Last week, KPCC ran a story about First 5 LA’s new Strategic Plan. As Chairman of the First 5 LA Commission last year, I was struck by the omission of vital information in their report: the very serious fiscal situation that is looming for First 5 LA.
First 5 LA is dependent on tobacco tax revenues, which have declined from over $250 million in 2000 to $87 million in 2014. When First 5 LA’s contract to LAUP expires in June 2016, First 5 LA is estimated to have $83 million in total revenue coming in and nearly $162 million in estimated annual spending.
The bottom line? If LAUP or any of the other programs First 5 LA funds are extended beyond their contract periods, First 5 LA would be overcommitted and under-resourced by 2017. That is why it was so critical that First 5 LA develop a strategic plan during my chairmanship that factors in the harsh reality we will soon be facing. The new Strategic Plan, coupled with a new decision-making structure, provide First 5 LA with much needed focus and accountability that ensure the organization can both live within its declining revenues and contribute to lasting impact for the greatest number of children for LA County’s youngest children.
Early education is and always will be a priority for me. I have supported LAUP since its beginning in 2004 and, since then, more than 100,000 kids received high quality early education! There is no doubt that the investment First 5 LA made into high quality preschool through LAUP has proven that it is a worthy use of resources. But First 5 LA cannot sustain this program. It is quite literally a question of mathematics. The numbers just don’t add up.
This issue is larger than First 5 and LAUP. The future of free and subsidized quality preschool has yet to be decided, and now is the time to start making those decisions. The path to broad access to quality pre-school is through public policy change and public financing. I urge LAUP and all of the early education stakeholders to continue to make the case for preschool at the state and federal level.
And we have a strong case indeed; thanks to LAUP and First 5 Los Angeles.