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FY13 EEC Budget

November 2011

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FY13 Maintenance Budget

     EEC has submitted its FY13 maintenance budget to EOE and ANF as directed in a memorandum from ANF dated October 3, 2011. Maintenance was defined as the funding level, after minimal adjustments in specific areas, to enable a department to carry out the same level of service in FY13 that can be provided in FY12. In accordance with direction, no additional items, either expansion or savings, were proposed as part of EEC’s maintenance budget. To stay within maintenance guidelines, EEC had to eliminate one position in FY13. EEC stated in the narrative accompanying the maintenance budget that QRIS remains an important activity and that the cost to provide monitoring devices or monitors on all vehicles is presently unknown.

While the Massachusetts economy continues to show signs of recovery and growth, ANF expects that FY13 will present continued challenges for state agencies to operate programs and services within available funding levels.

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FY13 Preferred Budget

 The Board of the Department of Early Education and Care (EEC) must submit to EOE annually the budget which the Board believes provides adequate funding to support the operation of EEC.

 The remainder of this presentation presents the FY13 preferred budget for EEC.

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FY13 Preferred Budget: Admin

 Support needs of the admin account: • • Increase: $824,010. This figure is based on the cost of step increases, the value of annualizing collective bargaining agreement raises, fulfilling the Board’s staffing decisions, and the cost of lease increases in FY13. The admin budget would increase from $11,683,491 to $12,406,971

Payroll Related: $723K

 $86K to annualize FY13 collective bargaining.

   $43K for managerial 3% increase.

$86.7K to annualize FY12 step increases and fund FY13 step increases.

$122.8K to annualize the FY12 backfills cost in FY13.

   ($26K) negative adjustment for lower AA (sick/vacation buyback) to align with three year average $16K in workers comp and payroll tax assessed by the Comptroller’s Office.

$394.5K to fund an additional 7 positions that are detailed in the following slides

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FY13 Preferred Budget: Admin, Continued

 In addition to the payroll related increases, EEC has other budgetary needs.

• Lease Spaces: $23,140  To fund the FY13 lease increase in Boston and potential lease increases for the Lawrence, Metro, and Springfield offices (all of these three leases expire in or at the end of FY12) • Miscellaneous: $77.7K

 Most of the additional cost ($66K) is associated with the potential Springfield relocation (if current arrangement with DTA is not feasible in the DTA new lease).

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FY13 Preferred Staffing Budget: A Review

 • • • • The EEC Board proposed that the FY12 EEC Budget begin the rebuilding of the EEC Staffing Infrastructure by filling six essential positions at a total value of $379,114. The six positions were: Director of Community Partnership and Outreach: ($75,000)

Chief Operations Officer: ($85,000)

Two (2) Fiscal Monitors: ($59,292 each for a total of $118,584) Two (2) Child Care Licensing Specialists: ($50,265 each for a total of $100,530)    This was to be the first stage in a multi-year effort to rebuild the EEC staff to levels appropriate to provide quality management and delivery of the EEC mission.

Due to funding constraints we were able to respond to the direction to hire a COO only by redefining the Director of Human Resources position to include operations.

We have also been able to hire an EEC receptionist but only because of the retirement of an individual and the reassignment of his duties to existing personnel.

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FY13 Preferred Staffing Budget

 • • • We recommend that the Board continue to pursue rebuilding the EEC Staffing Infrastructure by filling the essential positions from FY12 which have yet to be filled as follows: Director of Community Partnership and Outreach: ($75,000) Two (2) Fiscal Monitors: ($59,292 each for a total of $118,584) Four (4) Child Care Licensing Specialists: ($50,265 each for a total of $201,060)  The total value of these five positions is $394,644.

  The chart on the following page has been revised to show current recommendations.

Please note that our present FTE cap is 157.3 positions. As of today, 150.4 are filled.

