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FY14 State Budget Discussion

Fiscal CommitteeMay 6, 2013

FY14 EEC BudgetHouse and Governor’s Budget Comparison

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Line Item DescriptorFY13 Total Available

FY14 H.1 HWM FY14

Reccommended House

Amendments FY14 House

Final

3000-1000 Administration $ 12,112,954 $ 12,844,972 $ 12,353,980 $ - $ 12,353,980

3000-1001Compliance Management $ - $ - $ 200,000 $ - $ 200,000

3000-2000 Access Management $ 5,933,862 $ 7,933,862 $ 5,933,862 $ - $ 5,933,862

3000-3050 Supportive $ 77,330,875 $ 80,227,189 $ 80,821,506 $ - $ 80,821,506

3000-4050TANF Related Child Care $ 125,495,740 $ 128,063,499 $ 128,063,499 $ - $ 128,063,499

3000-4060Income Eligible Child Care $ 231,870,452 $ 226,697,976 $ 214,340,742 $ - $ 214,340,742

3000-4065

Early Education Provider Quality Enhancements

$ - $ 30,586,713 $ 150,000 $ - $ 150,000

3000-4070 Pre-School Initiative $ - $ 25,150,000 $ - $ - $ -

3000-4075 Infant Toddler $ - $ 31,600,000 $ - $ - $ -

3000-4080 Quality Efforts $ - $ 30,000,000 $ - $ - $ -

3000-4090Kindergarten Entry Assessment System $ - $ 3,200,000 $ - $ - $ -

3000-5000 Grants to Head Start $ 8,000,000 $ 8,000,000 $ 7,500,000 $ 500,000 $ 8,000,000

3000-5075 UPK $ 7,432,383 $ 7,432,383 $ 5,000,000 $ 2,500,000 $ 7,500,000

3000-6075 Mental Health $ 750,000 $ 750,000 $ 750,000 $ - $ 750,000

3000-7050Services for Infants and Parents $ 18,164,890 $ 18,164,890 $ 16,164,890 $ 2,000,000 $ 18,164,890

3000-7051

Family Engagement to Support Reading Proficiency by Grade 3 $ 3,000,000 $ - $ - $ -

3000-7070 Reach Out and Read $ 750,000 $ 750,000 $ 800,000 $ - $ 800,000

3000-8000Comprehensive Support Services $ - $ 5,000,000 $ - $ - $ -

XXXX-XXXX Salary Rate Reserve $ - $ - $ - $ 7,500,000 $ 7,500,000

487,841,156$ 619,401,484$ 472,078,479$ 12,500,000$ 484,578,479$

FY14 House Final Budget – Non Caseload

3000-1000 Administration:  The House has funded this account at $12,353,980 which is an increase of $241K from FY13 (or 2%).  This amount enables EEC to meet its FY14 maintenance needs.   (CBA salary related increases and space rental increases are the major forces driving the FY14 maintenance increases).

3000-1001 Compliance Management:  This is a new line offered by the House. Notwithstanding the existing caseload forecasting office, this line item supports the House initiative to create a special commission to study and enhance early education services.

3000-2000 Access Management:  The House level funds this account at $5.9M. 3000-5000 Head Start Grants:  The HWM originally reduced the appropriation

by $500K.  The $500K amount was restored during the House floor debate, bringing the FY14 House budget recommendation for Head Start level funding. 

3000-5075 Universal Pre-Kindergarten (UPK):   HWM originally reduced the appropriation by $2.5M.  The $2.5M was restored during the House floor debate, bringing the FY14 House budget recommendation for UPK to level funding. 

3000-6075 Mental Health:  The House level funds this account at $750K.  3000-7050 Family Engagement:   HWM originally reduced the appropriation by

$2M.  The $2M amount was restored during the House floor debate, bringing the FY14 House budget recommendation to the FY13 level. 

3000-7070 Reach Out and Read (ROR): The House increase the ROR appropriation in FY14 by $50K to $800K in FY14. 

Rate Reserve:  The House also added $7.5M for a one time rate reserve payment.  Such funds would be used to help increase rates for early education and care providers.

