Whatcom County Council Public Works & Health Committee

**Vivian Savath, on fund performance:** "As of July, there is a significant unspent balance. Spending has been lower than planned." **Council Member Todd Donovan, on the unspent funds:** "We're sitting on $18 million out of $26 million that hasn't been spent. That's, I think, going to be pretty stunning to people when they hear that." **Sarah Simpson, on pipeline projects:** "We have an RFP that closed just recently for $5.5 million for capital projects, and so those things are rolling, and contracts are being developed, and award letters have been sent out. And then our subsidy RFP just closed, and we're going to send out award letters planning to about next week, and that's almost a $9.4 million project." **Vivian Savath, on capacity as a through line:** "Capacity, I would say, is really a through line. If you think about it, if we're considering fund spend as a performance measure, the Healthy Children's Fund spent about a quarter of what was allotted for admin and encumbered abo

## Meeting Overview The Whatcom County Council Public Works & Health Committee convened for a brief but significant meeting on December 9, 2025, focused entirely on receiving the first external evaluation of the county's Healthy Children's Fund. Committee Chair Jon Scanlon led the 22-minute session, with Councilmember Mark Stremler present and Councilmember Ben Elenbaas absent. Several other council members joined virtually, including Todd Donovan, Barry Buchanan, Tyler Byrd, and Kaylee Galloway. The meeting centered on a presentation by SEVA Workshop, a Seattle-based evaluation firm that had been contracted to conduct the inaugural performance audit and process evaluation of the voter-approved Healthy Children's Fund. With $26 million collected to date and questions swirling about spending pace and effectiveness, this evaluation represented a critical accountability moment for one of the county's most significant recent investments in child welfare. The presentation revealed both promising outcomes and concerning challenges, setting the stage for deeper discussions about capacity, strategy, and the complex realities of translating public funding into meaningful change for families and children across Whatcom County. ## The Healthy Children's Fund Evaluation: Progress and Growing Pains Sarah Simpson from Health and Community Services opened the presentation by acknowledging her remote participation due to illness, then introducing the significance of the evaluation. "We take evaluation really seriously on my team," Simpson explained. "And so, it's been wonderful to work with a group that equally takes evaluation as seriously." Vivian Savath, Principal of Policy and Evaluation at SEVA Workshop, then walked the committee through the comprehensive evaluation process. SEVA had been tasked with examining both performance—measuring effectiveness and use of funds—and process evaluation, looking at administration and identifying barriers and improvements. "Really important to keep in mind as we talk about the findings that our scope of evaluation only goes up until July 31st of this year," Savath noted. "And as you may already know, a lot has happened since July." The evaluation framework focused on three key questions that undergird the fund's results-based accounting approach: "How much did we do or performance? How well did we do it in terms of process? And is anyone better off in terms of impact?" SEVA's methodology was extensive. They consulted monthly with the Child and Family Wellbeing Task Force from design through preliminary findings. They reviewed budget data, general ledgers, policies, and conducted deep dives into eight sample contracts selected to represent the largest and smallest awards, the first and most recent contracts, and examples the county identified as learning experiences. The team interviewed 15 current and former staff members, 11 providers (including some who applied but weren't funded), and held three family listening sessions with 60 participants total. ## The Numbers Tell a Complex Story The financial picture Savath presented was striking. Of the $26 million collected in revenue, only 31% had been encumbered or contracted as of July, and just 11% had been dispersed—meaning contracted providers had actually invoiced and been paid. This left a substantial unspent balance that would later prompt sharp questions from council members. "Spending has been lower than planned," Savath acknowledged, noting that the fund operates under a 9% cap on administration (with 3% of that allowable for evaluation). "Overall capacity was a major theme of interviews. So, we're definitely seeing a link between the level of administrative spend and the ensuing program spend." Despite operating at a smaller scale than anticipated, the fund was beginning to show results. Grantee reports documented over 41,000 clients served, eight new childcare slots specifically for infants, and what Savath described as "an innovative new flexible drop-in program that is creating access to 192 slot days monthly. So, those are slots that families can access on a flexible basis." The process findings revealed systemic challenges. Contract timelines were longer than expected, with wide variation in experience at each step. However, Savath noted that the county had already moved to address this issue with a recent resolution passed after the contracts under review were executed. On the positive side, the fund was successfully reaching its target populations: "Healthy Children's Fund is reaching target populations that were identified in the ordinance, those populations having barriers to accessing existing services, including low-income or Medicaid-eligible families and non-English-speaking families, especially Spanish speakers." ## Impact Assessment and Community Feedback