Crucial insights for industry executives, business owners, investors, and policymakers on the state of Universal Pre-K.
FOR IMMEDIATE RELEASE
BALTIMORE, MD – JULY 31, 2024 – Tuscany Strategy Consulting, a consulting firm advising executives and Private Equity working in the $7 Trillion global knowledge and learning industry, released today, Tuscany Insights Report: Universal Pre-Kindergarten & Private Childcare. This report is pertinent to industry executives and investors, individual business owners, state and federal representatives, and advocacy groups seeking to better understand what universal pre-K (UPK) is and its implications on private childcare.
Unlike other state-sponsored/subsidized programs like Head Start, which set limits on participation (e.g., income thresholds, special education needs) UPK aims to provide access to quality early childhood education to all 4 year old children (and sometimes 3 year olds).
Most regions in the U.S. provide some form of state-supported Pre-K, though only seven states are classified as having “mostly achieved” Universal Pre-K. UPK programs offer broader access to early education, ensuring that more children have the opportunity to participate in programs that adhere to rigorous quality standards. Many state UPK programs demand state licensure requirements. UPK poses different benefits and risks for private early childhood education providers.
“Participation in UPK has the potential to create a steady influx of children, which is a substantial incentive.” said Linsey Allen, Director of Grace Early Learning Center. “It’s becoming evident that UPK could be a pivotal focus in addressing the needs of the community, staff, and children.”
Policy makers, media, and ECE providers are focusing on UPK post-pandemic for notable reasons:
Lower-cost providers experienced the highest rate of closures from 2019 to 2022 with home-based programs experiencing an 11% decline over that period attributed to COVID, staffing shortages, and rising operating costs. Post pandemic, families are facing fewer lower-cost options in communities across the nation.
American Rescue Plan Act (ARAPA) childcare stabilization grants expired September 30, 2023, which had been supporting childcare stabilization during the pandemic, allowing providers to remain in operation, pay to attract and retain talent.
The ECE sector is additionally facing a declining child population and tightening labor supply which are driving labor costs (see Tuscany’s Dynamics Affecting Private Childcare Report, Spring 2024).
A growing need for state-level support as private citizens and independent operators turn to state-level lawmakers to stabilize the childcare industry while states seek to combat documented learning loss from the pandemic.
As UPK gains ground, providers should weigh benefits such as additional enrollments against the potential operational and brand impacts of UPK participation. Download the Tuscany Insights Report: Universal Pre-Kindergarten & Private Childcare for a detailed view into UPK adoption, funding levels, and implications private childcare operators should consider.
For media inquiries, please contact:
Vanessa Vaughn, Consultant
vvaughn@tuscanystrategy.com/ 972-971-0743
About Tuscany Strategy Consulting
Since 2007, Tuscany Strategy Consulting has helped propel long-term growth for corporate and non-profit leaders across multiple industries, completing hundreds of complex engagements in demand discovery, new market entry, strategic pricing, product roadmap development, operations, sales and marketing, and brand development. Our extensive M&A practice supports Private Equity with buy and sell-side company and market due diligence, value creation planning, firm integration, and bespoke projects. We are striving to set a new standard of excellence for strategic advisory services. For more information about Tuscany Strategy Consulting and our services, please visit our website at www.tuscanystrategy.com.
