Personal Income Tax for Universal Pre-K

Dedicated Funding Streams & Financing

  • Taxes

Multnomah County, OR, Oregon

Multnomah County’s Preschool for All (PFA) initiative is funded by a personal income tax on high-income earners who live or work in Multnomah County. This includes a 1.5% tax on income over $200,000 for joint filers ($125,000 for single filers) and another 1.5% on income over $400,000 for joint filers ($250,000 for single filers). 

In 2023, the tax generated $152 million in revenue, which the county plans to use to expand the early childhood education system by 12,000 publicly funded preschool slots by 2030. Specifically, the county will create new preschool classrooms, subsidize existing ones, and offer teachers higher pay (from $19.91 to $37 per hour). 

Sources:

Frost, A. (2023). Parents and providers highlight successes of Preschool for All. Oregon Public Broadcasting.

Multnomah County Department of County Human Services. (n.d.). Questions & Answers.

Connections to Key Early Learning Study at Harvard (ELS@H) Findings:

Stable, robust funding is essential to expanding and improving early education. Unlike K-12 education, early education has historically been supported through a fragmented – and largely insufficient – set of federal, state, and local funds. Research suggests there is a need for more accessible, affordable, and high-quality approach to early education across the mixed-delivery system – and for better financial and professional supports for the educators who serve children and families each day; creating dedicated funding streams can therefore help states and cities address these needs and achieve these goals.

Findings from the Early Learning Study at Harvard (ELS@H) show:

  • Families rely on a range of formal (e.g., Head Start, center-based care, public pre-K) and more informal (e.g., home-based, relative care) early education settings; when choosing a setting for their child, families balance many logistical constraints and personal preferences.
  • But for many families – and especially low- and middle-income families – early education choices remain tightly constrained due to issues of affordability and supply.
  • No one early education setting type is inherently of higher quality than another; children develop and learn well in every setting type, and in the study, all setting types showed room to grow in quality.
  • Early educators play a critical role in supporting the well-being of young children and families across setting types. – Yet their pay, benefits, and other professional supports are often inadequate in light of the job demands and their cost of living.
Learn more about ELS@H findings

Learn more about Multnomah County

Context matters. Visit the Multnomah County profile page to learn more about the county landscape.

Visit the Multnomah County profile here
  • The county population is 789,698
  • The percentage of children under age 5 is 4.50%
  • The median household income is $79,909