First 5 Commission Meeting Materials February 13, 2025
FIRST 5 ALAMEDA COUNTY COMMISSION MEETING AGENDA
Thursday, February 13, 2025
First 5 Alameda County 9:00 AM – 11:30 AM 1115 Atlantic Avenue Alameda, CA 94501
Members of the public may access the meeting via Conference Room A Zoom Meeting ID: 818 9412 2486 Passcode: 269277
Commissioners:
Vice Chair: Cecilia Oregón, Clarissa Doutherd, Andrea Ford, Nikki Fortunato Bas, Tomás A. Magaña M.D., Karina Moreno, Josh Thurman, Kimi Watkins-Tartt
Alternates: George Ayala, Pamela Powell
1. Call to Order
Commission Vice Chairperson Cecilia Oregón will call this meeting to order at 9:00 AM.
2. Public Comment
This portion of the meeting is reserved for persons desiring to address the Commission on any matter not on the agenda. Speakers are limited to three minutes except as otherwise ordered by the Vice Chairperson.
3. Approve Commission Meeting Minutes from December 12, 2024
Recommended Action: Approve Commission Meeting Minutes from December 12, 2024
4. Communication from Commissioners
5. Receive Staff Announcements
a. General Staff Announcements
6. Receive Legislation and Public Policy Updates
7. Elect Chair and Vice-Chair for Calendar Year 2025
Recommended Action: Elect Chair and Vice-Chair for Calendar Year 2025
8. Approve Temporary Suspension of a Budget Policy Provision
Recommended Action: Approve that the Budget Policy provision requiring a two-step approval process for the budget be suspended for the current budget cycle.
9. Approve Fiscal Year 2024-25 Mid-Year Financial Report and Proposed Budget Modifications
Recommended Action: Approve the Fiscal Year 2024-25 Mid-Year Financial Report and Proposed Budget Modifications
Commission Meeting Agenda February 13, 2025
Information about access:
Please contact Julia Otani at julia.otani@first5alameda.org or (510) 227- 6987 three business days in advance if you need special assistance or translation/interpretation support so we can make reasonable arrangements to ensure accessibility. We will swiftly resolve any requests for accommodation to resolve any doubt whatsoever in favor of accessibility.
10. Approve Fiscal Year 2024-25 Contract Authorizations
Recommended Action: Approve the Fiscal Year 2024-25 Contract Authorizations as part of the Mid-Year Budget Modification process, subject to approval and appropriations of Measure C revenue by the Alameda County Board of Supervisors.
11. Approve Fiscal Year 2024-25 Mid-Year Investment Report and Presentation
Recommended Action: Approve the Fiscal Year 2024-25 Mid-Year Investment Report
12. Receive Child Care Pathways Coordinated Eligibility and Enrollment System Presentation
13. Receive First 5 California Commission and First 5 Association Updates
14. Adjournment
Commission Meeting Agenda February 13, 2025
Information about access:
Please contact Julia Otani at julia.otani@first5alameda.org or (510) 227- 6987 three business days in advance if you need special assistance or translation/interpretation support so we can make reasonable arrangements to ensure accessibility. We will swiftly resolve any requests for accommodation to resolve any doubt whatsoever in favor of accessibility.
First 5 Alameda County Commission Meeting December 12, 2024, 9:00 AM – 11:30 AM
Zoom Webinar Meeting ID: 878 4384 1257
Commissioners Present: Chair Renee Herzfeld, Cecilia Oregón, Clarissa Doutherd, Andrea Ford, Tomás A. Magaña M.D., Karina Moreno, Josh Thurman, Kimi Watkins-Tartt
Alternates Present: Serena Chen, George Ayala
Not present: Lena Tam
First 5 Staff Present: Kristin Spanos, Cally Martin, Ayano Ogawa, Ana Apodaca, Angela Cabrera, Ellen Dektar, Lisa Forti, Edirle Menezes, Anna Miera, Anne Morrison, Laura Schroeder, Nick Zhou
Herzfeld
K. Spanos
The Commission meeting was called to order by Chair Herzfeld who gaveled in at 9:06 AM.
Chair Herzfeld shared that the meeting was being recorded and conducted roll call.
Commissioners Herzfeld, Oregón, Doutherd, Ford, Magaña, Thurman and Alternate Chen stated their names to indicate that they were present for the meeting. DISCUSSION
Ms. Spanos announced the passing of a First 5 Alameda County employee, Neil Pedreira, and the Commission observed a one-minute moment of silence in honor of Mr. Pedreira's memory.
Commissioner Moreno arrived at 9:11 AM.
Herzfeld
R. Herzfeld
There were two Public Comments by Trish Murillo and Mary Hekl.
a. Approval of Commission Meeting Minutes from October 3, 2024
Chair Herzfeld asked if there was any public comment before taking a vote to approve.
Chair Herzfeld facilitated the vote to approve the Commission Meeting Minutes from October 3, 2024.
Chair Herzfeld announced that this will be her last Commission meeting as a Commissioner.
Chair Herzfeld reported that the Executive Committee met on December 5, 2024. The Committee approved the June 11, 2024 Executive Committee meeting minutes, adopted the 2025 Executive Committee Final Calendar, reviewed and approved the agency's Financial and Technology Policies, approved FY 2024-25 Contract Authorizations, reviewed a FY 2024-25 Contract Authorization and the 2025 Cost of Living Adjustment (COLA) Recommendation and recommended that both be brought to the Commission for approval, and reviewed and approved revisions to the Employee Handbook.
