Carter vetoes 2024 St. Paul ballot question on tax hike for child care

St. Paul Mayor Melvin Carter on Thursday vetoed a 2024 ballot measure, backed by a majority of City Council members, that would ask voters to approve a property tax levy increase to help cover the costs of early child care.

It was Carter's second veto as mayor, coming a week after a 5-2 City Council decision to send the question to voters. Carter wrote a five-page letter laying out concerns with the proposal, including its cost, feasibility, oversight and a need to prioritize other city services.

"While the underlying goal behind this effort — to provide quality early childhood care for every child and family in our city — is laudable, our excitement for this bold proposal must not preclude a temperate examination of its details," the mayor wrote.

To override the veto, the council would need votes from five of its seven members. An override vote must be taken within 30 days. Council President Amy Brendmoen, who supported the measure, said their next move is "under consideration."

The rare mayoral move is a blow to the group of educators, business leaders and elected officials who have been working since 2017 to develop a policy that will support families struggling with the costs of child care and preschool.

"Through thousands of conversations over the last few years, St. Paul voters told us nearly unanimously that they are excited to make historic investments in our kids," Daniel Cox, campaign manager for the St. Paul All Ready for Kindergarten (SPARK) coalition, said in a statement Thursday. "It is regrettable that Mayor Carter isn't interested in making those same investments or even allowing voters to weigh in on it in 2024."

Advocates say local action is needed to fill gaps in federal and state assistance, pointing to programs launched in cities like Boston, Denver and Seattle. Arguing that better access to child care promotes healthy development and boosts the workforce, the latest version of their proposal would use dedicated revenue to provide subsidies to low-income families and support to providers.

The property tax levy would be raised incrementally over 10 years — $2 million the first year, $4 million the second year and so on, until the program maxes out at $20 million. A median homeowner would see their tax bill go up $16 each year.

Subsidies would go to families at or below 185% of the poverty line, which is $55,500 annually for a family of four, and leftover funds would be distributed on a sliding scale. The funds could go toward programs for children up to age 5.

Organizers attempted to place a similar question on the ballot in 2022, but failed to garner enough petition signatures. After that effort, the council appointed an early learning legislative advisory committee, which studied the issue and recommended a city-run program in the spring.

Since then, the Legislature passed a new child tax credit and increased funding for early childhood programs, meaning St. Paul will see tens of millions of additional state dollars next year. But citing research from an economist, the council resolution said the city would need an estimated $39 million more each year to reach all children at the proposed income threshold.

"In St. Paul, we have an opportunity to close these gaps, but we have to ask where that funding will come from, since we know current funding is inadequate," Council Member Nelsie Yang, one of the resolution's sponsors, said in a statement.

Council Members Russel Balenger and Mitra Jalali voted against the ballot measure last week. At the time, Jalali said she does not think it's responsible for the council to lock itself into a 10-year financial commitment without more clarity on how the program would work and be evaluated.

Council Member Rebecca Noecker, the resolution's other sponsor, said delaying the ballot question until 2024 gives policymakers time to gather feedback and figure out program specifics.

"Investing in our youngest children simply can't wait," she said in a statement Thursday.

In a statement Thursday, Council Member Jane Prince said she plans to support an override.

"Instead of vetoing five years of work by St. Paul community leaders — the Children's Collaborative, SPPS, Head Start, the City Council and hundreds of families across the city — it's time that [the mayor] engaged and listened and worked with us to help shape a plan he could support," Prince said in a statement. "That's what real leadership looks like."

Brendmoen said she expects the legislative body to discuss their response in the next month.

"I know the mayor to be a champion for early education," Brendmoen said in a statement. "I will take any concerns he raises about the viability of program and funding mechanisms into consideration as we review."

In his letter, which noted his previous service as director of the Minnesota Office of Early Learning and executive director of the Minnesota Children's Cabinet under former Gov. Mark Dayton, Carter said he still believes "that securing the brightest possible future for all of our children is a job that rightfully deserves full engagement from every individual and institution in our community."

"I remain open to constructive dialogue to assist in re-envisioning this proposal into an actionable scope and scale," the mayor wrote. "Specifically, the proposal must be clear in identifying an approach that centers building upon our existing early childhood infrastructure; providing additional clarity on family, friend and neighbor providers; and providing time for a true pilot to test, learn, improve, and evaluate a proposed course of action prior to seeking to establish a new citywide program from scratch."