BudgetBudget

FY2010 and FY2011Update

Policy and Program CommitteeFebruary 1, 2010

Table of Contents

I Caseload Update II. Income Eligible Surplus: Actions

• Open Access• New Contract Utilization;• Siblings: Children on the waitlist with siblings in care;

and• Homeless Children.

III. Income Eligible Surplus: Recommendations• Open Access:

• Priority; and• Overall cost estimate for an additional 2,400 - 3,000

children.

• QRIS: Grants for Quality Improvements IV. Governor’s FY11 Budget Recommendations V. ARRA Spending Update

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Fiscal Year 2010Fiscal Year 2010Caseload – Supportive Care (3000-3050)Caseload – Supportive Care (3000-3050)

Month Kids Amount*July 6,404 7,139,078$ *August 6,595 6,611,997$ *September 6,295 6,640,639$ *October 5,720 6,482,301$ *November 4,871 6,287,227$ *December 4,398 6,631,086$ January 4,423 6,455,741$ February 4,448 6,419,943$ March 4,473 6,592,379$ April 4,498 6,556,581$ May 4,523 6,519,270$ June 4,548 6,589,858$

78,926,102$ 77,836,888$ (1,089,214)$

Supportive Care (3000-3050)

AppropriatedProjected Deficiency*Actual as of November billing

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Fiscal Year 2010Fiscal Year 2010Caseload – DTA Related (3000-4050)Caseload – DTA Related (3000-4050)

Month # of Vouchers Amount*July 17,018 $11,995,484

*August 16,936 $11,190,655*September 17,416 $10,937,323

*October 17,244 $11,649,182*November 17,412 $11,341,155*December 17,181 $12,161,651

January 17,008 $10,904,446February 17,146 $10,469,447

March 16,980 $11,923,284April 17,389 $11,679,228May 17,131 $10,983,145June 17,408 $11,692,435

$136,927,436$116,232,279(20,695,157)$

*Actual Amount

Amount Appropriated

DTA Related Caseload (3000-4050)

Projected Deficiency

FY2010DTA Caseload Projected Cost

FY10 Approp: $116.2M

•Light blue represents actual amounts billed.

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Fiscal Year 2010Fiscal Year 2010Caseload - Caseload - Income Eligible (3000-4060)Income Eligible (3000-4060)

Month # of kids Amount # of kids Amount # of Kids Amount *July 17,831 9,969,686$ 13,430 8,929,378$ 31,261 18,899,064$ *August 16,886 9,030,006$ 13,400 8,043,733$ 30,286 17,073,739$ *September 15,807 7,735,237$ 13,921 8,269,989$ 29,728 16,005,226$ *October 15,300 7,809,914$ 13,399 8,493,585$ 28,699 16,303,499$ *November 15,059 7,308,348$ 13,276 8,030,431$ 28,335 15,338,778$ *December 14,754 7,689,751$ 13,224 8,736,118$ 27,978 16,425,869$ January 14,543 7,534,780$ 13,289 8,290,293$ 27,832 15,825,073$ February 14,190 6,693,301$ 14,982 8,290,293$ 29,172 14,983,594$ March 13,857 7,506,029$ 15,051 8,290,293$ 28,908 15,796,322$ April 13,518 7,009,816$ 15,075 8,290,293$ 28,593 15,300,109$ May 13,174 6,526,942$ 15,067 8,290,293$ 28,241 14,817,235$ June 12,818 6,651,304$ 15,198 8,290,293$ 28,016 14,941,597$

91,465,111$ 100,244,992$ 191,710,102$ 10,398,282$

*Actual Amount 11,661,784$ 213,770,168$ 260,954,672$

47,184,504$

Total Proj. SpendingFY10 Appropriated (Less 9C)

Project Amount Available

Vouchers Contracts Total Population

GrantsFlex Pool

Also DTA and Supportive account are projecting deficiencies that this surplus may have to reconcile.

Fiscal Year 2010Fiscal Year 2010Caseload – Balance SheetCaseload – Balance Sheet

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FY2010 Caseload Spending FY2010 (Post 9C) Projection

Variance Projection vs.

