Budget and Caseload Update

Policy and Fiscal CommitteeNovember 1, 2010

Table of Contents

CCDF Award letterFY10 Supplemental BudgetFY11 Caseload OverviewFY11 Projected DeficienciesARRA Spending

2

CCDF Award Background

CCDF Award letter is sent to EEC from the Administration for Children and Families (ACF) detailing the amount of federal funds that will be available to the Commonwealth.

CCDF funds are divided into three streams of funding: mandatory, matching, and discretionary.

Each year EEC typically receives $44.9M in mandatory, $31.7M in matching, and $25.2M in discretionary funding.

With a budget of over $500M, EEC has little difficulty in finding expenditures to draw down these federal funds and the $91M we receive from the TANF block grant (which takes the color of CCDF discretionary) and $200M in early education expenditures used by DTA to draw down the TANF block grant.

After all is said and done, slightly more than 92% of EEC’s budget is matched to federal funding.

3

FFY 2011 CCDF Award Letter

Though the amounts are preliminary and subject to Congressional approval, EEC may see a sizable increase in the discretionary and matching FFY2011 award amounts.

Discretionary funds, which are typically awarded at $25.2M, may increase to $34M.

Matching funds, which are typically awarded at $31.7M, may increase to $45M. This requires the Commonwealth to expend $15M in additional state funds to receive the additional $15M in federal funds.

Both discretionary and matching funds have obligation and liquidation deadlines:

Discretionary: We have one year after the award to obligate the funds and the following year to liquidate them. For example: EEC receives the Federal Fiscal Year 2011 award and has until September 30, 2012 to obligate the award and September 30, 2013 to liquidate the grant award.

Matching: We have until the end of the award year to obligate the funds and the following year to liquidate them. For example: EEC receives the Federal Fiscal Year 2011 award and has until September 30, 2011 to obligate the award and September 30, 2012 to liquidate the grant award.

4

FFY 2011 CCDF Award Letter

Overall, EEC would have $24M in additional federal funds (assuming the legislature invests the full $15M in state matching funds) in FY2012.

Option 1 (Ideal): The legislature appropriates the full $39M ($24M federal portion and the $15M state match). This would allow EEC to keep access open for children and invest more money in area of quality;

Option 2: The legislature appropriates only some of the $39M. This would mean that it takes months longer for EEC to liquidate the matching and discretionary awards. Typically, EEC liquidates the previous federal fiscal year CCDF grant when December expenditures are drawn.

Option 3: The Legislature does not appropriate any more funds and reduces EEC’s FY12 budget from FY11 levels. This would waste an opportunity to provide quality child care services for the Commonwealth at little or no cost to the state. Also, EEC would have to reduce the amount of child care service expenditures cited by DTA in their efforts to liquidate the TANF block grant. This ultimately may reduce the amount of federal funds that the state receives if DTA can not find enough qualified expenditures to draw the TANF block grant.

5

FY10 Budget Update

The legislature passed, and the Governor signed into law, Chapter 359 of the Acts of 2010.

This is the final FY2010 supplemental budget.

The $5M PAC for the Income Eligible account is included.

Officially, EEC reverted only $3.6M of the $510M FY10 appropriation, which is .71%.

6

FY11 Caseload Overview

The Income Eligible account has received a $5M PAC (Chapter 359 of the Acts of 2010). This will enable EEC to maintain care for roughly 770 children in FY11.

Current projections do not indicate a collective deficiency in the caseload accounts. If this changes, however, and a deficiency becomes evident, EEC will have to act to mitigate the deficiency.

Based on the economic climate ANF has warned agencies that there will be limited resources to address deficiencies through a supplemental budget in FY11.

Agencies, therefore, must take actions to prevent deficiencies in their accounts. This may mean that EEC is expected to address any deficiency in the DTA account by transferring funds (under the 3% allowable language) from the Income Eligible account.

7

8

Fiscal Year 2011 Supportive Care (3000-3050)

Month Kids AmountJuly 5,941 6,516,395$ August 5,840 6,497,824$ September 5,626 6,116,887$ October 6,364 6,760,822$ November 6,364 7,082,766$ December 6,364 7,404,709$ January 6,312 6,706,422$ February 6,260 6,335,260$ March 6,208 7,225,968$ April 6,136 6,522,300$ May 6,054 6,743,017$ June 5,974 6,655,340$

80,567,710$ 600,000$

81,167,710$ 85,713,529$

4,545,819$ Projected Surplus

GrantsProjected CostAppropriated

9

Fiscal Year 2010 DTA Related (3000-4050)

Previous month projected a $3.7M deficiency.

