Instead of starting on Jan. 1, 2026, as approved by voters, the increase would take effect Jan. 1, 2027.
Preschool for All, which began in September 2022, provides free, high-quality preschool education to 3- and 4-year-olds in Multnomah County, a step shown to make a child more likely to graduate high school, attend college and be successful in their future careers. Voters approved the program on Nov. 3, 2020 with a goal of 12,000 publicly funded seats by 2030.
The program continues to roll out according to the Preschool for All plan developed before the COVID-19 pandemic, and later revised to address the significant impacts of the pandemic on early childhood education.
The County continues to add preschool providers in a battered industry, expand the workforce through training and financial incentives, open new facilities across Multnomah County, and partner further with school districts and community organizations to build the system. This approach was central to the plan originally approved by voters. The County also implemented the program in a way that it could fully cover costs in the years ahead, even as those costs eventually outpace volatile tax revenues over the coming decade for a period of time.
For the 2024-25 school year, the program was set to have 2,000 children in preschool. The County will actually provide preschool for 2,070 children, and will expand by an additional 174 seats in January. This year, the County has also supported more than 250 early educators with professional development and higher education opportunities – a number expected to more than double in the coming year. The program has also trained more than 60 career coaches in early childhood education, recruited 74 providers and funded millions of dollars in investments in new facilities.
The program is funded by a special income tax on high earners in Multnomah County. The tax is 1.5% on income over $125,000 for individuals and $200,000 for joint filers, with an additional 1.5% on income over $250,000 for individuals and $400,000 for joint filers.
The measure included an automatic 0.8% tax increase on Jan. 1, 2026. It also required the Chair to convene a Technical Advisory Group (TAG) to issue a recommendation to the Board on the need for that tax increase and the program’s future revenue requirements before Jan. 1, 2026. The ordinance would also formally delay the report for one more year along with the tax increase.
“From the beginning, we’ve known the program would collect more money than needed in its early years, and that those collected funds would be needed after we achieve universality when the program’s costs are expected to exceed its revenue,” Chair Jessica Vega Pederson said.
Starting Fall 2024, the advisory group — composed of subject matter experts — will evaluate the financial needs and outcomes of the program, study the impacts of the existing revenue mechanism, and develop recommendations to ensure the program is fully funded moving forward. They will consult with various groups, including County commissioners, taxpayers, preschool providers, parents, school districts, and community organizations.
The Board also considered – and did not approve – an amendment from Commissioner Julia Brim-Edwards to annually index the tax collection, which would adjust the taxable income structures to account for the rate of inflation. Commissioners expressed interest in further consideration of the proposal.
A delay in the tax increase would keep the current tax rate in place for now. This change means the program would collect about $48 million less in 2027. However, the program would still be able to meet its goals and provide the promised services. A second reading where the Board will take a final vote on the ordinance is scheduled for September 5th.
“This will give us one additional year of post-pandemic data to help us make informed decisions as a Board about how we remain on-track to universal preschool access by 2030,” Chair Vega Pederson said. “I’m grateful to the County staff and independent subject matter experts who will be conducting this important work and helping inform and sustain a program that means so much to the Multnomah County of today and to our future generations.”