Motion: Cecilia Oregón
Second: Tomás Magaña
No Abstentions.
Motion passed.
None
AGENDA ITEM
SPEAKER
K. Spanos
a. Receive General Staff Report
DISCUSSION HIGHLIGHTS
Ms. Spanos presented the General Staff Announcements.
R. Herzfeld
Alternate Ayala arrived at 9:21 AM.
None
Motion: Tomás Magaña
None
K. Spanos
C. Martin
Chair Herzfeld asked if there was any public comment before taking a vote to approve.
Chair Herzfeld facilitated the vote to approve the 2025 Commission Final Calendar.
Second: Andrea Ford
No Abstentions. No Abstentions. Motion passed.
Commissioner Watkins-
A. Ogawa Tartt arrived at 10:32 AM.
A. Cabrera
E. Menezes
A. Morrison
A. Miera
E. Dektar
L. Schroeder
A. Apodaca
L. Forti
Ms. Spanos, Ms. Martin, Ms. Ogawa, Ms. Cabrera, Ms. Menezes, Ms. Morrison, Ms. Miera, Ms. Dektar, Ms. Schroeder, Ms. Apodaca and Ms. Forti presented the proposed Measure C Emergency Stabilization Fund Plan.
Chair Herzfeld asked if there was any public comment before taking a vote to approve. There were two in person public comments by Mary Hekl and Daniel Johnson and fifthteen virtual public comments by Valerie Morgan, Shruti Agarwal, Krishna, Jagdeep Gupta, Lisa Zarodney, Sarika Rathi, Neetu Agawal, Elaine Lenore, Chandara Sunder, Sailaja Chillarige, Mamta Singh, Jigna Dave, Andrew Park, Shubhangi Torney, and Virgilio Gonzalez.
Chair Herzfeld facilitated the vote to 1) approve the Measure C Emergency Stabilization Fund Plan and Budget for Fiscal Years 2024-25 and 2025-26, with the accompanying Fiscal Year 2024-25 Annual Expenditure Plan, subject to any modifications made by the Alameda County Board of Supervisors; and 2) submit the Plans to the Alameda County Board of Supervisors for approval and allocation of funds as adopted by the Alameda County Board of Supervisors.
Motion: Cecilia Oregón
Second: Kimi Watkins-
Tartt
Recused: Clarissa Doutherd and Renee Herzfeld Motion passed.
First 5 will submit the Measure C Emergency Stabilization Fund Plan and Budget for Fiscal Years 2024-25 and 202526, with the accompanying Fiscal Year 2024-25 Annual Expenditure Plan to the Alameda County Board of Supervisors for approval and allocation of funds.
Motion: Tomás Magaña None
Mr. Zhou presented the Fiscal Year 2024-25 Contract Authorization.
Chair Herzfeld facilitated the vote to approve the Fiscal Year 2024-25 Contract Authorization.
Second: Kimi WatkinsTartt
No Abstentions. Motion passed.
N. Zhou
DISCUSSION HIGHLIGHTS
[Attachment]
Mr. Zhou presented the 2025 Cost of Living Adjustment (COLA) Recommendation.
Chair Herzfeld asked if there was any public comment before taking a vote to approve.
Chair Herzfeld facilitated the vote to approve the 2025 Cost of Living Adjustment (COLA) Recommendation.
[Attachment]
Ms. Schroeder presented the First 5 Alameda County Fiscal Year 2023-24 Annual Report to First 5 California.
Chair Herzfeld asked if there was any public comment before taking a vote to approve.
Chair Herzfeld facilitated the vote to approve the First 5 Alameda County Fiscal Year 2023-24 Annual Report to First 5 California.
K. Spanos [Attachment]
Ms. Spanos shared that the Fiscal Year 2023-24 Annual Report can be viewed online on our website by using the QR code on the holiday card and in the packet.
K. Spanos [Attachment]
Ms. Spanos noted that the First 5 California Commission and First 5 Association Updates were included in the meeting packet as written updates.
[Attachment]
Ms. Spanos noted that the Legislation and Public Policy Updates were included in the meeting packet as written updates.
Chair Herzfeld gaveled out and adjourned the meeting at 11:51 AM.
Respectfully Submitted By: Julia Otani, Executive Assistant
Motion: Karina Moreno
Second: Cecilia Oregón No Abstentions. Motion passed.
None
Motion: Cecilia Oregón None
Second: Tomás Magaña No Abstentions.
Motion passed.
Staff Announcements
February 13, 2025
GENERAL AGENCY ANNOUNCEMENTS
Welcome to our new Commissioner!
Alameda County Supervisor Nikki Fortunato Bas
most recently served as Interim Oakland Mayor and Oakland City Council President before assuming the Office of Alameda County Supervisor for District 5 in January. Prior to her time on the Oakland City Council, Sup. Bas served as the Executive Director of the Partnership for Working Families and the East Bay Alliance for a Sustainable Economy. She also spent decades successfully organizing Chinatown garment workers, building the student anti-sweatshop movement, and advocating for fair pay and working conditions for the East Bay’s most vulnerable residents.
