BudgetBudget

FY2010 UpdateFramework for FY2011 Budget

Board of Early Education and CareOctober 13, 2009

Table of ContentsTable of Contents

FY10 Spending Plan“9C” Exercise;FY10Caseload Update;Fiscal Year 2011

Maintenance Spending Plan; and

FY2011 Caps – Limited Choices

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FISCAL YEAR 2010 FISCAL YEAR 2010 Spending PlanSpending Plan

Account Descriptor FY2009 Spent FY2010 Budgeted FY2010 Spending Plan30001000 Administration 13,217,121 11,944,704 11,944,704 30002000 Access Management* 23,102,031 9,782,724 9,782,724 30003050 Supportive 72,566,222 77,836,888 77,836,888 30004050 TANF Related Child Care 187,872,044 116,232,279 116,232,279 30004060 Low Income Eligible Child Care 213,166,970 273,572,478 273,572,478 30005000 Grants to Head Start 9,000,000 8,000,000 8,000,000 30005075 UPK 10,859,239 8,000,000 8,000,000 30006000 Quality Supports** 1,738,289 14,080,868 14,080,868 30006050 Professional Development*** 2,944,835 - - 30006075 Mental Health 2,357,800 1,000,000 1,000,000 30007050 Family Supports and Engagement 8,474,233 5,000,000 5,000,000

546,878,923 525,449,941 525,449,941

*FY10 shows the CCR&R portion of funding only; $10.1M has been moved down to the Quality account (3000-6000) to fund the local planning portion of the Coordinated Family and Community Engagement grants.** FY10 shows the merging of the FY09 Accreditation funding with the Professional Development (PPS) grants which totals $1.9M in FY10.

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Fiscal Year 2010Fiscal Year 2010Caseload – DTA Related (3000-4050)Caseload – DTA Related (3000-4050)

Month # of Kids AmountJuly* 16,811 11,995,484$ August* 16,698 10,822,563$ September 16,235 11,023,546$ October 15,907 10,800,835$ November 15,563 10,086,929$ December 15,181 10,776,422$ January 14,833 9,613,790$ February 14,533 8,970,809$ March 14,185 10,069,399$ April 13,861 9,411,603$ May 13,476 8,734,271$ June** 13,045 8,857,540$

121,163,191$ 116,232,279$

(4,930,912)$ * Actual

FY10 AppropriationProjected Deficiency

• Drop in caseload is primarily due to the transfer of the post-transitional populationfrom this account to the Income Eligible account (3000-4060); and

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Fiscal Year 2010Fiscal Year 2010Caseload – Supportive Care (3000-3050)Caseload – Supportive Care (3000-3050)

Month # of Kids Monthly CostJuly* 6,404 7,023,214$ August* 6,595 6,497,689$ September 6,632 6,686,085$ October 6,657 6,730,317$ November 6,682 6,449,656$ December 6,707 7,040,806$ January 6,732 6,551,700$ February 6,757 6,319,248$ March 6,782 7,121,559$ April 6,807 6,835,335$ May 6,832 6,655,750$ June 6,857 6,997,309$

80,908,669$ 77,836,888$ (3,071,781)$

*Actual

Supportive

AppropriatedProjected Deficiency

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Fiscal Year 2010Fiscal Year 2010Caseload - Caseload - Income Eligible (3000-4060)Income Eligible (3000-4060)

Month # of Contracts AmountJuly* 31,628 19,856,020 Aug* 30,891 17,849,893 Sep 31,875 18,849,038 Oct 31,681 20,035,673 Nov 31,902 18,706,671 Dec 32,232 20,750,711 Jan 32,645 20,228,959 Feb 34,638 19,484,290 Mar 35,055 22,147,175 April 35,403 21,902,452 May 35,780 21,162,260 June 36,342 23,084,450

244,057,59310,398,282

254,455,875273,572,47819,116,603

*ActualFY10 Available

Total Income Eligible Projection

FY10 Appropriation

Grant SpendingTotal FY10 Proj. Spending

FY2010 Budget UpdateFY2010 Budget Update“9C” Reductions“9C” Reductions

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On October 15 ANF will certify whether projected tax revenues are sufficient to support budgeted expenditures in FY10. The news is not expected to be good considering September collection are an astounding $200M under benchmark.

As part of the “9C”’s, EOE requested that the caseload account (Supportive, DTA Related, and Income Eligible Account be held harmless.

FY2011 Maintenance and Cap Spending FY2011 Maintenance and Cap Spending Plan OverviewPlan Overview

FY11 Maintenance Budget: EEC is fully aware of the fiscal climate

and only requests enough funding to maintain our commitment to quality care.

