Board amends IGA with Portland to raise administration cap for Preschool for All tax

The Multnomah County Board voted to adopt a resolution amending its intergovernmental agreement (IGA) with the City of Portland for administration of the Preschool for All personal income tax.

Eric Cariano, the county’s chief financial officer, summarized the IGA’s history: the agreement originated in 2021 after the tax initiative passed and runs through January 2031. Cariano said the proposed amendment does not change the IGA term but increases the IGA’s 'not‑to‑exceed' payment cap so the City of Portland can bill actual administrative costs attributable to Multnomah County.

Cariano explained that initial estimates at negotiation assumed preschool would represent roughly 47% of combined collections and supportive housing 53%. Actual collections over the first three years have shown preschool at about 52% and supportive housing at about 48%, creating an artificial cap where the city cannot proportionally charge its actual costs to the county under the existing formula. The amendment raises the not‑to‑exceed amount to $9,800,000, which Cariano said creates headroom and avoids service disruption; county budgeting staff estimated an FY26 increase of roughly $553,000, which would be funded from Preschool for All fund balance.

Cariano stressed the city charges actual costs (not budgeted amounts) and that the amendment would preserve ongoing administration and allow the city to bill its actual expenses. Commissioners asked clarifying questions about indexing to CPI and funding sources; Cariano said the change includes indexing so the cap grows with costs and that the FY26 increase would be covered from the preschool fund rather than the general fund.

The resolution was adopted by roll call. Cariano said he will return with a budget modification to reflect the FY26 increase if the board approves the IGA amendment.