Regarding impact, Savath was appropriately cautious. "It is too early to assess impact. Those headline indicators, such as kindergarten readiness and child maltreatment are really things that take years of consistent work to have influence on, but we are seeing anecdotal evidence of progress towards those impacts." The evaluation identified positive preceding indicators: uptake of new services, reductions in wait lists, improvements in staff morale that could lead to higher quality work and greater retention. Both families and providers expressed gratitude for the Healthy Children's Fund and reported overall positive experiences. However, challenges emerged in the feedback. "The greatest area of feedback from families was that there seems to be low awareness of the Healthy Children's Fund out in the community and awareness about how to access those services that are funded," Savath reported. Providers expressed frustrations with unclear guidance from different county departments and, predictably, the contracting timeline delays. ## Five Areas for Improvement SEVA's recommendations fell into five categories, drawn from literature review, a staff workshop, and limited review of practices in peer counties. **Planning:** The evaluation identified opportunities for longer-term strategic thinking across the full 10-year levy duration. "What are you trying to achieve and how do you plan to achieve it," Savath asked, suggesting the implementation plan could serve as the actionable component of a broader strategic vision. She also recommended balancing evaluation approaches, noting heavy emphasis on program outcomes while suggesting frameworks like balanced scorecards that include stakeholder satisfaction, operational efficiency, and organizational capacity. **Processes:** SEVA recommended exercises to build interdepartmental understanding of contracting processes and suggested developing tools, templates, and checklists to create consistent guidance. **Policy:** The evaluation suggested RACI exercises (Responsible, Accountable, Consulted, Informed) to clarify stakeholder roles and recommended addressing key policy questions to provide staff consistent guidance. "What is the overall funds role in the child and family health landscape, and what kind of role does the county want to play?" Savath posed as an example. **Communications and Engagement:** SEVA saw opportunity to build more comprehensive strategy segmenting different populations—communicating both to service users and voters seeking accountability. They noted instances where providers were surprised to be the sole bidder or among a small pool, suggesting need to build more competitive vendor landscape. **Capacity:** This emerged as "really a through line" in the evaluation. "If we're considering fund spend as a performance measure, the Healthy Children's Fund spent about a quarter of what was allotted for admin and encumbered about 31% of program funds," Savath observed. She asked what things might look like with fully funded administrative capacity up to the 9% cap, noting opportunities for trust building, cross-training, and knowledge management given recent turnover. The final recommendation focused on technology: "There are some areas for technological investments, I think, from staff and providers alike. We heard things around the theme of processes feel outdated. Why can't we do these things online? Why are these things taking so long?" ## Council Members Respond with Concern and Perspective Committee Chair Scanlon opened the discussion by connecting the evaluation to broader county accountability efforts. "The Healthy Children's Fund is ahead of its time. I'm thinking about the link to the Charter Review Amendment where 80-something percent of county residents said that they want to see performance audits. So, this is a good example of what we might be getting into a little bit more." Scanlon suggested scheduling future presentations where the department could respond to recommendations: "I think it'd be helpful to hear from the department what you're doing in response to the recommendations, and we can kind of look at, okay, what are you taking on? What can you do next year? What's going to take a little bit longer?" Councilmember Donovan raised the most pointed concerns about the financial picture. "This report is super useful, and I guess I would like to get a clearer sense of what would the capacity look like if we were spending more on the administrate, because we're sitting on $18 million out of $26 million that hasn't been spent." "That's, I think, going to be pretty stunning to people when they hear that," Donovan continued. "What does it take, you know, I don't know what it takes for the department to be able to move, particularly on child care more. And I know this is all new, and we're all kind of learning as we go, but that's a really hard thing to look at, $17.92 million unspent and unencumbered." Sarah Simpson quickly responded with crucial context not captured in the evaluation's July cutoff: "I do want to, iterate though, we have an RFP that closed just recently for $5.5 million for capital projects, and so those things are rolling, and contracts are being developed, and award letters have been sent out. And then our subsidy RFP just closed, and we're going to send out an award letter, or award letters planning to about next week, and that's almost a $9.4 million project." "And so, we have some really big things that are rolling down the pipeline related to early learning and care that have just taken us more time to establish, but once they're up and running, we'll be really pushing out much, a great deal of the funds related to early learning and care," Simpson concluded. Donovan appreciated the clarification: "That's great to hear, and I'm glad you were able to get that information out during this