December 3, 2025 Education and Workforce Development Roundtable
Extracted text (via pymupdf)
36739 characters
OFFICE OF THE CITY CLERK EDUCATION AND WORKFORCE DEVELOPMENT ROUNDTABLE MINUTES December 3, 2025 The Education and Workforce Development Roundtable of the City of Mesa met in The Studios at Mesa City Center, 59 E. 1st St., on December 3, 2025, at 1:30 p.m. BOARDMEMBERS PRESENT BOARDMEMBERS ABSENT STAFF PRESENT Councilmember Heredia, Chair Dr. Erica Copeland (Designee for Dr. Perry Berry) Candice Copple Dr. Richard Daniel Dr. Joseph Foy* Sally Harrison Marcie Hutchinson David Loutzenheiser Dr. Shane McCord Rich Nickel Renee Parker (Designee for Dr. Matthew Strom) Jenny Jackson Robinson Matt Sexton (Designee for David Williams) Vince Yanez Kristen Sorensen Dr. Chad Wilson COUNCIL PRESENT None Andrea Alicoate Lisa Cartwright-Harris Holly Moseley Rafaella Safarian Sarah Tolar (*Participated in the meeting through the use of video conference equipment.) Chairperson Heredia conducted a roll call. Chairperson Heredia excused Boardmembers Sorensen and Wilson from the entire meeting. Chairperson Heredia excused Boardmember Daniel from the beginning of the meeting; he arrived at 1:40 p.m. 1. Call meeting to order, welcome announcements and reminders from the Chair. Chairperson Heredia called the meeting to order and pointed out the 2026 meeting schedule. He welcomed Designee Dr. Erica Copeland, Associate Superintendent at Higley Unified School District; Designee Renee Parker, Director of Community Partnerships at Mesa Public Schools; and Designee Matt Sexton, Community Development Manager at Meta. Education and Workforce Development Roundtable December 3, 2025 Page 2 2. Take action on selecting Education and Workforce Development Roundtable Vice Chair for new term. Education and Workforce Administrator Sarah Tolar displayed a PowerPoint presentation. (See Attachment 1) Chairperson Heredia noted the need to select a new vice chairperson to fill the vacancy created by Councilmember Spilsbury’s departure and nominated Boardmember Copple for the position. It was moved by Chairperson Heredia, seconded by Boardmember Harrison, that Boardmember Copple be appointed as Vice Chairperson of the Education and Workforce Development Roundtable for the remaining term ending June 30, 2026. Upon tabulation of votes, it showed: AYES– Heredia–Copeland–Copple–Daniel–Foy–Harrison–Hutchinson–Loutzenheizer–McCord– Nickel–Parker–Jackson Robinson–Sexton–Yanez NAYS – None ABSENT – Sorensen–Wilson Chairperson Heredia declared the motion carried unanimously by those present. Ms. Tolar confirmed that the Education and Workforce Development Roundtable (EWDR) is to be comprised of seventeen (17) members; nine (9) standing and eight (8) appointed members. She stated that the Mayor and Council will appoint a replacement standing member and reviewed the eligibility criteria for the position. (See Page 3 of Attachment 1) 3. Take action to approve the Roundtable Meeting Minutes from September 3, 2025. It was moved by Boardmember Jackson Robinson, seconded by Boardmember Daniel, that the September 3, 2025, Education and Workforce Development Roundtable meeting minutes be approved. Upon tabulation of votes, it showed: AYES– Heredia–Copeland–Copple–Daniel–Foy–Harrison–Hutchinson–Loutzenheizer–McCord– Nickel– Parker–Jackson Robinson–Sexton–Yanez NAYS – None ABSENT – Sorensen–Wilson Chairperson Heredia declared the motion carried unanimously by those present. 4. City staff to provide overview and debrief on Arizona Institute for Education and the Economy’s progress and next steps. Ms. Tolar discussed the progress being made by the Arizona Institute for Education and The Economy (AIEE) and provided a brief overview of the presentation from the September 3, 2025, EWDR meeting. She reviewed AIEE’s theory of change in action and reported the positive Education and Workforce Development Roundtable December 3, 2025 Page 3 feedback received from local industry partners who are engaged in the initiative. She explained that AIEE is developing a playbook to guide innovation in education across Arizona that will highlight best practices, identify what policy changes may be needed, and offer tools that districts can use to scale innovation. She added that advocacy organizations are involved in supporting this work and that the guidance of Artificial Intelligence (AI) will be included to help educators and students effectively use these resources. (See Pages 4 through 6 of Attachment 1) Ms. Tolar highlighted the AIEE State 48 Graduate Profile, which is based on the principle that students may pursue different pathways, while still being prepared for any of the four future options identified in the profile, including the ability to return for additional education as needed. She noted that the profile identifies eight essential skills developed collaboratively by schools, businesses, and industry partners to reflect what graduates need for success. (See Pages 7 and 8 of Attachment 1) Ms. Tolar commented that at the recent statewide Redesign Day, participants from across Arizona gathered to help bridge gaps in the education system. She stated that the attendees worked in regional groups to select a priority challenge, assess the current conditions, identify a desired future state, discuss the steps needed to achieve that outcome, and reviewed models from other states to help inform their discussion. She added that the session emphasized possibilities rather than limitations to encourage forward-focused problem-solving and noted that AIEE will continue to convene the groups to support ongoing collaboration. She highlighted that AIEE has published statewide AI guidance, created by a cross-sector team, to help schools implement AI in ways that strengthen programming and promote innovative, future-oriented practices. (See Pages 9 and 10 of Attachment 1) Ms. Tolar pointed out that the full document and resources can be viewed using the QR Code located on page 7 of the presentation. 