Fresno budget hearings start with $3.5M child care plan. Current options are ‘disastrous’
As Fresno’s budget hearings started on Monday, Councilmember Tyler Maxwell is proposing a taxpayer-funded program to take care of the city’s children.
Maxwell proposed $3.5 million to create a child care pilot program. He believes the money is available in the Fiscal Year 2027 budget.
He likened investing in child care to the city’s missions on ending homelessness, poverty and crime. He estimates child care could cost up to $23,000 per child and 28% of the household income, calling it “untenable.”
“It is with a heavy heart that I say that the state of child care in the city of Fresno is nothing short of disastrous,” Maxwell said.
Maxwell said the city would work with nonprofit First 5 Fresno County. One idea is to provide grants to help child care providers with operation costs, and scholarships for families for child care costs. Recipients would be limited to city residents and businesses.
How does Maxwell plan to find millions in the budget? He does not believe anything has to be sacrificed.
“We’re going to look at any and all options that will not have a negative impact on the day-to-day functioning and employment of the city of Fresno. So we’re going to look at things like personal council budgets. We’re going to look at things like Measure P,. We’re going to look at grants that are specifically targeted towards homeless individuals,” Maxwell said.
Measure P is the city sales tax for parks and related programs, such as youth programs. Maxwell believes the way the measure was written, child care costs are covered.
Maxwell said publicly-funded child care is not a progressive idea. He mentioned several programs he’s supported including free bus rides for students, taxpayer-funded attorneys for those fighting illegal evictions, and taxpayer-funded attorneys to combat wage theft.
“This is all just a joint effort to tackle some of the same issues from different fronts, to make sure that our working families have the resources they need, and to ensure that Fresno continues to be the best place in California to raise a family,” Maxwell said.
Maxwell also proposed a city commission on family affordability and childcare access — consisting of three councilmembers and six childcare experts. The commission would look at long-term solutions, Maxwell said.
Fresno Mayor Jerry Dyer said he supported the formation of the commission, which passed by a unanimous 7-0 vote.
As for the spending, other councilmembers were more skeptical. Annalisa Perea said she supports funding child care, but not raising taxes to do so. Nick Richardson said he wants to wait for a commission recommendation before allocating money. Miguel Arias indicated he wants income restrictions. He also doubted Measure P could be used for child care.
Budget Day 1
Dyer formally proposed his $2.6 billion budget Monday, the first four scheduled days of Fresno City Council meetings. In a preview last month, Dyer said the city had to find a way to balance a $34 million deficit. The city expected all departments to keep a 6.1% attrition rate — to not hire for vacant positions.
The budget carried over $10.7 million from last year, denied $7.5 million in department requests, and found $7.3 million to categorize grants.
Departments taking the biggest spending hits include planning and development, a 48% cut at $112 million; economic development at 39% at $1.2 million; and city council operations at 33% at $3.3 million.
The numbers are not always what they seem. City Manager Georgeanne White said spending is less in the planning department because of one-time projects are no longer on the books. A $20 million loan from the federal government was reclassified. Staffing at the department will increase by 2.75 positions.
The general fund budget features an estimated record for property taxes at $213 million. Sales tax is estimated at $152 million. Combined, the two figures represent 68% of city revenue. Public safety — police and fire — are 68% of expenditures, at $171 million.
As part of the budget process, all departments present an overview of spending. Councilmembers then ask questions, and make motions. During the budget overview, Arias — known for his granular-level inquiries —pressed the administration on the proceeds from the sale of the Sequoia Brewing Company building along with trolley maintenance among other spending.
Monday, presentations came from general services, information services, finance, and the parks department.
The Fresno City Council votes on the motions on June 16. The costs of the motions then have to be reconciled to keep the budget balanced — mandated by city law. A final vote on the budget is scheduled for June 23.
Data centers, AI discussed
During the information services presentation, city administrators said there are no data centers planned for the city of Fresno.
“We don’t have the resources here to attract those types of industries,” Fresno City Council President Nelson Esparza said. Several years ago, he floated a plan for chip manufacturing in Fresno.
Dyer said it is not so much the water usage than electricity that is a detriment.
“The impact they have on our grid would be pretty significant,” Dyer said.
Arias wanted to know about AI costs and guardrails. Only Madison AI and Microsoft Co-Pilot are approved for city use, White said. She said the city blocks ChatGPT to prevent having to purchase employee accounts.
“AI can be great or AI can be horrible. There are plenty of best practices and policies that are out there today that we’re taking a look at,” Dyer said.
Dyer wants AI that assists the city, such as transcribing police reports, rather than thinking for humans. He expects a city policy soon.