Month # of Vouchers Amount*July 17,212 $11,384,565

*August 16,869 $11,534,836*September 15,814 $10,670,860

October 15,643 $10,054,192November 15,758 $10,610,439December 15,527 $10,929,995January 15,282 $9,821,873February 15,489 $9,480,970

March 15,701 $11,052,226April 16,014 $10,292,463May 15,777 $10,623,343June 15,845 $10,668,869

$127,124,631$127,358,313

233,682$ *Actual Amount

Amount Appropriated

DTA Related Caseload (3000-4050)

Projected Deficiency

10

Fiscal Year 2010 Income Eligible (3000-4060)

Month # of kids Amount # of kids Amount # of Kids Amount

Jul 18,586 9,702,549$ 15,976 10,169,781$ 34,562 19,872,330$

Aug 18,130 9,646,549$ 16,090 10,160,698$ 34,220 19,807,247$

Sep 16,131 8,302,332$ 16,796 10,071,600$ 32,927 18,373,932$

Oct 15,679 7,840,753$ 16,796 10,459,674$ 32,475 18,300,427$

Nov 15,379 8,055,575$ 16,389 10,930,483$ 31,768 18,986,058$

Dec 15,028 8,228,446$ 16,389 11,409,453$ 31,417 19,637,899$

Jan 14,895 7,451,190$ 16,389 10,852,817$ 31,284 18,304,007$

Feb 14,726 7,018,777$ 16,389 9,972,543$ 31,115 16,991,320$

Mar 14,188 7,771,306$ 16,389 11,409,453$ 30,577 19,180,759$

Apr 13,881 6,947,343$ 16,389 10,852,817$ 30,270 17,800,160$

May 13,631 7,145,649$ 16,389 10,969,712$ 30,020 18,115,361$

Jun 13,381 7,015,511$ 16,389 10,969,712$ 29,770 17,985,223$

95,125,980$ 128,228,743$ 223,354,723$

9,029,276$

232,383,999$

233,527,605$

1,143,606$

Total Proj. Spending

FY11 Appropriated

Project Amount Available

Vouchers Contracts/Flex Total Population

Grants

PAC was adopted by the legislature, which increased the appropriation from $228.5 million to $233.5 million.

Income Eligible – Voucher Caseload

11

Service Code August September 3B Employed Consumer (Full Time) 3,945,128$ 3,404,782$ 3C Employed Consumer (Part Time) 149,648$ 144,208$ 3D Post Transitional 3,989,906$ 3,398,798$ 3E Emergency Services 4,079$ 807$ 3G Income Eligible Senior Custodial Relative 224,677$ 181,092$ 3H Homeless and Placed in Shelter by DTA 6,946$ 3,464$ 3M Military 697$ 25$ 3S School Age 1,536$ 1,040$ 3T CPC Transitioned kids 61,223$ 31,952$ 3X Voucher transition from RFR 2,320$ 878$ 4C DSS Referred Foster Parent-Employed 158,892$ 123,691$ 4D DSS Referred Foster Parent-Educ/Training 5,997$ 3,185$ 4F DSS Referred Foster Parent - Incapacitated 1,536$ 1,536$ 4G DSS Referred Foster Parent-Senior Custodial Relative 2,685$ 2,335$ 4I Non TANF Teen Parent 115,839$ 113,945$ 4P Parental Placement 558$ -$ 6A Education & Training 273,613$ 319,346$ 6B Job Search 116,095$ 79,272$ 6C Incapacity Parent 303,933$ 251,485$ 6D Special Needs 210,558$ 164,326$ 6H Homeless Vouchers 3,183$ 2,137$ 6M Maternity Leave 29,413$ 24,308$ Stip 371$ -$

9,608,833$ 8,252,610$

9/1/2009 10/1/2009 11/1/2009 12/1/2009 1/1/2010 2/1/2010 3/1/2010 4/1/2010 5/1/2010 6/1/2010 7/1/2010 8/1/2010

Infant 27 26 22 8 2 2 8 7 27 71 62 74

Toddler 61 67 40 40 25 23 48 33 298 199 163 255

Preschool 215 126 102 124 87 72 193 117 757 485 365 684

School Age 712 333 236 279 269 322 539 400 117 1,879 1,125 2,489

Grand Total 1,015 552 400 451 383 419 788 557 1,199 2,634 1,715 3,502

250

750

1,250

1,750

2,250

2,750

3,250

3,750

27 26 22 8 2 2 8 7 27 7162 7461 67 40 40 25 23 48 33

298199 163

255215

126 102 124 87 72193

117

757

485365

684712

333236 279 269 322

539400

117

1,879

1,125

2,489

1,015

552400 451 383 419

788

557

1,199

2,634

1,715

3,502

FY 10-FY11 Income Eligible Voucher Caseload: Attrition

Infant Toddler Preschool School Age Grand Total

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9/1/2009 10/1/2009 11/1/2009 12/1/2009 1/1/2010 2/1/2010 3/1/2010 4/1/2010 5/1/2010 6/1/2010 7/1/2010 8/1/2010

