The Northeast Mississippi Daily Journal reported on April 6 that incentives paid by the state to persuade companies to relocate to the state are paying off. A study conducted by State Auditor, Stacy Pickering’s office found the state has had a return of $12 for every $1 invested in the five incentive programs operated by the Mississippi Development Authority, even when taking failures into account. This rate of return is almost as high as that of investing in high quality early childhood education as a work force development strategy according to Nobel Prize winning economist Dr. James Heckman. Dr. Heckman, who spoke with Mississippi’s work force development leaders at a meeting several months ago, was direct in his message-work force development begins with infants and toddlers. His work points to a 13.7% per annum rate of return for individuals experiencing high quality early childhood education when factoring income, family stability, health and social status of individuals over their life trajectory.
As Pickering’s report points out, his office studied 243 projects going back to 2010 that were awarded incentives by the state. The audit cited 11 failures and 5 programs considered successful. The five studied that were considered successes have generated 36,000 jobs and $8 billion in investments they have offered. This report, in conjunction with Dr. Heckman’s economic analysis of where work force development funding’ s greatest return in investment is realized, sets a new course for work force developers. This is an alignment of facts which provides a clear map for allocating work force development funds to grow workers with the needed skills to perform the jobs coming to town.
While Mississippi is not considered in the top tier of Republican states that have invested state funds in significant amounts toward early childhood programs, the potential of an infusion of work force dollars in addition to the Federal funds the state receives for providing child care for children living in low income homes where parents work is a no-brainer for the education of the next work force. This investment, along with Head Start funding and state funds for pre-kindergarten collaboratives, makes for an evidenced based strategy that will result in the prepared work force the state is going to need if jobs are filled. Honest assessments of current early childhood systems or lack of them as well as thoughtful planning that holds agency and program entities accountable to correct missteps is critical. This, along with carefully designed programs targeting very young children, such as the Coleman Parenting Center in Petal, holds the key for a new Mississippi led by highly trained workers who attended Mississippi Schools and graduated at the top of their classes.
By Dr. Cathy Grace