Prop. 302 shifts funds from kids to cut deficit

Arizona Daily Star
October 1, 2010
Stephanie Innes

A "yes" vote on Arizona Proposition 302 means reducing the state deficit while dismantling a voter-approved early-childhood-development fund and the programs it supports.

The Legislature referred Prop. 302 to voters as a way to balance the state's faltering budget. The measure would scrap "First Things First," a program created for children under age 5, funded with an extra 80-cents-per-pack tax on cigarettes voters approved in 2006.

Prop. 302 would immediately move $345 million from First Things First into the state's cash-poor general fund, currently running an $825 million deficit. All future money from the cigarette tax would go to the general fund and the Arizona Department of Economic Security (DES), which oversees numerous state services for children. On one side of Prop. 302 are supporters like Republican state Sen. Russell Pearce, who say First Things First is an ineffective, bloated bureaucracy sucking up money that could help save Arizona's budget.

"These are critical dollars, and the state needs them," Pearce said.

Opponents, calling their campaign "Save First Things First," say the fund is one of the last remaining positives for children in a state that does little for its youngest residents.

"With 302, the government is saying, 'We know better,' but their spending record on children is dismal. They've never made children or education a priority," said Penelope Jacks, director of the Children's Action Alliance Southern Arizona.

Opponents say the first five years of a child's life are crucial - a time when programs in child-abuse prevention, child literacy and access to early-childhood health programs are critical.

The Arizona Dental Association, for example, says First Things First is instrumental in supporting preventive health screenings to offset tooth decay, which affects more than one-third of Arizona children under age 3.

"That they are trying to get their hands on money designated for children is a slap in the face," Jacks said. "First Things First has already provided help to 330,000 Arizona children with an enormous range of services they simply would not otherwise get."

Figures released by the U.S. Census Bureau last week say nearly one-third of Arizona's children 18 and younger live in poverty. And numerous studies say Arizona spends less per student on education than most other states.

Jacks said the pro-302 campaign is deceptive because it markets the measure as a way to help children.

Indeed, the "Yes on 302" campaign has dubbed itself "Kids First Arizona," and proponents tout it as a way to prevent deeper state education cuts and help children. That's why the "no" campaign is running adds that say when it comes to Prop. 302, a "no" vote means "yes" for saving First Things First.

"In a state like Arizona, First Things First is one shining light," said Eric Schindler, president and chief executive officer of Child and Family Resources, a Tucson-based nonprofit that received $6.5 million from First Things First this year. The agency has a statewide network of offices providing coaches who mentor preschool child-care workers and offering at-risk new parents up to two years of home visits.

"We believe the best impact for investment in children is the early-childhood years," Schindler said. "If 302 passes, the funding will instantly disappear on Dec. 1, and it would be horribly catastrophic. A whole system of programs would be instantly dismantled."

Among those eager to save First Things First's early-intervention programs are Arizona's Indian tribes. The Tohono O'odham Nation has donated $50,000 to the campaign, and the Salt River Pima-Maricopa Indian Community has donated $125,000. Other opponents of Prop. 302 include the Arizona Education Association, the League of Women Voters of Arizona and the Pima County Pediatric Society.

Supporters of the proposition, including the Arizona Chamber of Commerce and Industry, the Goldwater Institute, the Arizona Tax Research Association and the Arizona Farm Bureau, say redirecting the money will help children by preventing further reductions in programs that receive state support, including K-12 education, universities, low-income health care and prison spending.

First Things First benefits specialized preschool programs that serve a "narrow population" at a time when the state sorely needs dollars to continue offering existing core health and human services, said Glen Hamer, head of the Arizona Chamber of Commerce and Industry.

"The state has no good options as it continues to dig out from a fiscal crisis. While the mission of First Things First is one that many in the business community support, the state finds itself in a situation where funding must be prioritized," Hamer said in a prepared statement. "If Proposition 302 were to fail it would almost certainly result in fewer funds being available for health and human services for children."

Pearce maintains taxpayers would have never supported First Things First had they known the fund has "no accountability."

"The state would not use this money to hire people. We'd use it for programs that are already in place," Pearce said.

First Things First officials say they have 126 full-time employees who are paid according to a state wage scale. And 90 percent of the money is spent on children, while 10 percent goes to administration, Saving First Things First campaign chair Nadine Basha said.

"The charge of a bloated bureaucracy is ridiculous. We have twice as many people who volunteer for First Things First in their communities than the number of paid employees we have on staff," Basha said.