Infant 36 54 26 32 24 32 52 43 33 128 101 54

Toddler 89 117 66 60 60 53 122 73 105 200 275 127

Preschool 460 308 182 188 187 138 505 204 244 463 1,145 422

School Age 1,247 266 161 106 178 156 293 220 195 639 1,094 1,151

Grand Total 1,832 745 435 386 449 379 972 540 577 1,430 2,615 1,754

250

750

1,250

1,750

2,250

2,750

36 54 2632 24

32 52 43 33128 101

54

89 11766 60 60 53

12273 105

200275

127

460

308

182 188 187 138

505

204

244

463

1,145

422

1,247

266161

106178 156

293 220195

639

1,094 1,151

1,832

745

435386

449379

972

540 577

1,430

2,615

1,754

FY10-FY11 Income Eligible Contracts Caseload: Attrition

Infant Toddler Preschool School Age Grand Total

FY11 Caseload: Waitlist

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Waiting List Category Infants Toddler Preschool School Age TotalChild of Foster Care 11 20 10 38 79 Child of Homeless family 27 31 52 39 149 Child of Military Personnel 4 8 9 4 25 Child of Teen Parent 79 32 10 - 121 Child with Special Needs 33 120 293 368 814 Continuity of Care: Aging Out 1 6 19 180 206

Continuity of Care: Approved Break in Service 9 17 58 119 203

Continuity of Care: Child Left Care within 3 Months

6 23 61 99 189

Continuity of Care: Geographic Relocation - 4 11 21 36 Continuity of Care: Homeless Contract - 1 1 2 4 Continuity of Care: NTCC - 1 - 1 2 Continuity of Care: Supportive Referral 7 21 33 42 103 Continuity of Care: Teen Parent Contract 5 5 11 2 23 General Priority 2,739 3,227 5,473 5,108 16,547 Grandparent/Guardian Families 26 45 96 111 278 Parent with Special Needs 34 74 130 159 397 Sibling: Contract 46 29 33 78 186 Sibling: Voucher 114 31 16 153 314 Summer only care 19 9 31 440 499 Grand Total 3,160 3,704 6,347 6,964 20,175

* As of October 28, 2010

ARRA Spending Update

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Program Budgeted Spent as of 6/8 Spent as of

10/29 Amount Unspent ARRA Admin Chargeback (E56 Object Class .4%) 95,868$ -$ 27,296$ 68,572$ ARRA Monitors 298,428$ -$ 14,108$ 284,321$ Birth to 8 Leadership Institute 125,000$ -$ -$ 125,000$

CCR&R - to assist with provider reassessment transition 934,351$ 617,713$ 934,351$ (0)$ CCRR Streamlining 561,187$ -$ 11,585$ 549,602$ CCRR Business Model 75,000$ -$ -$ 75,000$ CFCE Infrastructure Grants (111) 246,436$ -$ 82,145$ 164,291$

Communications Infrastructure Strategy andCampaign 498,500$ -$ 99,500$ 399,000$ Contracted Providers - Voucher Reassessment 881,809$ 143,880$ 516,470$ 365,339$ CSEFEL Professional Development Opportunity 300,000$ -$ 128,523$ 171,478$ Early Childhood Info Systems (ECIS) 710,170$ -$ -$ 710,170$ Early Literacy Program 225,000$ -$ 138,124$ 86,876$ Head Start Wraparound Care 853,662$ -$ 12,212$ 841,450$ Improvement of Physical Environments 500,000$ -$ 124,181$ 375,819$ Infant/Toddlers Early Childhood program standards 50,000$ 4,150$ 50,000$ -$ Infant/Toddler Rate Increase 3,098,954$ -$ -$ 3,098,954$ Information and Referral Program 150,000$ 150,000$ 150,000$ -$ IT - 2 consultants to reconfigure existing IT structure 149,015$ 54,672$ 110,275$ 38,740$

IT - Software Development Consultant: EEC IS Security 112,510$ -$ -$ 112,510$ Kindergarten Entry Enrichment Program - KEEP 1,215,990$ -$ 254,947$ 961,043$ LEPPD Spanish (Speaking Providers) Formerly named Professional Dev/Access to Higher Ed for LEP 150,000$ -$ 30,768$ 119,232$ Out of School Time Learning 499,000$ 57,955$ 312,250$ 186,750$ PD Research Project 165,000$ -$ -$ 165,000$ PSCCE - Pre School Child Care Education (Originally 18 month access for PS) 5,695,036$ -$ 85,988$ 5,609,048$ QRIS-Consultant-Award Grants 3,400,000$ -$ 350,000$ 3,050,000$ QRIS - ERSI 145,416$ 85,416$ 85,416$ 60,000$ Readiness Centers (Iwheelock College) 196,963$ -$ -$ 196,963$ Readiness Centers 400,000$ -$ 66,667$ 333,333$ REKEEP: KEEP Before & After School Care 153,690$ -$ 3,737$ 149,953$ Summer Vouchers 2009 636,714$ 636,714$ 636,714$ (0)$ Summer Only Voucher 2010 650,000$ 52,840$ 617,113$ 32,887$ Waitlist Study 490,096$ -$ 182,524$ 307,572$ Indirect Charges 303,147$ -$ 56,113$ 247,034$

23,966,942$ 1,803,340$ 5,081,009$ 18,885,933$