FY27 Budget Briefings for Pre-K for SA and Ready to Work - April 15, 2026

The San Antonio City Council B session on April 15, 2026, received briefings on the proposed FY27 budgets for Pre-K for SA and Ready to Work. Both programs operate on a July 1 to June 30 fiscal year and must have budgets finalized by July 1, 2026. The briefings covered program achievements, financial outlooks, and future considerations including reauthorization for Pre-K for SA and the sunset of Ready to Work in 2030.

Discussion Items

Pre-K for SA

• Dr. Sarah Bray presented the FY27 proposed operating budget of $62.3 million in expenditures against $58.9 million in projected revenues, resulting in an ending fund balance of $3.6 million. The program is funded by a dedicated 1/8 cent sales tax, which is projected to generate $53.4 million in FY27. Sales tax collection ends March 31, 2029, with program funding through June 30, 2029. Reauthorization must be placed on the ballot by November 28, 2028, and may be for up to 20 years.
• Dr. Bray highlighted program achievements: 5,000 free full-day pre-K seats created, 70% access for four-year-olds in Bexar County by 2019, 300 new early learning teachers credentialed, and a $57 million return on investment in eight years. The current authorization (2021) expanded to birth-to-three services, including an infant/toddler pilot at the South Education Center.
• Council members expressed strong support for reauthorization, with some advocating for a sooner ballot measure (e.g., 2026 or 2027) and a 20-year renewal. Discussion focused on the cost per student (approximately $26,000-$27,000), which includes family support services, professional learning for 90 child care providers, and ecosystem-wide improvements. Dr. Bray noted that the program is not solely about education but also about transforming the early childhood system.
• Questions were raised about military-affiliated families (17% of students), with clarification that the definition includes veterans and reservists, many of whom are low-income and do not have access to DOD child care. The Mayor requested a cost breakdown for active-duty vs. other military families.
• Councilmember McKee Rodriguez asked about expanding the program to include night care and utilizing closed school district campuses. Dr. Bray confirmed that the authorization allows for such services.

Ready to Work

• Mike Ramsey presented the FY27 proposed budget of $42.8 million, the peak of the program. Total remaining funds are approximately $126 million. The program will cease enrollment in FY29, complete all trainings by January 2030, and fully expend sales tax funding by FY30. An ROI study by Dr. Niven found an $11.8 billion total impact over participants' working careers, with $7.5 billion in increased incomes and a $125 return per dollar invested.
• As of March 30, 2026, over 15,000 individuals were enrolled in training, 6,502 had completed, and 4,358 were in approved jobs. Training completion rate is 62%, and job placement within six months is 60%. The program has seen a 166% increase in monthly completers and a 255% increase in monthly job placements over the last 12 months.
• Council members discussed the need to focus on high-demand occupations, particularly trades (plumbers, electricians, welders) and healthcare. The Mayor questioned the 58 approved occupations and suggested narrowing to a dozen with the highest ROI. Councilmember Spears emphasized integrating AI and new technologies.
• Concerns were raised about veterans using GI Bill benefits: the Mayor suggested exploring reimbursement or excluding veterans who have other funding sources. Councilmember McKee Rodriguez noted that many veterans have exhausted their GI Bill, and wraparound services are a key benefit.
• The on-the-job training program (OJT) was not included in the FY27 budget after only $1 million of $6 million was spent in FY26 due to flat employer hiring. The city will shift focus to employer-led cohort training.
• Councilmember Mungia stressed the importance of housing, workforce, and education as the cure to poverty. Councilmember Castillo highlighted success stories of participants with high barriers, including formerly incarcerated individuals.

Key Outcomes

• No formal votes were taken; the briefings were for discussion and direction.
• Council directed staff to provide follow-up information including: a breakdown of pre-K for SA cost per student by category, data on veteran participation and potential GI Bill coordination, a list of occupations with zero placements in ready to work, and an analysis of the return on investment comparing pre-K for SA and ready to work.
• Several council members expressed support for putting pre-K for SA reauthorization on the ballot as soon as possible, possibly before the 2028 deadline.
• The city manager noted that planning for the post-2030 workforce development landscape should begin now, and council will need to decide on future offerings.