1 HUMAN SERVICES
STANDING COMMITTEE MEETING
Tuesday, March 26, 2024
1:30 P.M. – 3:00 P.M.
130 Cremona Drive, Suite B
Goleta, California
Councilmember Kyle Richards
Councilmember Stuart Kasdin
Jaime A. Valdez, Neighborhood Services Director
Shannon Kirn, Management Analyst
Melissa Cure, Management Assistant
Public Participation
If you wish to make a general public comment or to comment on a specific agenda item, the following methods are available:
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AGENDA
I. Public Comment
II. Childcare Scholarship Initiative
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MEMORANDUM
DATE: March 26, 2024
TO: Human Services Standing Committee
FROM: Robert Nisbet, City Manager
Shannon Kirn, Management Analyst
SUBJECT: Item II. Childcare Scholarship Initiative
RECOMMENDATION:
Receive an update on childcare efforts and provide direction on the future work efforts of the childcare initiatives.
BACKGROUND:
For decades, the need for affordable, high-quality childcare for children from ages zero to five years has been a challenge for working parents throughout the country. On a local scale, the issues that affect working parents nationwide are often amplified here in Santa Barbara County. Coupled with the high cost of living, a lack of availability of licensed childcare has challenged working parents throughout the County for years. 2022 Child Care Assessment
In 2022, the Cities of Goleta and Santa Barbara commissioned United Way of Santa Barbara County (United Way) to administer a childcare assessment to better understand the needs of working parents and childcare providers. In collaboration with a local consultant, Maria Chesley, United Way leveraged its robust network of community partners, educators, and childcare providers to assess parent and licensed provider needs. On April 19, 2022, the City Council received a report on the outcomes of the Child Care Assessment. The full report can be viewed HERE.
In summary, the survey results focused on three major barriers for parents and providers described below:
1. Cost of Childcare: Surveyed local childcare providers reported that the average monthly cost for a full-time infant is $1,481 and a preschooler is $1,194. For a family of four, with a preschooler and an infant in full time care, earning the median household income in Santa Barbara County, households can be expected to spend an average of 37% of their monthly income on childcare costs alone. Parents who Meeting Date: Month Day, 2022
are not eligible for free or low-cost public programs, especially those with incomes just above those that qualify, face significant financial hardship.
2. Demand for Space: There is a significant gap between the needs for care and capacity in the County, with an estimated deficit of 9,371 spaces for children ages zero to five in licensed care facilities. Surveyed providers reported that over 2,000 parents are on waitlists for spaces.
3. Staffing and Employment: The largest reported obstacle reported by surveyed providers is the ability to maintain qualified staff. Providers highlighted inadequate pay and limited pipeline of workers entering the field, which is on trend for national data in recruitment and staffing across all industries.
The recommendations for elements of comprehensive plan include:
• access to precise, actionable data about the availability of care, need for care, & childcare workforce pipeline,
• a coordinated mechanism for connecting parents with program openings, • strategies to increase the supply of high-quality, licensed childcare spaces, • approaches to strengthen the pipeline of qualified early care and education workers,
• supplemental support for pay of workers in the sector, • policies and programs to help childcare providers open and maintain profitable businesses,
• facilitation of employers’ support of employees around childcare needs, • scholarships for middle-income parents who do not qualify for government subsidized programs but cannot easily afford childcare.
Other City Efforts
In 2019, the City Council approved childcare facilities as “beneficial projects” potentially eligible for Development Impact Fee (DIF) reductions. All qualifying non-profit Child Care Facility, Family Day Care or Day Care receive a 100% DIF reduction and all other forprofit Child Care Facility, Family Day Care or Day Care receive an 85% DIF reduction.
In the past two City Grant Program cycles, Santa Barbara Foundation was awarded a grant to provide scholarships to families and nonprofit childcare centers in Goleta, expand the number of childcare slots in exciting established programs, and applicants must work with kids from economically disadvantaged families. Santa Barbara Foundation was awarded $7,100 in the FY 2022-23 City Grant Program and $5,000 in the FY 2023-24 City Grant Program. Santa Barbara Foundation did not apply for childcare scholarships in the FY 2024-25 grant cycle.
Regional Efforts
The County of Santa Barbara has taken the lead in expanding the analysis countywide and providing ARPA funding to a variety of existing and new regional initiatives, including programs contracted through the First 5 Santa Barbara County Children and Families Commission (First 5 SBC) to United Way and Santa Barbara Foundation.
On March 14, 2023, the County Board of Supervisors approved the contract with United Way for the provision of childcare sector recovery and resiliency services. United Way is Meeting Date: Month Day, 2022
tasked with expanding childcare efforts within the employer sponsored/corporate space, conducting municipality-focused studies on childcare need, establishing a scholarship program in partnership with licensed childcare providers, workplaces, and local agencies, and to establish a childcare plan during county declared emergencies.
