FUND · 2020 · Multnomah County Measure 26-214

Preschool For All

Collections sharply outran ramp-up capacity, producing a multi-hundred-million accumulated balance even as enrollment lagged the implementation plan.

Passed
2020
Who collects it
Multnomah County (PIT, payroll withholding)
Who runs it
Multnomah County Preschool & Early Learning Division
How often
Annual filings + payroll withholding
Statute
Multnomah County Personal Income Tax; County Resolution
Sitting today
$873.9M
Still aimed where you voted
82%
Re-aimed since
18%

Voter intent. In 2020, Multnomah County voters approved a high-income tax with three jobs. Give every 3- and 4-year-old a tuition-free preschool spot. Pay teachers a living wage. Build provider capacity.

What follows is a year-by-year reading of how the cash position of this fund evolved, annotated with the audit findings and council actions that produced its current shape. Below that, a visual of what the balance could pay for at today’s published unit costs, the named mechanisms by which it currently can’t, and what would change if those mechanisms were removed.

WHERE IT COULD HELP NOW

What the balance is the size of

At the fund’s modeled balance, and at the unit costs that already appear in city, county, and bureau budgets, the dollars are equivalent in scale to any one of these.

$873.9M sitting today. At today's published unit costs, that is the same dollar amount as any one of these.

  • 11,200 × Tuition-free preschool seats over 5 years (full ramp)

    $14K per unit · County provider rate, modeled blended

  • 1,400 × Workforce wage uplift to a $28/hr floor for early educators

    $38K per unit · $28/hr × 1,950 hr × 4 yr — wage delta only

  • 380 × New provider classrooms

    $145K per unit · County classroom buildout average

Unit counts are rounded against published references. Real procurement and ramp time would shape the exact numbers. The point is the order of magnitude.

Current context

In 2024 the County Board deferred a vote on adjusting the tax rate while enrollment continued to lag. The reserve framing was preserved.

MECHANISMS

What’s in the way of spending it as voted

Each item below is a named mechanism in code, charter, or council practice. The defense is the line routinely offered for it. The note beside it is the structural reading of why that line is not the whole story.

Mechanism 1

No published binding ramp schedule

The county controls the enrollment ramp internally. There is no public, binding multi-year schedule that providers and parents can plan against.

Where the discretion sits
Multnomah County Preschool & Early Learning Division

The defense

“Provider capacity must build before enrollment can scale; rushing risks quality.”

Structural reading

Other counties have ramped at twice this pace using the same workforce dollars. The slow ramp is a choice, not a constraint.

Mechanism 2

Surplus is framed as "future capacity reserve" with no spend trigger

Year-end balances are reported as reserves rather than as undeployed capacity. There is no rule forcing a spend-down once the reserve passes a multiple of annual operating cost.

Where the discretion sits
County Board of Commissioners

The defense

“Reserves protect against tax-rate volatility.”

Structural reading

A reserve at one year of operations would be defensible. The current modeled reserve is over three.

If those mechanisms were removed

Publish a binding 5-year ramp with quarterly enrollment reports, and 11,200 children get seats while 1,400 educators move to the wage floor.

How the balance got here

What follows is a year-by-year reading of how the cash position of this fund evolved. Scroll the right column to advance the chart; each step is an audit finding, council resolution, or bureau memo that shaped the shape.

Modeled cash position, with audit annotations

MODELED

Annotations are auditor findings, council resolutions, and bureau memos. The active step is shown with a vertical rule.

Data table for Modeled cash position, with audit annotations
Underlying data for: Modeled cash position, with audit annotations
YearBalanceObligatedInflowSpent
2021178522544696237921859609837438439
202237129266114480413821905695226286834
202354417622321222872725055588677672325
2024697328442271958092294523499141371279
2025873910171340824967339580248162998519

2022

Discovery: enrollment shortfall

First full implementation year enrolls a small fraction of eligible 3- and 4-year-olds against the ramp plan.

2023

Audit: balance accumulation

Auditor flags accelerating reserve growth and recommends a clearer disbursement strategy tied to provider capacity build-up.

2024

Board: rate adjustment debate

County Board considers reducing the tax rate or pausing collections; vote deferred citing future capacity needs.

Promise versus delivery

The chart on the right pairs each plan cycle’s stated dollar promise with the dollar amount that was eventually delivered against it. The gap between the two — labelled in orange — is what flows into the next cycle’s carryover, and what the audit narrative on the previous chart is, in part, accumulating into.

Promised vs. delivered, by fiscal cycle

MODELED

Promised dollars are those committed in the bureau's published plan; delivered dollars are what shipped against the plan. Modeled.

Data table for Promised vs. delivered, by fiscal cycle
Underlying data for: Promised vs. delivered, by fiscal cycle
CyclePromisedDeliveredGap
FY 2022900000001100000079000000
FY 20231300000004100000089000000
FY 20241750000007900000096000000
FY 202521500000011800000097000000

Reserve growth

When delivery lags collection, the residual accumulates as an unobligated reserve. This is not a savings account in the household sense: it is a balance that public-finance officers and council staff have, by ordinance, the discretion to redirect.

Modeled unobligated reserve

MODELED

Data table for Modeled unobligated reserve

Each row shows the dollars left sitting unspent in this fund at the end of that year.

Underlying data for: Modeled unobligated reserve
YearUnspent reserve (USD)
2021108898752
2022226488523
2023331947496
2024425370350
2025533085204

Drift from voter intent

The chart on the right is a drift index. A value of 100 percent means every dollar in the fund is being used in a way that maps cleanly to the original ballot text. A value below 100 percent means some share has been ordinance-redirected, swept into a sibling program, or otherwise reclassified.

Drift index — voter intent vs. modeled actual disposition

MODELED

Data table for Drift index — voter intent vs. modeled actual disposition

Modeled share of dollars still aimed at the original ballot purpose, with each council vote that broadens the eligible uses pulling the score down.

Underlying data for: Drift index — voter intent vs. modeled actual disposition
YearOn voter intent (%)Drift (%)Note
20211000
20228812
20237921Enrollment shortfall
20247426
20257129

WEEKLY MEMO · PRESCHOOL FOR ALL

No memo for this fund yet this week

The weekly run hasn’t produced a published memo for this fund yet.

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