As the Minnesota Legislature and the governor grapple with the large budget deficit that confronts our state, we want to encourage our policymakers to use the concept of return-on-investment in assessing which programs to support. We believe that using a return-on-investment model will enable our leaders to assess which programs provide the greatest short-term and long-term benefits to Minnesota's economy and social fabric.

The two of us have participated in the economic development of Minnesota in different ways, one as past founder and managing partner of Lowry Hill Investment (a subsidiary of Wells Fargo), and the other as past chair of the House Economic Development Committee. We agree that education is the most important economic development investment the state can make and that the highest return on investment comes from wise expenditures focused on our youngest citizens, ages 0 to 5.

Over the past half century, as investment in education increased in Minnesota, so, too, did personal income per capita. Minnesota moved from the middle of the pack of the 50 states to the top 10 over that period. We believe if we are going to be at the head of the pack, we need renewed investment in education, and we encourage a much stronger commitment to early childhood education, which now receives only 1 percent of the state budget.

There are a number of studies that demonstrate the high return on investment of early childhood investment. Two examples are the High/Scope Perry Preschool Study in Ypsilanti, Mich., and the Chicago Child-Parent Center Program. Both looked at the impact over a number of years of the disadvantaged children who participated in high-quality early learning experiences.

The Perry Preschool study showed that children who had been through the program earned more in later life; were much more likely to own their own home; more likely to graduate from high school on time; and less likely to be arrested or require public assistance. In 2001 dollars, the total financial benefits of the Perry Preschool Program amounted to $105,324 per participant by age 27. Divided by the cost of $14,716 per participant, the percentage return on investment (after subtracting the original cost) exceeded 600 percent.

The Chicago Child-Parent Center program demonstrated similar strong results. A follow-up study by two current University of Minnesota scholars, Arthur Reynolds and Judy Temple, provided a comprehensive analysis of the program that showed participants to have had higher academic achievement, higher earning power, lower rates of criminal behavior and higher levels of mental health, among other benefits. The benefit-to-cost ratio amounted to 7.1 to 1 (and did not include the reduced pain and suffering by victims of crime).

During tough economic times, it makes little sense to get rid of the best performing stock in the state's "portfolio" of investments.

A recent study done by the Wilder Foundation and sponsored by the Bush Foundation estimated the cost to the K-12 system of children arriving at kindergarten not ready for school. The estimate was an annual amount of $113 million due to subsequent drop-outs by those not ready; added special education costs; costs related to English language learners; and delinquency-related costs, as well as costs associated with the negative impacts on teachers of dealing with unprepared students.

It is remarkable how powerful the effects of quality early learning experiences can be for at-risk children. These return-on-investment numbers are striking, and we have heard of no other public expenditures that exceed them. Yet only half of our entering kindergartners are fully prepared to thrive in school, according to the Minnesota Education Department.

The choices in front of the Legislature and governor are difficult, yet the challenge ahead should encourage our leaders to step back from the budget picture and look at state spending with fresh eyes. We strongly urge our leaders to integrate return-on-investment into the thinking that shapes their decisions, and strongly urge them not to erode the 1 percent now devoted to early care and education, the lion's share of which goes to benefit children in struggling families.

The future of Minnesota's workforce and economy are at stake.

Peter Heegaard is a retired executive with Wells Fargo Bank and is chairman of the Ready 4 K board of directors. Todd Otis, who served in the Minnesota House of Representatives from 1979-90, is president of Ready 4 K.