United Way launched the Brighter Futures Childcare Coalition as part of the program goals. On April 18, 2023, the City Council ratified the mayoral appointment of Councilmember James Kyriaco to the Coalition.
On June 20, 2023, as part of the adopted 2-year Budget Plan, the City Council allocated $50,000 in FY 2023-24 and $250,000 in FY 2024-25 for childcare programs.
DISCUSSION:
The purpose of this report is to bring forth a potential short-term initiative to address the immediate need for affordable high-quality childcare in the Goleta community through a childcare scholarship program.
Based on recommendations from the 2022 Child Care Assessment and researching best practices from other agencies, staff have identified potential strategies to address the capacity, quality and affordability of childcare. As shown in Table 1 below, there are various avenues to addressing the multiple challenges of childcare. Most of the strategies would require in-depth analysis and need more time to accomplish, which could be further pursued in the future when staff capacity and funding allows for more robust implementation.
Table 1. Summary of Childcare Strategies
Category Strategy Description
Childcare
Workforce
Provide childcare
worker financial
support
A stipend program for eligible early educators
depending on criteria such as experience, type of
program, educational units, considering degree, etc.
Support moral
recognition programs
Expand existing regional recognition programs that
potential includes financial incentives to recognize the importance of early child education workforce.
Fund professional
development
scholarships
Provide scholarships to childcare providers/workers to
subsidize and/or reimburse the cost of professional
development opportunities.
Support increase in
pay or benefits for
childcare workers
Encourage to have income levels raised for childcare
workers to reflect the cost of living in Goleta, including better health care or retirement benefits to childcare
workers.
Support affordable
housing for Goleta’s
childcare workforce
Explore innovative solutions, best practices, and legal pathways to reserve affordable housing for Goleta’s
childcare workforce.
Families Provide financial
assistance for Goleta
Establish a grant agreement with communitybased organizations to provide scholarships for Meeting Date: Month Day, 2022
parents in the
"missing middle"
families who do not qualify for government
subsidized programs.
Advocate for increase
in Flexible Spending
Accounts allocations
Endorse and advocate for a regional effort to increase
Dependent Care Flexible Spending Accounts.
Provide childcare
support for City
employees
Establish a city employee benefit program to assist
with childcare cost based on need; partner with
childcare providers to increase childcare program
capacities in exchange for reserved spots, etc.
Policy
Repurpose unused
public facilities or land
for childcare space
Review unused public locations for potential
conversion into childcare sites and partner with other
local agencies (schools, universities, faith-based
institutions, community centers, libraries, etc.).
Review zoning and
permitting restrictions
Remove barriers in current zoning and permitting
restrictions to allow for more childcare facilities.
Establish developer
fees to fund childcare
facilities
Create a development impact fee to contribute funding
towards childcare facilities, similar to the City of Santa Cruz.
Create developer
agreements to include
childcare facility
construction
Developer agreements have been negotiated by cities
to include childcare facility construction, in-lieu fees, or tuition subsidies.
Facilitate employers'
engagement around
helping with childcare
needs
Encourage collaboration between public and private
employers to be part of the solutions to the childcare
system.
Provider
Support
Establish Business
License fee waiver for
all childcare providers
Business License fee waivers are already established
for nonprofit childcare providers and family day cares
in the City, but this could be expanded to include all
Day Care facilities, private or nonprofit.
Promote teacher
licensing and
permitting support
Provide financial support for licensing and permitting
classes and other test expenses, advocate for classes
in languages other than English Subsidize classes/test
expenses, promote childcare employment support to
undocumented community members, etc.
Provide startup
business support
Support startup costs for new childcare businesses
and encourage creative opportunities like
microcenters.
Recommended Next Steps
In the short term, with the current fiscal year funding, staff are proposing to establish financial assistance for Goleta parents in the "missing middle" and to partner with United Way who are currently working on a county-wide family scholarship program. Partnering with United Way would be an efficient and effective way to use the current funding available and to provide direct assistance to Goleta families who do not qualify for government subsidized programs but cannot easily afford childcare. As directed by the Meeting Date: Month Day, 2022
Committee, staff would work with United Way to establish a grant agreement to set up a Goleta-specific scholarship program for residents of Goleta.
Staff are seeking direction from the Committee to recommend to the City Council to enter into a $50,000 grant agreement with United Way for administering childcare scholarships to Goleta families.
FISCAL IMPACTS
On June 20, 2023, as part of the adopted 2-year Budget Plan, the City Council allocated $50,000 in FY 2023-24 and $250,000 in FY 2024-25 for childcare programs.
Those funds have been budgeted in the FY 2023-24 City Manager’s Professional Services GL account (101-10-1200-51200) for $50,000, therefore no additional appropriations are needed for this program.