BudgetIncome EligibleContract $99,483,515 $100,244,992 ($761,477)Flex Pool $19,914,983 $11,661,784 $8,253,199Voucher $131,157,892 $91,465,111 $39,692,781Grants $10,398,282 $10,398,282 $0

$260,954,672 $213,770,168 $47,184,504DTAVoucher $116,232,279 $136,927,436 ($20,695,157)

SupportiveContract $50,728,305 $50,016,173 $712,132Flex $13,927,523 $15,599,010 ($1,671,487)Voucher $13,181,060 $13,310,919 ($129,859)

$77,836,888 $78,926,102 ($1,089,214)Total $455,023,839 $429,623,706 $25,400,133

Income Eligible Surplus – Action I : Open Access for Certain Contract Slots

Allow New Contract Slot Utilization• Background: Contract awards were made to existing providers for the number of

slots which they previously held except for:1. 435 center based slots that were awarded to new providers or

existing providers that were awarded additional slots;2. 279 family child care system slots that were awarded to Systems that

had previously been contracted for those slots. Issue:  Families in contracted slots with vendors who were no longer contracted for those

slots in FY 10 (after the FY10 re-bid) were given until by June 30, 2010 to transfer to providers who were awarded those slots.

Due to budget concerns in the beginning of FY10, EEC only allowed providers with new slots (either new providers or existing providers that received more slots than they had in their previous contract) to fill their new slots with families that were transferring from providers that had lost those slots. Thus 120 slots remained unfilled as of January 2010.

• Solution: On January 15th, 2010 (effective February 1, 2010) EEC notified providers with new slots that they may begin to fill their new slots from the waitlist. FY10 cost (assuming effective March 1) would be $464K and $1.1M in FY11.

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Income Eligible Surplus – Action II: Open Access for Siblings on Waitlist

Open Access Waitlist kids that have Siblings Already in Care• On January 20th, EEC notified contracted providers

that from Feb 1 to Feb 26 they would be able to enroll siblings of children that are subsidized through EEC contracted slots or vouchers.  

• The siblings may be related to children in any EEC contracted or voucher subsidized program.

• Then, beginning March 1st, CCR&R’s may assign vouchers to any remaining children that have siblings in care.

• Roughly 1,100 children will be impacted at a maximum cost of $4.5M in FY10 and $10.7M in FY11.

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Income Eligible Surplus – Action III: Open Access for 170 Homeless Children

Currently, EEC contracts with 10 providers to provide 85 contracted slots for homeless children.

On January 29th EEC informed providers that the number of authorized current homeless children slots will be tripled from 85 to 255, or 170 additional slots, in FY10.

The Homeless population in care has dropped by 500 children over the past year due to the closure of access.

The cost of increasing the number of homeless slots would be $878.4K in FY10 and $2.1M in FY11.

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Income Eligible Surplus-Opening Access: Waitlist Breakdown

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Priority “Codes” *Total Kids

Child of Foster Care 110 Child of Homeless family 101 Child of Military Personnel 30 Child of Teen Parent 107 Child with Special Needs 1,200 Continuity of Care: Aging Out (Special Approval) 216 Child Left Care within 3 Months 377 Continuity of Care 128 General Priority 20,931 Grandparent/Guardian Families 361 Parent with Special Needs 719 Sibling: Contract 428 Sibling: CPC 68 Sibling: Voucher 654 Summer only care 578 Grand Total 26,008

*Reflects waitlist caseload as of January 2010

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Income Eligible Surplus - EEC Financial Assistance Priorities- Background

In Fiscal Year 2008, the Board of EEC discussed Financial Assistance Priorities in context of the Waiting List:Three separate discussions – 12/07; 1/08

and 2/08. In 2/08, the Board provided EEC with

guidance related to the issue of special needs children, but agreed that the ultimate issue of financial assistance priorities should be folded into the Strategic Plan.

