In 2020, more than 64 percent of Multnomah County voters approved a tax on our top income earners to help fund Preschool for All, creating a more equitable childcare system. We did this because providing families, especially those with lower incomes, access to affordable preschool will help address our local childcare crisis, create new jobs and businesses, and invest in the children who are the future of our region.
Wealthy business interests convinced Governor Kotek to pressure the Multnomah County Commission to cut or end Preschool for All, a program that 64 percent of us voted for in 2020.
Kids who get access to a preschool education are far more likely to graduate from high school, go on to college, and thrive. It's one of the best investments our country's government can make in our future.
While all families who need childcare benefits, this program invests directly in lower-income families with young kids. More than 50 percent of the participants are from Black, Indigenous, and People of Color and/or immigrants. This program is critical to closing the wealth gap in the County.
Access to preschool reduces childcare costs for low-income families, freeing up money to spend on groceries.
Preschool for All is funded by a tax on the wealthiest earners in the County. In the two years since Preschool for All has been implemented, the number of high-income earners in Multnomah County has increased by 34 percent, according to the Oregon Employment Data. Our lack of housing is hindering the growth of our local economy.
This past year, Preschool for All contracted with 133 providers in 26 zip codes, more than 2,200 seats for kids. In September, the number is expected to rise to over 3,000.
Preschool for All helps independent providers establish home-based family child care centers, small businesses that are the backbone of our economy. With stable funding from Preschool for All and access to capital dollars from the PFA Facilities Fund, many more small businesses will have the chance to expand and to serve more children.
During the pandemic, Oregon's childcare system broke down when dozens of providers closed due to financial challenges associated with running a daycare. Preschool was only available to the wealthiest parents who could afford to pay more than the equivalent of a monthly mortgage payment for childcare. Today, Preschool for All is helping working parents go back to work by bolstering an industry that had few workers. Preschool businesses are growing, especially for those that serve culturally specific communities.
Critics cite the fact that people are moving to Vancouver and other communities across the river. Washington has no income tax, which can save high-income earners tens of thousands of dollars, paling in comparison to any savings not paying a PFA tax. Vancouver's home prices are also 10 percent lower, so any suggestion that people moving north is because of this program is false.
The program serves as an economic multiplier for our region. For every dollar spent on high-quality preschool, the community sees a return of between $7 and $12. Investments in early childhood education programs reach far beyond individuals and families, saving money on costly interventions later in life and increasing the entire community's economic prosperity for generations to come.
Cutting or ending Preschool for All would add to the immoral wealth transfer in process at the federal government. Republicans in Congress are planning to cut billions in healthcare and food assistance programs that help lift middle and lower-income families to fund an enormous tax cut for millionaires and billionaires. Oregon leaders should know better.