5. Hear report from Rich Nickel, Education Forward President and CEO, on statewide education attainment report. Boardmember Nickel encouraged members to review the materials provided independently to ensure full understanding of the information. He reported that Education Forward Arizona has been in existence for four years and is supported by three non-profit partners working collectively to strengthen the educational voice in Arizona. He noted that their efforts include examining historic and future trends in education, engaging statewide leadership, and gathering input from rural and remote regions to inform a statewide vision. He stated that an updated strategic framework was released in November 2025, which includes revisions to Education Forward Arizona’s vision and mission to better reflect current priorities in policy, programming, and workforce alignment. (See Pages 11 through 13 of Attachment 1) Mr. Nickel outlined the Achieve60AZ initiative with the goal of increasing post-secondary education attainment across Arizona from the current rate of 49% to 60% by 2030. He reported that Arizona has achieved approximately 280,000 additional degrees and credentials toward this objective, with each percentage point representing approximately 35,000 to 40,000 individuals. He verified that progress is being measured using the Education Progress Meter, with early learning indicators remaining a priority focus. He noted the continued support for several services and programs that impact students and educators, including 870 scholarships awarded totaling $2.4 million and Ask Benji, a Free Application for Federal Student Aid (FAFSA) support chatbot that serves approximately 450,000 high school students and parents. He referenced the Education and Workforce Development Roundtable December 3, 2025 Page 4 Everything to Gain public awareness group that advocates for expanding scholarship programs, augmenting pay for teachers, and increasing dual enrollment plans. He remarked that an increase in higher education enrollment by 20% could lead to more than $5 billion in economic gain for Arizona annually. (See Pages 14 through 19 of Attachment 1) Mr. Nickel reviewed recent statewide polling, and noted that voters’ top concerns include homelessness, housing, healthcare, and quality-of-life issues. He stated that while education remains a high priority across demographic groups, voters identified affordability, student debt, childcare challenges, and underfunding of K–12 public schools as significant concerns. He reported ratings for community colleges and universities remain generally positive, and local perceptions of school districts show modest improvement. (See Pages 20 through 24 of Attachment 1) Mr. Nickel presented polling data regarding the Empowerment Scholarship Account (ESA) Program and stated that the results indicated 22% favorable, 22% unfavorable, 32% unfamiliar, and 25% with no opinion. He noted that respondents expressed concerns related to transparency and accountability, but results confirm that after receiving additional information, approximately 80% of respondents supported policy measures to require stronger financial controls, audits, reporting requirements, and outcome tracking. (See Pages 25 through 27 of Attachment 1) Mr. Nickel reported that voters overwhelmingly believe elected leaders should take additional action to strengthen the workforce pipeline and reduce reliance on importing talent from other states. He added that broad support exists for policies that expand access to post-secondary opportunities, reduce barriers to enrollment, and increase options for career and technical education, online learning, and adult training programs. (See Pages 28 through 35 of Attachment 1) In response to a question from Boardmember Copple, Mr. Nickel stated that uncertainty remains about whether the state will achieve the 60% attainment goal but affirmed that significant progress has been made. He emphasized the importance of expanding high-value credentials, improving data collection for adults aged 25 to 64, and strengthening the pipeline of younger learners. In response to a comment from Chairperson Heredia, Mr. Nickel acknowledged significant disparities across socioeconomic and demographic indicators and emphasized the need to support populations that represent a growing share of Arizona’s student body. Responding to an inquiry by Boardmember Foy regarding data related to dual credit participation and its impact on enrollment in Arizona colleges and universities, Mr. Nickel stated that data is available for various regions and at the state level. He noted that Helios and the Phoenix Chamber are leading dual enrollment data efforts and that additional analysis will help make the information more accessible and actionable. 