§ 20.17

The Department of Early Childhood (the “Department”), as successor to the Office of Early Care and Education (OECE), shall establish and maintain the Early Care and Education for All Initiative (Initiative), to provide support for quality early care and education for children in San Francisco families, consistent with this Article XVII. The Initiative shall be funded by appropriations from the Babies and Families First Fund established in Section 10.100-36 of this Administrative Code, in addition to such other appropriations as the Board of Supervisors may direct by ordinance. This Article XVII implements Section 2112(d)(2) of the Business and Tax Regulations Code, by facilitating the allocation of moneys in the Babies and Families First Fund among the purposes set forth in subsections (d)(1)(A), (d)(1)(B), (d)(1)(C), and (d)(1)(D) of Section 2112.

(Added by Ord. 231-18, File No. 180807, App. 10/5/2018, Eff. 11/5/2018; amended by Ord. 189-22, File No. 220808, App. 9/8/2022, Eff. 10/9/2022)

(a) Within 30 days of the effective date of this Article XVII, the Department shall submit to the Board of Supervisors a report setting forth the procedures the Department intends to use to develop the spending plan described in subsection (b). These procedures shall be designed to encourage broad and diverse community engagement—including, but not limited to, engagement with employees working in early care and education, the owners of businesses offering early care and education, parents, nonprofit organizations, philanthropists, the Child Care Planning and Advisory Council (CCPAC) established by Article XX of Chapter 5 of the Administrative Code, academics, and other experts—in the development of that spending plan, and shall include the development of a wide range of mechanisms by which engaged community members may communicate with the Department. These mechanisms shall include, but need not be limited to, one or more public town halls, one or more surveys, a dedicated page on the Department’s existing website, and a social media presence. Each of these mechanisms shall be advertised prominently on the Department’s website.

(b) Within nine months of the effective date of this Article XVII, and subject to the budgetary and fiscal provisions of the Charter, the Department shall submit to the Board of Supervisors a five-year spending plan for the Initiative, and a proposed resolution to approve the spending plan. It is the Board’s intent that this spending plan provide guidance to the Board when the Board adopts future appropriations ordinances. The spending plan shall estimate the anticipated funds available to the Initiative, identify specific programs or services to be offered as components of the Initiative, and specify the level of funding proposed for each such component in light of anticipated funds available to support the Initiative as a whole. To the extent possible in light of anticipated available funds, the spending plan shall be designed to achieve the following goals, in whatever priority the Department deems most appropriate:

(1) Providing support for quality early care and education to all San Francisco children under the age of six from households whose incomes are at or below 85% of State Median Income, and who are listed as eligible, on that basis, to receive support for early care and education—but who, because of a lack of available resources, are not receiving the full amount of support to which they are entitled;

(2) Providing financial support for measures to increase the compensation of early care and education professionals and staff by not less than 10%, with an ultimate goal of achieving parity in compensation with K-12 educators who have commensurate experience, in a manner designed to improve the quality and availability of early care and education;

(3) Providing support for quality early care and education to all San Francisco children under the age of four whose families earn up to and including 200% of Area Median Income, in a manner proportionate to family income (such that families with lower incomes receive proportionately more support);

(4) Undertaking other measures designed to improve access to quality early care and education services that support the physical, emotional, and cognitive development of San Francisco children under the age of six.

(c) To promote stability and continuity in early care and education, the spending plan described in subsection (b) shall contain provisions addressing policies for financial reserves, strategic one-time expenditures, and other strategies designed to manage revenue volatility.

(d) Within 90 days of introduction of the resolution to approve the spending plan described in subsection (b), the Board shall take any action it deems necessary, in its discretion, to approve, amend, or reject the proposed resolution and spending plan.

(Added by Ord. 231-18, File No. 180807, App. 10/5/2018, Eff. 11/5/2018; amended by Ord. 189-22, File No. 220808, App. 9/8/2022, Eff. 10/9/2022)

The spending plan described in Section 20.17-2(b) shall also include metrics designed to evaluate the effectiveness of the Initiative and each of its specific components. Within one year of the Department’s submission of the spending plan to the Board of Supervisors, and on an annual basis thereafter, the Department shall prepare, and submit to the Children and Families First Commission (the “First Five Commission”), established by Chapter 86 of the Administrative Code, the Early Childhood Community Oversight and Advisory Committee (the “EC COAC”), established by Article XIII of Chapter 5 of the Administrative Code, the CCPAC, and the Board of Supervisors, a report evaluating the effectiveness of the Initiative and each of its specific components, using the metrics previously developed in the Department’s spending plan and include a financial analysis forecasting how the Department will achieve universal access to early care and education, and establish a universal system for high-quality early care and education that interrupts racialized outcomes for children by building and funding an integrated system of early childhood supports and service in San Francisco and is based on planned expenditures and anticipated funding. The report should also consider and report on emerging needs, and new conditions or circumstances that would impact effectiveness such as workforce retention or newly identified revenue sources, economic conditions, or new policy directives. Before the Department submits this annual report to the Board of Supervisors, the EC COAC, the CCPAC, and the First Five Commission shall have an opportunity to review the report and submit related recommendations to the Department and the Board of Supervisors.