In all other accounts, we propose level funding most of the non-caseload accounts.

In addition, the only increase in the Administration account (3000-1000) account we proposed was annualizing unavoidable increases related to personnel and lease spaces.

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Fiscal Year 2011Fiscal Year 2011Maintenance Budget and FY11 CapMaintenance Budget and FY11 Cap

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Account Descriptor *FY11 Maintenance

Request Percent of

EEC Budget3000-1000 Administration 12,073,166$ 2.30%3000-2000 Access Management 9,782,724$ 1.86%3000-3050 Supportive 81,274,105$ 15.47%3000-4050 TANF Related Child Care 101,145,611$ 19.25%3000-4060 Low Income Eligible Child Care 285,093,468$ 54.26%3000-5000 Grants to Head Start 8,000,000$ 1.52%3000-5075 UPK 8,000,000$ 1.52%3000-6000 Quality Supports 14,080,868$ 2.68%3000-6075 Mental Health 1,000,000$ 0.19%3000-7050 Family Supports and Engagement 5,000,000$ 0.95%

525,449,942$

FY11 Spending and the FY11 Spending Cap

7% cut would force $37M in reductions; 10% cut would force $53M in reductions; and 15% cut would force $$79M in reductions.

FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited ChoicesLimited Choices

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FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited Choices – Admin AccountLimited Choices – Admin Account

Admin Account (3000-1000): This account is funded at $11.9M in FY10. In FY11 this account would need $12.1M just to maintain FY10 levels. The admin only accounts for 2.3% of the entire EEC budget. EEC already lost 5% of workforce since the beginning of FY09. The following are the major areas that this amount supports: $10.1M – Personnel and Related Charge backs: To

support existing staff and backfill vital positions; $1.2M – Space Leases: $255K – Travel: Much of this is dictated by Collective

Bargaining Agreements and program monitoring; $280K – Contractors and Consultants: This areas

provides indispensible support to EEC; $340K – General Office Admin: These expenses include

office supplies, postage, single state audit chargeback, board members travel reimbursement, IT equipment leases.

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FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited ChoicesLimited Choices

Admin Account (3000-1000): This account is funded at $11.9M in FY10. The following is a breakdown of the $12.1M FY2011 Maintenance needs:

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10,029,215

255,450

279,625 340,283

1,168,593

FY11 Admin Maint. Amount

Payroll

Travel

Contracted Employees

Administrative Expenses

Lease Space

FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited Choices - ALimited Choices - Access Management

This account requires at least level funding from FY10 to maintain service levels in FY11. The $9.7M budget level represents 1.9% of the entire EEC budget;

This account funds $9,697,724 in contracts to 15 CCR&Rs for voucher management, information & referral, etc.; and

This account also funds $35K in translation services as well as $50K set aside for consultants.

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FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited Choices – Caseload AccountsLimited Choices – Caseload Accounts

These account make roughly 89% of the entire EEC budget and serve roughly 56,200 children monthly.

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FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited Choices - Limited Choices - Head Start

This account funds $8,000,000 in Head Start State Supplemental Salary funding to 29 Head Start programs and 330 state funded slots in FY10.

Of the center-based programs 37.4% of the children are full day enrollment and 62.7% are part day enrollment

The overall budget only makes up 1.52% of the entire EEC budget.

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FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited Choices - Limited Choices - Mental Health

The overall budget of this account makes up much less than a percent of the entire EEC budget.

90% of the funding go toward 10 mental health grants.

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FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited Choices – Limited Choices – UPK

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279 UPK grants awarded at the program level.

FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited Choices – Limited Choices – Quality Account

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•Coordinated Family & Community Engagement (CFCE): 120 grantees; •PPS Grant: 94 grantees;•Building Careers: 21 grantees;•Professional Development for CCR&R: 15 contracts; and• Early Educators (CDA): 173 scholarship redeemed.

FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited Choices – Limited Choices – Family Engagements

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MFN Grant: 42 grantees; 34 consolidated with Coordinated Family & Community Engagement grants (CFCE); PCHP Grant: 25 grantees; 22 consolidated with CFCE grants JFSP Grant: 11 grantees; all consolidated with CFCE grants

FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited ChoicesLimited Choices

Consider X to X ReductionWhich program strategies do we

consider redefining/restructuring or deleting?

-AND-Which budget items advance the

strategic plan and should, therefore, be preferred?

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FY11 Budget Cap ReductionFY11 Budget Cap ReductionLimited ChoicesLimited Choices

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