GENERAL AGENCY ANNOUNCEMENTS
Organizational Development & Team Building
▶ Hosted an all-staff meeting in January to foster staff connection and collaboration, and align as a team in support of our collective work to achieve First 5’s mission.
▶ Launched a Diversity, Equity, Inclusion & Belonging (DEIB) Lunch & Learn series, with 12 interactive sessions led by Dr. Sacha JosephMathews , to deepen our collective understanding and commitment to DEIB as we continue to center equity in our work.
▶ Continued coaching and organizational development efforts with Onward as well as launch a Supervisors Training Series to support staff through coaching and training.
GENERAL AGENCY ANNOUCEMENTS
Measure C
▶ Presented the $165.8M Measure C Emergency Stabilization Fund proposal to the Board of Supervisors on January 28, 2025, and continued preparing for implementation of the Fund.
▶ Advanced planning for the 5-Year Plan by hosting five Community Advisory Council Listening Sessions to gather stakeholder input on:
▶ Workforce development
▶ Families’ access to child care
▶ Wages and compensation
▶ Facilities
▶ Quality, family supports, coordination, navigation, and inclusion
▶ Hosted meetings to inform the design of a centralized eligibility and enrollment system.
PEOPLE
We partner with stakeholders to support parents, caregivers, and children and ensure that families and providers have the resources they need for children to thrive.
Alameda Alliance for Health Partnership
▶ Strengthened our partnership with Alameda Alliance for Health, advancing contract negotiations for the Community Health Worker (CHW) benefit.
▶ Engaged Alliance leadership in discussions on initiatives and partnership opportunities to advance equitable maternal and child health outcomes, including support for pediatric care coordination services, birth equity, diaper need, and kindergarten oral health assessments.
PEOPLE
Community Engagement & Relationship Building
• Conducted site visits with key partners, including Davis Street, to strengthen collaboration on proposed Family, Friend, and Neighbor (FFN) relief grants and early childhood system supports.
• Engaged partner organizations including BANANAS, Oakland Natives Give Back, and Lotus Bloom Family Resource Center to discuss policy advocacy, maternal health, and community-led initiatives.
• Represented First 5 at the Cristo Rey De La Salle CEO Breakfast, fostering relationships with corporate and philanthropic leaders to support education and workforce pathways.
PLACE
We partner with communities to build relationships, services, and infrastructure that support neighborhood conditions for family and child well-being.
PLACE
Oakland Children’s Initiative
▶ Coordinating with City of Oakland and OUSD leadership to support implementation and continued system building, including the finalization of the FY 2024-25 program plan and budget.
▶ Engaged in the two-year evaluation planning process for the Initiative, collaborating with American Institutes for Research (AIR) to align with the Measure C evaluation and to refine the methodology and data collection strategies for the process study component of the Oakland Children’s Initiative evaluation.
POLICY
We advocate for policy and systems change that centers the needs of families, young children, and caregivers and supports community and family conditions for children and families to thrive. We also support community-led efforts, including parent leadership.
POLICY
Influencing the Early Childhood Public Policy
Narrative
▶ Engaged with state and local policymakers, including Assemblymember Mia Bonta, the Alameda County Board of Supervisors, and the California Department of Education, to advance early childhood policy priorities.
▶ Provided insights and recommendations to the Building Equitable Early Learning Systems (BEELS) Early Learning Advisory Committee, convened by First 5 California and WestEd, to inform First 5 California’s strategic plan and other statewide equitycentered initiatives.
▶ Participated in the ECE Implementation Working Group, contributing to the national conversations on expanding and strengthening early childhood systems and policies.
FEDERAL POLICY
Legislation and Public Policy Updates
February 2025
New Federal Administration
On January 3rd, the 119th Congress convened, beginning with the election of the Speaker of the House election and the swearing in of new members. The Republican Party holds a narrow majority in Congress President Donald Trump was inaugurated for his second term on January 20th and immediately signed 27 executive orders reversing policies on environmental, immigration, and LGBTQ+ protections. Over the first 100 days, the Administration is expected to introduce further harmful policies that may:
• Weaken the Affordable Care Act
• End Birth Right citizenship and implement stricter immigration policies including a new iteration of the punitive “public charge” rule as well as broader immigration enforcement and deportation efforts such as the offshoring of the detention of immigrants and U.S. citizens in other countries like El Salvador and Cuba.
• Restrict access to food assistance through SNAP
• Restrict reproductive or gender-affirming health care access
• Eliminate diversity, equity, and inclusion (DEI) programs
• Restructure the federal government
First 5 Alameda will actively monitor these federal policy shifts, engage our federal delegation to inform policy efforts at the national level, and analyze potential impacts on our early childhood system and the communities, families, children and providers it serves.
Federal Funding Freeze
On January 27th , President Trump signed an Executive Order announcing a funding freeze on critical federal programs that temporarily froze Medicaid and Head Start accounts This action caused widespread disruption and uncertainty across all levels of government A federal judge blocked the freeze until February 3rd , after which the White House rescinded the order on January 29th . Legal challenges to the Executive Order led by California’s Attorney General and 22 other state attorneys general remain active. Despite the White House’s reversal, the Administration signaled this as a temporary pause and will likely continue to efforts to reduce the size of the federal government, as seen with the recent closure of the United States Agency for International Development (USAID). First 5 will continue to monitor federal policy changes and assessing their impact on our county’s early childhood system and safety-net programs.