(Added by Ord. 231-18, File No. 180807, App. 10/5/2018, Eff. 11/5/2018; amended by Ord. 189-22, File No. 220808, App. 9/8/2022, Eff. 10/9/2022)

(a) Findings. Early care and education providers are essential for working families, but were struggling even before the COVID-19 health emergency and are now critically impacted. Due to new health orders issued in 2020, early care education providers had to limit the number of children served, increase staffing, and modify physical spaces in order to provide a safe environment. However, subsidies from State and Federal resources were limited and have to kept up [1 ] with the rising costs of operation.

In July 2020, the Center for the Study of Child Care Employment conducted a survey of child care programs throughout California and found that 953 center-based (40%) and family child care (60%) programs were facing new financial challenges including decreased capacity and increased costs caused by the reopening process and meeting new COVID-19 mitigation protocols. Specifically, of the programs that have re-opened, 77% have experienced loss of income from families; 99% of re-opened child care centers and 78% of re-opened family child care programs have fewer children attending than before the pandemic.

Without public funding, the early care and education system is in severe financial crisis; the projected revenue loss for early care and education centers and family child care centers that are currently funded by the City were estimated to lose $21.8 million between March and June 30, 2020. The City’s Economic Recovery Task Force’s October 2020 report stated that a quality, robust child care system was necessary to get San Francisco back to work and onto the road of recovery. The Task Force recommended that the City establish new methods for supporting child care providers, including financial support with flexible supplemental grant funds or forgivable loans to expand spaces, open up larger spaces, and provide adequate spacing to adhere to new health requirements.

While San Francisco’s Office of Early Care and Education served over 7,000 children from 0-K with some form of subsidy-supported program this past quarter, there are currently 2,796 children actively on the waiting list for City-funded programs. Based on the 2018 citywide needs assessment, there are over 1,000 preschool-aged children and 19,000 infants and toddlers who we are unable to serve with our current licensed capacity.

Beyond the early care and education providers that receive some funding through the City, there are also hundreds of non-subsidized child care providers including co-ops, licensed nonprofit centers, licensed private child care centers, and licensed family-based child care that are at the brink of closure due to the pandemic. In order to support the entire early care and education system, there needs to be adequate support for early care and education providers across the spectrum to stabilize the workforce and sustain existing child care slots.

rs including co-ops, licensed nonprofit centers, licensed private child care centers, and licensed family-based child care that are at the brink of closure due to the pandemic. In order to support the entire early care and education system, there needs to be adequate support for early care and education providers across the spectrum to stabilize the workforce and sustain existing child care slots.

(b) Establishment of Early Education Economic Recovery Program. Subject to the budgetary and fiscal provisions of the Charter, the Office of Early Care and Education (“OECE”) shall develop and implement the Early Education Economic Recovery Program (“Program”) to provide grants and no-interest loans to early care and education providers impacted by the COVID-19 pandemic, as provided in this Section 20.17-4. The Program shall be funded under the Early Care and Education for All Initiative by appropriations from the Babies and Families First Fund established in Administrative Code Section 10.100-36, in addition to such other appropriations as the Board of Supervisors may direct by ordinance.

(c) Providers Eligible for Funding. The following types of early care and education providers (“Providers”) shall be eligible to receive funding under the Program, subject to additional criteria established by OECE, provided that the Providers are operating in the City at the time of the grant or loan award and throughout the period covered by the loan or grant:

(1) Small and Large Family Child Care Homes, as defined in 22 C.C.R. Section 102352(f)(1), that (A) are licensed under California Health and Safety Code Sections 1596.60 et seq. at the time of the grant or loan award and throughout the period covered by the grant or loan, and (B) served at least four children between ages zero and six, inclusive, at any point from March 1, 2019 through February 29, 2020;

(2) Non-profit Day Care Centers or Child Care Centers, as defined under 22 C.C.R. Section 101152(c)(7), that, at the time of grant or loan award and throughout the period covered by the grant or loan, (A) are licensed under California Health and Safety Code Sections 1596.60 et seq., and (B) care for children between ages zero and six, inclusive;

