Tobacco taxes are a declining revenue source. As fewer taxes are collected, allocations for each county are reduced proportionately. On average, Prop. 10 revenues have declined about 3% every year.
For many years, First 5 Contra Costa has used a sustainability fund to make up for the shortfall and fully fund programs. But now, we anticipate this fund will be depleted by 2020. Although we’ve received external funding (from state, federal and foundation grants), it’s not enough to make up for the decline in Prop. 10 revenue and depleted sustainability fund. That’s why our 2016-2020 Strategic Plan includes reductions of about $1 million for programs we can no longer support and a focus on three core areas: quality child care, family support and early screening and intervention.