In June 2018, voters approved Proposition C, imposing a tax on gross receipts from commercial space leases in San Francisco. The City was mandated to spend 85% of these revenues for early care and education for young children, with a baseline funding amount to be appropriated separately for existing programs.

The ordinance seeks to modify the baseline funding requirements for Fiscal Years 2023-2024 and 2024-2025, allowing the City to utilize Early Care and Education Commercial Rents Tax revenues for those programs without the need to appropriate separate baseline funds.

This action is intended as a temporary emergency solution to balance the budget without a permanent funding solution for ongoing essential programs. It is crafted to redirect General Fund monies towards other vital services for children and families, such as food access programs.

Despite existing investments, there remains a gap in meeting the needs of families with young children. The ordinance allows for increased flexibility in allocating funds to early care and education to fill this gap and move towards a universal system, without the need for a supermajority vote or specific findings.

Ordinance enactment occurs upon the Mayor's signing, returning the ordinance unsigned, not signing within ten days, or if the Board of Supervisors overrides a mayoral veto.

The ordinance modifies the baseline funding requirements temporarily, allowing for credits against the Base Amount in specified fiscal years, and limits the increase of the Base Amount in these years according to conditions based on the Babies and Families First Fund's balance and the City's projected budget deficit.