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FY12 State Budget Discussion

Policy and Fiscal Committee September 2010

FY12 and FY 13 Maintenance

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Due: September 28

Agencies are required to submit maintenance spending for FY12 and FY13 to A&F including narrative spending plan memos.

From “FY 11 Spending Plan Approval and FY12/13 Maintenance” issued by Mike Esmond, Budget Director, 9/8/10:

“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 FY12 and FY13 as was achieved in FY11.”

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

“In all cases, agencies should clearly identify and explain maintenance increases that are projected for each account including providing any supporting information (caseload forecasts, energy costs projections, litigation expenses, leasing changes) that is necessary.

FY2012 House One Development

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“Based on modeling done by A&F, it is clear that we will again have a gap between projected revenues and spending and therefore will not be able to afford maintenance levels of funding in FY12 and FY13.”

A&F will continue to set spending caps.

A&F has NOT yet provided FY12 spending targets to each Secretariat in order to develop balanced FY12 budget recommendations.

FY12 EEC Budget Recommendations

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Increase Infant/Toddler RateValue: $2.757M annualized (FY12: $2.059M)The 2009 Child Care Market Survey indicates EEC rates are significantly below median by region and type of care. This increase reduces the gap between the current EEC rate and the Market Survey median rate.$2.757M = 1.2% of IE appropriation.

Support QRIS ActivitiesValue: $4.0MQRIS has raises the standard of care and must therefore be supported with its own annual appropriation. Likely source of funding is a transfer from IE to Quality Support.

Return Mental Health (3000-6075) to FY10 Funding LevelValue: $250,000 (Total value = $1M)Reduction in funding cut services and emphasis on supporting crisis assistance for children in need of services.

Return Admin Account to FY10 Funding LevelValue: $316,489There will be staff reductions in FY12 unless funds are restored to the admin account. We continue to need additional staff to support communication and other roles.

FY12 EEC Budget Recommendations

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Increase Funding for Professional DevelopmentValue: $500KThe FY11 statewide implementation of a professional development network once implemented is expected to have a demand which exceeds current funding.

Support Children Needing Care Despite Parental StatusValue: $23M (approximately)There are about 20% of the children on the waiting list who are unable to receive care because of parental work status. Our efforts should be directed to providing quality care for these children who are at high educational risk (not demonstrated in FY10-11-12 Funding Comparison).

FY10-11-12 Funding Comparison

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Descriptor Line Item

FY10 Final Appropriation (Post

9C) FY11 Final (w/o FMAP) FY12 Proposed

Difference between FY11 and Proposed

FY12 Notes

Administration 3000-1000 $ 11,622,212 $ 11,305,723 $ 11,622,212 $ 316,489 Returns admin to FY10 post 9C level

Access Management 3000-2000 $ 6,358,771 $ 5,933,862 $ 5,933,862 $ - Supportive 3000-3050 $ 77,836,888 $ 85,713,529 $ 85,713,529 $ - TANF Related Child Care 3000-4050 $ 116,232,279 $ 127,358,313 $ 127,358,313 $ -

Low Income Eligible Child Care 3000-4060 $ 260,954,672 $ 228,527,605 $ 226,586,605 $ (1,941,000)

Transfers $4M to Quality Suports for QRIS. Adds $2.059M for IT Rate Increase.

Grants to Head Start 3000-5000 $ 8,000,000 $ 7,500,000 $ 7,500,000 $ - UPK 3000-5075 $ 8,000,000 $ 7,500,000 $ 7,500,000 $ -

Quality Supports 3000-6000 $ 14,032,568 $ 14,011,633 $ 18,511,633 $ 4,500,000

Transfer of $4M from IE to Quality Supoorts. Addition of $5K to support Professional Development.

Mental Health 3000-6075 $ 1,000,000 $ 750,000 $ 1,000,000 $ 250,000 Restores Mental Health to FY10 level

Family Supports and Engagement 3000-7050 $ 5,000,000 $ 5,000,000 $ 5,000,000 $ -

509,037,390$ 493,600,665$ 496,726,154$ $ 3,125,489