Transcript FY2010 and FY2011 Update Board of Early Education and Care June 8, 2010

FY2010 and FY2011 Update
Board of Early Education and Care
June 8, 2010
Table of Contents
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
I. FY10 Budget Update
 Spending Update
 Supplemental Budget Signed by
Governor

II. FY11 Budget Process Update
 Senate FY11 Recommendations
 Senate Budget Impacts

III. Next Step: Conference
*FY10 Budget Update
Spending
Description
Administration
3000-1000
Access
Management
3000-2000
Supportive
3000-3050
TANF Related Child
Care
3000-4050
Low Income Eligible
Child Care
3000-4060
Head Start
Programs
3000-5000
UPK
3000-5075
Quality Supports
3000-6000
Mental Health
3000-6075
Family
Engagements
3000-7050
%
FY10 Budget Encumbered Expended
Total Committed Uncommitted Uncommitted
$ 11,622,212 $ 224,238 $ 10,198,348 $
10,422,586 $
1,199,626
11.51%
$
$
6,358,771 $ 393,144 $ 5,953,024 $
77,836,888 $ 9,062,848 $ 64,533,014 $
$ 116,232,279 $
$ 260,954,672 $32,565,036 $ 186,983,245 $
$
$
$
$
8,000,000
8,000,000
14,032,568
1,000,000
$ 973,905 $ 7,026,095 $
$ 1,849,746 $ 5,933,220 $
$ 2,051,193 $ 11,932,314 $
$ 223,260 $
764,316 $
$
5,000,000 $ 466,120 $ 4,526,075 $
$ 509,037,390 $48,044,735 $ 413,846,687 $
*As of June 4, 2010
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235,244 $ 115,997,036 $
6,346,169 $
73,595,863 $
116,232,279
$
219,548,281 $
8,000,000 $
7,782,966 $
13,983,507 $
987,576 $
4,992,195 $
461,891,422 $
12,603
4,241,025
0.20%
5.76%
-
0.00%
41,406,391
18.86%
217,034
49,061
12,424
0.00%
2.79%
0.35%
1.26%
7,805
47,145,968
0.16%
10.21%
FY2010 Budget Update:
Governor Signs a Supplemental Budget
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On May 21st, the Governor signed a supplemental budget
(Chapter 112 of the Acts of 2010).
Sections 37 and 38 expand transferability from the income
Eligible account and DTA-Related account.
Prior to passage, EEC was limited to transfer a maximum of
3% from Income Eligible account to the DTA account and
provide a 30 day notice to the legislature prior to any
transfer.
With the passage of Chapter 112, EEC can transfer up to
10% ($26M) and need only to provide a 15 day notice to the
legislature.
This flexibility allows EEC to cover the full $25M deficiency in
the DTA and Supportive accounts and ensure that providers
do not have to wait for payment of bill.
We have requested the transfer already. We will be able to
transfer funds on June 10.
FY11 Budget Process Update:
Senate FY11 Recommendation
Descriptor
Administration
Governor
House Final
Senate
11,622,212
12,079,875
11,889,917
11,785,583
$11,622,212
6,358,771
6,358,771
5,933,862
5,933,862
5,933,862
77,836,888
85,713,746
90,286,814
89,786,814
85,713,747
116,232,279
136,927,436
127,358,313
127,358,313
127,358,313
260,954,672
233,527,426
233,601,807
233,601,807
233,527,427
Grants to Head Start
8,000,000
8,000,000
8,000,000
8,000,000
8,000,000
UPK
8,000,000
8,000,000
9,000,000
8,000,000
8,000,000
14,032,568
14,032,568
4,434,038
15,390,639
14,032,568
1,000,000
1,000,000
1,500,000
1,000,000
750,000
5,000,000
5,000,000
17,025,836
5,000,000
5,000,000
509,037,390
510,639,822
509,030,587
505,857,018
499,938,129
Access Management
Supportive
TANF Related Child Care
Low Income Eligible Child
Care
Quality Supports
Mental Health
Family Supports and
Engagement
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FY10 Approp
FY11
Maintenance
Request to
H/SWM
• The Senate adopted an amendment to increase the Income
Eligible line item to nearly match the House appropriation
level.
FY11 Budget Process Update:
Senate Budget Impact
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For the most part the Senate matched the Governor and House FY11
budget recommendations. The Admin account and the Mental Health
account, however, were reduced lower than the House recommended
level.
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Administration: Appropriation would force administrative reductions and
potentially force a staff reduction of 6 positions.

Access Management: Recommends the Governor’s and House’s FY11
level, but does not include House language that mandates CCR&Rs manage
the waitlist.
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Supportive: Though funded at requested maintenance, the maintenance
number was submitted prior to the new Supportive Priority Population RFP;
therefore this account may have a deficiency.

DTA Related Child Care: Like the House, the Senate recommendation
could have a $6M deficit from projected FY11 need. At this level we
estimate that we will run out of funds after May, 2011 billing.

Income Eligible: Like the House, Senate funding level enables us to
support the over 4,500 kids for whom we opened access in February and
March and the homeless slots planned.

