Monies in the Babies and Families First Fund shall be used exclusively for the purposes specified in this Section 2112. Subject to the budgetary and fiscal provisions of the Charter, monies in the Fund shall be appropriated on an annual or supplemental basis and used exclusively for the following purposes:
(a) Up to 2% of the proceeds of the Early Care and Education Commercial Rents Tax, distributed in any proportion to the Tax Collector and other City departments, for administration of the Early Care and Education Commercial Rents Tax;
(b) Refunds of any overpayments of the Early Care and Education Commercial Rents Tax imposed by this Article 21;
(c) Fifteen percent of all amounts remaining after application of subsections (a) and (b) to the General Fund, to be expended for any purposes of the City; and
(d) All remaining amounts to funding, including administrative costs, Eligible Programs.
(1) “Eligible Programs” means:
(A) Support for quality early care and education for children under the age of six in San Francisco families at 85% or less of State Median Income (SMI);
(B) Support for quality early care and education for children under the age of four in San Francisco families earning up to 200% of the Area Median Income (AMI);
(C) Investment in comprehensive early care and education services that support the physical, emotional, and cognitive development of children under the age of six; and
(D) Increasing compensation (including but not limited to wages, benefits, and training) of care professionals and staff in order to improve the quality and availability of early care and education for children under the age of six.
(2) Monies in the Fund shall be allocated between the purposes set forth in subsections (d)(1)(A), (d)(1)(B), (d)(1)(C), and (d)(1)(D), as provided by the Board of Supervisors or OECE.
(e) Commencing with a report filed with the Board of Supervisors not later than January 1, 2030, and every ten years thereafter, or as directed by the Board of Supervisors, OECE shall file a “needs assessment” containing recommendations for expenditures from the Fund for the following ten years to support quality early care and education for children under the age of six through the Eligible Programs.
(f) The intent of subsection (d) of this Section 2112 is to provide dedicated revenues to increase funding for quality early care and education for San Francisco children under the age of six. It is not intended to supplant existing funding. Therefore, except as otherwise specified in this Section 2112, revenues in the Fund may only be expended for the purposes specified in Section 2112(d) in years when the Controller certifies that appropriations contained in the adopted budget from other funding sources exceed those in a given year, as measured and adjusted by the Controller pursuant to subsections (g) and (h) of this Section 2112.
(g) Expenditures After Baseline Year. No monies in the Fund shall be expended pursuant to subsection (d) of this Section 2112
in any Fiscal Year in which the amount appropriated for Baseline Programs (not including appropriations from the Fund and exclusive of expenditures funded by private funding, development impact fees, or prior period balances, or funded or mandated by state or federal law) is below the Base Amount. All funds unexpended in accordance with the preceding sentence shall be held in the Fund and may be expended in any future Fiscal Year in which other expenditures from the Fund may be made. The Controller shall adjust the Base Amount for each Fiscal Year after the Baseline Year based on calculations consistent from Fiscal Year to Fiscal Year by the percentage increase or decrease in aggregate City discretionary revenues. In determining aggregate City discretionary revenues, the Controller shall include only revenues received by the City that are unrestricted and may be used at the option of the Mayor and the Board of Supervisors for any lawful City purpose. The method used by the Controller to determine discretionary revenues shall be consistent with the method used by the Controller to determine the Library and Children’s Fund Baseline calculations, as provided in Charter Section 16.108(h). The change in aggregate discretionary revenues shall be adjusted following the end of the Fiscal Year when final revenues are known.
(h) Suspension of Growth in Base Amount. The City may suspend growth in the Base Amount pursuant to subsection (g) of this Section 2112
in Fiscal Year 2018-2019 if the City’s projected budget deficit for that year at the time of the Joint Report or Update to the Five Year Financial Plan as prepared jointly by the Controller, the Mayor’s Budget Director, and the Board of Supervisors’ Budget Analyst under Chapter 3, Section 3.6 of the Administrative Code, exceeds $200 million. For Fiscal Year 2019-2020 and thereafter, the City may suspend growth in the Base Amount pursuant to subsection (g) of this Section 2112
in any year that the City’s projected budget deficit for that year at the time of the Joint Report or Update to the Five Year Financial Plan as prepared jointly by the Controller, the Mayor’s Budget Director, and the Board of Supervisors’ Budget Analyst under Chapter 3, Section 3.6 of the Administrative Code exceeds $200 million adjusted annually by changes in aggregate City discretionary revenues as defined in subsection (g) of this Section 2112
.
(i) Annual Reports. Commencing with a report filed no later than February 15, 2020, covering the Fiscal Year ending on June 30, 2019, the Controller shall file annually with the Board of Supervisors, by February 15 of each year, a report containing the amount of monies collected in and expended from the Fund during the prior Fiscal Year, the status of all Eligible Programs, and such other information as the Controller, in the Controller’s sole discretion, shall deem relevant to the operation of this Article 21.
(j) Administration of Fund. The Fund shall be maintained by the Controller’s Office, which shall record all receipts and expenditures.
(Added by Proposition C, 6/5/2018, Eff. 7/20/2018, Oper. 1/1/2019)