FY11 Caseload Update

Policy and Fiscal CommitteeMay 2, 2011

FY11 Caseload Overview Summary July 2010 – March 2011

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FY2011 Caseload Spending FY2011 Projection

Variance Projection vs.

Budget Income Eligible Contract/Flex 129,556,565$ 125,560,922$ 3,995,643$ Voucher 94,941,586$ 108,285,445$ (13,343,859)$ Grants 9,029,276$ 9,026,964$ 2,313$

233,527,427$ 242,873,330$ (9,345,903)$ DTA Voucher 127,358,313$ 133,148,836$ (5,790,523)$

Supportive Contract/Flex 74,191,608$ 68,587,851$ 5,603,757$ Voucher 10,922,139$ 5,201,764$ 5,720,375$ Grants 600,000$ 600,000$ -$

85,713,747$ 74,389,614$ 11,324,133$ Total 446,599,487$ 450,411,781$ (3,812,294)$

Caseload Spending: Cross Check Based on YTD Expenditures Only

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Caseload Accounts FY2011 Budget

Amount Spent through March

Billing Balance

Remaining

YTD Average per Month

Expenditure through March

Balance left for each month on average April -

J une

Projected Average

Monthly Cost April - J une

Monthly Difference

Difference for Three Months April - J une

I ncome Eligible 3 3 Contract/Flex 129,556,565$ 93,952,593$ 35,603,972$ 10,439,177$ 11,867,991$ 10,536,110$ 1,331,881$ 3,995,642$ Voucher 94,941,586$ $ 83,020,495 $ 11,921,092 9,224,499$ 3,973,697$ 8,370,582$ (4,396,885)$ (13,190,654)$

224,498,151$ 176,973,087$ 47,525,064$ 19,663,676$ 15,841,688$ 18,906,692$ (3,065,004)$ (9,195,012)$ DTA Voucher 127,358,313$ 100,272,462$ 27,085,851$ 11,141,385$ 9,028,617$ 10,958,791$ (1,930,174)$ (5,790,522)$

Supportive Contract/Flex 74,191,608$ 50,346,864$ 23,844,744$ 5,594,096$ 7,948,248$ 6,080,329$ 1,867,919$ 5,603,757$ Voucher 10,922,139$ $ 4,791,632 $ 6,130,507 532,404$ 2,043,502$ 136,711$ 1,906,791$ 5,720,374$

85,113,747$ 55,138,496$ 29,975,251$ 6,126,500$ 9,991,750$ 6,217,040$ 3,774,710$ 11,324,131$ Total 436,970,211$ 332,384,045$ 104,586,166$ 36,931,561$ 34,862,055$ 36,082,523$ (1,220,468)$ (3,661,403)$

Note: The YTD average does not include end of year adjustments forecasted of $500K in both IE & Supportive Contracts and GRANTS.

1. Budget does not include grant allocations.

Income Eligible Notes1.The lowest monthly expenditure total was in September (22 days): $18,423,922.2.The highest monthly expenditure total was in March (23 days): $21,504,035.3.December was also a 23 day month, and we spent $21,081,009, less than March and before access was closed.4.We are projecting - if caseload does not increase - that average billing for April, May, and June will be $18,906,692 per month, considerably less than March's billing of $21,504,035.5.The children reported in March's caseload are BILLED children and therefore must be carried as part of the caseload going forward.6.This projection forecasts a deficit of $9,195,012 in the Income Eligible account.

Recommendations to Mitigate Deficiency

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Implement measures to prevent the deficiency from growingClose Access for Teen Parent and Homeless Contract Slots

Implemented policy effective April 20, 2011. Will save $402K.

To respond to the $3.8M DeficiencyARRA CCDF: Apply ARRA Funds to Income Eligible funded childcare services for care that is not supplanted. Potential source is to identify the number of new preschool children in FY11 that were assigned to IE vouchers and/or contracts.

Use up to $4.0M in ARRA CCDF funds to support CCDF eligible expenditures in the Income Eligible account for the months of May and June.

Recommendations to Mitigate Deficiency

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If the deficiency is greater than $3.8MPayment Reduction: Reduce the amount paid on all voucher and contract related invoices (excluding family child care providers) submitted in July for June services by a percentage necessary to stay within the caseload appropriations after May services (billed in June) have been completely processed in MMARS. Implementation of this reduction may be through either a percentage allocation or a specific rate reduction (e.g., $1.00/day).