South San Francisco’s DD Policy addresses the need for universal early childhood care for families living or working in the city by imposing an annual tax on large commercial offices that generate approximately $55.9 million annually.
If passed, the measure will have 18 months to go into effect. Funds will accrue from commercial offices larger than 25,000 square feet at a rate of $2.50 per square foot of lot size.
Advocates including Councilor James Coleman and Margaret Brodkin, founder and director of Funding the Next Generation, who have helped collect signatures, have billed the measure as a way to fill gaps in existing subsidized childcare while they are in first line affects the richest companies in the city.
But opponents of the measure, Julie Waters, director of local government and community relations at California Life Sciences, and Deputy Mayor Buenaflor Nicolas, who takes the position of the majority of the city council, say it’s not that simple.
“A lot of companies have childcare plans, we work with the city. I don’t know what benefits there are that I really appreciate and it has nothing to do with the tax burden,” Waters said. “It’s the fact that despite the big, shiny names, most South San Francisco tenants are actually tenants, they’re owned by the development company, and they have specified in their leases that they will pass the new tax on to those tenants.”
There are more than 120 small companies — including startups — that are members of the California Life Sciences Group, Waters said.
“These startups aren’t making money yet, they have five to 10 employees, and their position is to take their lab and leave,” she said.
However, Coleman explained that the city’s popular preschool program, operated by the Parks and Recreation Department, has a waiting list of more than 700 families, which translates to about four years. This is forcing families to either have no child care and stay home with their children or pay for child care they may not be able to afford, Coleman said.
However, Nicolas is concerned that the plan does not take a holistic view of childcare.
“Money is just a tool and without the right plan and the infrastructure behind it, nothing really gets done because if you don’t plan it, you plan to fail,” Nicolas said.
The city’s study found that revenue generated – which is estimated at $55.9 million in the first year and will increase to $68.2 million in the coming years as projects in the development pipeline are completed – given the current demand would initially not be sufficient to provide the program, however the gap could be closed over time.
Caring for the 1,462 children who are expected to initially use the service would cost more than $61 million annually, $23.9 million for residents and $19.6 million for dollars for non-residents. The other $17.5 million would go toward increasing childcare workers’ salaries by 10%, which the measure also calls for.
According to the report, the average monthly cost of early childhood care in the city is currently $1,341 per month.
“The cost of pre-school and day care is exorbitant at the moment, my husband and I are lucky enough to be able to afford it, but once our daughter goes into foster care we will be paying more for childcare than our mortgage and more for that Childcare as our UC class when we were in college,” said resident Natalie Wheatfall Lum.
The City of South San Francisco covers all preschool and early childhood care costs without a means test, meaning families of significant means can continue to participate in the free child care service.
Coleman argues that the reason the measure lacks means testing is that a better educated society is a better society.
“If you’re very wealthy, you can choose your own private school or nanny, but the idea is everyone has the same resources,” Coleman said.
If the funds cannot cover everyone, there will be a means-testing system put in place by the city and the managing authority to ensure priority is given to people from lower-income families, he added.
“Additionally, there is another problem, our preschool teachers are not earning anywhere near a living wage that would allow them to live in South San Francisco. They currently make about $17 an hour and just for comparison, kindergarten teachers make $46 an hour,” said Coleman.
Add to that low wages and a higher turnover rate, which made it difficult for preschool teachers to develop skills in the profession, he added.
According to Yes on DD’s website, the service is offered to any child aged 2.5 to 5 whose family lives or works in the city.
However, Nicolas said that with $56 million, they will not be able to meet the city’s childcare needs.
“Childcare is at the center of our universe and, as you can see, it’s part of our overall plan,” Nicolas said. “We are the only city in San Mateo County that has developed a child care master plan.”
The City’s Children’s Master Plan identified the need for operational support for child care programs. She argues that childcare is needed not just from ages 2 1/2 to 5, but from birth to age 12. Additionally, she said non-traditional childcare is required for people who work graveyard shifts or nurses.
“Our [child master plan] is a very comprehensive plan. We need operational support for these programs, we know how to stabilize and secure facilities, and we are looking for financial resources to help families pay for this child care,” said Nicolas. “And the most important thing is to solve the staff shortage.”
Nicolas said she doesn’t want to be the guinea pig or the first to fail at universal citywide child care.
Funding the Next Generation’s Brodkin argues city officials will love the childcare program.
“It’s going to put South San Francisco on a map like nothing they’ve ever done, people are going to want to stay there, people are going to want to live there,” Brodkin said. “It’s going to be one of the most exciting things that’s happened in the kids space.”