6. Hear presentation from Melinda Gulick, First Things First CEO, on early childhood issues and impact on economic and workforce development in Mesa. a. Discuss priorities, work and opportunities for engagement with City of Mesa. Ms. Gulick presented information on early childhood education and its direct connection to long- term post-secondary attainment and emphasized that post-secondary success starts at birth. She noted that the First Things First program is funded through a voter-approved tobacco tax initiative Education and Workforce Development Roundtable December 3, 2025 Page 5 directing 40% of tobacco revenues to early childhood services. She highlighted research showing that 90% of brain development occurs before kindergarten and that early literacy, social-emotional development, and high-quality early learning are critical components of Arizona’s graduate profile. She reported that the statewide goal is for 45% of children in Arizona, aged birth to five, to have access to high-quality early learning and confirmed that the current rate is 32%. (See Pages 36 and 37 of Attachment 1) Ms. Gulick referenced a Harvard study demonstrating the long-term impact of early learning on academic outcomes and life trajectory. She cited findings from the School Readiness Task Force indicating that children who participate in high-quality early environments enter kindergarten better prepared, require fewer interventions throughout their academic career, and show improved social and emotional development. She explained that the statewide childcare crisis stems from multiple, compounding challenges, and stressed that demand for care far exceeds available supply. She stated childcare employees face low wages, minimal benefits, and limited opportunities for paid professional development, making it difficult for providers to retain staff. She said the cost of care often consumes 12–32% of household income, far above the 7% benchmark considered affordable. She pointed out that infant care can reach roughly $25,000 per year, and overall childcare averages $14,000–$15,000 annually, frequently exceeding the cost of college tuition, resulting in many families being forced into debt just to secure needed care. (Pages 38 through 41 of Attachment 1) Ms. Gulick remarked that childcare challenges have significant impacts on Arizona’s working families and employers. She reported that these shortages result in substantial economic losses due to reduced workforce participation, employee turnover, and employer costs associated with vacancies. She emphasized that investing in childcare and early learning could generate an estimated $2.5 billion in economic benefit, support increased workforce participation, and boost high school graduation rates by approximately 4,800 students per year. (See Pages 42 through 46 of Attachment 1) Ms. Gulick highlighted several community-based initiatives currently underway across Arizona to address childcare shortages. She encouraged the EWDR to examine whether similar collaborative approaches could address Mesa’s childcare gaps, especially as school closures affect community access to care. She reviewed additional community solutions such as employer- supported infant-at-work programs and public-private partnerships. (See Pages 47 through 49 of Attachment 1) Ms. Gulick explained that the First Things First early childhood programs are primarily funded through tobacco tax revenues and state general funds; however, tobacco has become a declining revenue source, with collections down 47% since 2006, worsening the childcare funding crisis. She noted that Arizona’s tax structure is outdated, as newer tobacco and nicotine products such as synthetic nicotine and nicotine pouches are not taxed and consumers have increasingly shifted to these products. She reported that current efforts to add vape and synthetic nicotine products to the taxable list face substantial political challenges and emphasized that resolving the funding shortfall is essential to investing in the future workforce. She identified that additional information is available via the QR code provided. (See Pages 50 through 57 of Attachment 1) Responding to a comment from Mr. Nickel, Ms. Gulick said that the influx of federal investments made during the 2020 pandemic provided clear evidence of its positive impact. She pointed out that during that period the state’s childcare progress measure was the only statewide education metric that improved. Education and Workforce Development Roundtable December 3, 2025 Page 6 In response to a question from Chairperson Heredia, Ms. Gulick commented that approximately 1,800 licensed providers contract with the Department of Economic Security (DES) to accept childcare subsidy funding and many statewide providers also receive support through First Things First scholarships. She pointed out that federally funded programs such as Head Start and Early Head Start serve approximately 17,000 children across Arizona. Ms. Gulick discussed the emergence of new partners in early childhood education, including the Bezos Academy, which offers free, high-quality preschool programs and expands parental choice. She stated that recent preschool grant awards present an opportunity to better integrate the various players in the early learning system to ensure programs make sense for all families. She reported that the Bezos Academy currently operates sites in Mesa, Glendale, and Peoria, and discussions are taking place regarding how these programs can complement district offerings, alleviate pressure on Mesa Public Schools, and support families’ needs. She stated that Head Start, the Bezos Academy, and local business leaders are engaged in ongoing conversations to align services and build on existing strengths within the community. Chairperson Heredia thanked Ms. Gulick for the presentation. Ms. Tolar asked the EWDR to consider engaging the business community and emphasized that childcare is fundamentally an economic development issue with significant impacts on employers. She noted the challenges facing Mesa, including the lack of affordable childcare and after-school care, and said that bringing business leaders together through a task force could help build shared understanding and support. She recommended partnering with the consultant currently working with First Things First, acknowledging that Mesa’s size and diversity require tailored strategies. She stated that this approach could be a productive next step, drawing on successful models used in other communities to develop an effective, locally informed childcare strategy. 