Continuing Resolution
Before the holiday recess Congress passed, and President Biden signed, a Continuing Resolution maintaining federal funding at fiscal year 2024 levels through March 14, 2025. Included in the Continuing Resolution is $500 million in emergency child care funding:
• $250 million for states affected by natural disasters: Funds to repair, construct, and improve child care facilities impacted by natural disasters, distributed through the Child Care and Development Block Grant (CCDBG).
• $250 million for nationwide child care improvements: Funds to enhance affordability, access, and quality of child care programs in states also through CCDBG.
California is projected to receive an allocation of $21.7 million from the non-disaster relief-related portion of these funds
Fiscal Year 2025 Appropriations
The U S Senate Appropriations Committee approved the fiscal year 2025 Labor, Health and Human Services, and Education, and Related Agencies (LHHS) appropriations bills with bipartisan support, maintaining annual increases for early care and education. However, the House Appropriations Committee has proposed an 11% cut below the current fiscal year 2024 level to LHHS programs, which would limit programs serving children and families. House Republicans are also considering damaging reductions of $2.5 trillion in mandatory Medicaid spending as part of the 2025 budget reconciliation process. On the table are proposals to restructure Medicaid financing through a per capita cap that is not designed to keep pace with rising health care costs.
STATE POLICY
2025-2026 State Legislative Session
The California Legislature is now in session with 35 new legislators. This year, each legislator is limited to introducing 35 bills, with a deadline of February 21st . Key legislative priorities include:
• Cost of Living Relief – Senate President Pro Tem Mike McGuire and Assembly Speaker Robert Rivas have emphasized affordability measures will be a focus of this legislative session.
• Child Care Access – Assemblymember Cecilia Aguiar-Curry, the Assembly Majority Leader and chair of the California Legislative Women’s Caucus, has identified child care as a top policy priority
State Special Session
Governor Newsom convened a special session in late 2024 to address legal challenges posed by the Trump Administration. The Legislature allocated:
• $25 million for the Attorney General's Office
• $25 million for legal services at the local level
Additionally, the special session was expanded to address wildfire relief following the devastating fires in Los Angeles. Governor Newsom signed a $2.5 billion relief package, which includes:
• $1 billion for emergency response and cleanup efforts
• $1.5 billion for disaster preparedness for firestorms, windstorms, and other natural disaster threats
This package is expected to be the first in a series of actions to support ongoing recovery and prevention efforts.
Governor’s January Fiscal Year 2025-2026 Budget Proposal
On January 10th , Governor’ Newsom released his proposed $322.2 billion budget, including $228.9 billion in general funds and $16.9 billion in reserves. Key takeaways:
• Surplus of $362 million – Revenue projections exceed expectations by $16.5
• Sustained investments – Commitments outlined in the 2024-2025 final budget for climate change, the environment, public safety, housing and homelessness, behavioral health, and TK-16 remain in tact.
• Gaps in child and family support – The proposal does not include key investments to further support the well-being of children and families such as funding for continuous Medi-Cal coverage implementation for children or increased rates for community health workers / promotoras / representatives.
The Governor’s January Budget Proposal kicks off the state’s annual budget process Given external uncertainties such as federal policy changes, stock market fluctuations, and Los Angeles County wildfirerelated tax delays, the May Revision will provide a clearer picture of the state’s financial standing. A summary of the Governor’s January Budget Proposal and its alignment with the 2025 First 5 Alameda County Policy Agenda is available for review here
First 5 Alameda remains committed to monitoring and advocating for policies that support children and families at both the federal and state levels. Our team will continue engaging with policymakers, analyzing potential impacts, and keeping stakeholders informed as these policy developments unfold.
First 5 Alameda County Proposed Revised Expenditure Budgetby Expenditure Category
July 1, 2024 - June 30, 2025
Notes:
Proposed revisions reflect changes in planned Expenditure categories for FY 2024-25
FY 2024-25 proposed increase in expenditure categories for personnel, contracts, grants, stipends, professional services, program operating costs, and infrastructure costs are due to adjustments to current funded activities supporting Quality Early Childhood Education, Fatherhood and inclusion of Measure C year 1 activities across strategies.
to develop and implement an evaluation of the Children's Health and Child Care Initiative for Alameda County (Measure C), as required by the ordinance. The proposed contract term will go through FY25-26 (FY24-25 $355K and FY25-26 $495K).
enhance child
resource and
in Alameda County to reach more families in need and reduce wait times. Funding includes expanding outreach and promotional efforts, increasing touchpoints with families, and strengthening information in the child care referral database.
to provide outreach, promotion, technical assistance and distribution of Family, Friend, and Neighbor (FFN) caregiver relief funds as part of the Measure C Emergency Stabilization Fund. Funding to also provide outreach and technical assistance to FFN caregivers to complete orders for health and safety equipment as part of the Emergency Stabilization Fund. Funding includes validation of provider eligibility based on Alameda County child care payment programs. This authorization includes $2,216,000 for pass through FFN relief funds and a 5% contingency amount should participation exceed projections.