presentation. Thanks. That's really good news." ## The Childcare Slot Challenge Councilmember Stremler pressed on what many consider the fund's primary mission: expanding childcare capacity. "Back when this fund was being developed, you know, we were told there was a shortage of 5,000 daycare slots in the county, and then on page 10, you kind of address that, eight regular low-income infant slots, and then the above 192 drop-in slots. What is your evaluation saying as far as the capacity that has been increased, or not increased, let's say, when I think the council sent a pretty clear message that daycare was a priority?" Savath distinguished between the two types of slots: "The eight slots are regular kind of long-term slots. So, when you create a slot, it can come through capital investment or also workforce investments, or even creating new licensed child care. So, when we're talking about slots, we're talking about those licensed slots, and there's multiple factors that go into creating a licensed slot." "The 192 flexible slot days are really not meant to be kind of long-term use, but really for families who need a drop-in slot here or there," she explained. When Stremler pushed on why the numbers seemed low, Savath pointed to legal complexities: "The specific child care investments, I think there were a lot of operational and legal questions going into what the county can fund. Like I mentioned, there's multiple factors that go into those slots, and especially when you're working with private businesses, child care businesses, we heard from current and former staff that there was a lot of back and forth around the issue of the gift of public funds and what the county can or cannot fund." "So all these child care slots are created in a broader marketplace, and there are levers that are easier for the county to pull than others, and it took a while to figure out legally what it is that the county can do." Ann Beck from Health and Community Services provided additional context about the cautious approach: "As somebody who's been here since the kind of beginning of this, we are so cautious about public funds, and it is our job as county staff to make sure that we are using public funds to the best possible use in the appropriate settings, and we wanted to get this right from the beginning, which is why we're just now getting to this point of having nearly $14 million in RFP, the award letters going out in the coming weeks." "We have worked to make sure we are checking all the boxes, we are meeting with legal, meeting with finance, doing all these pieces to get this out the door, and so that's why that number that Vivian was just sharing is a smaller number, that's through July. We've got some really big stuff coming and about to move the needle quite a bit in the early learning and care field going forward," Beck emphasized. "These are public funds. We want to honor that." Stremler expressed cautious optimism about the pipeline: "I look forward to seeing those bigger numbers. I agree, and I think we'll probably be there a year from now once that subsidy RFP gets out there. I think that's going to help a lot." ## Looking Ahead: Accountability and Strategic Thinking As the presentation concluded, Scanlon outlined next steps for continued oversight. "The next Child and Family Well-Being Task Force meeting is on Monday. I can't attend. Council Member Buchanan is going to attend in my stead." He noted that the committee had received a memo from the task force touching on related issues and suggested addressing it early next year after the final evaluation report is released. The meeting revealed both the promise and complexity of transforming voter intent into operational reality. While the Healthy Children's Fund appears to be finding its footing with major investments finally moving through the pipeline, the evaluation exposed fundamental questions about capacity, strategy, and the delicate balance between caution and action when stewarding public resources. ## Closing & What's Ahead The committee meeting adjourned at 11:48 a.m. after Scanlon thanked all participants. The draft evaluation report was scheduled for release that Friday, with a final report due December 31st. The Child and Family Wellbeing Task Force was set to receive a fourth and final briefing from SEVA Workshop on December 15th. The presentation marked a pivotal moment for the Healthy Children's Fund—its first external accountability review since voters approved the levy. While the evaluation revealed slower-than-expected deployment of funds, it also documented clear progress in reaching target populations and building the infrastructure necessary for larger-scale impact. The tension between the fund's ambitious goals and the practical challenges of implementation was evident throughout the discussion. Staff emphasized the importance of getting legal and procedural frameworks right, even at the cost of slower initial deployment. Council members expressed both understanding for those challenges and concern about public perception of unspent funds. With nearly $14 million in awards moving through the pipeline and substantial investments in childcare capacity on the horizon, the fund appears positioned to dramatically increase its impact in 2026. The evaluation's recommendations provide a roadmap for strengthening administration, improving communication, and building the technological infrastructure needed to sustain long-term success. The brief but substantive meeting exemplified local government accountability in action—external evaluation, public discussion, and commitment to continuous improvement in service of the county's children and families. As Scanlon noted, this performance audit model may become increasingly important as county residents demand greater transparency and measurable results from their public investments.