Quality Supports: Senate did not include funding for the LPC
Supplemental Service grant ($1.3M) as did the House. Senate, however,
did include permissive language in this item allowing EEC to fund the grant
from Quality Supports.
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Mental Health: A reduction in this account results in a reduced ability to
build relationships between pre-k and public schools. In particular, a
reduction results in fewer grants supporting crisis assistance provided to
children in need of services and the inability to offer a statewide system to
address the expulsion of preschoolers required by legislation.
The Next Step: Conference
3000-1000 Administrative Account
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Appropriation:
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Language:
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House: $11,785,583 - Limited flexibility and potential staff reductions.
Senate: $11,622,212 - Severe administrative restrictions and potential
staff reduction of 6 personnel. Senate budget does not include funding for
the CBA they passed a few months ago. This unfunded mandate ,on top of
other increasing cost, make it unlikely that EEC could maintain existing staff
levels.
Recommendation: Support House level - Overall, the House
recommendation of $11.78M would enable EEC to come closer to
maintaining services and support collective bargaining costs and other
liabilities in FY11. The Senate recommendation would force severe
reductions in the department which has already seen its FTE levels drop
from 178 to 161 (9.6%) since FY09. EEC therefore requests that the
conferees accept the House’s recommendation of $11.78M.
House: Basic boilerplate language, but also includes reporting language for
caseload and average costs.
Senate: Senate does not include this specific reporting language but adds
language that would require a report due by September 10 on costefficiencies EEC has gained since FY2010.
Recommendation: Compromise Language - The Department requests
that both reporting requirements not be included in the FY2011 Conference
Report.
The Next Step: Conference
3000-2000 Access Management
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Appropriation:
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House and Senate: $5,933,862= Fully funds anticipated FY11 cost.
Language:
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Not in Conference
The House added language that would reverse progress made when EEC, in
response to the single-state audit, re-bid the Access Management contract.
The Department requests that the House language (“and provided further
that voucher management, information and referral, and enhanced
consumer education shall be provided by the same agency” ) for the Access
Management account is not included in the Conference Report.
Recommendation: Senate Language. The House added language that
would reverse progress made when EEC, in response to the single-state
audit, re-bid the Access Management contract.
The Next Step: Conference
3000-3050 Supportive Account
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Appropriation:
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Language:
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House: $89,786,814 - Fully funds anticipated FY11 cost.
Senate: $85,713,747 - The Senate amount was the original maintenance
EEC request prior to priority population being amended. This initiative
added an additional $2.4M to the Supportive account. The Senate level
would result in a deficiency (probably after May billing has been processed in
June of 2011). The Department requests that the House funding level
recommendation for 3000-3050 prevails in Conference.
Recommendation: House - The House appropriation supports anticipated
FY11 costs.
Both House and Senate recommend the 6 month transitional language that
EEC requested. The only difference to be decided is that Senate only
requires a 15 day notice if money is to be transferred to this account in FY11
and the House requires a 30 day notice.
Recommendation: Senate Language - The 15 day notification window
enables EEC to ensure timely payments to providers should a transfer be
necessary at the end of FY11.
The Next Step: Conference
3000-6000 Quality Supports Account
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Appropriation:
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House: $15,390,639. This level would fully support anticipated FY11
expenditures, including the $1.3M LPC Supplemental Service grant
transferred from the Income Eligible.
Senate: $14,032,568. This funding level would not allow EEC to support the
$1.3M LPC: Supplemental Service grant currently paid from the Income
Eligible account but transferred to this account in FY11.
Recommendation: Support House level. A reduction will be required in the
Community Family Engagement activities if the House level is not secured.
Language:
The only difference between the two versions is that the Senate
includes permissive language that authorizes EEC to fund the LPC” Supplemental
Service grant from this item in FY11.
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Recommendation: Senate’s language is permissive and allows EEC the
flexibility to fund this item.
The Next Step: Conference
3000-6075 Mental Health Account
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Appropriation:
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Language:
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House: $1,000,000 - Provides maintenance funding enabling the 10
grantees of this account to receive the same levels of support in FY
Senate: $750,000 - A reduction in this account results in a reduced ability
to build relationships between pre-k and public schools and will lead to a
reduction in the number of towns served as well as the ability to reach and
engage hard to reach families. In particular, a reduction results in fewer
grants supporting crisis assistance provided to children in need of services
and the inability to offer a statewide system to address the expulsion of
preschoolers required by legislation.
Recommendation: Support House level.
Not in conference.
The Next Step: Conference
Accounts not in Discussion
The following accounts are not in conference, or have only minor
differences within language that must be settled in conference
committee:
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3000-4050 DTA-Related: Both House and Senate recommend $127M
and have similar budget language.
3000-4060 Income Eligible: House recommends $233.6M in FY11
and Senate proposed $233.52 (or $74K less than needed), which
should be enough to annualize the original 4,500 children EEC opened
access for beginning in February of 2010.
3000-5000 Head Start: Both the Senate and the House recommend
funding Head Start at $8M.
3000-5075 UPK: Both the Senate and the House recommend funding
UPK at $8M.
3000-7050: Family Engagements: Both the Senate and the House
recommend funding UPK at $5M.
We have prepared a letter to be sent to Conference Conferees and will
send this letter once we have secured EOE approval.
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The Next Step: Conference
Conferees
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On Monday, June 7 the House and Senate Conferees
were announced:
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House:
• Chairman Charles Murphy (D-Burlington)
• Representative Barbara L’Italien, ViceChairwoman (D-Andover)
• Rep. Robert Hargraves (R-Groton)
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Senate:
• Chairman Steven Panagiotakos (D-Lowell)
• Senator Stephen Brewer, Vice-Chair (D-Barre)
• Senator Michael Knapik (R-Westfield)