money we spend on crime and substance abuse out of the Massachusetts state budget.
By training children in SEL techniques and skills, taxpayers can seriously reduce what is spent every year in violence and crime. 78% of all crime is related in some way to substance abuse. 22% of the Massachusetts state budget is spent on just these two issues.
Annual Spending on Crime and Substance Abuse: Boston and Massachusetts (2008)
|Total state spending||$5.87 billion||$1.68 billion|
|State spending in the City of Boston||$0.51 billion||$0.34 billion|
|City of Boston spending||$0.17 billion||$0.25 billion|
|Total spending in the City of Boston||$0.68 billion||$0.59 billion|
For Massachusetts, state spending on prevention is less than 1% of the total expenditures on substance abuse. 22% of the entire state budget is spent on crime and substance abuse.
Download the full report here.
*Clive R Belfield Clive.Belfield@qc.cuny.edu Associate Professor, Economics, Queens College, City University of New York, Co-Director, Center for Benefit-Cost Analysis Studies in Education, Teachers College, Columbia University, Adjunct Associate Professor, School of International and Public Affairs, Columbia University. Report funded by GetPsychedSports.org.
A new way to fund prevention programs are called Social Impact Bonds or Pay-for-Success Contracts. The way social impact bonds are usually structured is that a government entity enters into a contract with an intermediary organization that raises capital from investors such as banks and foundations and then hires/manages a non-profit organization to provide services that meet a certain pre-determined evaluative data. Massachusetts has issued two of these contracts, but only one so far has been implemented.
The services to be provided by the non-profit address social issues that cause great expenditures by the government. The object is to have private financing invest in programs that work to reduce the costs to the government.
We believe that effective social-emotional learning implemented in all our schools will significantly reduce the 22% this Commonwealth spends on crime and substance abuse and urge the Commonwealth to seek such social impact bonds for this transformative educational initiative.
To read more about Massachusetts Pay-for-Success initial announcement here on a Massachusetts government site announcing the successful bidders.
Spring, 2011 (American Educator)”The Economics of Inequality – the Vaule of Early Childhood Education”See this very interesting article about the economics of early investment in children by working against inequality.August 13, 2011