St. Paul proposal would ask voters to hike taxes to pay for childcare on 2024 ballot

Why it matters: Experts say access to reliable, high-quality child care is critical for boosting kids' brain development and the workforce. But affordability remains a major barrier for many families.

Meanwhile, the city just raised property taxes by nearly 15%, drawing ire from homeowners who feel squeezed by the hikes.

How it works: The latest iteration of the early education proposal would increase property tax revenues by $2 million a year to offset the cost of daycare and preschool for families with kids ages 5 and under.

• The fund would cover the full cost of care for residents making under 185% of the federal poverty level — about $51,000 for a family of four. Subsidies for others would be doled out on a sliding scale.
• Providers, meanwhile, would get money to expand capacity and raise pay and benefits for workers.

By the numbers: The average homeowner would see their bill go up $16 in the first year under the proposed property tax increase, per Ward 2 Councilmember Rebecca Noecker, who backs the initiative. Ten years in, they'd pay $160 more.

What they're saying: Noecker says the proposal, combined with tens of millions of dollars in new child care funding approved by the Legislature, would "almost completely close the gap" for families struggling to afford care.

• She told Axios on Friday that she believes the resolution has the votes needed to clear the seven-member council.
• "There's a lot of public support for putting this on the ballot and letting the people of St. Paul have a say," she said.

Zoom out: If the resolution passes, St. Paul voters could encounter proposed tax hikes on back-to-back general election ballots.

• Language for a separate measure to raise $1 billion for roads and parks via a one-cent sales tax increase slated to go in front of voters this November is scheduled to get final council sign-off on Wednesday.

The other side: Mayor Melvin Carter, who is backing the sales tax measure, said through a spokesperson that he has "significant concerns" about the early education resolution. He declined to elaborate.

The intrigue: It takes five votes by the council to reach a veto-proof majority, which is also the threshold needed to call the special election on the matter.

• That means Carter couldn't block the measure on his own, though a future council could vote to revise or pull the measure before next year.

Flashback: A coalition of child care providers, advocates, and lawmakers fell short in an effort to put on the 2022 ballot a similar measure covering the cost of preschool for 3- and 4-year-olds.

• The city council responded by creating a task force to look at the issue. Noecker said the revised proposal reflects that panel's recommendations to broaden eligibility to reach more families.

What's next: If the council approves the resolution, city staff will begin to work out the details of how the proposed child care fund would work.