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Gov. Tina Kotek released a statement Thursday reaffirming her position on Preschool for All: Multnomah County officials must do more to address issues plaguing the program’s implementation, while reducing the tax burden on the county’s higher earners.
While never mentioning a Senate bill that would have ended the tax this year, Kotek’s statement indicated she intends to use that leverage to spur County Chair Jessica Vega Pederson to reform the program. She contended that county officials can make those changes without disruption to any child currently enrolled in the Preschool for All 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,” Kotek said.
The governor’s statement doubles down on positions she previously expressed to Chair Vega Pederson on June 10, when she wrote that the program was not taking into account shifting economic realities and was driving out high earners, eroding the tax base for the rest of Oregon.
In her statement today, Kotek delivered a remarkable scolding to officials in the state’s most populous county (and the base of her own political strength), all but calling them derelict in their elected duties.
“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 said. “It comes with measuring outcomes against every penny you spend. Right now, the scales are out of balance.”
The last-minute amendment to a Senate bill to kill the Preschool for All tax is not expected to move this session. But it has spurred outcry from a gamut of supporters of Preschool for All. Those providers, parents and advocates have started a campaign to tell Kotek to keep her hands off the program, which they say has been transformative for many families across Multnomah County. (The program is funded by a tax of 1.5% on income over $125,000 for single filers or $200,000 for joint filers, and an additional 1.5% on income over $250,000 for single filers or $400,000 for joint filers.)
Supporters have also argued that there were more filers paying the Preschool for All tax in 2023 than 2021, though the county’s data has shown that the number of filers in brackets above $500,000 has steadily declined. That matters because even though these high earners constitute a small portion of the tax’s filers, they are overwhelmingly responsible for most of the program’s revenue.
In a statement issued in response, Vega Pederson said the governor’s choice to double down on “undercutting” the program was “disappointing.”
“A successful program in Multnomah County helps light the way for the rest of our state,” she said. “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 used her statement to emphasize her displeasure around the program’s implementation, which she described as “breaking beneath its own weight.” The program has “at least $485 million in unspent funds combined with spotty implementation, scope creep, and a line of providers waiting on the other side of stacks of paperwork to serve families while tax dollars continue to be collected,” she said, noting that only about 11% of possible licensed sites are participating.
The issues Kotek identified largely correspond with implementation struggles WW has examined since 2023.
Supporters of Preschool for All have disputed the program is behind schedule, citing pandemic-related challenges in expanding capacity. Other supporters have said the program’s underspending will keep it financially sound as it ramps up capacity.
Kotek says the county can do better: “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.”
