City approves $1.27M federal grant and $40.73M contract amendment to support preschool quality and subsidies

The Budget & Finance Committee approved two related items that increase the city's investment in early childhood education. First, the committee approved a resolution authorizing the Children & Families Commission to retroactively accept and expend a $1,269,400 grant from the U.S. Department of Education (via the California Department of Education) to support development of a quality rating and improvement system for early care and education.

A First 5 San Francisco representative identified in the transcript as Laurel (addressed later as Ms. Klumach) said the federal funds complement local Proposition 10 and Prop H investments and will be used to develop a model for rating and improving program quality, including technical assistance, coaching and developmental screening.

Second, the committee approved a contract modification with the Children's Council of San Francisco to manage preschool subsidies for eligible children, expanding the three-year contract to a not-to-exceed amount of $40,730,000. Laurel told the committee the contract amendment reflects an approximately $9.9 million increase to backfill state cuts and to expand enrollment for children losing vouchers. The Budget and Legislative Analyst reported the three-year budget and a table showing that 136 Preschool for All providers would receive the bulk of the funds (about $40.5 million), while the Children's Council would receive approximately 0.6% (about $229,000) as the fiscal intermediary.

The committee moved and approved both items without recorded opposition.