Mayor Newsom releases report
on economic impact of the child care in San Francisco

From the Mayor's Office of Communications

March 27, 2006

San Francisco, CA - Mayor Gavin Newsom today released a report entitled: The Economic Impact of the Child Care Industry in the City of County of San Francisco at a breakfast with business and civic leaders. The economic impact report of the child care industry in San Francisco is the result of a year-long collaborative effort between business and child care community leaders. Mayor Newsom took this opportunity to highlight San Francisco's investments to improve the supply of the child care workforce, and the overall quality of child care programs that makes San Francisco one of the nation's leaders in cutting-edge strategies to support our local child care infrastructure. Mayor Newsom also asked the private sector to work with the City in partnership to create innovative solutions to address the barriers that the child care industry and its consumers face.

In releasing the report, Mayor Newsom reinforced his strong commitment to the child care industry, saying, "Child care is part of the fabric of our economic infrastructure," and added, "If San Francisco is to reap the benefits this industry can produce, the public and private sectors need to work in partnership to strengthen the child care industry and maximize it's potential to contribute to the City's economy - now and in the future."

In April 2005, Mayor Newsom appointed the San Francisco Advisory Board charged to devise recommendations and highlight strategies illustrating how the public and private industry can partner to increase the quality and supply, and build upon and improve the City's child care system that supports families who live and work in San Francisco.

The breakfast was co-sponsored by the San Francisco Chamber of Commerce and the Northern California Human Resources Association, and included a panel discussion, moderated by Steve Falk, President and CEO of the San Francisco Chamber of Commerce. The discussion focused on the major findings of the report and emphasized the importance of a strong working relationship between the business and child care community. Panelist included: Nancy Schicker, Board member, Children's Council of San Francisco and Vice President, Washington Mutual's Card Services Division; Dan Safran, Deputy Director, Children's Council of San Francisco; Bill Tompkins, Vice President, Total Rewards -GAP Inc.; Amy Errett, Chief Executive Officer, Olivia Cruises and Resorts.

Major findings of report on The Economic Impact of the Child Care Industry in the City and County of San Francisco:

· The child care industry generates $191 million in gross receipts annually.

· The child care industry provides 4,415 full time-equivalent jobs (on par with other significant San Francisco industries, such as computer systems design services, clothing stores, and the construction of buildings).

· One in ten labor force participants in San Francisco is a parent living in a household in which all parents work.

· 30,960 families with children under 13 that are San Francisco residents live in household where all parents work, and they earn over $1.4 billion annually. Working parents with children under five earn over $628.5 million annually.

· In 2004-2005, approximately $108 million was invested in San Francisco through federal, state and local child care funds.

· There are 883 licensed child care programs in San Francisco with the maximum capacity to be able to serve 22,000 children

-while in 2004, there was an estimated 56,000 children from birth to age 13 with all parents in the labor force. The formal child care industry can only serve 39 percent of those children at any one time.

· Child care jobs are expected to grow by 12.5% from 2001 to 2008, which is twice as fast as the city/county-wide rate of growth at 6.2 percent.

The substantial size of the child care industry means that it not only supports San Francisco's economy by allowing parents to work and preparing children for future academic and economic success, but also contributes to the City's economic vitality by employing a significant numbers of workers, generating substantial revenue, and purchasing goods and services from many other industry sectors.

It is time for a paradigm shift -the child care industry must be seen as a catalyst for San Francisco's economic success. The child care industry is a significant direct contributor to the local economy, playing an important role in San Francisco's plan for sustained economic development, and shows that
businesses have a vested interest in ensuring that there is an accessible, high quality, and affordable child care system.

Five ways that business can invest in child care:

· Provide employees with access to child care resources and referral services to help them evaluate and choose quality child care.

· Offer flex-time and flexible leave policies to help employees with children balance work and family responsibilities.

· Provide financial assistance to employees to pay for child care expenses.

· Support the create of the direct child care services

· Play an active role by advocating and influencing public policy.

The National Economic Development and Law Center (NEDLC) was commissioned to lead the San Francisco Advisory Board in the development of this report, which was financed by the San Francisco Child Care Planning and Advisory Council (CPAC).

Printed copies of the Economic Impact of the Child Care Industry in the City and County of San Francisco are available for pickup at the Mayor's Office of Neighborhood Services in City Hall, downloaded from the Department of Children, Youth, and Their Families' website (www.dcyf.org/cpac), or can be mailed by contacting Mardi Lucich, Citywide Child Care Administrator, Department of Children, Youth, and Their Families, 415-554-6773 or mardi@dcyf.org.