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FY2015 House Budget Fiscal Committee May 5, 2014.

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Presentation on theme: "FY2015 House Budget Fiscal Committee May 5, 2014."— Presentation transcript:

1 FY2015 House Budget Fiscal Committee May 5, 2014

2 Overview: FY15 House Budget On April 9, 2014, the House Ways and Means Committee (HWM) released its FY15 Budget Recommendations The final House budget was passed April 30, HWM recommended an overall budget of $36.37B, a 5% increase from FY 2014 estimated spending and approximately $18.8M less than the Governors proposal. The House added $143.8M in additional spending through the amendment process for a total spending level of $36.51B. Specific to early education, HWM recommended a FY15 budget for EEC of $515.2M, which is $2.6M more than the FY14 total available funding level of $512.6M, but $16.5M below the Governors recommendation of $531.7M. The House added $4.8M in additional funding through the amendment process for a total funding level of $520M. The House budget provides maintenance or level funding for many accounts and also includes an investment of $10M for continued waitlist remediation, which was originally proposed by the Governor as a Birth through Pre-School expansion at $15M. The HWM budget originally recommended a $2M cut for Services to Infants and Parents but the House restored and increased this funding by $2.3M to $18.5M as a part of the amendment process. 2

3 FY15 House Budget Summary 3

4 FY15 House Budget Administrative Account Overview: The Houses FY15 budget recommends $13.3M for EEC Administration, which is a 2.5% increase from FY14 but a 3% decrease ($409K) from the Governors FY15 recommendation. The details of this recommendation are as follows: 1. Includes the annualization of all FY14 costs, including the nine (9) new positions hired in FY14; 2. Includes the transfer of HR personnel from into a consolidated appropriation under the Executive Office of Education; 3. Unlike House 2, the Houses recommendation does not allow EEC to fully maintain the individuals to be hired to fulfill the mandated fingerprinting bill without other administrative reductions. These costs are currently supported through an ISA with the Executive Office of Public Safety; and 4. The possibility of hiring new licensing and monitoring staff is also endangered if the Houses recommendation prevails. 4

5 Staffing History 5

6 FY15 House Budget Access Management The House recommends $5,873,862 which is level funding compared to the FY14 GAA appropriation and House 2. In FY14, however, EEC increased the CCR&Rs contracts as part of the Waitlist Implementation plan. A small portion ($700K) of the $15M appropriated in the FY account was used to increase the management fee to ensure the CCRRs are staffed appropriately to handle the increased volume for placements, backfill management, and management of the reassessment process. In the Governors FY15 recommendation, the $700K was not annualized in the , but was funded through the newly proposed Birth through Pre-School Expansion account. It is unclear at this time if the House budget includes this funding for CCRRs as a part of the reduced funding in the account. 6

7 FY15 House Budget Caseload Accounts 7 The House included language that allows for transferability between (DTA) and (Income Eligible) and from those accounts to (Supportive). Transfers are limited to 3% of total funding and an allocation plan must be filed with the legislature 30-days prior to any such transfer. The Governor proposed unlimited transferability between the three accounts as a part of his budget. The House included language allowing any unspent balance in (Income Eligible) at the end of FY14 to carry into FY15. EEC would use any funds carried over to cover any projected FY15 deficiencies.

8 FY15 House Budget Supportive Account Funding Recommendation: FY14 Available: $76,991,445 FY15 JWM Maintenance Submitted: $81,241,142 FY 15 House 2: $81,241,142 FY 15 House: $79,730,057 FY15 Updated Current Forecast: $85,807,413 Details: Based on our current projections, the Houses proposed FY15 funding level of $79.7M is less than our estimated need. Our current projections are based on the policy of maintaining full, open access for all eligible children, including the additional children that received services thru expansion slots in FY14. In order to maintain the current expansion levels in FY15, we project a cost of $85.8M. In order to meet the Houses FY15 funding level, we would need to temporarily close expansion in DCF to reduce caseload by approximately 450 children. Notable Language: The House maintained language stating that all children eligible for services under this item shall receive those services which the Governor had removed as a part of his budget proposal. 8

9 FY15 House Budget DTA Related Funding Recommendation: FY14 Available: $128,063,499 Current average caseload 15,934 FY15 JWM Maintenance Submitted: $136,549,668 Average Caseload of 16,509 FY15 House 2: $136,549,668 Average Caseload of 16,509 FY15 House: $133,477,330 FY15 Updated Current Forecast: $132,045,617 Updated average caseload of 15,934 Details: Based on our projection for FY15, the Houses proposed FY15 funding level of $133.5M aligns with our projected expenditures. The DTA FY15 projection includes the annualization of the CNS and SEIU rate increases. 9

