Catholic Charities of Santa Clara County, responsible for 11 of the county’s Family Resource Centers, is facing significant funding cuts that will result in the closure of up to six centers across San José and Sunnyvale by this summer.
Funding Decline Leads to Center Closures
These centers provide essential support and educational programs, including parenting and children’s classes, diaper and food distribution, as well as access to books and recreational materials. The drastic funding reduction, about 75%, is due to a continued decline in Proposition 10 tobacco taxes, which fund early childhood development and family support programs managed by First 5 California. “The depth of the cuts for this coming year is challenging,” said Catholic Charities CEO Greg Kepferle. “There’s not enough money to run all these centers, and tough decisions have to be made.”
Impacted Centers and Workforce Adjustments
Previously receiving around $4 million annually from state taxes, the organization is now only getting $1 million for the upcoming fiscal year. As a result, the centers at Sherman Oaks, Evergreen, Cureton, and Hubbard in San José, along with the San Miguel center in Sunnyvale, will close. Cureton and Hubbard are set to close in August, while the others will shut down by the end of June. A sixth center, Luther Burbank, may also close unless alternative funding is secured.
Catholic Charities has notified 45 employees that their jobs are at risk and filed the required layoff notices with the state. Some employees are already finding new roles within the organization, though the overall retention rate remains uncertain. For the centers that remain open, services are likely to be reduced due to limited funding.
Community Impact and Strategic Adaptations
Stephanie Ceja, a mother who started as a client and now works in family support programs at Catholic Charities, expressed concerns over the impact of the closures. “It will take away so many resources and opportunities for families to improve their lives,” she said. Ceja, a mother of three, including a daughter with special needs, found immense support through the Family Resource Centers. The centers provided a community where she felt heard and supported, helping her overcome depression and improve her parenting skills.
First, 5 Santa Clara County, which oversees local tobacco tax funding, is adapting to the revenue decline by developing new strategic plans. These plans focus on supporting families most in need, such as those facing housing instability, those with children with disabilities, and lower-income and immigrant families. However, the 2022 ban on flavored tobacco products led to a further decline in tax revenue, necessitating more substantial cuts.
Future Prospects and Legislative Efforts
In recent years, First 5 Santa Clara County’s revenues averaged $26.3 million annually, with about $14 million from Proposition 10. This year, tobacco tax funding has dropped to $11 million. Jennifer Kelleher Cloyd, CEO of First 5 Santa Clara County, acknowledged the difficulty of families losing their local centers and emphasized the need for communication about alternative resources.
The first 5 chapters statewide are appealing to legislators for additional funding to support early childhood and family programs as tobacco tax revenues decline. However, with California facing a $45 billion budget deficit, the prospect of new funding remains uncertain. Governor Gavin Newsom’s recent budget revision includes further cuts to programs for young children and families.