 

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FY14 Budget Process: Caseload Accounts

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Current Maintenance Number House Number Difference DCF 80,248,174$ 80,821,506$ 573,332$ DTA 130,396,104$ 128,063,499$ (2,332,605)$ IE 226,479,673$ 214,340,742$ (12,138,931)$

437,123,951$ 423,225,747$ (13,898,204)$

FY14 Budget: Caseload Accounts - Supportive

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3000-3050: Supportive

FY13 Available Funding: $77,330,875

FY14 EEC Current Maintenance Need: $80,248,174

Current Maintenance Definition: EEC’s current FY14 maintenance projection includes additional funding that will support services for approximately 340 children. Note that we have offered 200 “slots” to DCF under a statewide expansion slot policy to alleviate the DCF waitlist.

House: $80,821,506: House Final recommendation is $593K greater than EEC’s current maintenance need.

FY14 Budget: Caseload Accounts - DTA

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The House Final recommendation is approximately $4.9M less than EEC’s current FY14 maintenance need. If expenditures align with FY14 forecast, we will have a built in deficiency of approximately $2.4M at House Final Budget at $128M that will need to be resolved through a supplemental budget later in FY14 or a transfer from the Income Eligible appropriation.

3000-4050: DTA Related

FY13 Available Funding: $125,495,740

FY14 EEC Current Maintenance Need: $130,396,104

Current Maintenance Definition: Historical caseload fluctuations have been built into the FY14 current maintenance need figure. Using a 3 year historical average (month to month caseload percentage change by age group), expenditures are estimated to be approximately $4.9M more than the FY13 appropriation. Expenditures were calculated using a 3 year average cost per child by month and by age group.

House: $128,063,499. Language provides standard transferability (3% to DCF and Income Eligible.)

FY14 Budget Caseload Accounts – Income Eligible

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The funding level of $214.3M creates a shortfall $12.1M. If the projected DTA deficit is funded through the IE account the shortfall will increase by $2.4M to $14.5M. In either scenario backfilling attrition will not be possible, unused contract slots may need to be terminated from the contracts, and children could potentially be removed from care if these initiatives do not reduce expenditures to the appropriation budget levels.

FY14 budget language for the Income Eligible appropriation account stipulates the following:“and provided further, that any unexpended funds in this item at the end of fiscal year 2013 shall not revert and shall be made available for the purposes of this item until June 30, 2014” .

If this language prevails, the current projected FY13 IE surplus of $13.7, after transferring $6.1M to eliminate the projected FY13 DTA deficit, will result in $7.5M available for FY14. This reduces the forecasted FY14 IE shortfall to $4.6M to $7.0M (if we have to cover the DTA deficit).

FY14 Budget: Caseload Accounts – Income Eligible

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3000-4060: Income Eligible

FY13 Available Funding: $231,870,452

FY14 EEC Current Maintenance Need: $226,479,673

Current Maintenance Definition: Voucher access has been closed since February 2011. Effective April 2013 EEC opened limited access to allow EEC to backfill attrition. Approximately 1100 vouchers and contract slots have been added gradually since February 2013. Backfilling attrition and having every contract slot filled is the basis of EEC Income Eligible FY14 maintenance need. Expenditures have been calculated using a 3 year average cost per child by month and by age group. The maintenance need supports voucher caseload of 14,480 and, on average, contract caseload at 15,903.

House: $214,340,742 and provides standard transferability language (3% to DTA and Supportive)

FY14 Budget Process

Prep• Initial maintenance building process for FY14. starts in the

summer of 2012.

GOV

• Released on January 23, 2013. Funded EEC account at $619.4M, making significant investments in child care quality and access totaling $131M. Outside of the investments the Governor offered maintenance funding throughout the accounts

House

• Released by HWM on April 10, 2013 and finalized by the House a few weeks later. The House does not embrace any early education initiatives offered by the Governor. On the contrary, the House budget slashed Income Eligible funding and included PAC language reasoning that there is a surplus currently in the account. The House does recommend maintenance funding for all other non-caseload accounts .

Senate• To be released on May 15 and will be debated the following

week.

Conf

• To reconcile the difference between the House and Senate versions a Conference committee is established comprising 3 members from each the House and Senate .

• The report of that committee is typically completed by mid to late June. The House and Senate enact the bill and send it to the Governor for his signature

• The bill becomes law upon the Governor’s signature.

Veto & Override

• Governor may sign the bill with objections to certain items.• Everything outside of those vetoed items become law July 1.• The vetoed items must be overridden by 2/3 of the House and

then the Senate.

FY14 GAA• Once vetoes and overrides are done the FY14 budget is

complete.

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