Cost Savings Analysis

Although, the primary mission of the Parent/Child Center is to promote the well-being of all families with young children, the Center also helps to prevent costly future problems. In a study conducted by the State of Vermont, it was estimated that these savings have amounted to more then ten million dollars (10,556,500) over the past eight years.

The typical cost to taxpayers of supporting a teenage girl and her baby until the child enters kindergarten is $66,052. Services required by most teen parents include: Delivery cost $2,000; supplemental food (WIC) -$390/year; ANFC (Aid to Needy Families With Children, including food stamps, fuel assistance, financial assistance and life-line telephone) -$6,312/year; Subsidized housing -$2,000/year; child care (while mother completes high school education) -$1,584/year.

Children of teenagers are at much higher risk of having low birth weights and/or handicapping conditions than are children of older mothers. Such families may require supplemental services estimated to total $119,700. Although, each case is unique, these typically include: intensive nursery care -$40,000; correctional operations - $5,000; specialized equipment (such as braces, wheelchairs, hearing aids) -$2,000/year; physical, speech and occupational therapy - $50/visit; Essential Early Education services -$2,400/year; respite child care -$1,600/year.

Based on these cost estimates, it is possible to calculate the savings in tax-dollars:

There have been 335 babies born to teen parents since the start of the Parent/Child Center program. The savings in terms of healthy birth outcomes, compared to the State's average, was $743,000. This reduces welfare dependency in this population and provides an additional savings of over six and a half million dollars ($6,554, 600).

In addition, because of reduced pregnancy rates, 108 fewer babies were born during this period. If only 60% of these had required public assistance, it would have cost the taxpayers over four million dollars ($4,280,170). If only two of these children had needed specialized health care services, it would have cost an additional $371,428. Finally, the cost to taxpayers of providing child care for girls who required no other public assistance would have been $273,715.

The net savings to taxpayers of more than ten million dollars takes into account the cost of running the program. It does not reflect substantial additional savings based on decrease in child abuse, foster care placements, special education services for school age children, correctional services or long-term dependency on public assistance.

The average yearly saving to tax-payers is $1,320,000.