A Blueprint for High-Quality State Preschool: Balancing Funding and Standards

Introduction

State-funded preschool programs have reached record levels of investment and enrollment, yet quality gaps persist across the nation. According to the National Institute for Early Education Research (NIEER) 2025 Yearbook, total state spending hit $14.4 billion, driven heavily by a few states like California, New Jersey, and New York. However, the rate of investment is slowing, and per-child spending varies dramatically—from over $15,000 in New Jersey to less in states with deficits. This guide walks policymakers and advocates through a step-by-step process to ensure that increased access does not come at the expense of quality. Use the strategies below to create an early education system that serves all children equitably.

A Blueprint for High-Quality State Preschool: Balancing Funding and Standards — Source: www.edsurge.com

What You Need

Access to the latest NIEER State of Preschool yearbook and state-specific data
Current state budget documents and early childhood education allocations
Enrollment figures for 3- and 4-year-olds, broken down by income and region
Teacher qualification and compensation reports
Benchmarks for quality (e.g., class size, staff-child ratios, curriculum standards)
Inflation adjustment calculator or tools to compare spending over time
Stakeholder input from parents, educators, and community organizations

Step-by-Step Guide

Step 1: Assess Your State’s Current Baseline

Begin by gathering comprehensive data on your state’s preschool landscape. Review the NIEER yearbook to understand where your state stands in terms of total spending, per-child spending (adjusted for inflation), enrollment rates, and quality benchmarks. Identify whether your state is among the leaders (e.g., New Jersey spending over $15,000 per child) or among those spending less than the previous year (17 states did in 2024–2025). Also note the enrollment trends—falling enrollment may indicate declining birth rates or access barriers. This baseline will reveal the gap between your current system and high-quality universal access.

Step 2: Set Clear Quality Benchmarks Aligned with Research

Quality must be defined before it can be measured. Use NIEER’s research to adopt evidence-based standards: small class sizes (e.g., no more than 20 children per classroom), low staff-child ratios (1:10 or better), qualified teachers with bachelor’s degrees and early childhood training, developmentally appropriate curricula, and comprehensive supports (health, nutrition, family engagement). As NIEER’s Allison Friedman-Krauss warns, "Right now, it’s more about access. And we don't want them to forget about quality." Make these benchmarks a legal or regulatory requirement, not just recommendations.

Step 3: Allocate Funding Per Child with Inflation Protection

Use the per-child spending data as a starting point. The national average increase in 2024–2025 was only $45 per child after inflation—far lower than the previous year’s 16-times-larger jump. To avoid eroding quality, automatically adjust per-child funding for inflation each year. Consider tiered funding models: provide additional resources for high-poverty districts, children with disabilities, or English language learners. Look at states like New Jersey, which despite a budget deficit increased preschool investment by $100 million, showing that funding is a matter of priorities.

Step 4: Improve Teacher Compensation and Workforce Conditions

Teacher pay is a persistent quality concern. Use a portion of new funding to raise salaries and benefits for preschool educators to levels competitive with K–12 teachers. Invest in professional development and career pathways. The report highlights that increased spending can go toward "improving teacher-to-student ratios and improving teacher compensation." For example, California’s $4.1 billion investment partly supports higher wages. Ensure that funding models reward programs that retain qualified staff and maintain low turnover.

Step 5: Expand Access Equitably Without Sacrificing Quality

Growth should target underserved communities. Analyze enrollment data by zip code, income level, and race. Prioritize families currently excluded. As NIEER’s report notes, "some states are nearing the finish line, others have stumbled and fallen behind." Avoid the temptation to quickly add slots in low-quality settings. Instead, phase in expansion alongside quality improvements. For instance, New York and New Jersey have expanded access while maintaining high per-child spending. Use a mixed-delivery system (public schools, private providers, Head Start) but apply uniform quality standards to all.

Step 6: Monitor, Adjust, and Report Annually

Create a transparent data dashboard that tracks spending, enrollment, and quality indicators year over year. Use the NIEER yearbook as a model. Publish a state-level version by midyear so stakeholders can see progress. If per-child spending declines after inflation (as happened in 17 states), triggers should automatically adjust the budget. Regularly reassess benchmarks—what worked five years ago may need updating. Engage researchers and practitioners to refine the system.

Step 7: Build Political Will and Public Support

As NIEER director Steve Barnett points out, funding decisions are "a conscious decision to say we’re going to spend less." Counter this narrative with data on the long-term returns of high-quality preschool: improved school readiness, reduced special education costs, higher graduation rates, and economic benefits. Form coalitions with business leaders, parents, and educators to advocate for sustained investment. Show how successful states like New Jersey made quality a priority even during budget deficits.

Conclusion Tips

Don’t confuse access with equity: High enrollment numbers can mask low-quality programs that widen achievement gaps. Always tie enrollment growth to quality standards.
Protect against inflation: A static budget loses value each year. Build in automatic inflation adjustments for per-child spending.
Learn from leaders: California, New Jersey, New York, Oregon, and D.C. show what’s possible with high per-child investment. Adapt their strategies to your state’s context.
Use the NIEER yearbook as a tool: Compare your state’s performance annually to identify strengths and weaknesses.
Prioritize teacher support: High-quality staff are the backbone of effective preschool. Competitive pay and ongoing training are non-negotiable.
Think long-term: The race for universal high-quality preschool is a marathon. Steady, incremental improvements beat boom-and-bust cycles.