Santa Cruz County Head Start to be Run by New Agency, Following Shutdown Crisis

The agency that operates the only Head Start program in Santa Cruz County is stepping away, paving the way for a federal contractor to take over and reopen classrooms for more than 200 families who have been without child care for a month.

Encompass Community Services shuttered classrooms and laid off 95 teachers and staffers on Oct. 31 after running low on cash. The agency was due to receive a fresh batch of funds on Nov. 1, but the 43-day federal government shutdown delayed the payments.

“In response to the extended federal shutdown, the delayed funding decisions, and the urgent need for stability for the families we serve, we concluded that stepping away from this grant now is the most responsible way to ensure that Head Start services resume as quickly as possible,” the agency’s interim CEO, Kim Morrison, wrote in a letter to parents on Monday.

She said when the government reopened, the federal Office of Head Start gave Encompass 72 hours to meet “a set of unrealistic requirements” in order to receive payments. They include a new operational plan and budget to provide care for more than 400 children. Morrison said Encompass was serving under 250 children before the shutdown and didn’t have enough staff to safely meet that demand.

Encompass was initially awarded $10 million to serve about 420 children, but since the pandemic, it and other Head Start programs have seen a decline in enrollment and struggled with staff turnover.

“This is not the outcome we wanted; however, this decision is a painful but necessary step to ensure that early education services continue in our community,” she wrote.

The Office of Head Start appointed the nonprofit Community Development Institute to temporarily run Head Start services in Santa Cruz County until it conducts a bidding process for a new grant. The contractor plans to announce a timeline for reopening next week, Morrison said.

Email messages to the institute and the Office of Head Start were not immediately returned on Tuesday.

The union representing the laid-off staff said they haven’t heard from them either, but they’ll work closely with the Office of Head Start to ensure a smooth transition.

“Our focus is restoring high-quality early childhood education as quickly as possible and ensuring SEIU 521 members can return to the work they love,” the union said in a statement.

Local nonprofits, community action agencies or school districts typically operate Head Start programs. The Office of Head Start administers grant funding and provides oversight to the local operators.

Morrison said that by walking away, Encompass can compete for a new grant to operate Head Start programs in the county again.

The Santa Cruz County Office of Education, which gave some money to help keep the Head Start program operating through the month of October, is looking into bidding for the grant, Faris Sabbah, the county Superintendent of Schools, said.

“It’s important for us to know that the programs are gonna be in the right hands,” he said. “I do have to say, though, that this is part of a pattern of our federal government to strip away our safety net systems by making it more difficult for us to provide services to our most vulnerable communities.”