ns advisory committee and we'll work closely with them about how going forward we'll use the existing funds and plan strusteejically to support families. child care really came from a place where a lot of people thought of baby sitting and there is a change primarily because of brain research and understanding of about early brain development and the opportunity to make a difference with poor children and disadvantaged groups and to support families. using early care as a economic support is a win win win. it is a ecpneumic support and driver for providing quality options for families so they can go to work and feel good where their clern are and early support for children so they reach school

ready to learn and with the executive functioning and all the great things that quality early education can do for them. this first slide is just-this our pie and this represents 39.8 million the office manages and [inaudible] the bulk is in subsidize. we have programs for california works families and are subcontract out the state contract and have a homeless initiative in infant and toddlers who in shelter or had

a recent shelter stay and siblings and also a low income subsidize for infant and toddlers thinl city because it is the greatest need and most expensive care. in our work force support we have our wages work force subsidize so we are helping subsidize the wages of the work force, but there is still dismal t. is frustrating for us in a-in order to be able to keep it affordable to feed a parent you can't pay the folks in the classroom what they deserve to be paid so that is wrun of the big policy delimas in the field and it isn't unique in san francisco, it is a national problem. we also have a work force registry that we pilot for the state that is helping gather good data on our

work force and tracking portfolios and it serves the providers and employers in terms of transferring the work force managers and teachers professional history with them so that is something that we are working and support the provider association and we do a lot around capacity building both pelth health and melthal helths consingitation in the classroom and inclusion support sfr children with disabilities and special needs. we have a big investment in facilities which i'll talk more in depth about and a number of other capacity building ainitiatives. that is a overview of the

office keeping in mine when we bring peace to the office we'll expand thoot 3 to 5 subsidize investment. this is just a breakdown of the slice of pie so you see the number of kids enrollment that support. this is a mix of state contracts and funding that we received and local subsidy dollars invest td. we fill in the gaps with the local money and want to make sure we maximize the state resources first. there is 50 million in state contracts that go dracktly to 28 state contractors who operate multiple sites and so everything we do has to keep in mind what that system looks like and how we work in tandem with that system and comp lment

that subsidized child care system in the city and there are part ners in delivering services. those are a total of 5 providers. one of the things in terms of the policy issues kw response strategies that we are working on, we manage san francisco pilot that allows us to have a higher state reimbursement rate. the state has a single rate throughout the state which is a problem for us because our cost of care and i have a sloyd to show the rate disparity for title 5 contractors. it is our number 1 policy problem because as we try to support those providers if the state isn't paying their fair share it is a problem. it is a problem for them to keep their doors open let alone provide quality care. that is a big challenge. we have this

pilot that allows us to pay a slightly higher state rate and that pilot is due to sunset. it also allows us for families to stay in eligibility for subsidy longer. the state medium income ceiling for eligibility is 43.200 and the pilot rate allows them to stay in the subsidy for 53 thousand. that is for a family of 3 and it changes depend on the size of the family. we also are working on the state reimbursement for the vouchers which is slightly higher rate and our goal really is >> student regionalize the rate. senator [inaudible] is a

champion in sacramento and worked with all the legislative representives and hope to have the subset repealed this year. [inaudible] that is our goal. we also are interested in policies that allow increased eligibility period. the way the state rules around eligibility work is there is a lot of families having to report all their changes and the feds are pushing for changing in the area as well because the research show-what does it do [inaudible] the family remains eligible for 60 days and they are out. it is disruptive for a child. [inaudible] getting a 12 month

eligibility period is something we are pushing for. to improve access and poier tuization for homeless families. [inaudible] we are working with the department of education around their plan response to the federal child care development rules. we submitted public comment and have a deep interest in how those rules work fundamentally. the more that is improved, the easier the other wurk we have to do will be to support our families and providers. this next slide is just a example of the san francisco preschool center rates. the top blue line is based on the 85 percent of the

market so that is what the federal fwidelines are that if you vavoumper you should be able to access 85 percent of your market, however, states across the country don't always implement. they do the survey and konet always implement those rate increases. in california we have a voucher system and state contracted system and so the state contracted system lagged far behind the voucher rate, so the top line in 2011 in the absence of state publishing their rates that they studied, we conducted a local rate study and that jump between 2010 and 2011 shows what the vole controllers office with the planning office fts able to determine. we know the rates have gone up since this time and will conduct

another study next year. this has been our number one advocacy tool that the contracts can take and show this is how far apart they are and basically you can see if you look down at the green line that is what our providers get paid now by the state, it is basically 50 cents on the dollar. a lot of the investments we are trying to invest quality now have moved to just a operating support for our providers because they are so threatened with not being able to make the ends meet and make the cost. the profile of the providers veryies. some provide preschool only and some have larger operations and some get rent from the city in terms of where they are loidated so it is very different but we are aware of all the profiles of how the providers are trying to survooiv. for most of them

they can't clarj enough to pay for the cost of infant care, they pay for 234fants are preschool enrollment and sometimes they have school age care and pay for preschoolers infants with school age enrollment >> supervisor yee. >> 1573 is pretty much market rate? >> in 2011 >> yeah. >> it is 85 percent of the market >> if people were to get that we probably can actually meet-we will probably need help with minimum wage in these centers if these centers operate state funded or get

