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Report regarding a resolution authorizing the acceptance of $120,000 in grant funding from the County of San Mateo for the Big Lift Little Steps Preschool at the Gene Mullin Community Learning Center. (Angela Duldulao, Deputy Director of Parks and Recreation)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution authorizing the acceptance of $120,000 in grant funding from the County of San Mateo for the Big Lift Little Steps Preschool at the Gene Mullin Community Learning Center.
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BACKGROUND/DISCUSSION
The Big Lift is a collective impact collaborative launched in 2012 by three agencies, the County of San Mateo, the San Mateo County Office of Education, and Silicon Valley Community Foundation. The goal of the initiative is to help San Mateo County students achieve reading proficiency by the end of third grade. The City of South San Francisco has been the recipient of Big Lift grant funds since Fiscal Year 2014-15, using these funds to open and operate the Little Steps Preschool at the Gene Mullin Community Learning Center in April 2016. Little Steps Preschool is administered by the Parks and Recreation Department (Department) and has a licensed capacity of 20 students. Families eligible for this subsidized program must qualify as low-income households pursuant to California Department of Housing and Urban Development (HUD) income ceilings and are assessed tuition on a sliding scale, not to exceed the City’s adopted preschool fee based on family size and household income. The program operates Monday through Friday, 7:30 a.m. to 6:00 p.m.
While Big Lift grant funds have fluctuated over the years, the grant amount remained steady at $220,000 per year from Fiscal Years 2019-20 through 2023-24. This amount was sufficient to cover roughly 80% of program costs largely attributed to staffing, and the City’s General Fund subsidized the remaining program expenses. In October 2023, staff met with Big Lift grant administrators who indicated that the City’s grant could be cut by more than half in Fiscal Year 2024-25. This significant change in funding was attributed to a reallocation of their funds to transitional kindergarten through third grade programs in addition to preschools. This shift is noted in The Big Lift’s 2023-2026 Strategic Plan, which emphasized literacy programs and outcomes, with less focus on subsidized preschool slots.
Anticipating a funding reduction, in January 2024, staff applied for San Mateo County’s Measure K funding under the priority area of “Children, Families, and Seniors” in order to fill this looming funding gap. With over $250 million in requests for the first year and only $35 million in available funding, the application pool for Measure K funds was very competitive and staff were unsuccessful in obtaining a grant award for Little Steps Preschool. Staff continue to seek out grant opportunities to support ongoing subsidies for the Little Steps Preschool and have not yet been successful in receiving grants.
In Fiscal Year 2024-25, Big Lift grant administrators confirmed the City would receive a smaller grant award of $127,000, essentially enough funding to subsidize half of the site’s children. The same amount was received in Fiscal Year 2025-26. As a result of reduced funding, staff have continued the operating model implemented in 2024-25 to maintain at least 10 of the 20 spaces at Little Steps Preschool available at no cost or on a sliding scale for income-eligible families, consistent with past Big Lift practices. The other 10 spaces are available at the adopted preschool fee, consistent with other City operated preschool sites. Fortunately, in 2024-25, no children were displaced or impacted as vacancies were created by natural attrition that occurs through the summer and fall months as children graduate into kindergarten and transitional kindergarten.
The grant award for Fiscal Year 2026-27 has been reduced by $7,000 to $120,000, continuing a trend of declining funding. Still, this funding will allow us to continue to serve 10 children at no cost. Additional cuts in funding may impact our ability to do so.
FISCAL IMPACT
City Council’s authorization to receive $120,000 for Fiscal Year 2026-27 will allow for continued operation of the Little Steps Preschool from July 1, 2026, to June 30, 2027. This amount covers the cost of one teacher, allowing the City to offer up to 10 of the 20 preschool spaces on a sliding scale cost model, with the program being available at no cost for most income-eligible families. The other 10 spaces are available to full fee-paying families. Receipt of these funds does not commit the City to ongoing funding.
To date, staff has not yet received information about the potential funding outlook beyond Fiscal Year 2026-27. If grant funding becomes unfeasible or is eliminated and alternative grant funding cannot be secured, staff will return to the City Council with a recommendation to consider alternatives for operating Little Steps Preschool. One such option would be to convert the Little Steps Preschool to a fee-based program, similar to Siebecker and Westborough Preschools, which is already subsidized by the City’s General Fund to remain very affordable.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
Acceptance of these grant funds will contribute to the City Council’s Priorities Action Plan under the Major Focus Area of creating a “Welcoming and Connected Community” by increasing access to childcare and supporting underserved communities.
CONCLUSION
It is recommended that the City Council authorize the acceptance of $120,000 in grant funding for Fiscal Year 2026-27, which will allow the Parks and Recreation Department to continue to operate the Little Steps Preschool at the Gene Mullin Community Learning Center. The Parks and Recreation Department will continue to work collaboratively with our Big Lift partners and will continue to seek out grant funds to enhance the quality of City and community preschools.