MultCo Board of Commissioners delay Preschool for All tax hike

PORTLAND, Ore. ( KOIN ) — The Multnomah County Board of Commissioners unanimously approved a one-year delay of a 0.8% tax increase on Sept. 5, which was scheduled to go into effect in 2026 to provide additional funding to the county’s Preschool for All program.

The voter-approved program, which was established in 2020, currently provides free preschool education to more than 2,000 students in Multnomah County. But with more than $200 million in reserves currently sitting in the program’s budget, commissioners received pushback from the public on the impending tax increase .

The County funds the Preschool for All program by taxing the wealthiest 9% of Multnomah County’s earners. The program collects 1.5% of all taxable income from single taxpayers making a minimum of $125,000 per year and joint filers making at least $200,000. An additional 1.5% tax is imposed on individuals making more than $250,000 a year, or couples making more than $300,000 per year.

County commissioners have said that the reserves are a temporary result of the program’s infancy, and that the funding will balance out as the program grows. However, after assessing the possible effects of delaying the 2026 tax increase, the county found that it could give taxpayers a one-year reprieve without suffering significant impacts to the program.

At Thursday’s meeting, Multnomah County Commissioner Lori Stegmann called the one-year delay “a good compromise” for taxpayers and the program. Commissioners said that the County will use the extra time to assess the needs of the program and consider other funding options.

“I love this place, and I will gladly pay $225 a year to ensure that all of our children have access to Preschool for All,” Stegmann said. “…I think that we have to also weigh … the effects of inflation and taxation with serving an entire generation of children.”

While the delay will offer temporary tax relief to local residents, Multnomah County Economist Jeff Renfro told commissioners on Sept. 29 that the program ultimately needs the tax increase to remain operational. If the 0.8% tax increase were eliminated, Renfro said, the program would go bankrupt in less than 10 years.

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