1. FY11 Caseload Update Policy and Fiscal Committee May 2, 2011

2. FY11 Caseload Overview Summary July 2010 – March 2011 2

3. Caseload Spending: Cross Check Based on YTD Expenditures Only 3 Income Eligible Notes 1.The lowest monthly expenditure total was in September (22 days): $18,423,922. 2.The highest monthly expenditure total was in March (23 days): $21,504,035. 3.December was also a 23 day month, and we spent $21,081,009, less than March and before access was closed. 4.We are projecting - if caseload does not increase - that average billing for April, May, and June will be $18,906,692 per month, considerably less than March's billing of $21,504,035. 5.The children reported in March's caseload are BILLED children and therefore must be carried as part of the caseload going forward. 6.This projection forecasts a deficit of $9,195,012 in the Income Eligible account.

4. Recommendations to Mitigate Deficiency 4 Implement measures to prevent the deficiency from growing Close Access for Teen Parent and Homeless Contract Slots Implemented policy effective April 20, 2011. Will save $402K. To respond to the $3.8M Deficiency ARRA CCDF: Apply ARRA Funds to Income Eligible funded childcare services for care that is not supplanted. Potential source is to identify the number of new preschool children in FY11 that were assigned to IE vouchers and/or contracts. Use up to $4.0M in ARRA CCDF funds to support CCDF eligible expenditures in the Income Eligible account for the months of May and June.

5. Recommendations to Mitigate Deficiency 5 If the deficiency is greater than $3.8M Payment Reduction: Reduce the amount paid on all voucher and contract related invoices (excluding family child care providers) submitted in July for June services by a percentage necessary to stay within the caseload appropriations after May services (billed in June) have been completely processed in MMARS. Implementation of this reduction may be through either a percentage allocation or a specific rate reduction (e.g., $1.00/day).