Jarod and Dory Hobbs manage a number of preschoolers across their business. Since 2010, the couple has operated Atlas Immersion Academy, starting with a location in their own home in the Hayhurst neighborhood. “We gave up our bed for a futon so we could turn our bedroom into a classroom each morning before I went to work,” Jarod Hobbs recalls. Since then, they’ve expanded to six locations across three counties, with room for 403 students.
With this growth, the Hobbs family might seem an ideal match for Preschool for All, Multnomah County’s ambitious plan to provide subsidized preschool for every family in the county within the next decade. To meet this goal, the program needs current preschools to partner with them.
However, last Thursday, the Hobbs family declined the county’s offer for 18 subsidized seats. Their lawyer, Martin Medeiros, advised against signing the contract, warning that it could lead to financial disaster. “I would categorize this contract as extremely risky,” Medeiros wrote in a memo to Willamette Week (WW).
The Hobbs aren’t the only ones. Several other large private preschool operators have also expressed hesitation or outright rejection of the county’s program, citing similar concerns.
This reluctance spells trouble for Preschool for All, a massive childcare initiative funded by a tax on high earners. The program, launched in 2021, has been politically controversial. While championed by Multnomah County Chair Jessica Vega Pederson, business interests argue it discourages top employees from staying in the county. The tax starts at 1.5% for individual income over $125,000 and increases to 3% on income over $250,000. This tax has raised more money than expected, but the county has struggled to effectively allocate it.
The program’s success hinges on cooperation from existing preschools. By 2030, the county aims to convert 7,000 private preschool seats to meet its goal of providing 11,000 seats for children.
Medeiros, a lawyer with Buckley Law, advises clients not to sign due to the risk the contract presents for small businesses. A major concern is a labor harmony clause, which allows for unionization. Small providers, already operating with tight margins, fear the added costs of a unionized workforce.
Medeiros also points out two additional issues in the contract. One involves the requirement to adhere to the most recent version of the Preschool for All program guide, a document that can change at any time. The other issue is over intellectual property. The contract states that any intellectual property created while working with the county belongs exclusively to Multnomah County. However, county officials have indicated a willingness to adjust this clause based on provider concerns.
Medeiros believes the contract is heavily skewed in the county’s favor and does not adequately consider small business owners. “It seems like this could push smaller companies into long-term financial risk,” he tells WW.
Leslee Barnes, the county’s director of preschool and early learning, says many providers who have joined the program are pleased with their decision. “We need to find a balance between building a universal preschool initiative and supporting individual business models that may not fully align with that vision,” Barnes says.
Recently, four large private preschool operators expressed reservations about joining Preschool for All.
Dory Hobbs of Atlas Immersion Academy says the salary requirements set by Preschool for All, which vary based on education level, could result in teachers earning more than administrative directors. This would force preschools to raise pay for non-teaching staff, which Preschool for All’s funding per child doesn’t cover. Jarod Hobbs adds that this could lead to a “race to the bottom” as providers look to hire less-qualified teachers.
Another concern is the inability to charge parents late fees, leaving providers with no recourse for families who frequently pick up children late. Expulsions are also not allowed under the program’s rules.
“To lose that authority as a private school is concerning,” says Dory Hobbs. “We need to balance respect for families with respect for teachers and providers.”
Additionally, Dory Hobbs says partnering with the county means losing control over student placements. Some children may not be a good fit for certain environments, but Preschool for All does not allow providers to make those decisions. Instead, parents rank their preferred locations, and the county places children accordingly. (Barnes assures that the county considers each child’s needs when making placements.)
Allison Morton, who runs Small Wonders School, another large preschool, is also hesitant. Her two locations serve more than 200 students, but she can’t qualify as a Preschool for All provider due to county requirements, such as installing commercial kitchens.
Morton says she was shocked by the county’s response to her concerns about how to handle children who might not be a good fit for her school. “There’s no such thing as a child who’s not a good fit,” Shelly Jackson, the county’s preschool partnerships supervisor, told her via email. (A current Preschool for All provider confirmed to WW that providers aren’t allowed to suggest a child may not fit well.)
Morton, who is a parent of children on the autism spectrum, was also puzzled by the county’s stance on 1-to-1 aides for children who need extra support. Jackson told her that such aides are considered an exclusionary practice and are not allowed in the program.
“Equity means recognizing that different children have different needs,” Morton says. “Their approach is to put every child in the classroom. But real inclusion is welcoming that child properly.”
Barnes says it’s rare for Preschool for All to need to move a child because of placement issues. She emphasizes that the county works with providers and families to support the child’s needs.
Meanwhile, Breanne Monahan and Sherrilyn Edgar, who run Peace Tree School in Northeast Portland, which serves 63 students, say they won’t join Preschool for All unless changes are made. They want the county to relinquish ownership of intellectual property, address continuity of care (ensuring that children stay at the same provider for preschool), and seek more input from private providers in decision-making.
“We know we’ll lose students if we don’t join,” Edgar says. “[But] it’s a firm no until some things are resolved.”
Despite these reservations, all the preschool operators interviewed by WW expressed enthusiasm for Preschool for All’s mission. However, many feel trapped between losing control of their businesses or losing customers to schools that can make the program work.
“My feeling is, once others are doing it, we’ll have to join too,” says Dory Hobbs. “We’re losing kids and teachers. We either all jump into this together, or we all need to leave Multnomah County.”
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