1. Budget Budget FY2010 and FY2011Update Policy and Program Committee February 1, 2010

2. 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. Governors FY11 Budget Recommendations V. ARRA Spending Update 2

3. 3 Fiscal Year 2010 Caseload – Supportive Care (3000-3050)

4. 4 Fiscal Year 2010 Caseload – DTA Related (3000-4050)

5. FY2010 DTA Caseload Projected Cost (Amount in Thousands) FY10 Approp: $116.2M Light blue represents actual amounts billed.

6. 6 Fiscal Year 2010 Caseload - Income Eligible (3000-4060) Also DTA and Supportive account are projecting deficiencies that this surplus may have to reconcile.

8. Fiscal Year 2010 Caseload – Balance Sheet 8

9. 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. 9

10. 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 1 st, CCR&Rs 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. 10

11. 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 29 th 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. 11

12. Income Eligible Surplus- Opening Access: Waitlist Breakdown 12 *Reflects waitlist caseload as of January 2010

13. 13 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.

14. 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 1 st ) 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. 14

15. Income Eligible Surplus – Recommendation II: Open Access for 2,400 Children 15

16. Income Eligible Surplus 16 *FY11 appropriation based on the Governors 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.

17. Benefits of EECs Recommendations 17 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.

18. FY2011 – Governors Recommendations 18 The Governors 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.

19. FY2011 – Governors Recommendations Targeted 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. 19

20. FY2011 – Governors Recommendations Structural 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. 20

21. ARRA Update 21