Oregon early learning, child care programs poised for $45 million in cuts

Oregon’s

agency overseeing child care

and early childhood education is poised to receive $45 million less from the Legislature than it needs to operate those programs at their current scope over the next two years.

Child care advocates worry that the budget cuts will make early childhood education even less accessible in a state where many

parents already struggle

to find care for children before kindergarten.

“The zero to five age group is often fighting for budget crumbs,” said Sen. Lisa Reynolds, D- Portland, a pediatrician. “To seek cuts in these programs feels disheartening and a little shortsighted.”

The Legislature’s proposed $1.4 billion budget for the department is 3% less than state fiscal experts estimate it needs to fund early childhood services at current levels. It’s also 0.5% less than the department’s current budget. The Joint Ways and Means Committee approved the proposed agency budget Friday, and the bill is expected to come up for a Senate vote this week or next.

Legislators who voted for the budget in committee said that the cuts are an unfortunate but necessary consequence of a reduced pool of money for education and child care. The agency’s current budget relies on federal pandemic aid that is expiring, meaning its federal funding will drop from $390 million to just under $250 million for 2025-27.

“I speak not by way of excuse but a bit by way of reality. This is a difficult year,” Sen. Kate Lieber, a Democrat who co-helms the Ways and Means Committee, said Friday. “We have cuts that had to be made.”

Opponents of the cuts say they show a lack of support for young children and could have long-term consequences.

Dana Hepper, policy director for The Children’s Institute, which advocates for Oregon’s young children, called the proposed budget “a step in the wrong direction.”

“It would kick kids out of preschool,” she added.

Some of the most substantial cuts would hit Preschool Promise — free schooling for 3- and 4-year-olds whose families earn less than 200% of the federal poverty level — and Healthy Families, which provides long-term pairings between high-need families and home visitors.

Advocates said that more than 600 children could lose access to preschool if the Legislature approves the proposed $20 million reduction in Preschool Promise’s funding, a 10% cut from its current funding level.

The Department of Early Learning and Care confirmed to The Oregonian/OregonLive that 600 children was a preliminary estimate. But spokesperson Kate Gonsalves said the department is “exploring ways to mitigate potential impacts” and cannot “provide accurate external projections until additional analysis has been completed.”

Beyond access for children and families, Hepper and others said they are concerned this budget could also lead to child care workers losing their jobs. Gonsalves said leaders at the Department of Early Learning and Care are “still assessing potential impacts as the bill continues to move forward.”

Not every early childhood program is on the financial chopping block. But advocates said that even funding some of those at the so-called current service level — what state fiscal experts say is the level of funding needed to keep operating programs at their current scope — isn’t adequate. Under the plan approved by the Ways and Means Committee, funding for Employment Related Day Care, which provides subsidized child care for low-income working families, is proposed to be at the current service level.

However, for years, advocates have said the program needs more money, as more than 11,000 families are on the waitlist.

“This is just an exacerbation of the lack of support Oregon families are already receiving,” said Candice Williams, executive director of advocacy organization Family Forward.

Last session, the Legislature had to allot an extra $171 million to Employment Related Day Care so it didn’t have to kick out children it was already serving.

Department of Early Learning and Care officials project that if funding and the day care caseload remain on their current trajectory, the program could see a $73 million shortfall by June 2027, they said in a March budget presentation.

The proposed budget awaiting Senate approval would make some narrow additions to the agency’s scope of work. The department would receive funding to add child care licensing positions, which would make it easier to certify new programs.

No legislator seemed happy about the cuts during last week’s Ways and Means vote. However, those who voted to move the bill to the Senate floor said the state simply doesn’t have the money.

“I still urge our committee to vote yes on this budget because there’s still a lot of great things that are going to get funded,” Rep. Ricki Ruiz, a Gresham Democrat who co-chairs the education budget subcommittee, said. “I do also understand that these cuts are difficult.”

The state’s relatively new corporate tax for education, which provides a dedicated source of funding for K-12 schools and for early learning programs, is expected to bring in nearly $200 million less in the next two years than had been projected prior to May. Without that revenue, the tax proceeds can’t fully cover needs at the Department of Early Learning and Care, Ruiz said.

“I think it’s going to take all of us to have a very serious conversation about how we fund a stable early childhood system,” Ruiz said.

More Oregon education stories

• At Portland State, decision to place faculty member on leave over Hamas comments adds to charged campus climate

• This Portland organization has found a way to keep early childhood education accessible, aided by a prominent philanthropist

• Heat closes additional Portland area schools early, cancels some programming

• Beaverton school board will consider whether to open second investigation into one of its members

• All Portland Public Schools to close 3 hours early on Monday due to heat

Advocates said that paying for widespread, high-quality early education would have positive impacts for the future, increasing third grade literacy, graduation and employment rates, while decreasing need for other services like homelessness help, behavioral health care and prison.

“Investing in children seems like the wrong thing to be backing away from in a time of challenging budgets because this will just increase other costs in the long run,” Hepper said.

— Eddy Binford-Ross covers education and local politics for The Oregonian/OregonLive. Reach her via email at


ebinfordross@oregonian.com

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