1500 per child. i guess in converse as we move further along and the state isn't giving much of a increase and still giving pretty much about 800 dollars per month per child, and some of this you may or may not know, regardless of the rate you get unlike other fields where you can get maybe fewer dollars, but serve more kids and [inaudible] license cared you are bound by regulations to serve the same number of kids >> in certain ratios >> that adds to the inability to many-i bring this up because the minimum wage effort that we

see in the city rsh what happens when they are stuck at 800 per child when they should get 1500 and barely make the wages now and we are helping as a city improve [inaudible] city wages >> so, i wish i had the perfect answer to your question. we are really mindful of that issue and we are working with the department of ed and womens caucus and wp the last year we were able to increase the rate by 5 percent. it needs to increase by 5 percent every year until it is much closer to market and we also work it w the feds about their guidance around rates and what rates should look like because california has a very different rate system than other places.

there are things within the budget that we propose to do, but i think the big picture solution would be to get a regional rate. if we were able it get a regional rate binch marked to our region we would see adjustments to allow to close that gap and do local investments more strategically than just filling the gap with the states short fall >> i guess what are we doing as a city? in regards to reaching out to the state and saying we need it change this. i know we have been trying for a while, but is this a priority of the city lobbyist? >> it is a priority now. the city lobbyist got us on the ajunda for repealing the sunset of the pilot for one example.

we with are working with department of ed debbie mac mans who runs early education department at cde and has invited us to submit information we have on minimum wage. quite frankly because of the wages we have extensive information and analysis we conductsed on the c wages sites of which the title 5 providers are a huge subset of that program and so we will be providing that report to the state and using it to make our case. i think what is different today than 3 years ago or 4 years ago is suddenly san francisco has [inaudible] we used to be alone in the fight, now it is all of the center providers up and down the state especially on the coast. all the higher cost and there is a lot of operators

giving up their contracts or not going after expansion dollars because they can't afford to use the dollars. in some ways our strategies here are support the providers to aloam to use the state dollars so we can mxmize what we bring in, but that doesn't proclude us from advocateing strongly for rate increases and some of that is aligning with the feds around the new federal block grant regulations and guidelines and tribeing to leverage that opportunity as well >> it is great to hear because as you know if it wasn't for the fact that the city has stepped up our efforts to support these organizations to continue to service it would probably close down and they are serving the lowest income

children in the city. it is in our self interest therein city it make it happen because we [inaudible] >> we welcome support from the board and sure you laer from the providers. they are partners and it isn't us gaens them, we rin them together and supervisor i know you are very aware of and have been a great leader in this area so thank you. any other questions about the rates? i didn't bring up the infant rates because that would send you all off, but it is a even greater problem. so, examples of in term its of your question around population grouth and we are strug wlg those projection on population growth in a precise way because it is one thing to talk about

population grogetd with programming and subsidize and another to talk about bilgding sites and infrastructure. we know there is grouth, we are exappearanceing growth and continued to experience child growth especially among 0-2 year olds so that's something we have been working on and we have one of the most inoviteive modms for child care facilities in the country jeand we have a number of different projucts and strategies we use with low income investment funds and in partnership with the mayors now with ipic and mayors office community development housing and community development and

other cities departments we work to create new centers and try to keep up the pace. in our 15/16 budget that include 3.3 million pr support. some is targeted for the market octaveia [inaudible] and then the draw down of the city wide developer fee and then some of the local public education enrichment fund. i would say that these funds primarily are to grow new slots or sell the slots that are at risk of being lost and we continue to have pressure for lack of capital for ren ovation and repairs and that is a big problem for us. in our work with the mayors office of housing and communethy development, we are

tracking the housing pipeline of all the housing built and looking where we can build-this is a strategy we use where we build up the housing to shell and finish thauf shell with developer fee dialers and build the site to match a preselected that is competitively build operator who is the right for the location and mix of population. there ranumber of places in toub we have binl doing thatd and also look at added family child care. space is such a problem and you need so much indoor and out door space for child care that continues to be a challenge so where we can build that and do it feasible is where we do and t and where family chile care makes the most sense. one thing i would say in that