### Meeting Overview The Whatcom County Council Public Works & Health Committee met on December 9, 2025, to receive a presentation from SEVA Workshop on their external evaluation of the Healthy Children's Fund. The presentation covered the fund's performance to date, challenges in implementation, and recommendations for improvement. ### Key Terms and Concepts **Results-Based Accounting:** An evaluation framework that examines three key areas: how much did we do (performance), how well did we do it (process), and is anyone better off (impact). The Healthy Children's Fund uses this framework to measure its effectiveness. **Encumbered Funds:** Money that has been committed or contracted but not yet spent. As of July 2025, 31% of the Healthy Children's Fund revenue had been encumbered. **Gift of Public Funds:** A legal doctrine that restricts how government entities can spend taxpayer money, particularly when working with private businesses. This created challenges for the county in funding child care slots with private providers. **Child Care Deserts:** Areas where there are insufficient licensed child care providers to meet community need. Whatcom County has been identified as having extreme child care deserts in some areas. **RACI Exercise:** A management tool that clarifies roles and responsibilities by identifying who is Responsible, Accountable, Consulted, and Informed for various tasks and decisions. **Drop-in Child Care Slots:** Flexible child care arrangements that families can access on an as-needed basis, as opposed to regular long-term enrollment slots. The fund created access to 192 flexible slot days monthly. **Implementation Plan:** The specific actions and strategies the county will take to achieve the Healthy Children's Fund's long-term goals. This plan is set to be refreshed on a two-year cycle. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Jon Scanlon | Committee Chair, Whatcom County Council | | Mark Stremler | Committee Member, Whatcom County Council | | Todd Donovan | Whatcom County Councilmember (attended online) | | Barry Buchanan | Whatcom County Councilmember (attended online) | | Tyler Byrd | Whatcom County Councilmember (attended online) | | Sarah Simpson | Health and Community Services Director | | Vivian Savath | Principal of Policy and Evaluation, SEVA Workshop | | Ann Beck | Health and Community Services staff | ### Background Context The Healthy Children's Fund was established through a voter-approved levy to address critical needs in child care and family services in Whatcom County. The fund was created partly in response to an identified shortage of 5,000 daycare slots in the county. The ordinance establishing the fund requires external evaluation to ensure taxpayer money is well spent and caps administrative costs at 9% of total revenue. This is the first external evaluation of the fund since its inception. SEVA Workshop, a Seattle-based community planning and policy evaluation firm, was contracted to conduct both a performance audit and process evaluation. The evaluation was required to consult with the Child and Family Wellbeing Task Force throughout the process. The timing of this evaluation is significant as the county has faced challenges in spending the funds as quickly as originally anticipated, leading to questions about administrative capacity and implementation processes. ### What Happened — The Short Version SEVA Workshop presented their findings from the first external evaluation of the Healthy Children's Fund. The good news: the fund is reaching its target populations and starting to deliver results, with over 41,000 clients served. The concerning news: out of $26 million collected, only 31% has been committed to contracts and just 11% has actually been spent. The evaluators found that spending has been slower than planned, largely due to capacity constraints and complex legal questions about how public funds can be used, especially for child care. The fund has created only eight new regular child care slots so far, plus flexible drop-in access, which is far below the original goal of addressing a 5,000-slot shortage. SEVA made recommendations in five key areas: better long-term planning, improved processes and communication, clearer policies, enhanced community engagement, and increased administrative capacity. County staff explained