Board approves budget modification to fund 'true cost of care' preschool model after amendment

The Multnomah County Board approved a budget modification to secure a dynamic cost-modeling tool intended to calculate the true operating cost of the county’s Preschool for All program, after adopting an amendment directing the department to identify the funds internally instead of transferring contingency funds.

Commissioner sponsors described the tool as essential for setting provider rates, forecasting expenditures, and modeling policy alternatives (for example, pooled health insurance or inclusion supports). Reagan Gray, senior staff to Commissioner Moyer, said the contract would create a model that can be updated year to year to test policy and rate scenarios. Interim Department of County Human Services Director Rachel Pearl said the department has been in conversations with a contractor identified in the record as "P5 Fiscal Strategies" (transcribed as "p 5 fiscal strategies") and that an adaptable product is feasible within the board’s timeline depending on the level of provider engagement.

Commissioners pressed the staff to ensure the model captures high-needs students and inclusion supports — staffing ratios, training, and additional classroom expenses — and discussed possible contract structures that pair a baseline seat cost with additional supports or rider adjustments for higher needs. Commissioner Moyer proposed an amendment to fund the study from existing Preschool and Early Learning (PEL) allocations rather than contingency; the amendment passed on a roll-call vote and the underlying budget modification (as amended) was approved.

Next steps: staff will formalize the contract scope, return details on timeline and level of provider engagement, and proceed with procurement consistent with county procurement rules. The board’s amendment directs DCHS to identify funding within its current allocations, keeping the modification budget-neutral.