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Fund early childhood programs by taxing non-tobacco products

By Melinda Morrison Gulick, Guest Commentary //February 26, 2025//

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Fund early childhood programs by taxing non-tobacco products

By Melinda Morrison Gulick, Guest Commentary //February 26, 2025//

For the first time in recent memory, the talk of early childhood education and child care can be heard throughout the halls of the Arizona Legislature. 

It is my hope as CEO of Arizona’s early childhood agency, First Things First, that those whispers will soon become loud bipartisan conversations about good policies that will make a difference in the lives of young children, working families and ultimately the Arizona economy. 

Because we can’t afford to wait any longer to make early childhood education a larger priority in Arizona.

Quality early childhood programs help kids be more prepared for kindergarten, do better in school, be more likely to graduate high school and be less likely to be involved with the criminal justice system or require assistance from social welfare programs later.

Gov. Katie Hobbs has an important priority outlined in her Bright Futures AZ initiative aimed at improving the lives of Arizona’s families by expanding access to quality child care, encouraging private sector support of child care and supporting the professionals in the field. 

There are almost half a million working families with children under age 6 in Arizona. The rising cost of quality child care is a major expense for many families, particularly those with young children. The average cost of full-time care for an infant is more than $10,000 a year. Quality early childhood education and child care programs are essential to our state’s economy and a more stable workforce.

Melinda Morrison Gulick

Quality child care is just one of the many areas that First Things First supports across the state. Yet, while the needs of young children continue to grow, First Things First is facing a dramatic decline in tobacco revenue, the agency’s primary source of funding. Annual revenues have decreased by nearly 40% as consumers have moved to vaping and alternative nicotine products, which didn’t exist 20 years ago when voters created First Things First.

HB2778 will expand early childhood revenues by including a tax on vaping and other alternative nicotine products to mitigate declining tobacco revenues, which honors the original intent of Arizona voters, who recognized that investing in early childhood education is crucial for the development of young minds and the future success of our state.

This vaping and alternative nicotine tax is estimated to potentially yield about $80 million annually. HB2778 would distribute 60% to support Arizona’s early childhood system and 40% to the state general fund helping to ensure that more children receive the support they need to learn, grow and succeed.

In addition, HB2939 reflects a portion of Governor Hobbs’ Bright Futures AZ by creating programs to support child care for working families — including young children. 

Bold actions like the ones in these bills are essential. There was a strong show of support on Feb. 17 as hundreds of early childhood supporters gathered at the state Capitol for Early Childhood Day, with many having personal meetings with legislators. It is clear that the earlier we invest in children, the better the outcomes. Our children’s future depends on continued investments made in their early years. 

I hope you’ll join me and our partners in informing policy leaders and business and community leaders about the critical importance of early childhood investments. Please call or email your legislators and ask them to support these bills and give Arizona’s children the best start possible.

Melinda Morrison Gulick is CEO of First Things First, Arizona’s early childhood agency. 

 

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