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Revenue Options

There are numerous funding strategies state advocates and leaders can pursue for increasing the revenue from state and local sources that can be directed to high-quality early care and education. There  has been significant work done at both at the state and local levels, to support quality early care and education through dedicated taxes. These revenues can have a significant impact on long-term goals, and there have already been several early successes in using them to  help close the extreme funding gap in early care and education.

Alliance for Early Success - Early Childhood Policy

2022 Ballot Measure Preview

Children’s Funding Project —  This 2022 Ballot Preview gives an overview of how state and localities could dedicate millions of dollars to children in November. Learn about all the efforts to fund children’s services on this fall’s ballot below, and check back after November 8 for a round-up of the election results.(2022)

Back-to-School Success Requires Strong Community-School Partnerships

Children’s Funding Project —  This resource explains how states are using American Rescue Plan and Elementary and Secondary School Emergency Relief Fund (ESSER) dollars to support community partnerships. (2022)

A Perfect Match for Child Care

Children’s Funding Project —  Over the last few years, advocates in Louisiana have secured nearly $100 million in dedicated state funding for early childhood education. This was the result of countless efforts to plan, partner, and take local action. Their new case study records how advocates in the state identified its kids’ needs, potential funding options, and new sources of revenue on both the state and local levels. (2022)

Investing in New Mexico: American Rescue Plan Community Profile

Children’s Funding Project —  The Children’s Funding Project released a new community profile that highlights how New Mexico is investing American Rescue Plan funds for children and youth. New Mexico invested $320 million to child care programs in the state. (2022)

Voter Approved Children's Funds: Funding Our Kids 101

Children’s Funding Project — As part of the Children's Funding Project Funding Our Kids 101 series, they have released resources on how to sustainably fund kids’ programs, including infant and toddler care, universal pre-K, and out-of-school time services. The voter-approved children’s fund fact sheet breaks down the steps you need to know to help your community start a fund. (2022)

The A-Zs of Creating a Voter-Approved Children’s Fund

Children’s Funding Project — As part of the Children's Funding Project Funding Our Kids 101 series, the Children's Funding Project created this checklist to guide your team as you plan your effort, place your initiative on the ballot, and mobilize your supporters for election day. This checklist builds on content featured in A Children’s Fund Campaign Manual developed by Funding the Next Generation in collaboration with 50+1 Strategies. (2022)

Early Childhood Policy Advocates and Children’s Funding Project Talk Revenue Streams

The Alliance for Early Success, Children’s Funding Project, Institute on Taxation and Economic Policy — This readout contains the slides and resources from a 2022 web meeting for state policy advocates that was facilitated by Children's Funding project. In addition these resources, there are numerous links to practical state examples of each strategy. (2022)

How Tax Cuts for the Wealthy Lead to Program Cuts for Kids

Children’s Funding Project —  This blog provides an overview on how regressive tax breaks to states can lead to program cuts for kids. The blog also provides examples of states that have accomplished revenue wins in 2022. (2022)

Funding Our Future: Generating State and Local Tax Revenue for Quality Early Care and Education

The BUILD Initiative, Center for American Progress, Children’s Funding Project, Institute on Taxation and Economic Policy, and University of Maryland College Park, Schools of Public Health and Public Policy — This brief introduces state and local tax policy areas for consideration as part of the push for expanded public investment in early care and education. Seven tax policy areas are presented. Each tax is defined, and examples are included showing current use of these taxes for early care and education, policy ideas that have been tried but have not yet passed and new, next-generation ideas. (2021)

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Creating a Bigger Pie: Allies Share State Revenue-Generating Strategies for Early Childhood Programs

Alliance for Early Success — In October, the Alliance for Early Success was joined by the Children’s Funding Project for an important conversation about funding streams. As we begin to think beyond COVID relief funding and about a future where early childhood programs are better and more sustainably funded, it will be important to consider all of the revenue streams possible. We discussed ways to advocate for both a bigger slice—and a bigger pie. (2020)

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Innovative Financing to Expand Services So Children Can Thrive

Children's Funding Project and Harvard Graduate School of Education — This policy brief shines light on ten innovative methods to finance services for children and youth. (2019)

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Prioritizing Our Future: How Cities and States Dedicate Funds for Early Care and Education

Louisiana Policy Institute —This paper highlights models of public, dedicated funding for early childhood to show the variety of creative financing mechanisms that states and localities have used to protect investments in early childhood from reallocation or reduction. (2019)

State Enabling Legislation for Special Taxing Districts

State Enabling Legislation for Special Taxing Districts

Children's Funding Project —This is a short brief on state-enabling legislation that gives localities (either alone or together) the authority to create a special taxing district dedicated to child and youth services. It’s important to note that this legislation does not establish any districts or levy funding; individual districts must be established by local or regional voter approval. (2019)

Moving Toward More Equitable State Tax Systems

Institute on Taxation and Economic Policy — This resource contains a series of policy recommendations that can serve as a guide to new lawmakers, advocates, and others seeking to improve their state’s tax codes.It explains the importance of favoring taxes on income and wealth over taxes on consumption, the value of certain targeted tax benefits for families living in poverty, the need to abandon ineffective, unnecessary tax subsidies for high-income households, and the promise of bold new options for improving the regressive distributional outcomes of state and local tax policies. (2019)

State Preemption Toolkit

AHA Voices for Healthy Kids —States are increasingly passing preemption laws that limit the ability of local governments from taking action on an issue, so this toolkit was created to provide information and resources that support advocacy for local governments maintaining their ability to pass laws about issues that are important to their communities. (2019)

American Rescue Plan Resource Page

The American Rescue Plan has created funds for early childhood that states can can flexibly spend on children, and Children's Funding Project has developed this collection of tools and resources to help policymakers, service providers, and advocates use this historic level of federal aid to kick-start meaningful change for children.