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FY13 State Budget Discussion

Board of Early Education and CareOctober 11, 2011

ANF Guidance FY13 Maintenance Budget

As stated in a memorandum from ANF dated October 3, 2011: Maintenance is 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.

These adjustments need to be made in accordance with the ANF Spending Plan Instructions and may include positive or negative annualization, or other funding increases or decreases related to settled litigation.

No additional items, either expansion or savings, should be proposed as part of maintenance.

In general, ANF budget analysts will be comparing projected FY13 maintenance funding against agency expenditures and levels of service this year.

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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ANF Guidance FY13 Maintenance Budget (Cont’d)

It is critical to note that Maintenance projections, particularly with respect to agency funding needs, should be developed primarily based on current year (FY12) levels of service.

ANF recognizes that since FY08 many agency operations and programs have been curtailed reflecting the reduced level of resources available to support agency budgets.

In many cases, the levels of services provided in FY12 do not reflect what agencies would recommend or prefer for the long term operation of their programs.

Given continued fiscal pressures that are expected to face the state in FY13 and beyond, ANF requests that agencies only provide Maintenance projections for those cost increases that are absolutely essential to ensure that FY12 service levels are preserved.

Plans are due on 10/24, but must be submitted first to EOE on 10/21.

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FY13 EEC Maintenance

It is likely most of EEC’s accounts will be limited to level funding (the FY12 appropriation level) and be expected to maintain the same level of services.

The Admin account will require additional funds to support collective bargaining increases, annualization of some costs, a federally mandated market analysis, and lease increases.

FY13 caseload projected need will be based on historical data and forecasted FY12 expenditure levels (which are always subject to change as the year progresses). Without firm policy changes imposed to solve the FY12 IE deficiency and no actual data to analyze the impact of work requirement changes that DTA will implement in October, it is difficult to state a comfortable FY2013 caseload estimate.

If awarded the RTTT/ELC grant, the federal government has a strict policy of “supplement, not supplant”. The Commonwealth can therefore not reduce any of EEC’s accounts using the RTTT/ELC award funds as a justification for this.

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FY13 Proposed Maintenance Budget: Admin

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FY12 Proposed 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 Proposed 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)• Two (2) Child Care Licensing Specialists: ($50,265 each for a

total of $100,530)

The total value of these five positions is $294,114.

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, 149.4 are filled.

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

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FTEs authorized in s tate account: 157.3

Risk Analysis

Plan Area Salary FTE Annual Cost FY13 Cost FY14 Cost FY15 Cost

28 New Positions

5 Positions = 5/28

9 Additional Positions = 9/28

14 Additional Positions =

14/28Commissioner's OfficeDirector of Community Partnership and Outreach 1 C $75,000 1 $75,000 $75,000Director of Pol icy, Eva luation & Research 3 I $75,000 1 $75,000 $75,000Pol icy Analys t - QRIS 1 Q $61,303 1 $61,303 $61,303Pol icy Analys t - Genera l i s t 3 Q $61,303 1 $61,303 $61,303Human Resources & FacilitiesLegal UnitManager, Deputy Genera l Counsel 2 I $76,000 1 $76,000 $76,000Office of AdministrationAudit Resolution: Fiscal Monitor 1 I $59,292 3 $177,877 $118,584 $59,292Office of Field OperationsFami ly/Community Qual i ty Specia l i s t 2 I $61,303 2 $122,606 $122,606Educator Provider Support Specia l i s t 2 I $61,303 2 $122,606 $122,606Child Care Licensing Specialist 1 Q $50,265 16 $804,244 $100,530 $351,855 $351,855

28 $1,575,939 $294,114 $472,450 $809,370

Key: Strategic Plan AreaQual i ty = QCommunications = CInfrastructure = I

Key: Risk Analysis1 = High Risk2 = Moderate 3 = Low Risk

Licensing SpecialistsFY13: Hi re 2FY14: Hi re 7FY15: Hi re 7

FY13 Proposed Caseload Accounts Budgets

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Child Care Accounts

3000-3050: Supportive FY12 Funding Level: $77,448,576 Anticipated Increase: $0. We will request level funding. Current forecasted spending for FY12 is $74.3M which projects a $3.1M surplus. At this time we cannot forecast the need for additional funds, but potential volatility in caseload, as monitored throughout the year, might change this status.