Income Eligible Surplus – Recommendation II: Open Access for 3,000 more kids

The remaining surplus and anticipated FY2011 appropriation; EEC to open access for 3,000 children from the waitlist (estimates assume children start care March 1st)

Infant/Toddlers: • 998 infant/toddlers from the waitlist • $4.9M in FY10 and • $13.1M in FY11;

Preschool: • 998 preschool children from the waitlist • $3M in FY10 • $9.2M in FY11

School Age Children: • 998 school age children from the waitlist • $1.8M in FY10 • $5.5M in FY11.

Overall, EEC would open access to 2,994 children, which would cost $9.8M in FY10 and $27.9M in FY11.

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Income Eligible Surplus – Recommendation II: Open Access for 2,400 Children

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Region % of total waitlist # of infant Cost for 4months FY11Boston 22.6% 226 1,012,364$ 3,048,727$ Central 8.8% 88 356,681$ 1,074,143$ Metro 16.3% 162 1,384,565$ 2,389,016$ Northeast 23.2% 232 1,055,657$ 3,179,104$ Southeast 15.6% 156 623,476$ 1,877,594$ Western 13.5% 134 532,552$ 1,603,778$

998 4,965,295$ 13,172,363$

Region % of total waitlist # of Preschooler Cost for 4 months FY11Boston 21.3% 212 677,539$ 2,040,406$ Central 8.7% 86 251,312$ 756,824$ Metro 20.1% 200 639,334$ 1,925,351$ Northeast 24.0% 239 742,244$ 2,235,265$ Southeast 16.1% 161 467,414$ 1,407,613$ Western 9.9% 99 287,402$ 865,510$

998 3,065,245$ 9,230,968$

Region % of total waitlist # of School age Cost for 4.5 months FY11Boston 20.6% 205 395,560$ 1,191,226$ Central 9.2% 91 157,869$ 475,422$ Metro 19.5% 194 374,806$ 1,128,725$ Northeast 21.7% 216 406,458$ 1,224,046$ Southeast 17.5% 175 301,789$ 908,836$ Western 11.6% 116 199,938$ 602,112$

998 1,836,420$ 5,530,367$ Total Kids 2,994 FY10 9,866,959$ FY11 27,933,698$

INFANT/TODDLERS

PRESCHOOLER

SCHOOL AGE

Income Eligible Surplus

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FY2010 FY2011*Appropriation 260,954,672$ 233,601,807$ **Projected Need 213,770,168$ 184,116,033$ Projected Surplus 47,184,504$ 49,485,774$ Off-SetsFY10 DTA Deficiency (20,695,157)$ -$ FY10 Supportive Deficiency (1,089,214)$ -$

Total FY2010 Deficiency (21,784,371)$ -$ Total Surplus Left after Deficiency 25,400,133$ 49,485,774$

Reoccurring CostOpen Access - Siblings in Care (1,100 kids) in Feb 2010 4,449,480$ 10,678,751$ New Contract Slot Utilization - 120 children in Feb 2010 464,294$ 1,119,600$ 170 Homeless Contract slot in FY10 (Mar) 878,385$ 2,108,123$ 345 Additional Homeless Slot FY11 -$ 4,278,250$ Open Access to a maximum of 3,000 kids 9,866,959$ 27,933,698$

Total Reoccurring Cost 15,659,118$ 46,118,422$ Total Remaining Surplus 9,741,015$ 3,367,353$

One-Time ExpendituresQRIS 4,000,000$ -$ Total One-Time Expenditures 4,000,000$ -$

Total Remaining Surplus 5,741,015$ 3,367,353$

*FY11 appropriation based on the Governor’s FY11 Budget Recommendation, which is essentially the same amount presented to the Board in November.** FY11 projected need is using FY10 projected spending as a base and factoring the $29M attrition.

Benefits of EEC’s Recommendations

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Program Infant Prescoolers School Age TotalSibling in Care Access 672 127 701 1,500 General Opening of Access 998 998 998 2,994 New Contract Slot Utilization 40 40 40 120 Homeless Children 57 57 57 170

1,710 1,165 1,739 4,614

Opening access to only those we can sustain into a very difficult FY2011 will result in care for over 4,600 kids currently on the waitlist: Below is a breakdown of by age group of those children:

The 4,614 kids we open access to from the waitlist would reduce the waitlist by 17.74% (Based on January waitlist numbers) and the Sibling in Care waitlist would be eliminated.

