Budget and Caseload Update Policy and Fiscal Committee March 7, 2011

Budget and Caseload Update

Policy and Fiscal CommitteeMarch 7, 2011

Table of Contents

FY11 Caseload OverviewFY11 Projected DeficitARRA Spending

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FY11 Caseload Overview

Income Eligible: There is a $5.3M projected deficiency. This represents a significant increase compared with last month’s projected deficiency of $3.87M. The actual voucher cost in January is $300K higher than forecasted in December. Projecting this additional $300K for five months through June is directly related to the $1.5M increase in the deficiency.

• This deficit projection could be greatly affected by the closure of voucher access. February billing (processed at the end of March) will give the first real indication of the impact of access closure we can expect for the remaining months in this fiscal year.

• EEC will lower the deficiency in IE by transferring the cost for the children paid in IE from July to January prior to the promulgation of the Transition Supportive Child Care (TSCC) Policy.

• Though extremely cumbersome and time consuming to transfer hundreds of transfers, it is an important budget transaction as it reflects EEC’s continued responsibility to guard against a deficiency in the IE account.

• The value of the TSCC transfer is $1.17M. • The transfer of $1.17M will lower the projected deficiency to $4.19M.

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FY11 Caseload Overview, Continued

Supportive: The projected surplus has increased from $12M to just over $12.3M. EEC assumes caseload will reach the maximum amount projected for the remainder of the year. If it does not (and it could be reasonably argued that it will not) this surplus may grow to more than the $12.3M.

The surplus will be lowered by $1.17M once EEC transfers into the account from IE the $1.17M in TSCC costs.

EEC has also built $500K into June’s contract projection in anticipation of historical end-of-year adjustments that typically occur.

DTA-Related Caseload: The deficiency decreased $500K from $8M to $7.5M. The actual expenses in January were nearly $10.2M; we had forecasted $10.6M. EEC has reduced the deficiency by January’s actual expense, but continues to anticipate caseload to increase in succeeding months.

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Fiscal Year 2011 Income Eligible (3000-4060)

Month # of kids Amount # of kids Amount # of Kids Amount

*Jul 18,682 9,702,549$ 16,060 10,187,106$ 34,742 19,889,656$

*Aug 18,398 9,646,549$ 16,186 10,196,646$ 34,584 19,843,195$

*Sep 17,858 8,286,999$ 17,020 10,136,690$ 34,878 18,423,689$

*Oct 17,529 8,959,941$ 16,456 9,869,406$ 33,985 18,829,347$

*Nov 18,221 8,961,080$ 16,808 10,522,531$ 35,029 19,483,611$

*Dec 18,378 9,804,939$ 16,828 11,268,831$ 35,206 21,073,770$

*Jan 17,535 8,864,746$ 16,828 10,323,791$ 34,363 19,188,537$

Feb 17,145 7,941,544$ 16,982 9,787,415$ 34,127 17,728,959$

Mar 16,407 8,734,640$ 17,135 11,199,606$ 33,542 19,934,246$

Apr 15,900 7,734,427$ 17,289 10,258,145$ 33,189 17,992,572$

May 15,450 7,872,516$ 17,442 10,728,876$ 32,892 18,601,392$

Jun 15,000 7,644,680$ 17,596 11,228,876$ 32,596 18,873,556$

104,154,609$ 125,707,921$ 229,862,530$

9,026,964$

238,889,494$

233,527,427$

(5,362,067)$

Total Forecasted Spending

FY11 Appropriated

Project Amount Available

Vouchers Contracts/Flex Total Population

Grants

* Actual Figures• Previous month projected a $3.87M deficiency.

Fiscal Year 2011Income Eligible Caseload Projected Cost

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FY11 Approp: $233.5M

Blue represents actual amount billed

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Fiscal Year 2011 DTA Related (3000-4050)

Previous month projected a $8M deficiency.

