Friday

05-23-2025 Vol 1969

San Diego County Allocates $4.3 Million to Stabilize First 5 Program Amid Declining Tobacco Tax Revenues

The San Diego County Board of Supervisors has approved a $4.3 million injection into the First 5 program, a state initiative focused on health and development services for children aged five and younger. This funding aims to stabilize local efforts in light of falling tobacco tax revenues that have threatened the program’s future.

Since its inception in 1998 through Proposition 10, which imposed a 50-cent tax on tobacco for early childhood services, First 5 has played a crucial role in supporting young children and their families. In San Diego County, the program offers services ranging from oral health care to housing assistance for young mothers at risk of homelessness, and support for preschool education.

Despite its significance, First 5 revenues in California have sharply declined as smoking rates have dropped. Over the last few years, the program has seen a revenue loss of roughly $7 million since 2020, with expectations of an additional decline of $5 million by 2030. For the upcoming fiscal year, the First 5 Commission of San Diego anticipates a budget of approximately $27 million, relying heavily on tobacco tax collections that are steadily decreasing.

At a recent meeting, the Board voted unanimously to use funding from the county’s tobacco settlement fund to support First 5’s Healthy Development Services program for an additional year. Supervisor Monica Montgomery Steppe, who sponsored the funding measure and serves on the local First 5 commission, emphasized the importance of the program in empowering parents and enhancing child development.

“Parents and caregivers are the agents of change for their children, and this program provides them with the tools needed to enrich their child’s development,” she said.

Statewide, the decline in tobacco tax revenues has had a ripple effect on the First 5 program. Revenue from Proposition 10 has dropped from about $36 million to $26 million since 2021, while the revenue from Proposition 56 also saw a significant decline, going from $97 million to $80 million. Consequently, statewide plans are in place to reduce spending on research and development as well as educational initiatives over the next decade.

San Diego’s First 5 has struggled to secure alternative funding sources, finding only modest support from programs outside tobacco taxes, such as CalWorks and other state social services. Many of these funding streams have recently dried up, complicating efforts to maintain services. Over the last four years, First 5 San Diego has relied on its sustainability fund, drawing $31.9 million, and projects to use another $8.3 million by 2030 to keep operations afloat.

Among its various programs, First 5 San Diego’s expenditures are largely focused on health services, along with investments in education, oral health care, and child-centered programs like Rady Children’s Hospital’s KidSTART Center.

During the board meeting, testimonials from parents and child health experts highlighted the direct benefits of First 5 services. Parent Megan Caldwell shared her family’s experiences, detailing how her children received critical support for developmental challenges. Her daughter underwent speech therapy, and assistance was provided to enhance her son’s mobility skills. Today, her daughter has won a state history award and her son participates in karate classes, thanks to the interventions made possible by First 5.

“This little bit of intervention led to a lot of parent empowerment,” Caldwell asserted, demonstrating the profound impact the program has had on her family. Tara Milbrand, a representative from the American Academy of Pediatrics, reinforced the value of First 5 services, stating that many medical professionals rely on the program to effectively support families.

Without the county’s financial support, First 5 anticipated dire cuts that would have affected approximately 3,300 children and families, drastically slashing clinical services and developmental support. Montgomery Steppe expressed her belief that investing in early intervention is both an ethical and fiscal obligation.

“Every child we help today represents a teenager or adult who can thrive tomorrow and well into the future,” she said.

While the decision to allocate additional funding is a welcome relief, Supervisor Jim Desmond cautioned against relying on one-time funding for ongoing services, raising concerns about sustainability for First 5 and similar programs moving forward.

“This isn’t really a knock at First 5, but how are we going to handle these types of services in the future?” Desmond questioned.

As the county navigates these pressing challenges, the immediate future of First 5 remains uncertain, contingent upon ongoing discussions about funding and program viability.

image source from:https://www.sandiegouniontribune.com/2025/05/20/as-drop-in-cigarette-tax-money-threatens-san-diego-child-services-supervisors-step-in-to-ok-4-3m/

Abigail Harper