As we begin 2026, First Things First finds itself in a transitional phase. Tobacco tax revenue has decreased to the point where, unfortunately, we’ve had to restructure our early childhood agency.
Last year, tobacco revenue came in $11 million below projections and future modeling indicates that tobacco-related revenue will continue to decline year over year.
That means we must reimagine how to do our work even more efficiently.
We are rethinking how our roles will ensure the most beneficial impact to young children and their families. The best way to fill the gaps in services that our reduced funding may create will come from further strengthening our relationships with the community, grant and system partners.
This month, our FTF state Board will determine the programmatic budget for its next funding cycle that begins in July 2027.
Throughout this process, we will continue to seek ongoing sustainability for early childhood programming. One option is a current legislative bill that seeks to modernize the revenue structure and close the loophole on nicotine and vapor products.
If this bill passes, it will help ensure a sustainable future for early childhood development in Arizona. It is clear that the earlier we invest in children, the better the outcomes. Quality early childhood programs help kids be more prepared for kindergarten, do better in school, graduate high school and be less likely to be involved with the criminal justice system or require assistance from social welfare programs later.
Here’s how you can help. You, as an early childhood champion, are our strongest voice.
We need everyone’s support at this time to ensure early childhood programming in our state remains stable and continues to meet the needs of our half million babies, toddlers and preschoolers.
That support comes in many forms. It could be calling your legislator and letting them know the importance of closing the nicotine and vapor loophole or maybe it comes from volunteering to serve on one of FTF’s 28 regional councils.
Just know that First Things First remains committed to our mission of ensuring all Arizona children enter kindergarten healthy and ready to succeed.
Join us in finding solutions.