Month # of Vouchers Amount*July 17,238 $11,384,565

*August 17,116 $11,534,836*September 17,094 $10,670,860

*October 16,842 $11,232,697*November 17,038 $11,656,535*December 16,725 $11,995,464*January 15,210 $10,146,404February 15,616 $9,921,153

March 16,093 $11,757,654April 16,687 $11,131,701May 16,829 $11,760,799June 16,708 $11,676,564

$134,869,232$127,358,313

(7,510,919)$ *Actual Amount

Amount Appropriated

DTA Related Caseload (3000-4050)

Projected Deficiency

FY2011DTA Caseload Projected Cost

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FY11 Approp: $127.3M

-Blue = Actual amount billed-Green = Projection

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Fiscal Year 2011 Supportive Care (3000-3050)

Month Kids Amount*July 6,260 6,516,395$ *August 6,153 6,492,854$ *September 6,008 6,056,861$ *October 5,686 5,856,497$ *November 5,610 6,149,743$ *December 5,588 5,967,065$ *January 5,451 5,930,734$ February 5,624 5,451,031$ March 5,624 6,250,574$ April 5,624 5,702,276$ May 5,624 5,965,484$ June 5,624 6,462,152$

72,801,667$ 600,000$

73,401,667$ 85,713,747$ 12,312,080$ Projected Surplus

Supportive Care (3000-3050)

GrantsProjected ExpenseAppropriated

Previous month projected a surplus of $12.0M.

Fiscal Year 2011Supportive Caseload Projected Cost

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FY11 Approp: $85.7M

Light Blue represents actual amounts billed.

FY11 Caseload Overview – Summary

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FY2011 Caseload Spending FY2011 Projection

Variance Projection vs.

Budget Income Eligible Contract/Flex 129,556,565$ 125,707,921$ 3,848,644$ Voucher 94,941,586$ 104,154,609$ (9,213,023)$ Grants 9,029,276$ 9,026,964$ 2,313$

233,527,427$ 238,889,494$ (5,362,067)$ DTA Voucher 127,358,313$ 134,869,232$ (7,510,919)$

Supportive Contract/Flex 74,191,608$ 68,097,695$ 6,093,913$ Voucher 10,922,139$ 4,703,972$ 6,218,167$ Grants 600,000$ 600,000$ -$

85,713,747$ 73,401,667$ 12,312,080$ Total 446,599,487$ 447,160,393$ (560,906)$

FY11 Caseload Overview - Solutions

Step 1 - Supplemental Language: Section 23 of House bill #37 (Governor’s proposed Supplemental budget) allows EEC to transfer the surplus from the Supportive account to the Income Eligible and DTA-Related caseload accounts. This would partially remedy the current projected deficiencies in both accounts.

Issue: Timing. EEC does not know if this bill will pass in the Legislature. If the Legislature does not intend to pass this section we will continue to inform ANF that there will be a deficit in the DTA account (which is a reflection of the requirement to serve all referred cases) and in the IE account (which will require a supplemental allocation to remediate).

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FY11 Caseload Overview - Solutions

Step 2 – Further Caseload Closure Actions: Based on current projections, an overall deficiency of $560K would still persist in the caseload accounts despite expanded transferability.

Actions• Close sibling access through vouchers and contract slots.• Close contract slots for providers that are over 5% in the use

of flex pool slots.

Step 3 – Transfer of Costs: As noted earlier, EEC will transfer TSCC costs from the Income Eligible account to the Supportive Account.

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FY11 Caseload: Waitlist

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*Waitlist Category Infant Toddler Preschool School Age Total 2/27/11

