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St. Paul’s Child Care Tax Increase Proposal: 5 Questions Answered
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St. Paul’s Child Care Tax Increase Proposal: 5 Questions Answered

Next month, a ballot measure in St. Paul will ask voters whether they will allow the city to levy property taxes to fund child care for low-income families up to $20 million over 10 years. But Mayor Melvin Carter says he won’t raise taxes even if voters approve.

Here’s what you need to know about the plan and its possible future.

1) What will this proposal do?

Supporters say the taxes would be phased in by $2 million over 10 years, totaling $20 million. It is designed to cover the cost of child care from birth to age 5 for families who earn less than $55,000 a year. This is more than half of the city’s children. The St. Paul City Council approved the ballot question last year.

2) What is Mayor Carter’s problem with this?

He says the math doesn’t add up.

While he applauds the City Council’s efforts to fund preschool and education, increase child care slots and support child care staff, Carter says it will cost much more than $20 million.

A city financial analysis commissioned by the mayor earlier this year found that St. Paul would need about $110 million to make those promises a reality. Carter said he doesn’t think voters realize that.

He vetoed the plan, but the City Council rejected it.

“The issue on the ballot this year cannot deliver on the policies he promises,” Carter told reporters recently. “And yes, I think putting a controversial question on the ballot does make a mockery of the referendum process, which is why I vetoed it in the first place.”

In a recent letter to council members, Carter said he would not “plan, staff or implement” any programs related to this referendum.

He says that no matter what, the city will not fulfill all the promises made in the ballot.

3) How did supporters react?

Rebecca Noecker, the Ward 2 councilwoman who led the child care funding proposal, calls it an investment in the city’s future and what voters want, despite the mayor’s criticism.

While it won’t meet the needs of all families, she says voters know it and will still understand its importance.

“This is not a reason to do nothing,” she said. “You know, we always invest in government programs knowing that there won’t be enough money to cover all the needs, but we know we have to start somewhere.”

4) Can the mayor by law not do what the voters want?

In this case, yes.

This gets into a bit of semantics, but the wording of the ballot question says voters will only “authorize” the city to use taxes to subsidize early child care. The mayor argues that just because he has the authority to do something doesn’t mean he should.

The City Council could still vote to start collecting taxes – about $16 a year more in property taxes for the average homeowner – but at least while Carter is still in office, he says he won’t do anything about it.

5) How have child care providers and voters responded?

This is quite ambiguous. Some are excited by the prospect of helping more families gain access to child care, and the idea that some of the money could go to help them. Others are completely against it.

The St. Paul Public Schools teachers union opposes the levy, saying it would direct more money to private child care, and criticized the lack of an implementation plan.

It’s complicated, but on November 5 everything will be in the hands of voters.