(3) For-profit Day Care Centers or Child Care Centers, as defined under 22 C.C.R. Section 101152(c)(7), that, at the time of grant or loan award and throughout the period covered by the grant or loan, (A) are licensed under California Health and Safety Code Sections 1596.60 et seq., (B) operate no more than two locations in the City, and (C) care for children between ages zero and six, inclusive; and

(4) Providers licensed and exempt from licensing under California Health and Safety Code Sections 1596.60 et seq. that, at the time of grant or loan award and throughout the period covered by the grant or loan, (A) operate under a cooperative arrangement between parents for the care of their children, in which families participate on a rotating basis, serving six or more families, (B) meet the description in California Health and Safety Code Section 1596.792(e), and (C) care for children between ages zero and six, inclusive.

e of grant or loan award and throughout the period covered by the grant or loan, (A) operate under a cooperative arrangement between parents for the care of their children, in which families participate on a rotating basis, serving six or more families, (B) meet the description in California Health and Safety Code Section 1596.792(e), and (C) care for children between ages zero and six, inclusive.

(d) Permitted Uses of Funding. OECE may provide funds to Providers under the Program for the following purposes:

(1) Costs associated with cleaning or sanitation of Providers’ facilities to minimize the risk of transmission of COVID-19;

(2) Costs of purchasing educational materials, including computers and other electronic devices, to reduce the need for children to share materials during the COVID-19 pandemic;

(3) Costs associated with increasing the size of facilities, changing the arrangement of furniture in facilities, or otherwise making physical changes to facilities, to help keep children physically distanced from one another to minimize the risk of transmission of COVID-19;

(4) Costs of providing financial assistance to the Providers’ employees to assist those employees to pay for childcare for their own dependents during working hours;

(5) Costs of providing childcare for free or reduced cost to children of essential healthcare workers and City employees who have been activated as Disaster Service Workers, who are unable to care for their children during the workday; and

(6) Other costs authorized by OECE by rule or regulation that assist Providers to address the impacts of the COVID-19 pandemic on Providers, their employees, children served by Providers, and families of those children.

(e) Administration. OECE shall administer the Program with assistance as needed from the Human Services Agency, and may promulgate rules or regulations regarding the Program. At minimum, OECE shall promulgate rules and regulations to:

(1) Establish an application process, a selection process, and selection criteria for the Program. In promulgating regulations establishing a selection process and criteria, OECE shall attempt to establish criteria that maximize the likelihood that the Program will be accessible to Providers that do not currently receive funding from the City.

(2) Establish a set of factors OECE may consider in determining the amount of funding in each grant or loan, provided that each grant or loan issued under the Program shall be at least $5,000.

(f) Outreach. Beginning no later than 10 days after the effective date of the ordinance in Board File No. 201327 enacting this Section 20.17-4, OECE shall develop and begin to implement an outreach plan to make Providers aware of the Program. OECE shall design the outreach plan to reach all Providers in the City, including those that do not currently receive funding from the City. In designing and implementing the outreach program, OECE shall work directly with child care resource and referral organizations and family child care associations to maximize the impact of the outreach in appropriate languages.

roviders aware of the Program. OECE shall design the outreach plan to reach all Providers in the City, including those that do not currently receive funding from the City. In designing and implementing the outreach program, OECE shall work directly with child care resource and referral organizations and family child care associations to maximize the impact of the outreach in appropriate languages.

(g) Statement of Intent for Funding in FY 2020-21. Subject to the budgetary and fiscal provisions of the Charter and availability of funds in the Babies and Families First Fund in Section 10.100-36, it is the intent of the Board of Supervisors that OECE will award grants or loans in Fiscal Year 2020-21 in a total amount of at least $20 million.

(h) No-Interest Loan Program. This Section 20.17-4 authorizes the City to provide interest-free loans under the Program. Before conducting outreach regarding interest-free loans or initiating a solicitation process for such loans, OECE shall consult with the Treasurer-Tax Collector and the Controller. Based on that consultation, OECE may determine that an interest-free loan program is infeasible or otherwise would be impractical or problematic, and may decide not to award loans under the Program.

(i) Sunset. This Section 20.17-4 shall sunset on December 31, 2021 unless the Board of Supervisors extends it by ordinance. After that date, OECE shall issue no additional grants or loans under the Program, but rules, restrictions, and reimbursement periods that apply to existing grants and loans shall remain in effect. After the sunset date, the City Attorney shall cause this Section to be removed from the Administrative Code.

(Added by Ord. 272-20, File No. 201327, App. 12/23/2020, Eff. 1/23/2021)

CODIFICATION NOTE

1. So in Ord. 272-20.