County Commissioners Face Complex Decisions Regarding Preschool for All's Financial Future
The Multnomah County Board of Commissioners is grappling with a critical issue as they strive to ensure the long-term financial sustainability of Preschool for All. The program, funded by a marginal income tax, aims to provide universal preschool by 2030, but the true costs are proving to be a complex matter.
The recent briefing introduced a dynamic cost model developed by Prenatal to Five Fiscal Strategies (P5FS) to better understand the expenses associated with Preschool for All. This model considers various factors, including student age, center type, mandatory taxes, licensing, non-personnel expenses, and salary step requirements. By offering a more data-driven approach, it aims to determine reimbursement rates more accurately.
However, the commissioners' concerns go beyond reimbursement rates. They are deeply interested in the program's long-term financial health, especially as they contemplate changes to the controversial tax that funds it. The discussion revolves around the additional expenses Preschool for All might incur to meet its ambitious 2030 goals, such as funding support for high-needs students and potentially financing teachers' degrees.
The P5FS model reveals a modest underreimbursement of center-based providers, with a $2,364 per student gap in the latest fiscal year. This underreimbursement is concerning, as it falls short of covering the true cost of care. Lead teachers' salaries, for instance, are projected to rise from $30.65 to $36.94 per hour by 2030, but 61% currently lack associate's degrees, raising questions about the feasibility of this goal.
Commissioners like Meghan Moyer express skepticism about achieving such rapid improvements without additional resources. They also raise concerns about benefits, liability insurance costs, and the need for inclusion supports, which are essential for high-needs preschoolers. The dynamic cost model's ability to reflect these needs is a critical aspect of financial decision-making.
The commissioners' discussions highlight the intricate balance between financial sustainability and program goals. While Preschool for All has a substantial nest egg, the county officials acknowledge that it will be drained as the program expands. Demographic considerations and the program's scope are also on the table for discussion.
This complex financial landscape underscores the importance of careful planning and decision-making. The commissioners' role is pivotal in shaping the future of Preschool for All, and their choices will have a lasting impact on the program's success and the community it serves.
