Local opinion: Arizona must protect funding for early childhood programs

Are you aware of the risk to Arizona's most vulnerable populations?

First Things First is Arizona’s early childhood agency, created by voters through Proposition 203 in 2006 to fund healthy development and school readiness of children from birth to age 5 through programs such as early learning, developmental screenings, family support and child care quality initiatives like Quality First. First Things First relies heavily on tobacco tax revenue established through the 2006 voter initiative. Casa de los Niños (CDLN) is one of many organizations that depend on First Things First funding to provide vital services to our community. Without this funding, organizations and programs like Casa de los Niños' Nurse Family Partnership (an evidence-based nurse home-visiting program for at-risk expecting mothers), early child care center, and Parents as Teachers program are at risk.

Annual tobacco tax revenue has dropped significantly since 2006, from roughly $165 million to under $100 million in recent years. This downward trend continues to create structural funding gaps. Since 2024, revenues have fallen short of what is needed to sustain current service levels for children and families supported through early childhood programs, education and resources.

According to state board meeting minutes for the last few years, First Things First is using reserve funds to maintain programming. Projections indicate that, without policy changes, these reserves could be depleted within the next decade.

With funding declining, clients of Casa de los Niños and additional children from birth to age 5 risk losing access to:

• High-quality early care and education, including scholarships for preschool and child care
• Developmental and health screenings for infants and toddlers
• Community resource centers and parenting education programs

Long-term economic analyses of early childhood investments consistently show a positive return. While estimates vary, studies find returns ranging from about $1.50 to over $16 (see Nobel awardee James J. Heckman’s work) for every $1 invested. To continue funding this work, Arizona needs to modernize the existing funding structure.

When the structure for First Things First was created in 2006, products like e-cigarettes and nicotine vaping devices were not widely in use. Updating the tax structure to include these products could help stabilize funding. Policy analyses show this could generate tens of millions annually.

Waiting until reserves are depleted, rather than acting proactively, risks continued erosion of critical early childhood funding here at CDLN and across the state. Gaps in taxation, including differences between traditional tobacco and newer nicotine products, can reduce potential revenue that could otherwise be invested in Arizona’s children.

Children and families in Arizona are facing a critical juncture in the road. It’s time for the state to do the right thing and put funding toward these critical services by supplementing revenue with an e-cigarette and vaping tax.