FY2011 – Governor’s Recommendations

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Account DescriptorFY11 Maintenance

Request

Reduction Necessary to

Meet Spending Target

Budget Presented to

the Brd (Capped) FY11 Gov Rec

3000-1000 Administration 12,073,166 322,492 11,750,674 11,889,917 3000-2000 Access Management 9,782,724 3,423,953 6,358,771 5,933,862 3000-3050 Supportive 81,274,105 - 81,274,105 - 3000-4050 TANF Related Child Care 122,846,296 - 122,846,296 -

*3000-4060 Low Income Eligible Child Care 262,013,777 28,883,115 233,130,662 451,246,934 3000-5000 Grants to Head Start 8,000,000 - 8,000,000 8,000,000 3000-5075 UPK 8,000,000 - 8,000,000 9,000,000 3000-6000 Quality Supports 3,934,038 48,300 3,885,738 4,434,038 3000-6075 Mental Health 1,000,000 - 1,000,000 1,500,000

3000-7050 Family Supports and Engagement 16,525,836 5,000,000 11,525,836 17,025,836 525,449,942 37,677,860 487,772,082 509,030,587

•The Governor’s recommendation is roughly level funding from the FY10 Post 9C amount of $510M; and•all accounts would have at least maintenance funding, and in some cases, more funding to expand services beyond FY10 levels.

FY2011 – Governor’s RecommendationsTargeted Investments

UPK: Provided the maintenance and an additional $1M to expand program;

Quality Program Supports: Provided an additional $500K over maintenance for the Birth to Three Quality efforts;

Early Childhood Mental Health Consultation Service: Expands these services by $500K over maintenance; and

Services for Infants and Parents: Provides an additional $500K in funding for the Reach Out and Read, Parent Child Home Program, Mass Family Networks, and Local Planning Councils.

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FY2011 – Governor’s RecommendationsStructural Issues of Note

Access Accounts: The Governor recommends consolidating the three access accounts (Supportive, TANF Related and Income Eligible) into one account. The funding proposed, as mentioned earlier, would enable EEC to annualize the cost of the nearly 4,000 additional children we intend to open access for in FY10.

Family Supports and Engagement: The Governor also agreed to EEC recommendation of transferring the LPC: Supplemental grant from the Income Eligible account and the Local Planning and Coordination grant from the Quality account to the Family Supports and Engagement appropriation.

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ARRA Update

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Initiative Amount Board

Approved/Spent Status Summer Vouchers 2009 636,714$ Project CompleteOut of School Time Learning promotion grant initiative 250,000$ ANF ApprovedCFCE Infrastructure Grants 250,000$ Awaiting EOE ApprovalPre-School Aging Up -$ Proposal WithdrawnInfant/Toddlers Early Childhood program standards 50,000$ ANF ApprovedContracted Providers - Voucher Reassessment 1,120,000$ ANF ApprovedCCR&R - to assist with provider reassessment transition 1,000,000$ ANF ApprovedIT - 2 consultants to reconfigure existing IT structure 150,000$ ANF ApprovedAdmin Fee (.5%) 119,835$ QRIS - ERS 120,000$ ANF Approved

Intensive Summer Only Kindergarten Prep 4,093,488$ Board ApprovedEarly Literacy Program 175,000$ ANF ApprovedSummer Only Voucher 2010 1,613,286$ Board Approved18 Month Access for Infant/Toddlers and Preschooler 12,190,067$ Board Approved

Improvement of Physical Environments $500,000 Board ApprovedCSEFEL Professional Development Opportunity $250,000 Board ApprovedInformation and Referral Program 150,000$ Board Approved

Total Approved 22,668,390$ Proposed Project Amount Status

Communications Campaign $250,000 Project pendingUndetermined Infant/Toddler Quality Program $250,000 Project pendingUnified IT System $750,000 Project pending

Total Proposed $ 1,250,000

Total ARRA CCDF Appropriation 23,966,942$

Amount Already Approved by the Board 22,668,390$ Amount of Project to be Proposed to the Board 1,250,000$ Amount left in the ARRA CCDF Appropriation 48,552$