Seven child care facilities serving over 500 students, full-day summer camp programming, and state-required facility upgrades. Those are just a few opportunities that Santa Ana children reportedly missed out on after the city rejected a $6.7 million state grant awarded in 2023.
Leaders approved $915,583 for the first round of funding in 2024 for a new afterschool program. Then, the grant was suddenly abandoned. The decision was made without informing members of the public and without formal input from the City Council.
Here’s what happened, according to LAist:
Three months after giving up on the funds, City Manager Alvaro Nuñez explained to the mayor and the City Council in an Aug. 18 email that the Parks and Rec department was not adequately prepared to handle a program of this magnitude.
“While Parks & Recreation staff were actively working toward implementation, it became apparent that Title 22 regulations, which had not been previously addressed, would impose significant administrative and programmatic challenges to the agency,” Alvaro told council members.
Title 22 regulations are state rules that govern the licensing and operation of child care facilities, and when programs receive CDSS funding, they must follow those requirements. The requirements, Nuñez added, would have required “extensive” changes to the operation and staffing of the parks department.
Although Nuñez told the council that Title 22 regulations “had not been previously addressed,” records obtained by LAist show that the city had known about the requirements since June 2023 and that the city already was in the process of hiring a certified program director to license the park’s facilities.
Nuñez also argued that the city’s financial challenges would make it impossible to sustain programming if the funds were to be reduced or eliminated in the future.
While Nuñez declined to speak with LAist, three council members did offer their opinions.
Councilmember Johnathan Ryan Hernandez said it was irresponsible to forgo the grant. His colleague Jessie Lopez also wishes the city had taken advantage of the money. Even if the process proved difficult, it could have been a learning opportunity, she said.
“The city is at a point where there isn't a lot of public trust and the city has done that to itself,” Lopez added, pointing to the lack of transparency.
However, Councilmember David Penaloza told the publication that he agrees with the decision.
“All of these grants that we often get come with so many strings that municipalities across the state, not just Santa Ana, cannot commit to, and it's an ongoing burden on the city,” Penaloza said. “It is very wise for our city staff to take a pause and look at all these grants and look at the strings that are attached to it and say, 'Is this really worth it?'”
The episode underscores both the challenges of managing state grant funding and the importance of transparency in local decision-making. Going forward, city leaders will need to weigh fiscal caution against the tangible benefits such funding can bring students and families. And to rebuild trust, they’ll need to make those choices more openly.