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FY13 Board Recommendations to Support Positions in Fiscal, Policy, Quality Supports, and Communication

FTEs authorized in state account: 157.3

Risk Analysis Plan Area Salary FTE Annual Cost 28 New Positions Commissioner's Office Director of Community Partnership and Outreach

Director of Policy, Evaluation & Research Policy Analyst - QRIS Policy Analyst - Generalist

Human Resources & Facilities Legal Unit

Manager, Deputy General Counsel

Office of Administration Audit Resolution: Fiscal Monitor Office of Field Operations

Family/Community Quality Specialist Educator Provider Support Specialist

Child Care Licensing Specialist Key: Strategic Plan Area

Quality = Q Communications = C Infrastructure = I 1 3 1 3 2 1

C I Q Q I I

$75,000 $75,000 $61,303 $61,303 $76,000 $59,292 1 1 1 1 1 3 $75,000 $75,000 $61,303 $61,303 $76,000 $177,877 2 2 1

I I Q Key: Risk Analysis

1 = High Risk 2 = Moderate 3 = Low Risk $61,303 $61,303 $50,265 2 2 16

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$122,606 $122,606 $804,244

$1,575,939 Licensing Specialists

FY13: Hire 2 FY14: Hire 7 FY15: Hire 7

FY13 Cost FY14 Cost 7 Positions = 7/28 9 Additional Positions = 9/28 FY15 Cost 12 Additional Positions = 12/28 $75,000 $118,584 $201,060 $394,644

$61,303 $59,292 $351,855

$472,450

$75,000 $61,303 $76,000 $122,606 $122,606 $251,325

$708,840

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FY13 Maintenance Caseload Accounts

Child Care Accounts

 3000-3050: Supportive  FY12 Funding Level: $77,448,576 

FY13 Maintenance Request: $77,330,875.

 Anticipated Need: - $117K  Current forecasted spending for FY12 is $76.4M which projects a $1M surplus. At this time we cannot forecast the need for additional funds based on historical data, but potential volatility in caseload, as monitored throughout the year, might change this status.  3000-4050: DTA Related  FY12 Funding Level: $132,458,313 

FY13 Maintenance Request: $125,495,740.

 Anticipated Need: - $7M   History: The DTA expenditure for FY11 was $ 133.7M (a 5.5% decrease in spending from FY10) and in FY10 was $141.5M. Current forecasted spending for FY12 is $128.1M which projects a $4.2M surplus. To support the anticipated FY13 monthly average of 14,837children, EEC projects a budgetary need of $125.5M.

Note that spending in the Supportive and DTA accounts reflects legislative language that there cannot be a wait list.

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FY13 Proposed Caseload Accounts Budgets

Child Care Accounts

 3000-4060: Income Eligible  FY12 Funding Level: $232,897,940 

FY13 Maintenance Need: $236,397,940

  Anticipated Increase: $3.5M Current forecasted spending for FY12 is $234.4M which projects a $1.5M deficit. As part of addressing the deficit the Governor’s office filed for a $3.5M supplemental budget for the Income Eligible account. EEC has incorporated this potential increase into the maintenance plan.

 ANF included the $3.5M supplemental request in the FY13 maintenance numbers given to EEC.

 This level of funding would enable EEC to provide care for roughly 30,400 children per month and potentially address the EEC Board vote and EEC’s commitment to raising the infant toddler rates.  In December, 2010, the Board of Early Education and Care approved a 3% rate increase to eligible programs serving infants and toddlers across the Commonwealth to commence in or around April 2011, subject to the availability of funds.

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FY13 Proposed Budget – All Other Accounts

 The following accounts would likely be limited to level funding in FY13 but expected to maintain the same level of services in FY13 as offered in FY12:  3000-2000: Access Management - Funded at $5.9M in FY12 to support 10 CCR&R contracts and funding for Information and Referral services;  3000-5000: Head Start - Funded at $7.5M in FY12 to support 29 Head Start grants;   3000-5075: UPK- Funded at $7.5M in FY12 to support over 200 UPK grants and other quality projects; 3000-6075: Mental Health - Funded at $750K in FY12 to support 6 grants serving the entire state;   3000-7050: Services for Infants and Parents - Funded at $18.1M in FY12 to support grant programs (107 CFCE grantees and six Professional Development grantees serving the entire state) and other quality projects that are all CCDF quality eligible; 3000-7070: Reach Out and Read – Separated from the Family Engagement line item in FY12 and funded at $800K.

