1. American Recovery and Reinvestment Act (ARRA) American Recovery and Reinvestment Act (ARRA) Board of Early Education and Care June 9, 2009

2. ARRA Requirements Overlay 2 Existing Federal Law ARRA Requirements Federal Agency Guidance on ARRA Governors Office, ANF, State Comptroller, and Legislature EEC

3. Principles for ARRA Expenditures: EEC Boards Fiscal and Budget Committee Sustainability Invest one-time ARRA funds thoughtfully to minimize the funding cliff Accountability Ensure transparency, reporting and accountability Economic Impact Spend funds quickly to save and create jobs Collaboration Develop cross-agency initiatives to maximize benefits to children Reform Use ARRA to promote reforms and cost saving initiatives that will provide a foundation for future growth Prioritization Prioritize limited resources toward children with the greatest education and care needs and multiple risk factors. EECs Strategic Plan emphasizes that the Department values all children and all families. In a fiscally constrained environment, the Strategic Plan also recognizes that children with the greatest educational needs and multiple risk factors come first. 3

4. 4 Administration for Children and Families: ARRA Guidance CCDBG EEC Award: $23.9 Million $20.1 Million to Provide Access to Financial Assistance for Child Care For Low Income Families $3.8 Million in Quality Set-Aside $1.1 Targeted to Infant Toddler Quality Wampanoag Tribe Award: $4,716 (Not Administered by EEC) Guidance Assist those most impacted by the recession through the provision of funds to expand services to additional children and families; Through targeted funds, improve the quality of child care to support the health and well-being of children; Activities allowable must fall within EECs existing program requirements, per State Plan.* *Any changes to program requirements such as provider rates (e.g., provider rate increases), income eligibility guidelines, and sliding fee scale require State Plan amendment and federal approval which may delay implementation of ARRA programming.

5. CCDBG ARRA Proposals ACCESS Summer Learning Promotion Vouchers Job Retention Policy for Existing Families (Continuity of Care) Self Sufficiency Voucher for New Working Families of (2 Year Only/Preschool Aged Children) QUALITY Summer Learning and Literacy Promotion Incentive Grants to Facilitate Local Coordination of Family and Community Engagement Programming Statewide Initiative to Advance Existing Quality Efforts/Support QRIS (e.g., assessment, UPK standards) Sponsorship for Literacy-Based or other ARRA Related Training Opportunities 5

6. Link Between Job Retention Policy and ARRA Goals 6 Research demonstrates that families with access to high quality stable child care are more productive and less likely to miss work. Lack of stable child care has been identified as a barrier to employment and a primary cause of absenteeism that may lead to termination. Access to regular and stable child care is associated with greater job stability and retention for low income families. Sources: Institute for Womens Policy Research, University of Wisconsin- Milwaukee Employment and Training Institute, The Urban Institute, and Institute for Social Research, University of Michigan.

7. ARRA Investment: Job Retention Policy (Continuity of Care) Purpose: Support existing working families receiving EEC financial assistance to retain and find work by providing continuity of care for their children for up to 2 years only in the following circumstances: Summer-only care; A sibling of children already enrolled; A child aging up of a current program; and/or A family who loses their job or has a reduction in hours below current minimum eligibility (extend child care provided during job search/ work hour reduction up to 26 weeks total); Proposed Allocation: ~$5M Method of Distribution: Revision to existing Continuity of Care Policy, and implemented through voucher for ARRA tracking purposes. 7

8. ARRA Investment: Job Retention Policy Estimated Demand and Annual Cost 8 Continuity Category Infant/ Toddler Pre-KSchool Age NeedCostNeedCostNeedCost Siblings434$4.23 M74$.56 M260$1.27 M Aging Upn/a 35$.26 M147$.72 M Job Search FY 2009 Caseload ~ 520 children (8 weeks $.7 M; 14 weeks $1.1 M) 73% remained eligible after job search period ended

9. 9 ARRA Investment: Job Retention Policy How does this proposal relate to current access limits? Priority CodeAccess Status As of 11/03/08 Current # (May 2009) Department of Children and Families Referral Open (Supportive Expansion Only) DCF WL (~1200) Department of Transitional Assistance ReferralOpenNo WL Child of Foster CareClosed 81 Child of Homeless FamilyClosed 59 Child of Military PersonnelClosed 12 Child of Teen ParentOpen 98 Child with Special NeedsClosed 807 Parent with Special NeedsClosed 486 Grandparent/Guardian FamilyClosed 265 Continuity of Care(See Next Slide) 1822 General PriorityClosed 12776 FY2010 anticipated funding levels for Income Eligible Child Care will require maintaining these current access limits throughout FY2010.

10. ARRA Investments: Job Retention Policy How does this proposal relate to current continuity of care policy? Continuity of Care Categories/Priorities Current Access Status Proposed under ARRA Job Retention Policy* Aging-up Closed, infants/toddlers in contracts open Open Siblings ClosedOpen Supportive/Teen Parent Openn/a Non-Traditional Hours Openn/a Homeless Openn/a Geographic Relocation Openn/a Child Left within 3 Months (e.g., approved break in service or lost eligibility/regained within 90 days of termination) Closed n/a or could substitute for extending job search benefits 10 * One-time/time limited to ARRA funding period and allocations.

11. ARRA Investment: Job Retention Policy Advisory Council, Operation Working Group and Policy and Programs Committee Comments To focus on most vulnerable in terms of job loss: 1. Prioritize children already in care (aging-up) 2. Prioritize families already in care (siblings) 3. Prioritize age-groups with highest waiting list numbers (infants/school-age) Job reduction support more important than job search (still actually working); fund job search as break in service 11

12. ARRA Investment: Job Retention Policy Discussion questions/options 1. prioritize among categories; 2. prioritize specific age groups (e.g., infants) across categories 3. eliminate some categories; 4. fund up to allocation on first come, first serve basis; 5. provide only part-time care for job search/during work hour reduction 6. other? 12