As the chair of First Things First (FTF), Arizona’s only dedicated funding source for early childhood education programs and services, we know that the earlier we invest in children, the better the outcomes.

On behalf of the FTF Board, I want to thank Gov. Katie Hobbs and members of the Arizona State Legislature for the critical investments to support Arizona’s youngest children and working families included in this year’s budget. The $44.9 million in General Fund support for child care assistance, paired with $81 million in federal Child Care and Development Fund (CCDF) authority, is a much-needed investment in our state’s economic infrastructure.

These investments reflect a growing, bipartisan understanding that early childhood is foundational to Arizona’s long-term economic competitiveness, workforce productivity and public health.

That said, we must be clear about the road ahead. Arizona continues to face a 25% gap between the supply and demand for quality, affordable child care. Thousands of working families remain on child care waitlists or are forced to make an impossible choice between safe, quality care for their young children and their own continuing employment. At the same time, First Things First’s annual revenues have decreased by nearly 40% – more than $63 million a year – when compared to the level of funding we received when FTF began operations. That reality places core early childhood services, such as parental home visitation, developmental screenings and quality early care and education, at serious risk.

That is why the FTF Board supported House Bill 2778 this last legislative session. It was a fiscally responsible proposal to begin closing the structural early childhood funding gap by extending the current tobacco tax to vaping and other nicotine delivery mechanisms. Products that were not even on the market when FTF was approved by voters. This approach honors the original voter intent behind Proposition 203, which directed a portion of tobacco taxes to support early childhood services. While the bill did not advance this session, it generated broad bipartisan interest and signaled a willingness to confront the issue head-on soon. The groundwork to address this problem has been laid; it is time to act.

We stand ready to work with legislative leadership, agency partners, business leaders and communities across the state to develop a dependable, long-term funding strategy for Arizona’s early childhood system. What we do to financially support these critical services is about ensuring the strength of Arizona’s growing economy, assisting our current and future workforce and supporting our children and grandchildren.

Steven Lynn is the Board Chair of First Things First, Arizona’s early childhood agency. He is a member of the Southern Arizona Leadership Council and a lifelong advocate for children and the economic health of Arizona.