K-Readiness Methods

The effects of performance-based financial incentives will be evaluated within the context of a randomized controlled trial. Approximately 2,450 three-year-old children will participate in the study. Participating children will be randomly assigned into one of two groups:

Financial Incentive Group (40%; n = 980 children): Families and/or providers will be offered a financial incentive tied to a child's kindergarten readiness status.

Business-as-Usual Group (60%, n = 1,470 children): Children will continue to receive their normal early childhood experiences and services.

Random assignment ensures that differences observed between groups can be attributed to the incentive rather than other factors.

The study is designed to provide reliable and precise estimates of program effectiveness.

Based on findings from prior early childhood research, approximately 2,450 participating children are needed to detect meaningful differences in kindergarten readiness outcomes, should such differences exist.

The proposed sample includes:

• Approximately 150 child care centers and regulated family child care homes
• An average of 15 participating children per center/home
• Approximately 200 additional children who do not attend center-based care

This sample size will also allow researchers to evaluate the cost-effectiveness of the incentive approach and estimate what statewide implementation might cost if policymakers choose to pursue the model in the future.

One of the most common questions about the pilot is why all children, families, and child care providers are not included.

The answer is simple: we do not yet know whether this approach works.

Implementing an untested program statewide would require substantial public resources without evidence that the investment improves outcomes. By first conducting a rigorous evaluation, Kentuckians determine whether the program produces meaningful benefits and whether those benefits justify the costs.

By carefully evaluating the program before any large-scale implementation, the Commonwealth can make decisions based on evidence rather than assumptions.

The University of Kentucky is committed to transparency throughout the evaluation process.

To the maximum extent permitted by law, participant privacy protections, and Institutional Review Board requirements, the evaluation team will work to make study data, findings, methodologies, and other information publicly available.

Protecting participant confidentiality remains a top priority. Any public datasets or reporting will comply with applicable laws, regulations, and University of Kentucky research oversight requirements.