September Board Meeting FY08 and FY09 Spending Plan

FY08 and FY09 Spending Plan Maintenance

3 FY08-FY09 Spending Plan Spending Plans Include Information On: FY08, based on budget passed by Legislature FY09, based on agency growth cap of 1.5%, set by Governor’s budget office, based on statewide projections. Board Approval of Spending Plan Means: EEC projects a need for supplemental appropriations in FY08 to continue serving all children referred from DSS and DTA, pursuant to current mandates EEC has shown which actions would be necessary for the agency to live within the agency growth cap of 1.5% Future Board Actions Will Provide Opportunities For: Articulating need for FY09 funding above A & F cap, both to avoid actions shown in spending plan, and to provide additional funding for other Board priorities and expansion

4 FY07 Actuals vs. FY08 Appropriations EEC budget grows by 6.2% Account #Descriptor FY2007 Actual SpendingFY2008 Budget Rate Reserve$12,447,926 $7,000, Administration$10,770,422$13,496, Access Management$26,468,967$24,958, Supportive$53,752,079$67,298, Transitional Assistance$160,773,510$166,944, Income Eligible$199,529,078$209,825, Head Start$8,500,000$9,000, UPK$4,631,237$7,138, Quality Program Initiatives$4,402,332$1,738, Professional Development$1,499,423$3,108, Early Childhood Mental Health$1,399,900$2,400, Family Support and Engagement$9,394,128$9,455,694 Total:$493,922,324$522,365,382

5 FY08 Appropriations vs. FY08 Projections Additional 2.7% growth needed to address unavoidable deficiencies Account #Descriptor FY2008 Budget FY2008 Projected Spending Unavoidable Deficiency Rate Reserve $7,000, Administration *$13,496,287$13,855, Access Management$24,958, Supportive$67,298,130$69,627,855-$2,329, Transitional Assistance$166,944,998$178,169,357-$11,224, Income Eligible$209,825, Head Start$9,000, UPK$7,138, Quality Program Initiatives$1,738, Professional Development$3,108, Early Childhood Mental Health$2,400, Family Support and Engagement$9,455,694 Total:$522,365,382$536,278,318-$13,554,084 * Projected spending includes collective bargaining reserve funding

6 Transitional Assistance- additional need of $11M Children served in final months of FY07 exceeded both FY07 and FY08 projections by ~5%. The current projection for FY08 is based on FY07 actual caseload and may change given the Department of Transitional Assistance (DTA) initiatives to move more families to self sufficiency. Additional funding in FY08 is necessary to comply with legal requirement to provide immediate access to children authorized by DTA (no waitlist) Supportive- additional need of $2.3M Original waitlist of 800 cleared in FY07 as required by budget language; demand far exceeded original waitlist expectations Annualizing this increase and projecting the same growth rate of approximately 160 children per month in FY08 yields the unavoidable shortfall This rate of placement will result in approximately 21% of potentially eligible children being placed in supportive care, which is a 6% increase in the rate of access FY08 Spending Plan Financial Assistance Programs

7 FY08 Spending Plan Financial Assistance Programs, continued Income Eligible- adequate funding for waitlist priorities Can fund projected need for the following priority populations only: Foster Care; Homeless; Military Personnel; Teens; and Continuity of care. Additional access for approximately 21,116 other eligible families on the waiting list would require additional funding or change in prioritization policy

8 FY2009 Spending Plan Development ”Maintenance” Requirement Maintenance is defined by the Governor’s budget office as: “The development of funding levels, after minimal adjustments in specific areas, to enable a department to carry out the same level of service in FY2009 as was achieved in FY2008. No additional items, either expansion or savings, may be proposed as part of maintenance.”

9 DescriptorFY2008 Budget FY2008 Projected Spending Maintenance Increase FY09 Maintenance Administration$13,496,287$13,855,139$768,904$14,624,138 Access Management$24,958,948 Supportive$67,298,130$69,627,855$23,644,408$93,272,263 Transitional Assistance$166,944,998$178,169,357$5,208,114$183,377,471 Income Eligible$209,825,847 $602,682$210,428,529 Head Start$9,000,000 UPK$7,138,739 Quality Program Initiatives$1,738,739 Professional Development$3,108,000 Early Childhood Mental Health$2,400,000 Family Support and Engagement$9,455,694 Total:$522,365,382$536,278,318$30,224,107$566,502,522 FY2009 Maintenance Development

10 FY09 Maintenance Increases Administration - $769,000: $340K to maintain adequate administration and monitoring of budget growth; and pursue new revenue maximization efforts; $210K for additional full-year cost of FY08 hires $184K for regional office moves; and $35K for increase in State IT charges. Supportive - $23.6 million: Continued growth rate of 30% in placements and serving 27% of eligible DSS families. Transitional Assistance - $5.2 million: 3% rate of growth subject to DTA initiatives. Income Eligible - $602,682: Limited growth to maintain immediate access to priority populations

11 FY09 Maintenance vs. FY09 Cap Spending Plan Assumptions of 5.8% vs. 1.5% required FY09 MaintenanceFY09 Cap Level $565.5 M$530.6 M 5.8% from FY08 projected spending 1.5% from FY08 budget In order to comply with the A&F spending plan requirement, EEC needs to show how it would reduce projected spending in FY2009 by $36 million.

12 FY2009 Maintenance vs. FY09 A&F Cap EEC is statutorily required to maintain immediate access to financial assistance for families referred through DTA and DSS – projected at ~$277M of EEC’s FY09 budget. Submitting the FY09 spending plan within the required 1.5% growth cap would mean a 12.7% reduction across EEC’s other spending – projected at $282M of EEC’s FY09 budget.

13 Spending Plan Process Is Only the First Step… 1. September –EEC submits the A&F FY08 spending plan and FY09 maintenance estimate. 2. October/November – Discuss FY09 budget priorities with EEC Advisory Team. EEC Board discusses and votes on budget priorities of the Department. 3. December – EEC staff meet with A&F and Governor’s office regarding FY09 priorities. 4. January – Governor submits his recommendation of the budget to the Legislature. 5. April – House Ways and Means file their recommendation of the budget for consideration by the full House membership. 6. May – Senate Ways and Means file their recommendation of the budget for consideration of the full Senate membership. 7. June – Legislative Conference Committee meets to reconcile the differences between House and Senate recommendations of the budget. Approval of the budget is required by both the House and Senate. 8. June – Governor receives budget as approved by the Legislature; reviews for vetoes; and then signs the bill into law. 9. July 1, 2008 – State budget takes effect.