Creating a Policy Framework and FY14 Proposed Budget

Presentation to the EEC Board

October 16, 2012 

Strategic Plan Context

The presentation of the FY14 budget is in the context of the EEC Strategic Plan.

WORKFORCE: Create a workforce system that maintains worker diversity and provides resources, supports, expectations, and core competencies that lead to the outcomes we want for children.

QUALITY: Create and implement a system to improve and support quality statewide.

ACCESS: Increase and promote family support, access, and affordability.

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Building the Foundation

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Over the past three years we have made a significant amount of progress improving the infrastructure and delivery of the early education and care system. We are ready for an investment in our future to sustain these initiatives and create new ones.

QRISProfessional Qualifications RegistryWorkforce DevelopmentKindergarten Readiness AssessmentRTTT-ELC: Birth to Grade 3 AlignmentLearning Standards Aligned with Common CoreUpdated Regulations

EEC Total Available Budget

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EEC Waitlist vs. IE Children Served

5Spike in July 09 is due to 3A to 3D transitional children from DTA to IE.

Immediate Needs

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In a time of limited resources, and in the absence of any funding increases, we have many immediate needs to consider, as follows:

1.A Rate Increase: The most recent Massachusetts Market Price Child Care Survey shows that we are not close to reimbursing at the federally suggested level of the 75th percentile. There has not been a rate increase since March 2009, after 9C which was less than 1%.

2.Access for high needs children: Voucher access has been closed since February 2011.

3.Staffing to Support Historical Deficit in Licensing, Monitoring, and Implementation of Systems to Support Policy for Closing the Proficiency Gap.

4.Transportation: Funding is needed to support the actual cost of transportation in the field.

Responding to Immediate Needs

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In a time of limited resources, and in the absence of any funding increases, we have many immediate needs to consider, as follows:

Rate Increase: $13,790,577 or 28% of $50MThe cost of a 3% increase rate increase for programs in QRIS has been added as a separate cost for each of the caseload accounts and is part of the overall $50M request.

IE: $7,645,174 DTA: $4,397,492 DCF: $1,747,911

Quality: $12,500,000 or 25% of $50M25% of the total is set aside for grants to QRIS validated programs which could include grants to programs for salary, structure and additional education for staff.

Access for high needs children: $23,709,423 or 47% We estimate that we could serve 2,790 IE children on an

annualized basis.

Proposed FY14 EEC Budget

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Line Item Descriptor FY13 BudgetProjected FY14

CostProposed FY14

Budget

3000-1000 Administration $ 12,322,954 Administration $ 804,244 13,127,198$

3000-2000 Access Management $ 5,933,862 $ 5,933,862

3000-3050 Supportive $ 77,330,875 $ 1,747,911 $ 79,078,786

3000-4050TANF Related Child Care $ 125,495,740 $ 4,397,492 $ 129,893,232

3000-4060Income Eligible Child Care $ 231,870,452 $ 31,354,597 $ 263,225,049

3000-5000 Grants to Head Start $ 8,000,000 $ 8,000,000

3000-5075 UPK $ 7,500,000 $ 7,500,000

3000-6075 Mental Health $ 750,000 $ 750,000

3000-7050Services for Infants and Parents $ 18,164,890 $ 18,164,890 Quality $ 12,500,000 $ 12,500,000

3000-7070 Reach Out and Read $ 750,000 $ 750,000

488,118,773$ 50,804,244$ 538,923,017$

APPENDIX

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Early Education and Care SystemNon CCDBG-Eligible Children

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Children on Waitlist Possibly Eligible

Age CriteriaInfant (0 – 14 months): 5,129Toddler (15 months – 2.9 years): 9,722Preschool (2.9 years – 5 years): 15,239

Example of No. of potential children served Infant/Toddler Rate (3% Level 2 increase has been applied.) Cost estimate assumes Center Based Program for 261 days

No. of Children Cost per Child Annual CostInfant 850 14,068.77$ 11,958,454.50$ Toddler 1,150 12,652.93$ 14,550,869.50$ Preschool 2,580 9,102.38$ 23,484,140.40$ Total 49,993,464.40$

Access to Care: Cost of Staffing

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In November, 2010, the Board recommended the staffing pattern recommended below. If we were to increase funding for access, it is even more critical to fill the open positions in Fiscal, Policy, Quality Supports, and Communication.

