Communities can get a better bang for their economic development buck by investing in the minds of young children, an official from the Federal Reserve recently told local educators, policy-makers and community leaders.

Arthur J. Rolnick, senior vice president and director of research at the Federal Reserve Bank of Minneapolis, usually speaks about the business cycle and monetary policy, but recently came to Connecticut to talk about "Economic Development Through Early Childhood Investment."

By looking at countries like South Korea, Rolnick said the key ingredient to economic development there was educating the work force. Instead of investing in equipment like tractors, he said the South Koreans found there is more long lasting benefit to building human capital. Rolnick said the same goes for our nation's children.

Approximately 100 people attended the event at the Anthem Blue Cross and Blue Shield Auditorium in North Haven, including New Haven Mayor John DeStefano and Betty J. Sternberg, commissioner of the Connecticut Department of Education. A panel of experts shared their findings and enthusiasm of early childhood education.

Connecticut's 550,000 students in grades K through 12 are consistently ranked among the top five when compared with other states. However, the gaps of achievement between the wealthy and the poor students are larger gaps than average. "We need to look at our students, at our teachers, and at what we teach," said Sternberg.

In Connecticut, we spend $5 million to $6 million annually in state and local education, said Anthony Rescigno, president of the Greater New Haven Chamber of Commerce. He claimed some of that money is wasted because not all children possess the necessary skills to succeed when they enter kindergarten.

"Intervention, when done correctly, can make a huge difference," said Rolnick. "Back 20 to 30 years ago when a child was zero to 5 and they had a problem, people said 'they'll grow out of it.' Today, we know that's not true. Brain research shows us that they don't."

Research shows that for every $1 invested as much as $7 to $8 is returned. The return is a result of a reduction of the need for special education, which alone saves at least $13,000 per child, per year. That - combined with reductions in welfare and prison cost, with increases in tax revenue on higher earnings - adds up to approximately 16 percent return on the investment.

Rolnick cited studies like the Perry Pre-School Project to support his argument. The study showed that those who went to pre-school had significantly lower arrest rates and significantly higher paychecks later in life than the others who did not attend pre-school.

Further research is occurring to measure the affects on the next generation as well as on the parents and families of pre-school educated children. Some say the 16 percent return may be even greater.

When a business comes into the community, jobs are created and the benefits are visible so it's easier to garner support for it. The problem Rolnick and advocates in Connecticut have is that the up-front costs of early childhood education are high while the rewards are long term and not very visible.

But members of the panel agreed it's time to start talking and start doing.

Marketing has a long way to go, said Rolnick. The campaign of Ready, Set, Grow ... CT Kids! calls for business, community, philanthropist, elected official, educator and parent involvement to get the ball rolling.

DeStefano showed his support for the program emphasizing that this is a choice that we need to make. "Let's do great by our kids," he said.

During his visit to Connecticut, Rolnick also spoke at Fairfield University's Dolan School of Business. Lt. Gov. M. Jodi Rell joined him there.

Sponsors of the events include the Connecticut Conference of Independent Colleges; SACIA, the Business Council of Southwestern Connecticut; Bridgeport Regional Business Council; Bridgeport Economic Development Corp.; United Way of Eastern Fairfield County; Bridgeport Child Advocacy Coalition; Connecticut Voices for Children; Connecticut Commission on Children; and Ready, Set, Grow ... CT Kids!