Financing Strategies for New Facilities

Published by Build Up on

Building upon work completed during 2016 as part of a greater child care needs assessment for San Mateo County, Brion Economics evaluated different financing strategies that can be utilized to help fund the development of early learning facilities with the goal of alleviating the current and future shortage of licensed child care spaces. Understanding different financial mechanisms that can help offset costs is important in trying to create additional licensed early learning facility spaces. Each space costs an average of $40,717 to build. Addressing San Mateo County’s shortfall requires $42.8 million in capital funding per year for the next ten years. Brion Economics recommends the following financing mechanisms:

  • Sales Tax Add-Ons
  • Parcel Taxes
  • Developer Impact Fees
  • Employer-Based Care
  • Grants and Foundations
  • State Child Care Facilities Revolving Loan Fund
  • Community Benefits Programs
  • Developer Agreements

The full financing strategies memo can be found here.

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