7. Roundtable members share out information regarding their involvement in recent and upcoming education or workforce-related events or programs. Chairperson Heredia extended an invitation to the grand opening of the new Southeast Mesa Library at Gateway on Saturday, December 6, 2025, from 10:00 a.m. to 2:00 p.m. Boardmember Hutchinson highlighted the Mesa Public Schools Career and Technical Education programs and encouraged EWDR members to sign up for the monthly newsletter by emailing degiles@mpsaz.org. She mentioned new micro-internship opportunities launching in January, which enable students to take ownership of tasks, offer fresh perspectives on workflow, and gain hands-on experience. She reminded the boardmembers of the spring hiring fair scheduled for April 28, 2026. Boardmember Daniel announced that Mesa Community College recently celebrated its 60-year anniversary and expressed appreciation for the ongoing partnerships with the City of Mesa, the Mesa Chamber of Commerce, and Mesa Public Schools. 8. Call to the public. There were no public comments. 9. Call for future agenda items. MESA EDUCATION AND WORKFORCE DEVELOPMENT ROUNDTABLE December 3, 2025 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 1 of 59 2026 Meeting Dates • February 11, 2026 • May 6, 2026 • August 19, 2026 • November 4, 2026 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 2 of 59 Mesa Education and Workforce Development Roundtable Resolution Appointed Member Criteria Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 3 of 59 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 4 of 59 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 5 of 59 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 6 of 59 Bit.ly/42PDtwh AIEE documents and resources: Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 7 of 59 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 8 of 59 10/21 (Re)Design Day • Challenge 1: Learning with Purpose and Relevance • Challenge 2: Schools Design for Belonging and Well-being • Challenge 3: Rethinking Knowledge & Learning in a Changing World Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 9 of 59 AI Guidance • K-12 Guidance Document • Understanding Gen AI • Teaching, Learning and Admin Uses • Responsible and Ethical Uses • Implementation Recommendations Link to download: azk12.ai Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 10 of 59 Mesa Education & Workforce Development Roundtable Understanding Voters’ Perceptions of Education in a Dynamic Environment Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 11 of 59 1 2 PG | EducationForwardArizona.org @EdForwardAZ All Arizonans, regardless of background, have access to flexible, high-quality, and integrated education and training pathways that prepare them with the necessary skills and knowledge to thrive in a rapidly changing environment and to help strengthen Arizona’s economy. Our Vision (11/14/2025 Strategic Direction) Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 12 of 59 1 3 PG | EducationForwardArizona.org @EdForwardAZ To advocate for high-quality education and training that aligns with career and workforce opportunities to advance the quality of life for all Arizonans. Our Mission (11/14/2025 Strategic Direction) We Work in Three Main Areas Voice Policy Programs Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 13 of 59 Achieve60AZ Attainment Goal 1 4 PG | EducationForwardArizona.org @EdForwardAZ Goal: 60% working-age adults holding credentials by 2030. Today, the state's rate is 49%. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 14 of 59 Education Progress Meter – AZ Data Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 15 of 59 Impactful Services to Support Arizona Students & Educators (…and Policy Makers) College Knowing & Going (CKG) Supports a College Going Culture in 30 High Schools College Success Services Awards over $2.4M per year and provides a Success Advisor to every scholar Network for College Access & Attainment Professionals Encourages postsecondary attainment in Arizona AI-powered Chat Bot Provides FAFSA support College Success Services Full scholarship in six high demand areas, paid summer internship, and job placement. Community Impact Managers Working with communities Northern, Central, & Southern Arizona in on education advocacy Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 16 of 59 Our bilingual website guides students and families through every step of the journey in 4 practical steps: Step 1: Plan for What’s Next Step 2: Explore Your Options Step 3: Put Your Plan Into Motion Step 4: Fund Your Future Guide to Your Future GuideToYourFuture.org Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 17 of 59 1 8 PG | EducationForwardArizona.org @EdForwardAZ Research Shows . . . Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 18 of 59 1 9 PG | EducationForwardArizona.org @EdForwardAZ Arizona has everything to gain — in our economy, workforce, communities and as individuals — when students continue their education and training after high school. