San Francisco

In 2018, 51% of San Francisco voters approved Proposition C ("Baby" Prop C), a Commercial Rent Tax for Child Care and Early Education. The proposition authorized an additional tax on commercial property and leases with annual gross receipts over $1 million; nonprofits and other small businesses are exempt. 85% of the revenue generated by this tax is designated for child care and early education. The remaining 15% is deposited in the city/county General Fund for other city-approved uses. The tax is expected to generate approximately $146 million annually to support child care and early education; these funds may be used to:

• Support quality early care and education for children under the age of six in San Francisco families at 85% or less of State Median Income (SMI);
• Support quality early care and education for children under the age of four in San Francisco families earning up to 200% of the Area Median Income (AMI);
• Invest in comprehensive early care and education services that support the physical, emotional, and cognitive development of children under the age of six;
• Increase compensation (including but not limited to wages, benefits, and training) of care professionals and staff in order to improve the quality and availability of early care and education for children under the age of six.

Learn more: Baby Prop C Sources:San Francisco Office of Early Care and Education. (2021). Baby Prop C Fact Sheet - Legal Uses and Allocation.Children's Council San Francisco. (2021). Children’s Council Celebrates the Passage of Prop C by CA Supreme Court."

In 1998, the San Francisco Mayor’s Office, Department of Human Services, and Mayor’s Office of Community Development partnered with private foundations, other funders, and the Low-Income Housing Fund (now the Low-Income Investment Fund), to launch the Child Care Facilities Fund (CCFF). CCFF creates opportunity for low-income families and improves both center- and family-based child care facilities in the City and County of San Francisco and Alameda County. The program administers various grant programs differentiated by setting type and has invested approximately $15 million annually through a combination of City General Funds, City Public Education Enrichment Funds, State CalWORKs funds, and funding from the Child Care Developer Fee, programmed as the Child Care Capital Fund, and neighborhood area plan child care development impact fees. In 2022, the program requested a new grant agreement for 2022 to 2024 in the amount of $83,151,138 from county funds (98% of funding), state funds (0.7% of funding), and federal funds (1.3% of funding). Center-based providers are eligible for a Pre-Development Grant Program, Renovation and Repair Grant Program, and Capital New Development Grant Program. Pre-development grants up to $20,000 per facility are awarded for planning and pre-development costs such as feasibility studies, business plan development, permits, architectural services and related costs, as well as consultant(s) to assist with physical development and licensing. The Renovation and Repair program awards grants of up to $100,000 per facility. Capital New Development grants of up to $200,000 may be used for planning and pre-development costs; building purchases; construction costs, renovation costs, or equipment purchases that increase or maintain the number of child care slots; consultant(s) to assist with the physical development and licensing of the facility; equipment purchases; and quality improvements on a case-by-case basis. Family child care providers are eligible for two grant programs: Expansion Grants and Renovation and Repair Grants. Expansion Grants support providers expanding from a small family child care business (serving 6-8 children) to a larger one (serving 12-14 children). Grants of up to $15,000 per facility may be used for facility improvements, construction and renovation associated with licensing and fire code requirements for a large family child care facility, and the purchase of materials and equipment. Renovation grants of up to $10,000 per facility are available for family care providers to cover one-time costs associated with health, safety, and accessibility improvements. Learn more about the child care facilities fund Source: LIIF. (n.d.). Child care facilities fund.

First implemented as CARES 2.0 using funds from fiscal years 2017 and 2018, CARES 3.0 is the newest version of a stipend program designed to support more than 2,000 early educators working across San Francisco's city-funded center-based and family child care (FCC) programs. The city anticipates investing $60 million annually to support this program. To be eligible for stipends, educators must:

• Be employed by an Early Learning Scholarship (ELS; San Francisco’s subsidy system) or Preschool for All (PFA) program that has been deemed eligible by the Department of Early Childhood, and;
• Work directly with children for at least 20 hours per week

Awards are determined based on educator role, part-time or full-time status, education level and experience, and proportion of subsidy-eligible children served. Stipends begin at $4,000 and increase to $39,100 per educator or FCC owner per year; higher amounts are reserved for those with the highest educational attainment and percentage of subsidy-receiving children served. FCC owners are eligible for the highest stipend amounts.This program is paid for through a commercial rent tax passed in 2018 (Prop C, referred to as "Baby" Prop C, a Commercial Rent Tax for Childcare and Early Education). Learn More: CARES 3.0 Sources: San Francisco Office of Early Childhood. (2023). CARES 3.0. San Francisco Office of Early Childhood. (2023). CARES 3.0. Eligible Programs. San Francisco Office of Early Childhood. (2023). CARES 3.0 FAQs. San Francisco Office of Early Childhood. (2023). CARES 3.0 Stipend Amounts.

In July 2022, Mayor London Breed launched the San Francisco Department of Early Childhood (DEC), dedicating $300 million annually to support the city’s goal of providing universal early education and care to all young children. The bulk of the revenue comes from the Commercial Rents Tax (also referred to as the Early Care and Education Commercial Rents Tax). DEC is the result of a merger of two existing city departments, First 5 and the Office of Early Care and Education. Learn more/source: San Francisco Department of Early Childhood

In 2004, San Francisco voters approved the ballot measure Proposition H by 71%, establishing the Public Education Enrichment Fund (PEEF) as law within the City Charter. The PEEF supports the design and implementation of diverse educational programs for San Francisco’s youth, and is funded annually by the City of San Francisco’s discretionary General Fund. One-third of the PEEF—approximately $20 million per year—is allocated to expanding and supporting early care and education programs in San Francisco. In the years following Proposition H’s passage, funds were distributed to First 5 San Francisco to create Preschool for All (PFA), with the goal of ensuring that all San Francisco four-year-olds could attend high-quality preschool. In July 2015, administration of these funds was transferred from First 5 San Francisco to the city’s Office of Early Care and Education, which has used the funds to expand access to preschool for children between the ages of three and five years who are city residents.  The remaining two-thirds of the Public Education Enrichment Fund is allocated to the San Francisco Unified School District.  LEARN MORE: PUBLIC EDUCATION ENRICHMENT FUND (PEEF) Sources: San Francisco Unified School District. (n.d.). Public Education Enrichment Fund (PEEF) City of San Francisco. (n.d.). Public Education Enrichment Fund (PEEF). San Francisco Human Services Agency. (2016). San Francisco Citywide Plan for Early Care and Education.

Established in 2021, the Pilot Early Childhood & Special Education Apprenticeship Program in San Francisco is a formal partnership between the City College of San Francisco Child Development and Family Studies Department and San Francisco Unified School District. Apprentices begin as an Early Childhood Teaching Assistant, a Transitional Kindergarten Teaching Assistant or a Special Education Paraprofessional working in pre-K and kindergarten classrooms. All programs include training in special education. The apprenticeship has two tracks that each last up to 34 months, and both lead to an Early Childhood Teaching Permit. The program provides 2,000 hours of on-the-job training, and participants can take courses at City College of San Francisco. The program receives $800,000 in funding from the Strong Workforce Program. Learn More: City College of San Francisco Early Childhood & Special Education Apprenticeship Sources: City College of San Francisco. (n.d.). Early Childhood & Special Education Apprenticeship. City College of San Francisco. (n.d.). Strong Workforce Program Strategic Plan 2020-2023