FROM JOSÉ CISNEROS, TREASURER FOR THE CITY AND COUNTY OF SAN FRANCISCO
October 2024
José Cisneros is the elected Treasurer for the City and County of San Francisco. As Treasurer, he serves as the City’s banker and Chief Investment Officer, managing all tax and revenue collection for San Francisco.
Reflections on 20 Years of Asset Building as San Francisco’s Treasurer
Reflecting on my 20 years in office, I’m proud of our strides in advancing economic opportunity and financial well-being for San Francisco’s residents. From the innovative Kindergarten to College (K2C) children’s savings account program to the Financial Justice Project—a first-of-its-kind initiative to reform city-imposed fines and fees—we remain deeply committed to fostering a city where prosperity is shared broadly and inclusively.
It’s no coincidence that the Asset Funders Network (AFN) is also celebrating its 20th anniversary. In many ways, we’ve walked this path together, growing side by side in our mission to transform asset building into a national movement. This shared milestone offers a unique opportunity to reflect on our achievements as an office and the critical role that private-public partnerships play in propelling the broader movement we’ve helped shape.
The Early Days: A Municipal Vision for Economic Empowerment
When I took office in 2004, asset building efforts were just beginning to gain traction. Nationally, there was a growing understanding that wages alone weren’t enough to lift people out of poverty. This momentum fueled AFN’s efforts and shaped policies to equip low-income families with tools to save and build wealth. In San Francisco, we translated this vision into two key initiatives: tax credits and incentivized savings accounts.
The Working Families Tax Credit (WFTC), launched in 2005, just months into my tenure, was one of the first local programs in the nation to match the federal Earned Income Tax Credit (EITC). As a public-private partnership, H&R Block contributed to its initial rollout. The success of the WFTC led to its replication in other cities, demonstrating the power of local government intervention in asset building.
Simultaneously, individual development accounts (IDAs), which offered matched savings to individuals for homeownership, education, or business investment, gained traction nationally. However, the focus soon shifted to children’s savings accounts (CSAs), which were seen as a way to increase educational equity by fostering a college-going mindset among all children. In 2011, San Francisco became the first city to launch a citywide universal children’s savings account program, Kindergarten to College (K2C), planting the seeds for what would become a national model. K2C provides every child in our city’s public schools with a CSA seeded with $50 for their future education.
The Power of Private-Public Partnerships
San Francisco’s asset-building leadership has always been rooted in robust public-private partnerships. Programs like K2C rely on a mix of public funds and philanthropic support. Over time, the program expanded from 1,100 students in its first year to cover all students in the city’s public school system. By 2024, K2C has reached more than 54,000 students, with $17 million saved for their future education. Further, new evidence shows that K2C is meeting its goal of helping more students access college. Research released in September shows that K2C closed 30% of the college enrollment gap between underrepresented students and those from represented groups.
K2C’s universal approach, coupled with strong leadership and public buy-in, has made San Francisco a model for innovation nationally. As of 2023, there were 121 active CSA programs reaching more than 5.8 million children in 39 states, including municipal programs in Oakland, Los Angeles and New York City, and statewide programs in California, Maine, and Pennsylvania.
Beyond savings accounts, the Bank On San Francisco initiative further demonstrated the effectiveness of public-private collaboration. In 2006, the Working Families Tax Credit revealed systemic barriers. Initially, recipients received paper checks, but many were unbanked and turned to costly check-cashing services that significantly reduced their tax credit. With the support of local banks, the city launched the Bank On San Francisco initiative to address the high unbanked rate. By 2019, Bank On had successfully reduced the city’s unbanked rate to under 3%, a significant improvement from the 15-20% in 2006. It also became the blueprint for the national Bank On program, which now boasts over 102 coalitions across 37 states.
Adopting A Financial Justice Approach
In recent years, San Francisco has turned its attention to government-imposed fines and fees, becoming the first city and county in the nation to launch a Financial Justice Project (FJP) to assess and reform how fees and fines impact our city’s low-income residents and communities of color. Established in 2017, the FJP has secured discounts and waivers for parking tickets, traffic fines, and other government fees, helping lift financial burdens from nearly a quarter of the city’s population each year. In 2023 alone, the project waived $17 million in fines, demonstrating the potential for government to promote financial justice from within.
As with its other initiatives, the FJP benefited from strong philanthropic support. Acting as risk capital, private resources enabled the city to test bold new ideas, evaluate their impact, and ultimately secure public funding. Philanthropy allowed the FJP to demonstrate that reducing fines and fees for those unable to pay does not cause revenue shortfalls.
Private investment driving public policy is further illustrated by the Be The Jury program, which compensates low-income jurors with $100 a day. In California, jurors receive just $15 if their employer doesn’t pay them, which excludes many from completing their civic duty. Two years ago, we piloted this program with private funds to increase juror diversity, and evaluations showed that it worked. Armed with data proving its success, we made the case for local and state funding to support the program.
Looking forward, we remain committed to piloting municipal-backed, restorative justice initiatives. For example, with philanthropic support, we launched the AFTER Program, a new approach that allows crime survivors to receive restitution while young offenders make amends through non-monetary means, including community service, employment workshops, and restorative justice conferences. This approach offers a path to healing for both crime survivors and young people without adding financial strain to struggling households. This initiative is a collaboration among all juvenile justice stakeholders in San Francisco. Piloting local programs like the AFTER Program helps us build the narrative and spotlight successful examples as we advance statewide reforms to the restitution system.
What Lies Ahead: Justice-Centered Collaborations
Municipalities are uniquely positioned to implement systemic solutions that directly impact residents. With the authority to change policies, adjust fines, and launch programs like K2C, local governments play a crucial role in driving economic equity. But we can’t do it alone. The success of bold, leading-edge initiatives depends on collaboration with philanthropic partners.
Asset funders—like those in the AFN network—are essential allies, helping municipalities explore new ideas, evaluate their effectiveness, and scale solutions for greater impact. This partnership ensures that even the most ambitious programs succeed and drive lasting change.
As we look forward, resourcing grassroots organizations will be even more important to driving the narrative shifts necessary for bolder, community-driven solutions. In California, grassroots advocacy has been instrumental in securing statewide reforms in fines and fees and guaranteed income programs. Our future success hinges on these justice-centered collaborations—between municipalities, philanthropy, and community leaders—to drive lasting, equitable change and help low-income families build economic security and mobility.