3000-4050: DTA Related FY12 Funding Level: $132,458,313 Anticipated Increase: $0. We will request level funding. Current forecasted spending for FY12 is $128.2M which projects a $4.2M surplus. At this time we cannot forecast the need for additional funds, but potential volatility in caseload, as monitored throughout the year, might change this status.

3000-4060: Income Eligible FY12 Funding Level: $232,897,940 Anticipated Increase: $4.7M Current forecasted spending for FY12 is $237.6M which projects a $4.7M deficit.

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

FY13 Proposed Budget – All Other Accounts

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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.

FY13 Proposed Budget – Maintenance of EffortQRIS

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 Proposed Budget: Maintenance

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Descriptor Line Item FY11 FY12FY13 Proposed

Budget

Difference between FY12

Budget and FY13

Proposed Budget

% Increase Notes

*Administration

3000-1000 $ 11,417,421 $ 11,683,491 $ 12,079,479 $ 395,988 3.39%

This figure is based on the cost of step increases, the value of collective bargaining agreement raises, and the cost of lease increases in the Boston office.

Access Management 3000-2000 $ 5,933,862 $ 5,933,862 $ 5,933,862 $ - 0.00%Supportive 3000-3050 $ 85,713,529 $ 77,448,576 $ 77,448,576 $ - 0.00%TANF Related Child Care 3000-4050 $ 127,358,313 $ 132,457,313 $ 132,457,313 $ - 0.00%**Low Income Eligible Child Care 3000-4060 $ 233,527,427 $ 232,897,940 $ 237,612,705 $ 4,714,765 2.02% Maintains present caseload.

Grants to Head Start 3000-5000 $ 7,500,000 $ 7,500,000 $ 7,500,000 $ - 0.00%UPK 3000-5075 $ 7,500,000 $ 7,500,000 $ 7,500,000 $ - 0.00%Quality Supports 3000-6000 $ 14,011,633 $ - $ - $ - 0.00%Mental Health 3000-6075 $ 750,000 $ 750,000 $ 750,000 $ - 0.00%Services for Infants and Parents and Other Quality Programs 3000-7050 $ 5,000,000 $ 18,186,633 $ 18,186,633 $ - 0.00%Reach Out and Read 3000-7070 $ - $ 800,000 $ 800,000 $ - 0.00%

498,712,185$ 495,157,815$ 500,268,568$ 5,110,753$ 5.41%

FY13 Proposed Budget: Maintenance Plus

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Descriptor Line Item FY11 FY12FY13 Proposed

Budget

Difference between FY12

Budget and FY13 Proposed

Budget%

Increase Notes

*Administration

3000-1000 $ 11,417,421 $ 11,683,491 $ 12,373,593 $ 690,102 5.91%

This figure is based on the cost of step increases, the value of collective bargaining agreement raises, the addition of five new positions, and the cost of lease increases in the Boston office.

Access Management 3000-2000 $ 5,933,862 $ 5,933,862 $ 5,933,862 $ - 0.00%Supportive 3000-3050 $ 85,713,529 $ 77,448,576 $ 77,448,576 $ - 0.00%TANF Related Child Care 3000-4050 $ 127,358,313 $ 132,457,313 $ 132,457,313 $ - 0.00%**Low Income Eligible Child Care 3000-4060 $ 233,527,427 $ 232,897,940 $ 237,612,705 $ 4,714,765 2.02% Maintains present caseload.

Grants to Head Start 3000-5000 $ 7,500,000 $ 7,500,000 $ 7,500,000 $ - 0.00%UPK 3000-5075 $ 7,500,000 $ 7,500,000 $ 7,500,000 $ - 0.00%Quality Supports 3000-6000 $ 14,011,633 $ - $ - $ - 0.00%Mental Health 3000-6075 $ 750,000 $ 750,000 $ 750,000 $ - 0.00%Services for Infants and Parents and Other Quality Programs 3000-7050 $ 5,000,000 $ 18,186,633 $ 18,186,633 $ - 0.00%Reach Out and Read 3000-7070 $ - $ 800,000 $ 800,000 $ - 0.00%QRIS $ 4,000,000 $ 4,000,000 Adds QRIS as a new program.