planning that look at this neighborhood by neighborhood and demand and we want to be very careful about not building care and driving family child care providers out of business but we know where we have short falls of center base care and pick up the slack with family child care and look at that as a system in terms of meeting family needs. this is the a tracker for you to see the growth in licensed sent acapacity since 1998 to this year. this is really a result of lots of different efforts that are made, but the facility fund tracking and more recently a policy that any city property has to include a feasibility study. that gives a opportunity to work clously with the state and feds do

where they build a facility and think about thew include child care. we vacouple sites we are looking at for that pipeline as well. we have to be able to operate these so whether they are subsidize or partially subsidize that is dependent on the neighborhoods mix and what makes sense for the right operators. >> i also want to mention in termoffs timing we will lose people soon so want to mention to to you so if there are important sides in this to highlight those. >> if anybody wants this specific to their-this is broken done by zip code and we have all that for you. just aroun the population grouth in the years budget we are proposing a local rate increase

adjustment so we are not eating into our enrollment because every time the rate went up it meant we provide care for fewer children so we are trying to keep windup the rate increases around the voucher rate. we look at growth and pfa enrollment and then we lost all most 10 million in state funds and we are all most back to having those funds restored so that was a lot of contraction and expansion. the city back filled? of that to help the providers keep classrooms open and now that we are back in better budget times--we will plan and monitor and align around population growth and child numbers. this shows-you may have seen this, this shows the preschool for all

projections for 15 and 16 and 16, 17. in turnls of systems building again, we are work with citizens advasery committee and have a goal of stream lining investment and continue to improve ece work force support. we really took our local dollars in the budget this year and redirected them to cover this expaction of the state reinvestment and also head start moved from san francisco state to non profit which impacted the c wages budget and wanted to make surthose teachers and classrooms and centers were covered. i talked about path ways and supports and the registry. we have a family

child care quality network that we are developing and it include 250 family child care providers. they all benefit from helt and melthal health consultation and c wages program and participating quality assessment. that is about-there are 700 providers in town and this is a subset of those provider and that is staff to network. it is a strategy particularfry infant and toddlers and we connected all the vouchers were going to places where we invested the quality dollars so this was one of the strategies to make sure where we vend for vouchers. thathe low income kids get the benefit of the quality investment. we are look at

data cyst mg integration for [inaudible] we want to use technology to find solutions to stream line their business practices. they are outdated and out moded and birdmsome. we are interested in [inaudible] they will all change next year as we come windup the plan so that is just for reference >> i think it is great to see that next year. thank you very much. supervisor yee >> 2 areas of concern i heard, one of them being the minimum wage impact and the [inaudible] it will cause. i'm not sure what the actual budget

will look like in terms of trying to mitigate that impact. the other one would be in your circle it shows the pie chart shows that [inaudible] service 1 thousand infants probably through the [inaudible] i'm curious is there thinking of how to increase the capacity of san francisco in terms of helping with infant care piece? >> i think it is going be challenging in that we have the fixed amound from peef, but the charge to serve 0-5. weal prr conduct a fiscal analysis about where we invest and the charge of the advisory committee and office and the plan that is reviewed by the board is how do

we do thoot more strustrategicically and what resources are available to expand it. leverage as much from azwe can from the state and locally have ag0-5 continuum [inaudible] have agfull continual of support. if you can't get into care it is-you can't have access to quality >> i think that is where a strong portnership with dcys spaebl with the funds coming through that can help with 0-3. it would be a good thing. can you talk me about minimum wage >> we are concerned and work with the mayors budget and the mayors budget office is taking

a comprehensive view on minimum wage and submitted the numbers for the c wages programs where is where we have there most nrfgz information about what the wageerize for teachers. the minimum wage change goes into effect tomorrow or friday. for a provider if you are a 100 percent contracted state program you don't have a way-it isn't like a restaurant where you raise your cocktail price. for our providers there is no where to go to get the money and they are coming to us. we have done estimates on the impact of the minimum wage, but that is really for just the staff that would be impacted by the minimum-lifting the minimum

wage and it increases ovthe years as we move toward 15 dollars. the non c sites their choice to increase fees for fmlies which is contrary to the goalotches having care be affordable for families, but those are some of the challenges, jrfxz i want to thank you for presentation and make one more comment. on the first slide of page 2 of the presentation, the pie chart, the first pie chart, we have be careful how you represent where it says early childhood work force and subsidies because if someone who isn't familiar with the field were to look at this they would think only services are at 55 percent. people familiar in the field know this early childhood work force, the funding going to that