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 19 of 59 20 PG | EducationForwardArizona.org @EdForwardAZ Through public opinion research, the Everything to Gain campaign builds a clear understanding of what Arizonans believe about the value of postsecondary attainment and what keeps them from pursuing it. Polling Data is Critical Information 1. Beliefs About Value of Postsecondary Education 2. Barriers to Participation 3. Solutions to Drive Education Policy (2024) 4. Voters’ Perceptions of Postsecondary Attainment (2025) Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 20 of 59 Poll Findings: Arizona Voters' Perception of Postsecondary Attainment Public Opinion Research by Education Forward Arizona Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 21 of 59 Top Concerns for Arizonans Healthcare, housing affordability, and homelessness are top of mind for voters with student debt and funding for K-12 public schools right behind. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 22 of 59 Outlook on Universities and Community Colleges Views of Arizona’s public universities and community colleges are consistent with past statewide surveys Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 23 of 59 Outlook on Local Schools Voters’ ratings of their local school districts continue to show modest improvement. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 24 of 59 Outlook on ESAs As part of the initial check of favorable vs. unfavorable a majority of voters did not express an opinion about Arizona’s Empowerment Scholarship Account (ESA) program, but views of ESA’s are divided among those who do express an opinion. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 25 of 59 Accountability and Fraud Of those with an opinion about Arizona’s ESA program (in the fav / unfav), an overwhelming majority are highly concerned about the recently reported issues of both fraud and abuse or the lack of transparency and accountability (voters were asked one of the two questions). Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 26 of 59 Key Voter Takeaways on ESAs Notably, more than 80 percent of voters support: Annual independent financial audits to track ESA fund usage Strict usage controls for ESA families to ensure responsible spending of taxpayer dollars Regular reporting requirements on ESA student outcomes, including: o Achievement in reading and math o High school graduation rates o Postsecondary enrollment Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 27 of 59 Outlook on Post-High School Education and Training Two-thirds of Arizonans see it as a significant problem that not enough Arizona students get an education beyond high school. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 28 of 59 Federal vs State Leadership Most think that leaders in Washington and Arizona should be doing “a lot more” to ensure the nation and state have skilled and trained workers. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 29 of 59 Overwhelming Majority Says More Must Be Done – And the Number is Growing Two-thirds are supportive of Arizona taking steps to meet the objective that 60% of its workforce obtain post-high school education, job training or certification for a career. This number has grown 5 percent since last year. Arizona is working toward a goal that by 2030, at least 60% of Arizonans ages 25- 64 will complete some education beyond high school, including at a four-year college, community college, apprenticeship, or a workforce certification program to ensure the state has a skilled and educated workforce. Currently, only 49% of Arizonans ages 25-64 are estimated to have earned some type of workforce certification or degree after high school. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 30 of 59 87% of all opinions expressed were connected to education and workforce. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 31 of 59 The following messages resonated with 80 percent or more of voters: | Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 32 of 59 Summary: Key Poll Takeaways More Must be Done to Develop a Skilled and Educated Workforce Voters believe elected leaders at the federal and state levels should be doing more to ensure the nation and Arizona have a skilled and well-trained workforce. Therefore, it follows that the vast majority of Arizonans think “more should be done” to meet the goal that 60% of Arizonans have post-high school education, job training, or career education Consistent with previous statewide surveys, voters across all major demographic groups favor doing more to meet the attainment objective. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 33 of 59 Summary: Key Poll Takeaways Votes Support a Variety of Policies to Accomplish Achieve60AZ ● Voters continue to support policies that will increase access to post-high school education and career education programs. ● This includes: ○ College-level dual enrollment for high school students ○ Expanding online education ○ Funding Adult Technical Education ○ Making education and career programs more affordable. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 34 of 59 35 PG | EducationForwardArizona.org @EdForwardAZ Thank You! Rich Nickel President and CEO rich.nickel@educationforwardarizona.org Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 35 of 59 Arizona’s Early Childhood Agency Committed to healthy development and learning from birth to age 5. 36 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 36 of 59 Created by voters in 2006 and funded by tobacco tax. Our three focus areas are: Quality child care Strengthening families Preventive health 37 % of brain growth happens in the first 5 years! 