Presenter warns drop in tobacco-tax revenue could threaten local early-childhood programs

Heather Mula of 1st Things First’s La Paz-Mohave region presented to the council on April 14 about local early-childhood programs and funding risks. She described regional services — family support coordination, home visitation, quality childcare scholarships and program coordination — and said these services are delivered through local grantees and are available at no cost to families.

Mula warned that 1st Things First’s tobacco-tax revenue has declined substantially, which she quantified in the meeting as nearly a 47% reduction (described as about $76 million less in fiscal 2025 relative to earlier years). She said the decline is driven in part by changes in consumer products (vapes and nicotine pouches not taxed the same way as traditional cigarettes) and that the program has been drawing down reserves. Mula said, absent a change in the tax structure or new revenue sources, core programs such as home visitation and childcare scholarships could be at risk.

She also emphasized the long-term benefits of early investment, citing research that investment in the first five years yields strong returns in education and workforce outcomes. The presentation noted local activities, including family socials, play-and-learn events and outreach tied to the community center, and invited residents to upcoming events.

Councilmembers thanked the presenter and accepted the proclamation acknowledging Week of the Young Child; no formal council action was taken on funding during the meeting.