Counts sites and professional development for the ECE workforce ($269,011); to provide training and playgroups for FFN and FCCs ($81,000); and to provide fathers groups and participate in evaluations and trainings ($25,000).
to provide outreach, promotion, technical assistance and distribution of Family, Friend, and Neighbor (FFN)
funds as part of the Measure C Emergency Stabilization Fund. Funding to also provide outreach and technical assistance to FFN caregivers to complete orders for health and safety equipment as part of the Emergency Stabilization Fund. Funding includes validation of provider eligibility based on Alameda County child care payment programs. This authorization includes $3,260,000 for pass through FFN relief funds and a 5% contingency amount should participation exceed projections.
the Measure C Emergency Stabilization Fund. Funding to also provide outreach and technical assistance to FFN caregivers to complete orders for health and safety equipment as part of the Emergency Stabilization Fund. Funding includes validation of provider eligibility based on Alameda County child care payment programs. This authorization includes $876,000 for pass through FFN relief funds and a 5% contingency amount should participation exceed projections.
for health and safety equipment as part of the Emergency Stabilization Fund. Funding includes validation of provider eligibility based on Alameda County child care payment programs. This authorization includes $3,628,000 for pass through FFN relief funds and a 5% contingency amount should participation exceed projections.
Community Listening
ECE
and other child centered
serving children 0-5. The proposed contract term will go through FY25-26 (FY24-25 $4.2M and FY25-26 $13.8).
Facilitator Funding to add two (2) community listening sessions (an extra session for OCI, and one Measure C session for Family, Friend, and Neighbor providers). Funding to also add a supplemental report for Measure C after the OCI sessions are completed to recommend systems alignment between the two initiatives. And additional funding to support development of the Measure C 5-Year Plan.
and
programs participating in
County Quality Counts program. ($160K) and 2) to facilitate community listening sessions related to local early care and education (ECE) ballot measures and synthesize the findings in an independent report ($128K). Operations Interpreters Unlimited Listening Sessions, Grant Application Process, Centralized Eligibility and Enrollment System
Funding to provide interpretation and translation support for community listening sessions, the provider relief grant application process, technical assistance and the Child Care Pathways Design Team meetings.
Operations Iris Lin Centralized Eligibility and Enrollment System Funding to provide interpretation and translation support for the Child Care Pathways Design Team meetings.
ECE Database Expansion Funding for additional Hubbe database license fees in anticipation of adding up to 1,400 new ECE sites through proposed Emergency Stabilization Fund grants. License fees are prorated 25% of the annual fee for this fiscal year. The addition of these sites into Hubbe supports data collection, program monitoring, and datadriven decision making.
assistance services to First 5 programs and selected providers.
Funding to host a secure and fully managed iteration of the QRIS Hubbe database system for Alameda County Quality Counts to manage the local QRIS program. Funding also includes upgrades to the Hubbe database system to streamline data collection for both current sites and new sites added through Measure C.
First 5 Alameda County Investment Report - Chandler
For the Period July 1, 2024 - December 31, 2024
ECONOMIC
ACCOUNT PROFILE
PORTFOLIO HOLDINGS
TRANSACTIONS
ECONOMIC UPDATE
Recenteconomicdatasuggestscontinuedgrowthfueled by aresilientconsumer.Inflationarytrendshavesubsided, but somecomponents remainsticky,andcorelevelsremainabovethe Fed’s target.Thelabormarketreflectsimprovedbalancebetweensupplyanddemandfor workers.Whilejobcreationhasbeenrobust,continuingjoblessclaimsremainelevated.Giventheeconomicoutlook, we expectgradual normalization of monetary policy and a steepening yield curve.
As broadlyanticipated,theFederalOpenMarketCommittee(FOMC)reducedtheFedFundsRate by 25 basispoints to therange of 4.254.50% at theDecembermeeting.Althoughthecutwaswidelyanticipated,marketparticipantsviewedthetrajectory of rates in theSEP as ‘hawkish.’ ChairJeromePowellreiteratedpreviousstatementsindicatingtheeconomy isin agoodplaceandthatmonetarypolicy is well positioned.TheFedreleasedthequarterlySummary of EconomicProjections(SEP),whichnowforecastsahighercentraltendency of core inflationandahigherlongerrunFedFundsforecast. In theChandler team’s view,theupdatedSEPreflectsthecontinuedresiliency of the US economy and the corresponding risk of inflation taking longer to reach the FOMC’s two percent objective in 2025.
US Treasuryyieldsshiftedhigher in Decemberandthecurvesteepened.The2-yearTreasuryyieldincreased9basispoints to 4.24%,the 5yearTreasuryrose 33 basispoints to 4.38%,andthe10-yearTreasuryyieldsurged 40 basispoints to 4.57%.Thespreadbetweenthe2-year and10-yearTreasuryyieldpoints on thecurveincreased to +33basispoints at Decembermonth-endversus +2 basispoints at November month-end.Thespreadbetweenthe2-yearTreasuryand10-yearTreasuryyieldoneyearagowas-37basispoints.Thespreadbetweenthe 3-month and 10-year Treasury yield points on the curve increased to +25 basis points in December from -32 basis points in November.