SalaryBoard

Rec'd FTE *

Post RTTT Pre RTTT

Child Care Licensing Specialist ***** $50,265 16 $804,244 $804,244Total FY14 16 $804,244 $804,244

Director of Operations ** $85,276 1

Director of Community Partnership and Outreach *** $75,000 1 $75,000

Director of Policy, Evaluation & Research $75,000 1 $75,000 $75,000Deputy General Counsel $76,000 1 $76,000 $76,000Policy Analyst - QRIS $61,303 1 $61,303 $61,303Policy Analyst - Generalist $61,303 1 $61,303Family/Community Quality Specialist $61,303 2 $122,606Educator Provider Support Specialist $61,303 2 $122,606Audit Resolution: Fiscal Monitor **** $59,292 3 $177,877 $118,584

Total FY15 13 $771,695 $330,887

**Repositioned Director of Human Resources*** Position funded in RTTT; will end 12/2015.

***** Licensing Specialists; priority to fill positions**** One postion funded by Federal Grant RTTT

*FTEs authorized in state account: 155.3

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Region Age Group EEC Rate 50th

Percentile75th

Percentile

EEC Market Access Rate

Infant $47.90 $ 52.00 $ 64.60 31%Toddler $43.20 $ 49.00 $ 58.20 12%

Preschool $33.40 $ 36.00 $ 44.00 7%Infant $49.20 $ 53.50 $ 65.80 13%

Toddler $44.20 $ 50.00 $ 60.00 17%Preschool $33.40 $ 40.00 $ 51.00 11%

Infant $54.95 $ 70.00 $ 80.00 5%Toddler $49.55 $ 62.00 $ 73.80 4%

Preschool $35.65 $ 48.04 $ 57.00 3%Infant $59.50 $ 75.00 $ 84.00 10%

Toddler $52.85 $ 70.60 $ 81.76 7%Preschool $36.70 $ 57.80 $ 66.51 6%

Infant $48.00 $ 50.00 $ 58.40 17%Toddler $44.20 $ 47.00 $ 54.00 8%

Preschool $33.40 $ 39.00 $ 46.00 7%Infant $54.55 $ 65.00 $ 79.00 15%

Toddler $48.40 $ 60.00 $ 76.11 13%Preschool $36.70 $ 45.00 $ 60.00 5%

Metro

S.E.

Boston

Western

Central

N.E.

Center Based Prices by Age•The most recent Massachusetts Market Price Child Care Survey shows that even with the implementation of the infant rate for all infants and toddlers, we will not be close to reimbursing at the federally suggested level of the 75th percentile.

Rate Comparison

Rate Comparison

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Region Age Group EEC Rate 50th

Percentile75th

Percentile

EEC Market Access Rate

Infant $30.10 $ 35.00 $ 37.00 29%Toddler $30.10 $ 32.00 $ 35.00 43%

Over Age Two $26.40 $ 32.00 $ 35.00 9%Infant $31.80 $ 40.00 $ 48.00 13%

Toddler $31.80 $ 40.00 $ 45.00 20%Over Age Two $26.40 $ 36.00 $ 44.00 10%

Infant $31.50 $ 35.50 $ 50.00 35%Toddler $31.50 $ 40.00 $ 50.80 34%

Over Age Two $27.85 $ 35.00 $ 50.00 22%Infant $34.35 $ 57.50 $ 65.00 4%

Toddler $34.35 $ 56.00 $ 65.00 5%Over Age Two $27.85 $ 55.00 $ 66.00 1%

Infant $31.80 $ 40.00 $ 50.00 13%Toddler $31.80 $ 40.00 $ 45.00 19%

Over Age Two $26.40 $ 40.00 $ 45.00 3%Infant $31.50 $ 35.00 $ 40.00 28%

Toddler $31.50 $ 34.00 $ 40.00 37%Over Age Two $27.85 $ 30.00 $ 35.00 16%

Western

Central

N.E.

Metro

S.E.

Boston

Family Child Care Prices By Age• The most recent Massachusetts Market Price Child Care Survey shows that even with the implementation of the infant rate for all infants and toddlers, we will not be close to reimbursing at the federally suggested level of the 75th percentile.