Preschool For All supporters, clad in yellow and holding signs that read “Universal Preschool Now,” came out in droves to defend Multnomah County’s preschool program at a public listening session Wednesday night.

The meeting was part of a series of Preschool For All presentations hosted by the county this month. The sessions follow tension at the end of this year’s legislative session between top county leaders, including County Chair Jessica Vega Pederson and top state officials, such as Gov. Tina Kotek and Democratic lawmakers.

The August meetings are intended to help inform commissioners as they consider a proposal that would automatically adjust the program’s income tax thresholds based on inflation, a practice known as tax indexing.

Backers of the proposal say the change is needed to preserve taxpayers’ purchasing power and restore public confidence in the program. Those opposed say it would undermine the universal preschool effort and harm the families and toddlers currently benefiting from it.

For two hours preschool providers, teachers, parents, union leaders and other community members ticked off reasons why county commissioners should leave Preschool For All alone.

“We want universal preschool for our kids, our families, and our future,” said Portland City Councilor Tiffany Koyama Lane, who was among the first to speak at the session.

“What’s being proposed is so troubling. This program is not even halfway through its rollout,” she said. “Cutting it back now would kneecap it before it ever becomes fully universal and it would betray the promise we made to voters.”

Preschool For All is the county’s burgeoning universal preschool effort for 3- and 4-year-olds. Multnomah County voters approved the program in 2020. The effort to establish free preschool across the county is funded by a 1.5% tax on earnings above $125,000 for individuals and $200,000 for households. Earnings above $250,000 are taxed at a higher rate.

Hundreds of free preschool spots began opening up in 2022. County officials expect to serve 3,800 children next school year. Parents with children in the program say it’s been life-changing.

“I am a parent of a child who was just accepted into Preschool For All,” said Portland resident Alli Holmes at the meeting. She described how her family has struggled to make ends meet in Portland.

“When we found out [our daughter] was accepted into this program, I burst into tears in the middle of a meeting,” Holmes said. “It has literally brought an immense relief to our family.”

But Preschool For All has had fits and starts. A county audit this year found the program had consistently underspent in capacity building, preschool contracts and teacher training. The audit warned if those trends continued the program would not be able to provide universal preschool by 2030, a goal promised to voters.

The program has also been under fire for months from local and state leaders over its implementation, slow rate of investment in expansion and concerns that the tax is pushing out the county’s high-income earners.

Among Preschool For All’s top critics is Kotek, who called on county commissioners to make changes to the program in June. She gave the local leaders a deadline to “fix” the program by the 2026 tax year.

The tax indexing proposal, put forth by Commissioner Julia Brim-Edwards, would increase the 1.5% tax threshold from $125,000 to $153,000 for individuals and from $200,000 to $245,000 for joint households. Future tax years beyond 2026 would be determined by the Consumer Price Index.

At the meeting, supporters of the fixed tax thresholds for Preschool For All worried that indexing would result in reduced revenue for the program over time and ultimately fewer available child care slots. Others pleaded with the county commissioners to let the program mature and fulfill its mission of providing free preschool to families and children. And some Preschool For All providers talked about how the program has become a lifeline for their small businesses.

“We can’t and won’t survive without Preschool For All, especially with the budget cuts from the state,” said Anita Hunter, owner of Family Cares Daycare. “We want no cuts, no compromise and no indexing.”

Multnomah County commissioners are expected to discuss the proposal at its regular board meeting today. A final vote on the matter is scheduled for next Thursday.

News Source : https://www.opb.org/article/2025/08/21/preschool-for-all-tax-indexing/