The Portland Metro Chamber calls on Multnomah County to support Governor Tina Kotek’s proposal to improve the county Preschool for All (PFA) program. Governor Kotek’s recommendations will urgently lower costs, increase access, and prioritize basic services–all while boosting the local economy.
On July 23, the Portland Metro Chamber announced our endorsement of the reforms to the Multnomah County PFA program called for by Governor Kotek in her June 10 letter to Chair Jessica Vega-Pederson.
CEO and President Andrew Hoan released a statement outlining the Chamber’s position in support of Kotek’s proposal. In his statement, Hoan cited numerous economic reports, including the last three State of the Economy reports, that clearly show a consistent flight of taxable income totaling approximately $1 billion annually from Multnomah County since the adoption of the pre-school tax.
Governor Kotek’s leadership in calling for a pause in the collection, evaluation of the program scope, and rate reduction of the Preschool for All Tax is bold, appropriate, evidence based and should be immediately acted on by the County Commission.
The Chamber continues to support a three-year moratorium on increased taxes, and we will continue to push for common sense reforms that will reduce the region’s tax burden to economically competitive levels.
Local governments are at the front end of a multi-year fiscal reset that will require ongoing budget reductions and service prioritization. The City of Portland and Multnomah County currently have hundreds of millions of dollars in unanticipated revenue for specialty programs, while cutting basic services like public safety, parks, school based mental health services, and more.
These cuts are a result of the historic drop in commercial property values, the flight of taxable income from the region, stagnating population growth, and rapidly accelerating economic weakness as businesses invest in less costly, lower tax jurisdictions.
Common sense reforms, like those proposed by Governor Kotek or recently adopted by the Metro Council, to reduce the tax burden are essential to interrupt and reverse the current negative trend in the region’s economy.