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Boosting access to preschool
Hickenlooper would increase sales tax; poor to benefit most
Published July 11, 2006 at midnight
Mayor John Hickenlooper wants voters to decide in November whether to support a sales tax hike to improve preschool access for Denver's 4-year-olds.
City Council members, who will hear details on the proposed ballot question today, ultimately must decide whether the measure goes before voters.
If they do - and their approval is seen as likely - voters would then weigh in on an increase of 0.12 percent, or 1.2 cents on every $10 purchase, which would raise about $12 million per year for the program.
Children of Denver's working poor would benefit most under the proposal, although families at all income levels could receive some help in the form of tuition credits or subsidies.
"Every kid deserves an equal chance," said Zachary Neumeyer, a member of the Mayor's Leadership Team on Early Childhood Education. "When they go into their first day of kindergarten, it's just not right for one child to be a year behind the child next to them."
Neumeyer, chairman of a Denver hotel company, is among more than 30 business and civic leaders appointed in January 2004 to investigate how to get more of the city's 10,000 4-year-olds into preschool.
The sales tax proposal, which Hickenlooper on Monday said he is sending to the City Council, is the culmination of that effort.
Neumeyer said the task force - which includes names such as Republican brewer Pete Coors - has spent the past 2 1/2 years studying research on preschools and looking at programs nationwide.
"I come at it from the business side. Taxes are something I usually look at very closely," Neumeyer said. "I'm convinced there isn't a better place that we can make an investment as a community."
A growing number of states and cities are putting more money into preschool efforts. Georgia, North Carolina and Tennessee use lottery dollars to fund their programs. Arkansas levies a 3 percent tax on beer. Louisville, Ky., uses motor vehicle tax dollars.
Denver's proposal, which pulls pieces from programs around the country, is seen as unique. It relies on sales taxes to fund tuition credits, allows parents to pick any state-licensed preschool provider they want, and asks providers to participate in a quality rating system to receive the credits.
Providers would be eligible for a portion of the sales tax proceeds to improve their programs.
An analysis by the Colorado Children's Campaign and the Denver- based Piton Foundation indicates that about 60 percent of 4-year-olds are likely to participate in such a program, with the poorest - those in families earning less than $48,000 annually - getting an average subsidy of 70 percent for preschool tuition.
Families with higher incomes would receive subsidies or credits, too. Those in the second income tier - $48,000 to $70,000 annually - could receive subsidies averaging 25 percent of tuition. Families in the third tier - more than $70,000 - could receive an average tuition subsidy of about 5 percent.
Subsidies are based on a sliding scale, depending on family need and provider rating. The poorer the family, the higher the credit. And the higher the provider rating, the higher the credit.
"This is targeting the most money at the kids who need it the most," said Alex Medler, policy director for the Colorado Children's Campaign. "It is emphasizing high-quality care for those kids, so that kids from the working poor and impoverished families have access to the same early childhood care I want for my kids."
Tina Smith, a director at the Family Star Montessori and Early Head Start, 1331 E. 33rd Ave., said the credits would help those like the several families she knows who have had to withdraw their children because they can no longer afford tuition.
"To see a child who I know would have benefited with just one more year, to see them go because there's no funding - it makes me heartsick," Smith said. "Four is a critical age for these kids."
Liz Graves, who has a 2- year-old at Family Star, said she would not flinch at paying the extra tax.
But Denver pollster Floyd Ciruli said the city has tried sales tax hikes for children before. Former Mayor Wellington Webb backed 2- cent-per-$10 increases in 2000 and 2001 to support programs for low-income children. Voters said no twice.
"Obviously, one difference is that Hickenlooper is very popular," Ciruli said. "But I would say the challenge is (that) the sales tax has been extensively used, particularly with the recent RTD increase, so they'll have to deal with that."
A tax to raise money for kids
Here's a look at the proposal Mayor John Hickenlooper said he will forward to the City Council for possible placement on the November ballot:
Who would benefit? Denver 4-year-olds and their families, particularly those with lower incomes.
How much of a tax hike? 0.12 percent, or 1.2 cents for every $10 purchase, or 12 cents for every $100 purchase.
How much would it raise? About $12 million per year.
How would that be used? For preschool tuition credits for families and for quality improvement funds for preschools.
How would families qualify? Tuition credits would be determined on a sliding scale by family need and by preschool quality - so the highest credits would go to low-income families sending their children to high-quality programs.
Which preschools would be included? Any state-licensed provider would be eligible, but providers would have to participate in a quality rating system.
What's next? Two council committees will hear the proposed ballot question at 1:30 p.m. today. If they agree, it goes before the full council for a vote on whether to place it on the November ballot.
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