VOTE NO
on Early Childhood Ballot Measure
The St. Paul Area Chamber OPPOSES the Early Childhood Ballot Measure
VOTE NO
Background:
In November, Saint Paul voters will be asked to fund early childhood education subsidies through a MANDATORY property tax increase. Under the proposal, property taxes will AUTOMATICALLY INCREASE $2 million per year over ten years, resulting in $20 million by the end of year ten. The goal is to cover the full cost of childcare for low-income families, making early childhood education more accessible and affordable.
However, the proposal is still in the planning stages, and specifics regarding how the funds will be allocated and managed have not been finalized. According to Mayor Carter, the program could have an annual cost over $100M. There is no plan to close the projected $80 million funding gap. This is on top of a proposed city-wide 7.9% levy increase for 2025, a Ramsey County increase of 4.75%, a new metro-wide sales tax, and a new Saint Paul 1% sales tax to pay for critical infrastructure needs.
The City of Saint Paul is also facing a $19.4 million inflation challenge for 2025, which is akin to a 10% increase in property taxes. Downtown properties, a major source of property tax revenue, are seeing a significant decrease in commercial property values as buildings are reassessed or sold - significantly reducing tax-assessed values. Saint Paul needs to be focused on growth instead of adding more burden to our currently shrinking tax base.
Ballot Question:
In order to create a dedicated fund for children's early care and education to be administered by a City department or office that provides subsidies to families and providers so that early care and education is no cost to low-income families and available on a sliding scale to other families, and so as to increase the number of child care slots and support the child care workforce, shall the City of Saint Paul be authorized to levy property taxes in the amount of $2,000,000 in the first year, to increase by the same amount each year following for the next nine years ($4,000,000 of property taxes levied in year two, $6,000,000 in year three, $8,000,000 in year four and so on until $20,000,000 of property taxes are levied in year ten)?
BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A PROPERTY TAX INCREASE.
The maximum amount of increased levy as a percentage of market value is 0.006% in year 1 and estimated to be 0.060% in year 10. The amount that will be raised by the new referendum tax rate in the first year it is to be levied is $2,000,000.
Reasons for Chamber's Opposition:
We believe the City’s focus must be on issues that are pressing and need to be addressed to support the city’s economic health and livability, including:
In November, Saint Paul voters will be asked to fund early childhood education subsidies through a MANDATORY property tax increase. Under the proposal, property taxes will AUTOMATICALLY INCREASE $2 million per year over ten years, resulting in $20 million by the end of year ten. The goal is to cover the full cost of childcare for low-income families, making early childhood education more accessible and affordable.
However, the proposal is still in the planning stages, and specifics regarding how the funds will be allocated and managed have not been finalized. According to Mayor Carter, the program could have an annual cost over $100M. There is no plan to close the projected $80 million funding gap. This is on top of a proposed city-wide 7.9% levy increase for 2025, a Ramsey County increase of 4.75%, a new metro-wide sales tax, and a new Saint Paul 1% sales tax to pay for critical infrastructure needs.
The City of Saint Paul is also facing a $19.4 million inflation challenge for 2025, which is akin to a 10% increase in property taxes. Downtown properties, a major source of property tax revenue, are seeing a significant decrease in commercial property values as buildings are reassessed or sold - significantly reducing tax-assessed values. Saint Paul needs to be focused on growth instead of adding more burden to our currently shrinking tax base.
Ballot Question:
In order to create a dedicated fund for children's early care and education to be administered by a City department or office that provides subsidies to families and providers so that early care and education is no cost to low-income families and available on a sliding scale to other families, and so as to increase the number of child care slots and support the child care workforce, shall the City of Saint Paul be authorized to levy property taxes in the amount of $2,000,000 in the first year, to increase by the same amount each year following for the next nine years ($4,000,000 of property taxes levied in year two, $6,000,000 in year three, $8,000,000 in year four and so on until $20,000,000 of property taxes are levied in year ten)?
BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A PROPERTY TAX INCREASE.
The maximum amount of increased levy as a percentage of market value is 0.006% in year 1 and estimated to be 0.060% in year 10. The amount that will be raised by the new referendum tax rate in the first year it is to be levied is $2,000,000.
Reasons for Chamber's Opposition:
- Addressing early childhood care is larger than any individual city can administer or fund through its property tax levy.
- This is a statewide issue best addressed at the state level, and the City of St. Paul should focus on delivering municipal services.
- Last year’s sales tax increase to fund core municipal responsibilities suggests that taking on early childhood care may be beyond the scope of what is affordable and achievable to undertake.
- There is no plan to address the estimated $80 million funding gap outside of future property tax increases.
- There has been no study or discussion on how the decline in commercial property values and its impact on the City’s budget will affect the increases required to fund childcare subsidies.
- The City needs to focus on its ‘must have’ priorities, like infrastructure maintenance and public safety.
