An Open Letter to Chair Jessica Vega Pederson

Dear Chair Vega Pederson, 

As president of the Revitalize Portland Coalition—an alliance of businesses and professionals deeply invested in the economic vitality of the Portland metro area—I write to express our strong support for Governor Kotek’s June 10 request that the Multnomah County Board urgently reassess the current structure and funding mechanisms of the Preschool for All (PFA) program. 

We applaud the program’s objective to expand access to early education. However, the financing model—a marginal income tax of 1.5 percent on individual incomes exceeding $125,000 (and additional tiers for higher earners)—is currently structured in a way that:

1. Places excess burdens on high-income taxpayers, creating the nation’s second-highest effective income tax rate at 13.9 percent when combined with state and county levies.

2. Risks reducing the number of high-earning households filing the tax—an estimated drop of 1,700 filers through 2021, although updated data shows growth to 38,370 filers in 2023, the revenue has nonetheless declined from $196 million in 2021 to $148 million in 2023.

3. Encompasses a budget with significant unspent reserves—an estimated $485 million remaining post‑2024, well above projections  —highlighting inefficiencies in allocation and underspend. 

These fiscal realities have real-world implications: essential county services such as homelessness response, behavioral health, and public safety are facing resource constraints, threatening sustainable growth and livability. 

With this in mind, we strongly urge you and your fellow Commissioners to take active steps now to:

• Reevaluate and adjust the PFA funding model, considering rate modifications, structural changes, or a temporary pause as Governor Kotek recommended so the program’s efficacy aligns with its cost.

• Deploy existing reserves strategically to bridge gaps in service without launching new tax hikes.

• Engage in transparent stakeholder review, involving business leaders, nonprofit advocates, educators, and community organizations, to refine the program’s funding for long-term effectiveness. 

This coalition does not oppose quality preschool; rather, we contend that the program’s current funding method is out of balance. It places undue strain on the local economy, complicating efforts to attract and retain new businesses and residents—particularly at a time when Portland seeks to rebound from persistent challenges. We respect the voters’ mandate for universal preschool and recognize the value it brings. But fiscal stewardship and economic competitiveness are inextricably linked: unless the PFA tax mechanism is optimized, Portland risks undermining both. 

We stand ready to work with your office, county staff, and community partners to help develop a revised, fiscally sound funding framework that sustains early education access and empowers the broader economy. 

Thank you for your leadership. We anticipate proactive, thoughtful steps—aligned with the governor’s May 16 and June 10 letters—to ensure Preschool for All remains both impactful and responsible. 

Sincerely, 

Jose Cienfuegos

President, Board of Directors  

Revitalize Portland