Jan Total

Child of Foster Care 7 14 8 31 60 62

Child of Homeless family 16 29 44 34 123 131

Child of Military Personnel 4 11 6 9 30 31

Child of Teen Parent 61 16 8 3 88 82

Child with Special Needs 39 138 173 320 670 663

Continuity of Care: Aging Out - 4 5 77 86 103

Continuity of Care: Approved Break in Service 1 15 23 35 74 67

Continuity of Care: Child Left Care within 3 Months 2 7 18 32 59 74

Continuity of Care: Geographic Relocation 2 9 16 13 40 35

Continuity of Care: Homeless Contract 1 1 1 1 4 5

Continuity of Care: Supportive Referral 1 19 18 27 65 84

Continuity of Care: Teen Parent Contract 3 4 5 1 13 12

General Priority 2,731 3,965 3,820 4,675 15,191 14,292

Grandparent/Guardian Families 13 54 52 126 245 247

Parent with Special Needs 35 95 90 141 361 331

Sibling: Contract 50 24 18 53 145 144

Sibling: Voucher 116 29 14 113 272 253

Summer only care 11 5 10 369 395 391

Total 3,093 4,439 4,329 6,060 17,921 17,007

*As of February 27, 2011.•This number is an increase of 914 children from the January update, or a 5.36% increase.

ARRA Spending Update

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ARRA Monitors 298,428$ -$ 88,956$ 209,472$ Birth to 8 Leadership Institute 125,000$ -$ 35,403$ 89,597$

CCR&R - to assist with provider reassessment transition 934,351$ 617,713$ 934,351$ (0)$ CCRR Streamlining 561,187$ -$ 176,860$ 384,327$ CCRR Business Model 75,000$ -$ 27,200$ 47,800$ CFCE Infrastructure Grants (111) 246,436$ -$ 139,529$ 106,907$

Communications Infrastructure Strategy andCampaign 498,500$ -$ 199,000$ 299,500$ Contracted Providers - Voucher Reassessment 881,809$ 143,880$ 808,318$ 73,491$ CSEFEL Professional Development Opportunity 300,000$ -$ 192,784$ 107,216$ Early Childhood Info Systems (ECIS) 710,170$ -$ 246,280$ 463,890$ Early Literacy Program 225,000$ -$ 183,833$ 41,167$ Head Start Wraparound Care 944,719$ -$ 276,289$ 668,430$ Improvement of Physical Environments 500,000$ -$ 449,181$ 50,819$ Infant/Toddlers Early Childhood program standards 50,000$ 4,150$ 50,000$ -$ Infant/Toddler Rate Increase 2,220,925$ -$ -$ 2,220,925$ Information and Referral Program 150,000$ 150,000$ 150,000$ -$ IT - 2 consultants to reconfigure existing IT structure 149,015$ 54,672$ 110,275$ 38,740$ IT - Software Dev Consultant: EEC IS Security 112,510$ -$ 26,664$ 85,846$ Kindergarten Entry Enrichment Program - KEEP 322,980$ -$ 264,342$ 58,638$ LEPPD Spanish (Speaking Providers) Formerly named Professional Dev/Access to Higher Ed for LEP 150,000$ -$ 92,305$ 57,695$ Out of School Time Learning 499,000$ 57,955$ 405,625$ 93,375$ PD Research Project 165,000$ -$ 87,500$ 77,500$ PSCCE - Pre School Child Care Education (Originally 18 month access for PS) 7,165,999$ -$ 2,560,859$ 4,605,140$ QRIS-Consultant-Award Grants 3,400,000$ -$ 580,000$ 2,820,000$ QRIS - ERSI 145,416$ 85,416$ 138,814$ 6,602$ Readiness Centers (Iwheelock College) 196,963$ -$ -$ 196,963$ Readiness Centers 400,000$ -$ 166,667$ 233,334$ REKEEP: KEEP Before & After School Care 362,709$ -$ 58,660$ 304,049$ Summer Vouchers 2009 636,714$ 636,714$ 636,714$ (0)$ Summer Only Voucher 2010 650,000$ 52,840$ 681,303$ (31,303)$ Waitlist Study 490,096$ -$ 182,524$ 307,572$ Indirect Charges 303,147$ -$ 130,032$ 173,115$

23,966,942$ 1,803,340$ 10,176,139$ 13,790,803$

42.51%

ARRA Spending by Month

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ARRA Spending Update

We have spent $10.18M in ARRA funds (42.51%) through February. 

The goal was to have spent $10.42M. 

We missed our mark by $240K which is not substantial. We are confident we will recover this gap. 

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