County approves a 'true cost of care' tool for Preschool for All, funded from department allocation

The Multnomah County Board of Commissioners approved a budget modification to commission a dynamic "true cost of care" modeling tool for the county's Preschool for All program. The tool is intended to calculate operating seat costs, model inclusion supports and provider types, and allow staff to simulate policy changes and forecast budget impacts.

The item (R3) was introduced by Commissioner Moyer and Commissioner Brem Edwards, with Reagan Gray and Rachel Pearl (interim director, Department of County Human Services) describing the scope: a contractor will build a flexible tool to set rates, forecast expenditures based on licensing type, location, hours of care, and child needs, and to test policy options (for example pooled health insurance, lower ratios for high‑needs classrooms, or startup/facility supports). Rachel Pearl said the county has been in contact with experienced contractors such as P5 Fiscal Strategies and indicated that timelines can be compressed depending on provider engagement; a preliminary tool could be available for board consideration as early as August, with fuller work completed in subsequent months depending on contract scope.

Commissioner questions focused on whether the model would incorporate high‑needs/inclusion supports and staffing‑ratio impacts. Presenters explained the usual approach: a baseline seat cost plus additional supports for high‑needs children (inclusion supports, startup funds, facility funds) and that the selected contractor can make the tool dynamic to toggle those variables. Commissioner Singleton and others asked that training, staffing ratios and supports for children with disabilities be represented in the modeling; staff said those elements can be included either as adjustments inside the seat cost or as separate line items.

An amendment offered by Commissioner Moyer reallocated funding: rather than transferring $200,000 from contingency, the commission asked that the Department of County Human Services identify the money within its existing Preschool & Early Learning allocation (PEL) so the modification remains budget neutral. The amendment passed by roll call, and the underlying budget modification as amended was subsequently approved.

Key next steps: staff will finalize a contract scope, return with procurement and timeline details, and use the tool to inform rate‑setting and budget proposals ahead of the August considerations and FY27 budget process.

Vote: the board approved the budget modification as amended by roll call.