90 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 37 of 59 Early learning impact: student outcomes Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 38 of 59 39 Governors ERR task force recommendations Providing quality, affordable childcare to educators Improving working conditions for educators Students who participate in quality ECE programs are better prepared to teach Early learning impact: educator retention Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 39 of 59 We have a child care crisis. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 40 of 59 41 Demand exceeds supply. 304,000 children in Arizona may need child care, but only 230,000 slots exist. Child care wages are low. $14.60/hour is the national median, making recruitment and retention difficult. Families can’t afford more. 12-32% of income is spent on child care; infant care costs more than state college tuition. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 41 of 59 82% Missed work The child care crisis: impact on working families. 35% Left a job 90% Say costs have increased 73% Report child care options decreased 42 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 42 of 59 33,887 children aged 5 and under. 23,746 children live in home where both parents work. 14,482 available child care slots with licensed providers. 17% child care gap in Mesa 43 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 43 of 59 Here’s Arizona’s economic case for child care. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 44 of 59 Arizona’s economy loses $4.7 billion annually. Families lose $3 billion annually in earnings and job search expenses. Employers lose $958 million annually due to absences & turnover. The state loses $725 million annually in tax revenue. 45 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 45 of 59 Arizona’s economy could generate $12 billion annually Families gain $2.4 billion in discretionary spending Employers sustain 115,000+ jobs through increased workforce participation Graduation rates 4,800+ students graduate from high school 46 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 46 of 59 Arizona community based solutions PEEPS funds 1,600 scholarships in Pima County through library property tax Sky Harbor Airport Scholarship program for airport workers Greater Yuma Child Care Taskforce convened by economic development group 47 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 47 of 59 Arizona community based solutions Gilbert Infant to Work: Babies 0-6 months can join parent at work Pinal County: Taskforce brings together city, economic development, and businesses around child care issues Unused space: Districts Using unused classroom space to create early childhood centers 48 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 48 of 59 Community Solutions Fund Public-Private Partnership - A public-private partnership would allow the state, businesses, and families to share in the cost of child care for working families. Through this partnership, the state would partner with interested businesses who will contribute a set amount per child each month that the state will match, up to $400. The family pays the remaining amount. This model could reduce the cost of child care by two-thirds for participating families. Modeled in Iowa, Arizona leaders are exploring how this could work throughout the state. 49 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 49 of 59 The early childhood system is facing a funding challenge. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 50 of 59 How FTF is funded ● 94% from tobacco taxes & investment earning ● 6% from grants ● 0% from State General Fund We rely almost entirely on a single, shrinking revenue source. Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 51 of 59 The challenge we face ● Tobacco revenues are down nearly 47% since 2008 ○ $76 million less in SFY25 ○ Per-child investment down to $196 ● Core programs in jeopardy: ○ Quality child care & scholarships ○ Parenting education & home visitation ○ Professional development ○ Early literacy support Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 52 of 59 Outdated tax structure Market shift Consumers are smoking less or prefer vape and nicotine products over tobacco. Tobacco tax was approved before vapes and nicotine alternatives existed. Policy gap These newer products aren’t taxed to support early childhood. Why revenue is declining Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 53 of 59 Economic impact of First Things First $8.5 million State revenue $324 million Economic output 2,800 Jobs supported 54 $9.7 million Local tax revenue Read more: FTF investments contribute over $300 million annually to economy Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 54 of 59 Solution: Close the loophole ● Taxing vape/nicotine products could generate up to $80M annually ● Stabilizes early childhood funding ● Protects nearly: ○80 grant partners ○160,000 children, families and early childhood professionals ○1,400+ Quality First child care providers Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 55 of 59 Advocate for Arizona’s kids 1. Contact your elected officials 2. Ask them to support sustainable early childhood funding 3. Share our advocacy tools and video 4. Sign our Letter of Support Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 56 of 59 1. Connect through our Child Care Solutions for Businesses page. Find resources to support employees Connect with FTF to learn about community-based solutions 1. Advocate for more public support. Business & Community Resources 57 Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 57 of 59 Thank you. FirstThingsFirst.org Thank you. FirstThingsFirst.org Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 58 of 59 Roundtable Share outs Education and Workforce Development Roundtable December 3, 2025 Attachment 1 Page 59 of 59