The Hidden Costs of Early Education: Why Multnomah County’s Preschool Funding Model Needs a Reality Check
There’s a saying in education circles: ‘If you think it’s expensive to fund early childhood programs, try not funding them.’ Multnomah County’s recent study on its Preschool for All initiative is a stark reminder of this truth. The study, conducted by Prenatal to Five Fiscal Strategies (P5FS), reveals a glaring gap between what the county reimburses preschool providers and the actual cost of delivering quality care. But what’s truly eye-opening isn’t just the numbers—it’s the broader implications for early education, economic policy, and societal priorities.
The Numbers Don’t Lie—But They Don’t Tell the Whole Story
The study found that Multnomah County’s reimbursement rates fall short of the true cost of care. For instance, in the most recent year, the county reimbursed $17,532 per student for a six-hour day, while the actual cost for childcare centers was $20,253. That’s a shortfall of $2,721 per child. For full-year, 10-hour programs, the gap was even wider, with centers under-reimbursed by $2,364 per student.
Personally, I think this highlights a fundamental misunderstanding of how early education operates. Preschool isn’t just babysitting—it’s a critical foundation for cognitive, social, and emotional development. Yet, the funding model treats it as a commodity rather than an investment. What many people don’t realize is that these shortfalls aren’t just numbers on a spreadsheet; they translate to overcrowded classrooms, underpaid teachers, and limited resources for children with special needs.
The Human Cost of Underfunding
One thing that immediately stands out is the impact on providers. Angie Garcia, executive director of Escuela Viva, pointed out that providers need lower student-teacher ratios and additional staff for high-need students. This isn’t a luxury—it’s a necessity. Early childhood educators are already among the lowest-paid professionals in the U.S., and underfunding only exacerbates this issue.
From my perspective, this raises a deeper question: Why do we undervalue the people who shape the minds of our youngest citizens? If you take a step back and think about it, the long-term costs of underinvesting in early education—higher dropout rates, increased healthcare costs, and reduced economic productivity—far outweigh the immediate savings.
The Dynamic Cost Model: A Step Forward, But Is It Enough?
The study introduces a dynamic cost model to calculate reimbursements more accurately. This tool considers factors like student age, center type, and staffing requirements. It’s a welcome development, but I’m skeptical about its implementation. Will the county actually use it to adjust reimbursement rates, or will it become another bureaucratic tool gathering digital dust?
What this really suggests is that the problem isn’t just about numbers—it’s about political will. Multnomah County’s Preschool for All program is funded by a tax on high earners, which has faced criticism from business groups and even Oregon Governor Tina Kotek. The debate isn’t just about dollars and cents; it’s about equity, priorities, and the kind of society we want to build.
The Broader Implications: A National Conversation
Multnomah County’s struggle isn’t unique. Across the U.S., early childhood programs are chronically underfunded. What makes this particularly fascinating is how it reflects our societal values. We’re quick to invest in roads, defense, and corporate tax breaks, but when it comes to our children’s futures, we hesitate.
In my opinion, this is where the conversation needs to shift. Early education isn’t a line item in a budget—it’s a cornerstone of a thriving society. If we want to reduce inequality, improve public health, and boost economic growth, we need to start by investing in our youngest learners.
The Road Ahead: Tough Choices and Tougher Questions
The county plans to increase reimbursement rates slightly in the upcoming fiscal year, but it’s a Band-Aid on a bullet wound. To meet its 2030 goals for teacher wages and program quality, Preschool for All will need significantly more funding. This means revisiting the tax structure, which is sure to spark controversy.
A detail that I find especially interesting is the lack of evidence supporting claims that the tax is driving high earners out of the county. Yet, this narrative persists, highlighting the power of perception over data. If we’re serious about funding early education, we need to challenge these myths and reframe the conversation.
Final Thoughts: The Cost of Doing Nothing
As I reflect on this study, one thing is clear: the cost of underfunding early education isn’t just financial—it’s moral. Every dollar we withhold from preschool programs is a missed opportunity to shape a brighter future. Multnomah County’s Preschool for All initiative is a noble effort, but it’s only as strong as the funding behind it.
Personally, I think this study should serve as a wake-up call. It’s time to stop treating early education as an afterthought and start treating it as the priority it deserves to be. Because if we don’t, the real cost will be measured not in dollars, but in the potential we fail to unlock.
