Special Notice / Hearing: None__
Vote Required: 4/5ths _
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Measure K: Appropriation Transfer Request for Measure K Initiatives
RECOMMENDATION:
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Measure K: Approve an Appropriation Transfer Request (ATR) appropriating a total amount of $985,902 from Measure K Reserves to County Non-Departmental Services funds for contracts obligated in connection with the FY 2024-25 Notice of Funding Opportunity (NOFO) process.
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BACKGROUND:
In 2023, this Board authorized the County Executive to develop and proceed with a Notice of Funding Opportunity (NOFO) process to obtain applications from providers for funding of $34,500,000 of Measure K revenues beginning FY24-25. While most contracts awarded as part of this NOFO were initiated by the start of FY24-25, certain of the contracts within the priority area of Children, Family, and Seniors were executed several months after the start of FY24-25 for a number of reasons, including the completion of a number of Board-directed Request for Proposals (RFP) processes to finalize the awards.
DISCUSSION:
The proposed ATR is necessary to transfer funds from Measure K reserves to specified Non-Departmental Services funds to provide funding for specific existing Measure K programs awarded as part of the NOFO. Since contracts within these three funds were awarded after the start of FY24-25-giving the contractors fewer than 12 months to implement their obligations for the first year of the award-the contracts anticipated the potential for unspent funds at the end of the fiscal year and expressly allowed the contractors to expend those amounts in the second year of the contracts, FY25-26. However, because unspent Measure K funds at the end of the fiscal year are typically returned to Measure K reserves as a matter of course in the County’s accounting system, the unspent funds at the end of FY24-25 for these specific initiatives were not rolled over as indicated in the applicable agreements and were instead returned to Measure K reserves. This ATR will correct this issue and re-establish the funding needed to meet the County’s contractual obligations under the agreements in these three funds in FY25-26.
Specifically, the appropriation to Non-Departmental Services Education/Training Early Childhood (NDSET) in the amount of $710,305 will fund contracts with the San Mateo County Office of Education, the Institute for Human and Social Development (Izzi) and Upward Scholars for the Early Childhood Educator Development Program, which seeks to increase the number of credentialed early childhood educators; the appropriation to Non-Departmental Services Childcare Provider Capacity Building (NDSDC) in the amount of $150,597 will fund the San Mateo County Childcare Coordinating Council (4Cs) for the Family Childcare Home Providers Pathways Program, which provides technical support to family childcare home providers; and the appropriation to Non-Departmental Services Childcare (CEOCH) in the amount of $125,000 will fund Build Up San Mateo County for the Build Up Green Spaces (BUGS) program, which provides grants for childcare facility improvement and construction.
COMMUNITY IMPACT:
In San Mateo County, many families struggle to find and afford quality childcare, limiting the opportunities for some residents, mostly women, from participating fully in the workforce. A 2025 analysis revealed large gaps between the number of licensed childcare slots available and the number of children who likely need care, with the largest shortages for infants and toddlers and school-age children (1,403 and 7,501 slots, respectively). An even greater need exists for more subsidized care for low income families, as the number of children aged 0-12 eligible for subsidies (more than 40,000) far outpaces the number of funded spaces across all age groups (18,546).
The Measure K initiatives covered by this ATR seeks to reduce these gaps by strengthening the San Mateo County childcare sector.
FISCAL IMPACT:
There are adequate funds in Measure K reserves to cover the transactions covered by this ATR, which total $985,902. There is no increase in Net County Cost.