Nonfarm Payroll (000's)
Source: US Department of Labor
Source: US Department of Labor
TheU.S.economyadded256,000jobs in December,farexceedingconsensusexpectations.Gainswereled by healthcare,retail,and leisuresectors,whilemanufacturingshedjobs.Thethree-monthmovingaverageandsix-monthmovingaveragepayrollstotaled170,000 and165,000respectively.Theunemploymentratedeclined to 4.1% in December,andthelaborparticipationratewasunchanged at 62.5%,remainingbelowthepre-pandemiclevel of 63.3%.TheU-6underemploymentrate,whichincludesthosewhoaremarginally attached to thelaborforceandemployedparttimeforeconomicreasonsfell to 7.5%.Averagehourlyearningsmoderated to an increase of 3.9% year-over-year in December.
Source: US Department of Labor
TheLabor Department’s JobOpeningsandLaborTurnoverSurvey(JOLTS)rose to 8.098millionnewjobopenings in November,which represented an increasefromtheupwardlyrevised7.839millionjobopenings in October.Jobopeningsindicatearatio of 1.1jobsfor each unemployed individual, representing a relatively balanced labor market.
In December, the Consumer Price Index (CPI) rose 0.4% month-over-month and 2.9% year-over-year. The Core CPI, which excludes volatile foodandenergycomponents,rose0.2%month-over-monthand3.2%year-over-year,slowingfromlastmonthandcoming in lowerthan consensusexpectations.ThePersonalConsumptionExpenditures(PCE)Indexrose0.1%fromthepreviousmonthand2.4%year-over-year in Novemberversusa2.3%increase in October.TheCorePCEdeflator(the Fed’s preferredgauge)increased0.1%month-over-month, belowrecentsmallmonth-over-monthrisesand2.8%overthepastyear.CorepricesareexhibitingwhatFedChairPowelldescribes as “sideways” movement. Although inflation has moderated, price increases remain above the Fed’s 2% target.
Source: US Department of Commerce Source: The Conference Board
DecemberRetailSalesadvancedbroadly,providingevidence of asolidpace of consumerspending in theholidayseason.RetailSales rose0.4% in December,after an increase of 0.8% in Novemberandbelowtheconsensusexpectation of 0.6%.Spendingwassolidfor motorvehiclesandnon-storeretailers, as well as formostothercategoriesassociatedwiththewinterholidays. On ayear-over-year basis,RetailSalesgrew3.9% in Decemberversus4.1% in November.TheRetailSalesControlGroup,whichareused to calculategross domesticproduct,increased0.7% in December,themost in threemonths,exceedingexpectations of 0.4%.TheConference Board’s ConsumerConfidenceIndexdeclined to 104.7 in Decemberfrom an upwardlyrevised112.8 in November.Consumers'assessmentabout futurebusinessconditionsandoutcomesweresubstantiallylessoptimisticandtherewasincreasedpessimismaboutfutureemployment prospects.Whiletheconsumerhasbeenresilient,lowsavingsrates,growingcreditcarddebt,higherdelinquencies,andamoderating labor market pose potential risks to future spending.
Consumer Confidence
LEADING INDICATORS OF ECONOMIC ACTIVITY
Leading Economic Indicators (LEI)
TheConference Board’s LeadingEconomicIndex(LEI)increased0.3% in Novemberreversingits-0.4%decline in October due to a rebound in buildingpermits,continuedsupportfromequities,improvement in averagehoursworked in manufacturing,andfewerinitial unemploymentclaims.TheLEIdecreasedyear-over-year by -3.5%.According to theConferenceBoard,therise in LEI is apositivesignfor futureactivity in the US and is consistentwith an expectationformoderategrowth at theend of 2024 andintoearly 2025. TheChicago FedNationalActivityIndex(CFNAI)improved to -0.12 in Novemberfrom-0.50 in October.Thethree-monthmovingaveragefell to -0.31 in November from -0.27 in October, indicating below-trend growth expectations for the economy.
Chicago Fed National Activity Index (CFNAI) Recession
Source: The Conference Board
Source: Federal Reserve Bank of Chicago
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
(%) Change
S&P/Case-Shiller 20 City Composite Home Price Index Recession
Housingstartssurged by 15.8% in December to 1.5millionunitsafterdeclining in thepriorthreemonths.Totalstartsaredown4.4% compared to December 2023. Thesupply of existinghomes is graduallybecomingmoreabundantaftertheperiod of scarcity as homeownersheldontotheirlowmortgagerates.TheFreddieMac30-yearfixedratemortgageaveragedapproximately6.7% in December.According to theCase-Shiller20-CityHomePriceIndex,housingpricesrose4.2%year-over-year in October,deceleratingfrom 4.6%reported in thepreviousmonth.Withmoreinventoryenteringthemarketthetrend is graduallyimproving;howeverhighermortgage rates continue to impact affordability.
Source: US Department of Commerce
Source: S&P
Source: Institute for Supply Management
TheInstituteforSupplyManagement(ISM)Manufacturingindexrosemorethanforecast to 49.3 in Decemberfrom48.4 in November. Whiletheindexhaspostedcontractionaryreadingsforthepastninemonths,NewOrdersandPricesindicescontinued in expansion territoryandtheProductionIndexreturned to expansionthismonth.TheBacklog of OrdersIndexandEmploymentIndexremained in contraction.TheISMServicesIndexrose to 54.1 in Decemberfrom52.1 in Novemberwhilemarkingthesixthstraightmonth of expansion. Robustbusinessactivityahead of thenewyearandmitigatingrisks of potentialtariffswerethekeydrivers.Areadingover 50 indicates expansion, while a reading under 50 indicates contraction.