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FY13 Preferred Budget Maintenance of Effort QRIS

 QRIS Grant Program: Though not technically a maintenance budget, EEC would like to propose a new line item funded at $4M to fund a QRIS grant program. This proposal would “maintain” the Commonwealth’s effort to sustain an initiative that produces quality care for the families of Massachusetts.

   QRIS was funded in FY10 with state funds ($4M from 3000-4060) QRIS was funded in FY11 with ARRA funds ($3.4M). QRIS will be funded in FY12 using funds from two state appropriations ($1.0M)

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FY13: Additional Exposure

   Following the tragic death of Gabriel Cazir Pierre, a toddler transported by an EEC provider but left in the vehicle, a Special Committee was convened by EEC Chairperson JD Chesloff. The committee was charged with conducting a thorough review of the statutes, regulations, and policies involved in the transportation of child care children in Massachusetts and to research best practices. As part of looking at the special commission recommendations, EEC has begun the process of applying costs to hardware suggestions (vehicle monitoring devices, etc.), personnel options (increased pay for drivers, addition of paid monitors on every vehicle), and more while at the same time reviewing what, among many considerations, is the best. We are also reviewing where the costs are most appropriately placed. We currently reimburse a provider $9/day/child for round trip transportation.

It is clear that there will be additional costs related to the promulgation of regulations which strengthen our policy requirements, but it is not clear at this time what the sum of those costs will be.

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FY13 Preferred Budget

Descriptor

Administration

Line Item FY11 FY12 FY13 Proposed Budget Difference between FY12 Budget and FY13 Proposed Budget

3000-1000 $ 11,417,421 $ 11,683,491 $ 12,507,501 $ 824,010 Access Management 3000-2000 $ 5,933,862 $ 5,933,862 $ 5,933,862 $ - Supportive 3000-3050 $ 85,713,529 $ 77,448,576 $ 77,330,875 $ (117,701) TANF Related Child Care 3000-4050 $ 127,358,313 $ 132,457,313 $ 125,495,740 $ (6,961,573) Low Income Eligible Child Care 3000-4060 $ 233,527,427 $ 232,897,940 $ 236,397,940 $ 3,500,000 Grants to Head Start 3000-5000 $ 7,500,000 $ 7,500,000 $ 7,500,000 $ - UPK 3000-5075 $ 7,500,000 $ 7,500,000 $ 7,500,000 $ - Quality Supports Mental Health Services for Infants and Parents and Other Quality Programs 3000-7050 $ 5,000,000 $ 18,186,633 $ 18,186,633 $ - Reach Out and Read 3000-6075 $ 750,000 $ 750,000 $ 750,000 $ - 3000-7070 $ - $ 800,000 $ 800,000 $ - QRIS 3000-6000 $ 14,011,633 $ - $ - $ - 3000-XXXX $ - $ - $ 4,000,000 $ 4,000,000

% Increase

7.05% 0.00% -0.15% -5.26% 1.50% 0.00% 0.00% N/A 0.00% 0.00% 0.00% N/A

$ 498,712,185 $ 495,157,815 $ 496,402,552 $ 1,244,737 0.23%

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FY13 Budget Process

Prep

•Submission of FY13 Maintenance budget to ANF.

•Submission of Preferred FY13 budget to EOE after Board vote.

Gover nor

•Released in late January.

House •Released in mid April .

•Released in early to mid May Senate 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 mid to late June. The House and Senate enact the bill and send it to the Governor for his signature •The bill becomes law upon the Governor’s signature.

Vetoes and Overrides •Governor may sign the bill with objections to certain items.

• Everything outside of those vetoed items become law July 1.

•The vetoed items must be overridden by 2/3 of the House and then the Senate.

FY13 GAA •Once vetoes and overrides are done the FY13 budget is complete.