that major contracts totaling nearly $15 million are in the pipeline and should significantly increase spending in the coming year. Council members expressed concern about the large unspent balance but acknowledged the county's careful approach to using taxpayer funds appropriately. ### What to Watch Next • The final evaluation report will be released December 31, 2025 • The Child and Family Wellbeing Task Force will meet December 15 to discuss findings • County staff will return in January 2026 to present their response to the evaluation recommendations • Major contracts totaling $14.9 million ($5.5 million for capital projects, $9.4 million for subsidies) are moving through the approval process ---

**Q:** How much money has the Healthy Children's Fund collected, and what percentage has been spent? **A:** The fund has collected $26 million in revenue. As of July 2025, 31% has been encumbered (contracted) and only 11% has been dispersed (actually paid out). **Q:** What evaluation framework does the Healthy Children's Fund use to measure performance? **A:** Results-based accounting, which examines three areas: how much did we do, how well did we do it, and is anyone better off. **Q:** How many clients has the Healthy Children's Fund served according to grantee reports? **A:** Over 41,000 clients have been served through the fund's programs. **Q:** How many new regular child care slots has the fund created so far? **A:** Eight new child care slots for infants, plus access to 192 flexible drop-in slot days monthly. **Q:** What is the administrative cost cap for the Healthy Children's Fund? **A:** The ordinance caps administrative costs at 9% of total revenue, with up to 3% of that allowable for evaluation. **Q:** Who conducted the external evaluation of the Healthy Children's Fund? **A:** SEVA Workshop, a Seattle-based community planning, policy, and evaluation firm. Vivian Savath is the Principal of Policy and Evaluation. **Q:** What were the main target populations the fund was designed to reach? **A:** Low-income or Medicaid-eligible families, non-English-speaking families (especially Spanish speakers), and populations with barriers to accessing existing services. **Q:** What major legal challenge did the county face in implementing child care funding? **A:** Questions about the "gift of public funds" doctrine and what the county can legally fund when working with private child care businesses. **Q:** What is the timeline for the evaluation process and reporting? **A:** SEVA consulted monthly with the Child and Family Wellbeing Task Force from September through December 2025, with a draft report released December 13 and final report due December 31. **Q:** How much money is currently in the pipeline for upcoming contracts? **A:** Nearly $15 million total: $5.5 million for capital projects and $9.4 million for child care subsidies. **Q:** What was the original identified child care shortage in Whatcom County? **A:** 5,000 daycare slots were identified as needed when the fund was being developed. **Q:** In which five areas did SEVA make recommendations for improvement? **A:** Planning, processes, policy, communications and engagement, and capacity building. **Q:** What role does the Child and Family Wellbeing Task Force play in the evaluation? **A:** The ordinance directs evaluators to consult with the task force throughout the evaluation process, which SEVA did monthly. **Q:** When will the county return to present their response to the evaluation? **A:** County staff plan to return in January 2026 to discuss how they're responding to the evaluation recommendations. **Q:** What did families identify as the biggest area for improvement? **A:** Low awareness of the Healthy Children's Fund in the community and how to access funded services. **Q:** What did providers express frustration about? **A:** Unclear guidance from different county departments and long contracting timelines. **Q:** What technological improvements did the evaluation identify? **A:** Opportunities for online processes and modernizing systems that currently feel outdated, though these would require significant investment. **Q:** What was the scope limitation for this evaluation? **A:** The evaluation only covered activities through July 31, 2025, so recent developments and contracts aren't reflected in the findings. ---