GROSS DOMESTIC PRODUCT (GDP)
Source: US Department of Commerce
According to thethirdestimate,thirdquarterGDPincreased atan annualizedrate of 3.1%compared to 2.8%fromthesecondestimate. Growthcontinues to be powered by personalconsumptionexpenditures.Governmentconsumptionexpendituresandnonresidentialfixed investmentalsohadpositivecontributions,withnegativeoffsets by netexports,residentialinvestment,andchange in private inventories. The consensus projection calls for 2.4% growth in the fourth quarter and 2.7% growth for the full year 2024.
Source: US Department of Commerce
Federal Reserve Balance Sheet Assets
Source: Federal Reserve
Source: Bloomberg
As broadlyanticipated,theFederalOpenMarketCommittee(FOMC)reducedtheFedFundsRate by 25 basispoints to therange of 4.254.50% at theDecembermeeting.Therewasonedissentingvote by ClevelandFedPresidentBethHammackwhowouldhavepreferred no change in rates.Althoughareduction in rateswaswidelyanticipated,marketparticipantsviewedthetrajectory of rates in theSEP as ‘hawkish.’ ChairJeromePowellreiteratedpreviousstatementsthatmonetarypolicy is “wellpositioned” andtheoutlookremainsroughly balancedbetweenthedualmandate of maximumemploymentandpricestability.Economicactivity is expanding at asolidpace,labor marketconditionshave “generallyeased”, andtheunemploymentrate “remainslow.” TheFedreleasedthequarterlySummary of EconomicProjections(SEP)whichnowforecastsahigher,longerrunmedianFedFundsrateexpectationamongFedGovernors at 2.8 –3.6%.TheFedcontinues to reduceitsholdings of U.S.Treasurysecuritiesandagencymortgage-backedsecurities as peritspredefined schedule of $25 billionand $35 billionpermonth.SincetheFedbeganitsQuantitativeTighteningcampaign in June 2022, securities holdings have declined by approximately $1.9T to approximately $7.0T.
US Treasury Note Yields
Treasury Yield Curve
Source: Bloomberg Source: Bloomberg
At theend of December,the2-yearTreasuryyieldwas1basispointlower,andthe10-YearTreasuryyieldwas 69 basispointshigher, year-over-year.Thespreadbetweenthe2-yearand10-yearTreasuryyieldpoints on thecurveincreased to +33basispoints at December month-endversus +2 basispoints at Novembermonth-end.Theyieldcurveinversionwhichbegan in July 2022 washistoricallylong.The averagehistoricalspread(since 2004) is about+99basispoints.The3-monthand10-yearTreasuryyieldcurvenormalized to +25basis points in December from -32 basis points in November.
ACCOUNT PROFILE
Investment Objectives
The investment objectives of the First 5 Alameda County Agency are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all requirements that may be reasonably anticipated; and third, to earn a commensurate rate of return consistent with the constraints imposed by the safety and liquidity objectives.
Chandler Asset Management Performance Objective
The performance objective of the First 5 Alameda County Agency portfolio is to earn a total rate of return that exceeds the total rate of return on a market benchmark index of 1-5 Year Government securities.
Strategy
In order to achieve this objective, the portfolio invests in high-quality money market instruments, US Treasury securities, Agency securities, and high-grade corporate securities.
STATEMENT OF COMPLIANCE
First 5 Alameda County | Account #10022 | As of December 31, 2024
STATEMENT OF COMPLIANCE
First 5 Alameda County | Account #10022 | As of December 31, 2024
STATEMENT OF COMPLIANCE
First 5 Alameda County | Account #10022 | As of December 31, 2024
PORTFOLIO CHARACTERISTICS
First 5 Alameda County | Account #10022 | As of December 31, 2024
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.
First 5 Alameda County | Account #10022 | As of December 31, 2024
ISSUERS
5 Alameda County | Account #10022 | As of December 31, 2024
ISSUERS
First 5 Alameda County | Account #10022 | As of December 31, 2024
First 5 Alameda County | Account #10022 | As of December 31, 2024
S&P Rating
Moody’s Rating Fitch Rating
DURATION DISTRIBUTION
First 5 Alameda County | Account #10022 | As of December 31, 2024
Portfolio Compared to the Benchmark
INVESTMENT PERFORMANCE
First 5 Alameda County | Account #10022 | As of December 31, 2024
First 5 Alameda County
Benchmark
HISTORICAL
First 5 Alameda County | Account #10022 | As of December 31, 2024
Purchase Yield as of 12/31/24 = 3.81%
PORTFOLIO HOLDINGS
First 5 Alameda County | Account #10022 | As of December 31, 2024
First 5 Alameda County | Account #10022 | As of December 31, 2024
First 5 Alameda County | Account #10022 | As of December 31, 2024 Cusip
First 5 Alameda County | Account #10022 | As of December 31, 2024 Cusip Security
First 5 Alameda County | Account #10022 | As of December 31, 2024
TRANSACTIONS
TRANSACTION LEDGER
First 5 Alameda County | Account #10022|10/01/2024 Through 12/31/2024|
TRANSACTION LEDGER
First 5 Alameda County | Account #10022|10/01/2024 Through 12/31/2024|
IMPORTANT DISCLOSURES
First 5 Alameda County | Account #10022 | As of December 31, 2024
2024 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.
Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively.
First 5 Alameda County | Account #10022 | As of December 31, 2024
ICE BofA 1-5 Yr Unsubordinated US Treasury & Agency Index
ICE BofA 1-5 Year AAA-A Corp/Govt
The ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.
The ICE BofA US Issuers 1-5 Year AAA-A US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational, and corporate securities. Qualifying securities must be issued from US issuers and be rated AAA through A3 (based on an average of Moody's, S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities.
Child Care Pathways
Commission Presentation | February 13, 2025
Today’s Agenda
Current System
Child Care Pathways Vision
Current Plan and Next Steps
Current System
Current System
Current System Needs: Sam’s Story
Current System Needs: Subsidy Administrators
Child Care Pathways Vision
Children's Health and Child Care Initiative for Alameda County
(2.08.306 D.) “[..] The Plan may include programs to improve the efficiency and accessibility of early care and education services in the County, and to streamline the administration of the program for parents and providers, including, but not limited to:
1. technology and data systems to promote and monitor the effectiveness of the initiative, integrate information on subsidies, quality and the early care and education workforce, including the development of a centralized eligibility list”
Our Draft Vision
In Alameda County, families have all the information, options, and support to choose their preferred early care and education experience for their child.
“Create a system that when you go up, it uplifts you.”
First 5 Association of California and First 5 CA Updates February 2025
First 5 Network Responds to Governor Newsom’s Proposed 2025-2026 Budget
The First 5 Network, which includes First 5 California, the First 5 Association of California, and First 5 Los Angeles, issued a joint press release regarding Governor Gavin Newsom’s proposed 2025-2026 Budget. The statement calls out the opportunity for the budget to strengthen California’s investments in its youngest children and ensure that every child has the foundation to thrive during their critical early years by maintaining commitments to investments in early care and education rates and the continued rollout of additional child care spaces. The First 5 Network aims to partner with the Governor and the Legislature to further prioritize the health and well-being of the state’s youngest children and their families through funding for key health and mental health initiatives.
First 5 California Commission Meeting
At the January 30th First 5 California (F5CA) Commission meeting, F5CA requested that the Commission approve up to $18 million over 3 years for the First 5 Network Resilience Initiative. This will include $15 million for the Small Population County Funding Augmentation (SPCFA) program; and $3 Million across three areas: 1) Emergency Response; 2) Capacity Building; and 3) Long-term Sustainability to support stabilization efforts across the First 5 Network. The SPCFA investment will include an equitable funding methodology, performance-based accountability, and a quality assurance structure to help achieve the Commission's North Star and Audacious Goal. The funding formula will be re-examined for the new funding cycle, which begins on July 1, 2025, with funding criteria that ensure counties receive the funds needed to stabilize their local First 5 county commissions and create local capacity for long-term sustainability. Agendas and meeting materials are available here. The next First 5 California Commission meeting will be held on April 17, 2025.
First 5 Association of California 2025 Annual Summit
The 2025 First 5 Annual Summit, which convenes the First 5 Network, convened February 10-12, 2025 in San Diego. Session topics on the agenda included AI’s impact on the Early Care and Education Field; Medi-Cal Updates and Innovations; Early Childhood Movements and Power Building Through Investments and Evaluation; State Systems Alignment; Community Engagement Spectrum; Family Partnership; and Navigating the Federal Policy Landscape. First 5 Alameda County had over 10 staff members representing the agency at the Summit. Summit details and the agenda are available here.
First 5 California Building Equitable Early Learning Systems (BEELS) Advisory Group
The Building Equitable Early Learning Systems (BEELS) statewide advisory committee was convened by First 5 California and WestEd to inform First 5 California’s strategic plan and other statewide equitycentered initiatives. Last year, First 5 Alameda CEO Kristin Spanos was appointed to the statewide advisory committee. As a complement to the statewide work, First 5 California and WestEd also established regional Local Leadership Groups (LLGs) across the state. Alameda County is in LLG Region 4. The January BEELS Statewide Advisory Committee meeting was focused on the future of First 5 California’s IMPACT funding and the sustainability of services and programs currently supported by these funds. As follow up, First 5 Alameda staff compiled and shared responses to questions regarding sustaining IMPACT investment outcomes post-funding, strategies for local and regional sustainability this year, anticipated challenges for counties over the next three years, and the top three activities from IMPACT that First 5 can build upon. First 5 Alameda currently uses IMPACT Legacy funds to support ECE staff, QRIS coaching through Resource & Referral agencies, libraries, and Family Friend and Neighbor and Family Child Care supports.
SAVE
THE DATE: Advocacy Day – April 9, 2025
The First 5 Association will be hosting its Annual Advocacy Day at the State Capitol in Sacramento on Wednesday, April 9, 2025. This year's focus will be on advocating against potential state budget cuts while highlighting opportunities for collaboration with the First 5 Network. Our Government Affairs & Policy team looks forward to representing First 5 Alameda and lifting up policy opportunities to build an equitable early childhood system in Alameda County and beyond.