- A detailed programmatic or governance plan for implementing and administering the program is not in place.
We believe the City’s focus must be on issues that are pressing and need to be addressed to support the city’s economic health and livability, including:
- To avoid future property tax increases from escalating, the city needs to focus on the challenges that are diminishing its commercial property values.
- The city's public safety concerns require immediate attention to ensure residents and businesses feel secure, fostering a more stable environment for growth and development.
- Revitalizing declining commercial areas is crucial to reinvigorate local economies and attract new investments.
In the News:
St. Paul teachers union urges ‘No’ vote against property tax-funded
childcare subsidies on St. Paul ballot “It will basically be a voucher program. It’s a tax on the residents of St. Paul... and it won’t be going to public systems,” Leah VanDassor, president of St. Paul Federation of Educators. |
St. Paul teachers oppose free childcare tax levy before voters in November
“If we, as a city, choose to ask residents of St. Paul to once again increase their tax burden, we must also provide a clear plan, designed with authentic community input, that centers on the voices of families, educators and child-care providers," St. Paul Federation of Educator |
St. Paul Mayor Carter tells city staff to steer clear of child-care ballot initiative
“It seems very, very clear and obvious that the things that are being promised in the campaign just are not possible to deliver with the amount of resources that will be raised by it,” - St. Paul Mayor Melvin Carter |
Should St. Paul cover low-income families’ child care costs?
Proposed tax hike headed to 2024 ballot “When somebody goes to the ballot and reads this ballot question, they’re going to look and think that this means that the city is telling us that if we increase taxes by $20 million, we can make child care free for all children ages zero to five in our community. We cannot take empty promises into the ballot box to our city,” - St. Paul Mayor Melvin Carter |
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St. Paul ballot includes question about raising property taxes to subsidize child care cost
"Between misleading ballot language, absence of required campaign finance disclosures, and the first public details arriving nine days before polling begins, our voters are repeatedly being denied the needed transparency to cast an informed vote on this proposed $110 million tax increase," St. Paul Mayor Melvin Carter |
What to know about St. Paul's 2024 early childhood education ballot question
“It also is directing a significant portion of taxpayer funds to go toward vouchers essentially, like scholarships, I think can create inequities that we need to be very careful and thoughtful about and I don’t think we're well positioned to make sure that doesn’t happen with the route that the special election provides,” - St. Paul City Council President Mitra Jalali |
What Others are Saying
Public Testimony:
“Kids Count On Us and ISAIAH will remain focused on other important priorities, and will not be able to support the early learning resolution as is written nor support a campaign to advance this resolution in 2024.” - Public testimony from ISAIAH and Kids Count on Us
“If we, as a city, choose to ask the residents of Saint Paul to once again, increase their own tax burden to support all children, we must also be able to provide them a clear plan, designed with authentic community input... Lacking this critical part of any successful levy, the Saint Paul Federation of Educators cannot support a resolution to see a levy at this time.” - Public testimony from Saint Paul Federation of Educators Local 28
“But after I spoke to some doing childcare work and learned more about it, I realized that its scope is very limited and I believe that more thoughtful planning needs to be done before asking St Paul taxpayers to support this initiative” - Public Testimony
“The amount of money to fund this initiative is the size of our library budget. Yet there is no detailed plan for a program connected to the early learning resolution. That feels like a concern since we are asking Saint Paulites to pay for this program. We should know what we are paying for.” - Public Testimony
“Putting something on the ballot in November when the numbers are so unclear seems irresponsible and creates a mess for a new council to have to untangle.” - Public Testimony
“As much as I’m supportive of the intentions, I believe that we need to have a thoughtful approach to addressing our childcare issues and there are too many questions than there is clarity that Saint Paul voters deserve.” - Public Testimony
“If we, as a city, choose to ask the residents of Saint Paul to once again, increase their own tax burden to support all children, we must also be able to provide them a clear plan, designed with authentic community input... Lacking this critical part of any successful levy, the Saint Paul Federation of Educators cannot support a resolution to see a levy at this time.” - Public testimony from Saint Paul Federation of Educators Local 28
“But after I spoke to some doing childcare work and learned more about it, I realized that its scope is very limited and I believe that more thoughtful planning needs to be done before asking St Paul taxpayers to support this initiative” - Public Testimony
“The amount of money to fund this initiative is the size of our library budget. Yet there is no detailed plan for a program connected to the early learning resolution. That feels like a concern since we are asking Saint Paulites to pay for this program. We should know what we are paying for.” - Public Testimony
“Putting something on the ballot in November when the numbers are so unclear seems irresponsible and creates a mess for a new council to have to untangle.” - Public Testimony
“As much as I’m supportive of the intentions, I believe that we need to have a thoughtful approach to addressing our childcare issues and there are too many questions than there is clarity that Saint Paul voters deserve.” - Public Testimony