the fiscal year 12-13 is the first year of our new strategic plan. in our new strategic plan, we cut $1.2 million. we do, though, anticipate that we may bring in more state money. i will talk to you a little bit about that. ok. so the next slide shows our overall expenditures and how we use our sustainable plan. it is just another diagram. we will be using more and more of your fund balance. -- our fund balance. this slide is going to show you

how the total of more spending, major allocation is to preschool. 70% of the overall budget. ? zthy resource centers, at 8% to health, to% to evaluation, 3% to evaluation. -- administration. we are seeing next year, we will have a 9.6 decrease in our staffing. we are not filling some of our positions. the next slide will tell you more about our preschool investment. 63% of our investments go to reimbursement. those are either enhancements to the subsidies or they are actual

reimbursement to families. we have about 8% as administration. we are allocating 10% of our budget to support children with special needs. 10% -- a 13% to capacity building and infrastructure. capacity building is our technical assistance and and the structure supports our databases -- infrastructure supports our databases. are reimbursements are growing every year. we will serve more children. we have plans to serve about 600, 500, 600 children over the next few years. we are targeting the low income families, of course, and there are several large child care centers who have not entered into the family because of the quality.

they're not meeting the guidelines. we have a special budget to get to those sites to improve their quality. >> you said you had 600? that is additional? >> that is correct. we are continuing to rollout. i did want to tell you that our biggest challenge or risk that might occur is that last year, that would take about 50% of our reserves. what that meant for us is that $11 million of a refund balance would be slapped back to the state. -- fund balance would be swept

back to the state. that was not a process that was approved by the legislators. if you are going to change anything about prop 10, it had to go back to the voters. we will know on march 19 whether the state will appeal. >> what is the level of money in your reserve at the moment? >> are prop 10 reserve has about $20 million. $11 million are designated in our sustainability, the rest is our reserve. it will see us through as our funding declines, that money will see us through for the next several years. we will have to use it more and more. >> it is about $22 million as of

when the state was trying to last sweep it. you have probably about 22, because the state did not sweep it just yet. >> right. >> 11 million of that was what? >> that is what they would sweep if they would take. >> it is going to be used for sustainability? >> are revenue has been declining every year -- or revenue has been declining every year. >> ok. currently, $22 million. in terms of the prop h allocation, do you spend that the entire amount? >> we have had some savings, mostly because what has happened there is when we cannot get those centers into pfa because they do not meet the guidelines, we have some

savings, but we do have a -- we are using them every year. as you can see on the first page, we plan to use those next year and a year after that. >> it sounds like we have a separate prope 10 reserved. >> yes. >> do you know what the balance for prop h? >> $9 million. >> 9 million? ok, thank you. supervisor kim: my question was on the prop h reserved. when you say $9 million, that is how much since 2005-2006, the savings you have had from the allocations given by the city? >> i will introduce you to encourage -- ingrid.

>> good afternoon. preschool was implemented in 2005. there was a specific rollout of neighborhoods. as the initiative was implemented, the target for enrollment was low. we were able to encourage savings from the first year for the implementation. every year, we have been able to save to save little bit. we have also received first five california funding, that has also helped deposit into our fund balance. our fund balance is already allocated. we are supposed to be funded at a $20 million initiative and we are only being funded at 15. based on the proposition, we need additional revenue. supervisor kim: it sounds like it is supposed to be $20

million. the allocation we have been giving has not been used entirely because there is a $9 million balance. >> yes, those were in the initial years. >> $9 million is what you have saved since the 2005-2006 years. that is the money that is on spent? $9 million? >> yes. >> how do you plan on spending those on reserves? >> we have a sustainability fund. we go through this same process. both are interdependent. >> of last year's -- of this year's current crop h -- prop h, how much have you drawn down? >> we are planning on spending

the full amount. >> it would be of great to get a break down. >> [inaudible] we can send you are sustainability plan because you can see as the reimbursements go up, or other program expenses are going down. we're using that to support other things, like our inclusion strategy. the other is that we are putting -- we are adding a million dollars a year for three years. so we can cover the cuts. those would be subsidies that we would do to help with the safety net of the kids. >> thank you. >> this slide -- we just wanted to show you what we are doing interdepartmentally.

