Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Roberto Manchia, Chief Financial Officer
Subject: Request for Direction Regarding Funding Allocation for 2024 Measure K Grants
RECOMMENDATION:
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Provide direction to the County Executive regarding allocation of funding for 2024 Measure K Grants across Priority Areas pending review of 2024 Measure K Grant applications.
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BACKGROUND:
In 2012, the County voted in favor of a ballot initiative, Measure A, a countywide half-cent sales tax to financially support essential County services and to ensure the maintenance of aging government infrastructure. In November 2016, Measure K was passed by San Mateo County voters to extend the sales tax for 20 years, until March 31, 2043.
As part of the initial Measure A ballot initiative, the Board and the County Manager identified potential service areas for spending funds generated by the sales tax. In 2013, staff held public speaking events to engage the community, and the subsequent RFP process was open to all Community Based Organizations (CBOs). Some of the contracts resulting from this process remain in place between the CBOs and the County. Community needs have evolved over the past ten years and this Board aims to align services with these needs.
On February 6, 2023, this Board held a retreat to discuss community needs for allocation of Measure K funds for the anticipated FY 2024-25 budget. Through this retreat and subsequent discussions, this Board expressed interest in gathering community input regarding funding needs across and within four priority areas of Housing and Homelessness, Children and Families, Mental Health, and Emergency Preparedness. In response to changing community needs and to enhance transparency and efficiency in the Measure K funding allocation process, staff have developed a Measure K allocation proposal, and identified minor changes within the Board-identified priority areas.
In May 2023, the County’s Executive Office reached out to County Departments to inquire about the service gaps that they have identified in existing Measure K-funded programs and ideas for how to allocate Measure K funding going forward. County staff compiled a list of recommendations using Department feedback about perceived service gaps.
In July 2023, County staff, together with Koné Consulting and Thrive Alliance, held a listening session for local CBOs. During this event, staff provided a timeline of the upcoming changes to Measure K allocations and Koné Consulting led CBOs in exercises to share their vision on how to best utilize Measure K funding to improve community outcomes.
In August 2023, InterEthnica and County staff conducted both a Countywide needs survey and eight listening sessions throughout the County to collect feedback on community priorities. These listening sessions were held in cities or neighborhoods across all five Supervisorial Districts of the County: El Granada, Pescadero, East Palo Alto, San Mateo, North Fair Oaks, South San Francisco, and Daly City. A total of 2,661 residents provided feedback through either or both methods. Two thousand three hundred sixteen survey responses were collected, with 900 surveys completed in-person and 27 conducted over the phone. Three hundred forty-five residents participated in the listening sessions across the County.
The County made extensive efforts to engage diverse communities and demographics within the County, spreading listening sessions throughout the County for ease of attendance, and affording access through languages including Spanish, Chinese in both Mandarin and Cantonese, and Tagalog. During these sessions, community members were asked to form small discussion groups to discuss their priorities. Using community input collected from both the Countywide surveys and listening sessions, InterEthnica produced a report highlighting key findings, which were presented to this Board at the October 3, 2023 Measure K Study Session.
After months of information gathering, staff have been working to implement the feedback gathered from departments, CBOs, and the community. Based on department feedback, staff recommends that committed funds for ongoing Measure K projects be preserved at budgeted funding levels. In addition, from the CBO and community listening sessions, staff are incorporating community needs with Board priorities in the 2024 Measure K grant process.
With this Board’s approval via a concurrent Board item, staff intends to develop and implement a streamlined notice of funding opportunity (NOFO) process to obtain applications for 2024 Measure K grants (2024 Measure K Grants) within Board approved priority areas (described below). The NOFO process will promote the selection of projects which will make a meaningful difference in serving and meeting the needs of the community.
In addition, via concurrent Board item, the Board is asked to establish funding priority areas (“Priority Areas”) for the 2024 Measure K Grants, as follows:
1. Children, Families, and Seniors
2. Housing and Homelessness
3. Emergency Preparedness
Mental Health is included within the above Priority Areas. These Priority Areas reflect the Board’s desire that the 2024 Measure K Grants should be focused on addressing needs within these Priority Areas, subject to Board discretion to make funding and appropriation decisions in the best interest of the County.
DISCUSSION:
In connection with the separate Board item to approve the NOFO process and in anticipation that the County will be receiving grant applications within the Board-approved Priority Areas, staff request that the Board provide direction regarding the allocation of Measure K funding across the Priority Areas. Staff recommends that the available funding be allocated as 40 percent for Children, Families and Seniors, 40 percent for Housing and Homelessness, and 20 percent for Emergency Preparedness. Ultimate allocation levels will be subject to Board review and approval pending receipt of applications in connection with the NOFO process.
In addition, staff request that the Board provide direction regarding the most critical needs within each of the three Priority Areas. With each Priority Area, subcategories are identified in the Attachment A which correspond to such critical needs.
The County is expected to receive approximately $110 million in Measure K revenue a portion of which is committed to previously established and ongoing initiatives and programs. A summary of committed Measure K funds as set forth in the Fiscal Year 2023-24 Recommended Budget is included in Attachment B. Measure K funding is also reserved for administrative purposes, district priorities, compliance requirements, and emerging needs.
EQUITY IMPACT:
Measure K has had a significant impact in improving outcomes for communities throughout the County for over ten years. This revised grant process and Measure K funding allocation seeks to measurably improve outcomes for all stakeholders especially community-based organizations and residents based on the community’s current concerns and priorities. The process has taken into account the voices, needs, and desired outcomes as expressed by local community members.
FISCAL IMPACT:
The FY 2024-25 Recommended Budget is estimated to include approximately $110 million in Measure K revenue. Expenditures related to ongoing initiatives and priority area Measure K grant allocations will be fully funded by Measure K revenue with no impact to the General Fund. The Board of Supervisors will approve a detailed Measure K budget for FY 2024-25 in March 2024, which will include funds for the 2024 Measure K Grants.