498,712,185$ 495,157,815$ 504,562,682$ 9,404,867$ 7.93%

FY13 Budget Process

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Appendix

The remaining slides are presented for your information and do not need to be part of our formal discussion today. EEC Staffing History UPK Update FY11 Support for QRIS Standards FY12 Support for QRIS Standards Services for Infants and Parents Update FY13 Budget Process

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EEC Staffing History

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Current FTE cap imposed by ANF is 157.3 FTES, therefore EEC has 7.9 positions that can be filled.

UPK Update (3000-5075)

FY11 Funding Level: $7.5M ($5,851,820 to fund 267 grantees) FY12 Funding Level: $7.5M ($5,771,330 to fund approximately 239

grantees)• Every FY11 UPK grantee was invited to apply for FY12 funding but some did

not apply while others have not met our funding criteria to be a QRIS participant.

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FY11 Support for QRIS Standards

Projects that Supported QRIS Standards: FY11 funds were spent in the UPK and Quality Support appropriations to support QRIS standards and included, but are not limited to, the following:

• Assessment Grant ($800,000): The purpose of this project , among other things, was to award funding for the purchase of observational tools utilized in the QRIS to measure program quality.

• QRIS Evaluation ($99,996): The Massachusetts Quality Rating and Improvement System (QRIS) Provisional Standards Study: Final Report outlines the process numerous parties engaged to inform the revisions of the newly adopted QRIS Standards.

• Kindergarten Readiness Assessment Model ($196,963): This project gave educators a way to assess the school readiness of children.

• Development of a One Credit QRIS Course ($20,000): EEC hired Wheelock and the United Way to develop an on-line course that meets the requirements for one (1) college credit on the Massachusetts Early Learning Guidelines for Infants and Toddlers, develop an accompanying webinar, and provide trainers’ trainings on this course in three locations statewide.

• Purchase of ECERS Tools for QRIS ($48,494): We purchased these tools and gave them to UPK classrooms.

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FY12 Support for QRIS Standards

Funds will be spent in the UPK and Infants and Families appropriations to support QRIS.

• QRIS ($200,000): In the absence of securing an independent appropriation for QRIS, EEC has set-aside $1M to support QRIS; $200,000 of that comes from the UPK appropriation.

• QRIS Grants ($800,000): EEC set-aside funds for QRIS from this appropriation and from UPK to ensure that this important activity is funded in FY12.

• Assessment Grant ($800,000): The purpose of the Assessment and Measurement Tools RFP is to award funding to one or more Institutions of Higher Education (IHEs) to continue to build an infrastructure within the Commonwealth for training and consultation.

• Birth to 8 Leadership Institute ($100,000): EEC and ESE seek to host three in-depth meetings in the 2011-2012 school year that will support Elementary school leadership/Principals and community-based early education and care leadership in learning together about three areas of timely importance to the Commonwealth.   

• Kindergarten Readiness Assessment Model ($232,400): From Fall 2011 to the Spring 2012 we will train a total of 76 teachers from Springfield, and possibly Holyoke and Worcester. As teachers are certified, they will be recruited to help train and coach their peers who are just learning. Training will occur via a combination of in-person workshops, videoconference supervision and coaching, and in-person certification meetings. Similar to the pilot, all 76 teachers must complete 5-10 training assessments before becoming certified to conduct independent assessments.

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Support for QRIS Standards, Cont’d.

Conference on literacy, numeracy, and social and emotional well being ($35,000): EEC will convene a conference to promote presentations and a discussion of the factors impacting a child’s growth and development in its early years.

Environmental Rating Observation ($15,000): EEC seeks to contract with a vendor who is qualified as a Level 1 reliable rater on each of the Environmental Rating Scales (ERS) tools to conduct ERS observations for early childhood and after school programs applying for a Level 3 or 4 rating in EEC’s Quality Rating and Improvement System (QRIS).

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Services for Infants and Parents Update (3000-7050)

The FY11 appropriations for Quality Supports ($14,011,633) and Family Supports ($5,000,000) were combined in FY12 to create the Infants and Parents appropriation ($18,186,633).

Funding for Professional Development and CFCE grantees was funded from both the Quality and Family Support accounts in FY11, but had to be funded from the combined accounts in FY12.

The net loss in funding in addition to the need to fund QRIS using $800,000 from this account resulted in a funding decrease for Professional Development and CFCE grantees as follows:

• FY11 Professional Development Funding: $3,300,000• FY12 Professional Development Funding: $3,167,999

• FY11 CFCE Funding: $14,502,076• FY12 CFCE Funding: $13,665,638

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