10 FY15 House Budget Income Eligible Funding Recommendation: FY14 Available: $222,840,742 FY15 JWM Maintenance Submitted: $241,894,678 FY15 House 2: $241,894,678 FY15 House: $241,894,678 FY15 Updated Current Forecast: $254,235,648 Details: The Houses proposed FY15 funding level of $241.9M is equal to the Governors budget recommendation and our maintenance request which annualized the cost of service to all the additional vouchers forecasted to be released in FY14 through the Income Eligible account (roughly 1,800 vouchers) and the Waitlist Remediation account (roughly 2,300 vouchers). However, in an effort to maintain open access and offer assistance using all resources available to EEC in FY14, we have exceeded the original voucher projections and assisted approximately 5,000 children which increases our FY15 forecasted expenditures to $254.2M. Therefore, we are currently projecting that the House funding level would leave us with an $12.3M deficit. The House included language that would allow any surplus remaining at the end of FY14 to carry over into FY15, which EEC would use to offset a portion of this deficiency. The remainder of the deficiency would be managed through first quarter attrition to reduce the voucher caseload and through contract underutilization if less than our current estimate of 93% utilization of contract slots occurs. Notable Language: The House included PAC language that would all any surplus remaining in this account at the end of FY14 to carry over into FY15. 10

11 FY15 House Budget Birth Through Pre-School Waitlist Remediation The House annualized the Waitlist Remediation services provided in FY14 through in the Income Eligible account and eliminated funding in HWMs FY15 budget recommendation includes $7.5M for continued waitlist remediation through the account. The Governor originally proposed this account as a new Birth through Pre-School Expansion at $15M. The House increased funding to $10M through the amendment process. The House language does not target these new funds at a specific age group but instead uses the same language as the FY14 Waitlist Remediation account. If we assume that a portion of this funding supports continued CCRR staffing, as it did under the Governors funding proposal, we believe that an additional 1,200 children can be served with the $10M. 11

12 FY15 House Budget New or Increased Investments Birth Through Pre-School Expansion: The House included $10M for continued waitlist remediation. This was originally proposed by the Governor as a new Birth through Pre- School Expansion at $15M. Please see the caseload discussion for fuller context Services for Infants and Parents: The HWM budget recommendation reduced funding for Services for Infants and Parents by $2M (11%) from the FY14 and the Governors proposed funding level of $18.2M. However, through the amendment process, the House increased funding by $2.3M to $18.5M EEC Contingency Contract Retained Revenue: The House included this account which allows EEC to retain up to $200K in Title IV-E revenue to streamline payments to PCG for their work on collecting Title IV-E funds. This is a cost neutral item. 12

13 FY15 House Budget Items Not Funded K1 Classroom Grant Program: The Governor proposed $2M for a new K1 Classroom grant program available to cities, towns, regional school districts, and educational collaboratives to provide educational opportunities to 4-year olds. This item was not funded in the House budget QRIS Information Technology: The Governor recommended $2.5M in new funding under the Executive Office of Education for QRIS IT improvements. This item was not funded in the House budget. 13

14 FY15 House Budget Level Funding or Minimal Variance from FY14 The Houses FY15 budget recommendation includes level funding for the following accounts. All of these accounts were also level funded in the Governors FY15 budget recommendation: Head Start Grants ($8,100,000) Universal Pre-Kindergarten (UPK) ($7,500,000) Early Childhood Mental Health Consultation Services ($750,000) Reach Out and Read (ROR) ($800,000) 14

15 FY15 House Budget One-time Funding Eliminated The Houses FY15 budget recommendation eliminated funding for several FY14 one-time initiatives. All of these accounts were also eliminated in the Governors FY15 budget recommendation : Innovative Curriculum in Preschool Programs : Early Education Provider Quality Enhancements Waitlist Remediation: See full discussion under caseload accounts Caseload Study: The FY14 budget language for this item allows the original $500K to be expended through FY15 so no further appropriation is needed SEIU Rate Increase Salary Rate Reserve 15

16 FY15 Budget Process 16 Prep Initial maintenance building process for FY15 starts in the summer of GOV Released on January 22, Recommends funding for EEC accounts at $531.7M, including a $15M investment in Birth through Pre-School Expansion. Outside of this and other small investments, the Governor recommended maintenance funding throughout all accounts. House Released by HWM on April 9, 2014 and finalized by the House April 30, HWM recommended funding for EEC accounts at $515.2M and an additional $4.8M was added on the House Floor for a total funding level of $520M. This funding included a $10M investment in continued waitlist remediation. Outside of this investment, the House recommended mostly maintenance funding with a few small funding reductions. Senate Will be released by SWM in mid May and finalized by the Senate a week later. 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 late June. The House and Senate enact the bill and send it to the Governor for his signature. The Governor has 10 days to review the bill and it becomes law upon the Governors signature. Veto & Override Governor may sign the bill with objections to certain items. Everything outside of those vetoed items become law July 1 (retroactive to that date if the Governor signs the bill later). The vetoed items must be overridden by 2/3 of the House and then 2/3 the Senate. FY14 GAA Once vetoes and overrides are done, the FY15 budget is complete. It is now referred to as the General Appropriations Act or GAA.


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