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Multnomah County Auditor Jennifer McGuirk sent a letter to the board of commissioners Wednesday raising concerns that Preschool for All’s practice of paying for all seats allocated to a site, empty or filled, could open up the program to wasteful spending.
McGuirk’s office had initiated an investigation into alleged fraud and waste at Preschool for All after a report to the Good Government Hotline, but the probe did not substantiate that claim. Still, the auditor noted the investigation had alerted her to a couple of concerns worth flagging.
The auditor first flagged her concern that the program would not be able to sustain its practice of paying for empty seats. In her letter, McGuirk notes that as of Aug. 13, 1,250 seats remained open. It would cost the county $2 million a month to pay for those seats, she wrote.
“While [the county’s current] contracting methodology is understandable to support preschool site operators that have committed to Preschool for All, paying for empty seats risks the sustainability of the program,” her letter reads. “The significant expansion of seats in the 2026–27 program year could lead to significant open seat expense.”
While the county sits on open seats, McGuirk also flagged that the program has a long waitlist. Preschool for All reported a waitlist of about 3,000 in August. (Every child may be on up to eight preschools’ waitlists, meaning there’s a minimum of 375 families on the waitlist; 375 is “likely a significant understatement,” McGuirk wrote.)
“This points to a potential mismatch of resources in terms of seat allocations to preschools,” McGuirk wrote. “Aligning the allocation policies and processes to ensure allocations reflect demand could help ensure that fewer Preschool for All seats go unfilled.”
In two recommendations for the 2027–28 program year, McGuirk suggested the county strengthen its seat allocation policies to ensure allocations were data driven and improve the program’s waitlist by more proactively communicating with families about what’s open.
The county is expected to meet universal preschool earlier than anticipated, largely thanks to new demographic forecasts that show a smaller number of 3- and 4-year-olds in the county who would take advantage of its services. In the 2026–27 academic year, it allocated about 7,100 seats to providers across the region, almost double what it did the previous year.
McGuirk included a response from County Chair Jessica Vega Pederson to her recommendations. Vega Pederson wrote that while the allegation that spurred McGuirk’s investigation was not substantiated, the county was working on many tasks related to both recommendations.
Vega Pederson noted that the program is developing, in its final stages of growth, a better understanding of what’s needed where.
“While PFA is able to offer more seats than ever before, filling those seats is an equally important step,” Vega Pederson writes. “To do this, PFA must ensure that what is offered actually meets family needs.”
Program leaders have been engaged in a gap analysis, which looks at everything from census to application data to determine where the program needs to provide more or fewer services to meet universality. Vega Pederson wrote that the analysis had so far revealed that while Preschool for All had many open seats in some areas of outer East Portland, it currently struggles to meet demand in inner Southeast, Northwest and Southwest Portland.
That geographic criteria has informed awards for facilities funding and midyear seat allocations, Vega Pederson noted.
The chair also addressed McGuirk’s recommendation to improve the program’s waitlist policy, noting Preschool for All was strengthening its communications policies around available seats and expanding outreach efforts in the current year. A new team of family engagement specialists will be more proactive about connecting with families on a waitlist and working with them to identify new preferences.
Work is also happening between the county and its contracted preschool providers. Vega Pederson wrote that providers will receive technical assistance and marketing support to better enhance recruitment.
The county, it appears, is also aware of the threat of paying for too many open seats. As Multnomah County increases the number of publicly subsidized preschool seats it offers, it has instituted a new policy to hold Preschool for All providers accountable for low enrollment and student application numbers. The policy gives the county’s Department of Preschool and Early Learning the ability to intervene in preschool sites facing low enrollment and, in a worst-case scenario, the ability to deny payments for unfilled seats.
The county has said the policy is necessary as it looks to be a responsible steward of taxpayer dollars. It currently pays providers upwards of $25,000 a seat for full-year, full-day programs. (School-year, part-day programs cost less.)
