Governor Tina Kotek issued a statement on Thursday emphasizing the need for Multnomah County officials to tackle ongoing issues with the implementation of the Preschool for All program while alleviating the tax burden on the county’s higher earners.
In her remarks, Kotek did not mention a specific Senate bill aimed at ending the Preschool for All tax this year, but she hinted at using it as leverage to encourage County Chair Jessica Vega Pederson to make necessary reforms.
Kotek asserted that county officials could implement these changes without disrupting the education of children currently enrolled in the program.
“The county must walk and chew gum at the same time—continue to serve the children it is serving, amend the tax, and fix the program before the next tax year to reduce the burden on Multnomah County residents,” she stated.
This recent statement follows a similar sentiment previously expressed by Kotek to Chair Vega Pederson on June 10, where she criticized the program for not adapting to changing economic realities, suggesting that it was pushing high earners out of the county and undermining the tax base for the rest of Oregon.
In her latest remarks, Kotek delivered a strong admonition to the officials in Multnomah County, the state’s most populous area, and her political stronghold.
“When you are elected and given authority over tax collection and budgets, it comes with the responsibility of adapting to the evolving needs of the people you serve,” Kotek stated.
She added, “It comes with measuring outcomes against every penny you spend. Right now, the scales are out of balance.”
While a last-minute amendment to a Senate bill seeking to eliminate the Preschool for All tax is not projected to progress this legislative session, this move has triggered backlash from a wide array of supporters of the program, including providers, parents, and advocates.
These supporters have embarked on a campaign urging Kotek to leave the program intact, highlighting its transformative impact on many families throughout Multnomah County.
The Preschool for All program is funded via a tax of 1.5% on income exceeding $125,000 for single filers and $200,000 for joint filers, with an additional 1.5% on income over $250,000 for single filers or $400,000 for joint filers.
Supporters also pointed out that the number of filers contributing to the Preschool for All tax in 2023 surpassed those in 2021, despite county data indicating a decline in filers earning over $500,000. This is significant, as a small number of high earners are responsible for generating the majority of the program’s revenue.
In response to Kotek’s remarks, Vega Pederson expressed disappointment over what she perceived as the governor’s intention to undermine the program.
“A successful program in Multnomah County helps light the way for the rest of our state,” she stated. “Children and families in our community should not be asked to wait to have quality preschool until some uncertain future day when there is a statewide plan.”
Kotek also highlighted her issues with the program’s implementation, describing it as “breaking beneath its own weight.”
She pointed out that the program has accumulated at least $485 million in unspent funds, citing inconsistent implementation, scope creep, and a backlog of providers waiting to serve families while tax revenues continue to accrue.
Only about 11% of eligible licensed sites are currently participating in the program.
Kotek’s concerns reflect ongoing discussions around the implementation challenges that have been scrutinized within the local media since 2023.
Supporters of the program have countered claims that it is falling behind, attributing difficulties to pandemic-related setbacks in expanding capacity.
Others contend that the underspending of funds will ultimately contribute to the program’s financial stability as it grows.
In closing her statement, Kotek expressed hope, asserting, “This may come as a surprise, but this desire comes from a position of optimism, not cynicism—that complex problems can be solved, that we can serve children and build prosperity at the same time.”
This dialogue reflects the challenges and potential pathways for addressing both the needs of education and tax structures in Multnomah County.
image source from:wweek