[inaudible] sorry. for example, most of our funding is joint funded. for our family resource center and initiative, that we oversee, the first five contributes $2.8 million. that is a total of $10.3 million. for our mental health consultation, it is 1.2 from us, 645,000 from dcyf. this is our new program, which will help low income subsidized centers for their operations. we contribute close to a million, $3.7 million from dcyf. this will be direct operational

grants that centers can use for salaries and compensation benefits. this is our contribution to the center for inclusion that i mentioned before. $1.1 million from first five. hsa and first 5 put in money for health screening. >> i am sorry, what type of screenings? >> addition, dental, obesity screenings. we are also supporting a lot of technical assistance and capacity building. we want to base our work on data

and evaluation and we know we want to raise the capacity of our providers and teachers. we are investing about $120,000 to evaluate family resource centers. this year, we will do a lot of work with them around school attendance and navigating the school district for families. we put about $1.4 million into a quality rating system. that is where we are assessing all of our providers to see what their quality is. then we have a quality improvement system that will target coaching as they needed, so they can maintain and keep getting a better in their quality. then we are putting another $145,000 into evaluation of or preschools. we will follow our kids into

first, second, and third grade to see how they're doing. we are working in close partnership with the school district early education program. we're trying to align our investments. strategies that will improve school readiness. we are involved in may pre-k to 3rd grade initiative. this talk a little bit about what we have committed. from our reserve, we are putting the million dollars away each year for the next three years to cover reductions in state subsidies. we are also putting 80,000 -- $800,000 to expand an additional

preschool year. these are the children, because there will no longer be transitional kindergarten, we felt like we needed to invest over the next few years to keep them in preschool. we are also going to allocate $500,000 a year to increase the enrollment of children at sites with vouchers. this has been a challenge in our school readiness initiative because there are a lot of families that use vouchers, but not for licensed early education centers. we are encouraging all of those centers to take vouchers, which they have not in the past. this $500,000 a year is when families are not working or going to school, their children

lose their child-care slots. we will cover their preschool sloths even if they do lose their -- slots even if they do lose their vouchers. some other opportunities is that we have applied for a grant to enhance the quality of care for infants and toddlers. this would bring an $13.5 billion over the next three years. we're pretty likely to get it. we are playing a prominent role in the planning and implementation of a regional quality rating for our race to the top. that would be $1 million over three years. race to the top grants have been based on first 5 throughout the state. this would be an enhancement.

we are forming a lot of public and private funding partners. we have been sitting down with their private foundations, working with them to allocate money into the strategies. we have had some really promising results. thank you. supervisor kim: i had a quick question about the federal race to the top potential grant. i see that it is regional. which counties are we working with to apply for this grant? >> we are forming a regional consortium. supervisor kim: how was this group of counties put together? >> the funding is going to the first 5 in those areas. iraq -- the executive directors and some of their partners in the communities are coming

together. we are meeting regionally. we have been meeting with the california department of education. we have to submit a plan about what we're going to do. some of the things will help us -- we will invest in a data system that will track all the assessments that we do. how are sesame -- how our systems are doing. if they are moving up the quality latter. -- ladder. we will probably invest in people who will do the assessments and have it more diverse because we lack language capacity. doing it regionally would strengthen what we are doing. supervisor kim: how is the selection process going to be? is it similar to other race to the top funding? >> there were nine that got grants a share. we were the ninth.

we received the money. half of what we asked for -- supervisor kim: nine grants or given out. -- were given out. congratulations on that. thank you. >> i would like to talk to you about our fund balance. i think it is miss understood about how we are using the money. it seems like we're sitting on a pot of money that is not allocated for good use. i really want to change that perception. if there are ways i can present to you, i would like the opportunity. >> i think that is a perception. i know there is a part of your operations trying to plan for an eventual drop in revenues.

many of us understand. how much is too much? does it make sense to start putting money into things that helped many of our working families? they are desperately in need of help and assistance. >> i think it is a question of taking it now or sustaining it. >> it is an appropriate policy question. we understand why you are doing it. >> ok, thank you. supervisor chu: if there are no questions from the committee, why don't we open this item up for public comment? i do have one card. jodie, come on up/ . >> good afternoon, supervisors. i am the executive director of a 23-year-old nonprofit based in

the castro working with low end, lgbt youth up to age 24. lyric is heartened that dcyf will not be making reductions to its community contracts. desponding consistency is critical to maintaining the city's core services -- this funding consistency is critical to maintaining the city's core services. i do want to make a few points. lyric of san francisco facilitates and eight-member agency. we have recently launched a new school based and should do for -- younger youth. the population of youth reflects

unemployment of 73%. 38% out of school and out of work. 40% in urgent need of behavioral health services. 92% are low income. city funding for services has fallen by 52%. a total monetary reduction of close to $500,000. some of the things we have lost, we no longer can provide daily drop ins. the demand for a cultural confidence training is soaring and our ability to provide that support to our partners has decreased. we have never been able to receive the level of funding necessary to meet the demand for case management support. i will leave my full statement with the board. thank you very much. supervisor chu: are there other

members of the public who wish to speak on this item? public comment is closed. can we take a motion to continue this item to the call of the chair? we do have that motion. i think we can do that without objection. thank you very much. do we have any other items? >> that complete the agenda. >> we do not have a meeting next wednesday, but we do have one the one after.