fiscal year 2010 budget update board of early education and care june 9, 2009

Fiscal Year 2010 Budget Update

Board of Early Education and Care

June 9, 2009

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FY10 Budget Process

Massachusetts State Budget Cycle

January 28, 2009

September

July 1 , 2009Beginning of

FY2010

April 15, 2009

April 27, 2009

May 26, 2009

EEC Submits Spending Plan for next fiscal year

EEC Board Submits next Fiscal Year

Budget to Secretary

Governor releases H1 B

December

House Ways & Means

House Final

Senate Ways & Means

May 15, 2009

Senate Final

Governor Veto

Conference

Overrides

General Appropriations

Act (GAA)

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FY10 Budget Process

State Budget Process

September: State agencies submit current fiscal year’s spending plans to Governor’s budget office

December: EEC Board submits next fiscal year’s budget request to the Secretary of Education for the Governor’s consideration

January: Governor submits budget (H1) to Legislature

April: House Ways and Means submits budget proposal, which full House amends and votes to approve

May: Senate Ways and Means submits budget proposal, which full Senate amends and votes to approve

June/July: Joint Conference Committee reconciles differences, and both House and Senate vote on the final compromise bill; Governor vetoes and/or signs.

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FY10 Budget Process

FY2008 – FY2010 Funding Summary

Fiscal Year 2008 FY08 Actual Spending = $540.4M

Fiscal Year 2009 FY09 Final Budget (GAA) = $575M FY09 Post 9C Budget = $525M

Fiscal Year 2010 EEC’s Board Recommendation = $544M Governor’s House 1 Revised = $533M House Final = $538M Senate Final = $535M

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FY10 Budget Process

FY2010 Funding Summary

Account DescriptorFY2010 House

BudgetFY2010 Senate

BudgetHouse VS.

Senate Conference-able

Administration $ 12,083,581 11,944,704$ $ (138,877)

Language and Funding

Access Management $ 9,996,599 9,782,724$ $ (213,875)Funding

Supportive Child Care $ - 77,836,888$ $ 77,836,888


TANF Related Child Care $ - 116,232,279$ $ 116,232,279


Low Income Child Care $ 474,043,743 283,991,567$ $ (190,052,176)


Grants to Head Start 9,000,000$ 8,000,000$ $ (1,000,000) Funding

Universal PreKindergarten 9,810,821$ 8,000,000$ $ (1,810,821)


Quality Program Supports 14,832,646$ 15,645,251$ $ 812,605


Mental Health 1,000,000$ 1,000,000$ $ -

Family Support and Engagement 7,476,556$ 3,000,000$ $ (4,476,556)


Total: 538,243,946$ 535,433,413$ (2,810,533)$

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3000-1000 Administration Senate budget is $138K less than House; reporting

requirements are similar in each version

3000-2000 Access Management House budget is $213K more than Senate

3000-5000 Head Start House budget is $1M more than Senate

FY10 Budget Process

“Conference-able” Items

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FY10 Budget Process


EEC Financial Assistance Accounts House:

• Supports the Governor’s House 1 structure and language consolidation of the three financial assistance accounts: Supportive, (3000-3050) TANF Related (3000-4050), and Income Eligible (3000-4060).

• Funding level assumes forecasted projections for TANF and Supportive caseloads remains accurate, maintenance of current access restrictions for Income Eligible families, and implementation of a number of planned fiscal/policy reforms.

Senate:• Maintains all three child care financial assistance accounts

(Supportive Child Care, TANF Related Child Care and the Income Eligible Child Care) as separate line-items.

• Earmarks $10.2 million in ARRA access funding for working families.

• Without the ARRA funds, the funding level (for all three accounts) is $6.4M below the House.

• Moves 11,672 post-transitional children, and $84M to serve these children from TANF to Income Eligible, and gives them “priority status”.

Recommendation: Support consolidation of the child care financial assistance accounts into a single account will allow flexibility to ensure funds are maximized and targeted to our most vulnerable families.

Summary of EEC Financial Assistance Accounts

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Account Funding Children Funding Children Funding Children Funding Children

I ncome Eligible 214,420,665$ 28,014 190,915,142$ 24,943 191,820,639$ 25,061 273,572,478$ 35,742

TANF 188,665,124 24,473 200,329,039 25,986 201,123,844 26,089 116,232,279 15,077

Supportive 75,591,314 5,582 77,836,888 5,748 81,099,260 5,989 77,836,888 5,748 478,677,103$ 58,070 469,081,069$ 56,677 474,043,743$ 57,140 467,641,645$ 56,568

* Assumes average cost per child of $13,542 for supportive, $7,709 for TANF and $7,654 for Income Eligible, based on FY09 projected cost per child.

FY2010 Final House FY2010 Final SenateFY2009 FY2010 House 1 REVI SED

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FY10 Budget Process


3000-5075 Universal Pre-KSenate funds $1 million below House

• House: Remaining funds available after grants are made to eligible programs working toward the designation of being a Massachusetts UPK program participant

• Senate: Language does not include reference to support emerging programs

• Recommendation: Support the House budget’s language to allow existing funds to be spent on emerging programs

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FY10 Budget Process


3000-6000 Quality Program Supports House: Supports the EEC Board and Governor’s

consolidation of line-items that fund program quality initiatives and local planning including Accreditation, Local Planning and Coordination funds (previously included in the Access Management account) and Professional Development funds.

Senate: Also supports the EEC Board and Governor’s consolidation, but earmarks $1.5M from the ARRA CCDF Quality earmarked funds. Without the ARRA funding, this line item is $750K below the House version.

Recommendation: Request language in final budget to allow expenditures from this line item for coordinated family and community engagement services grant.

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FY10 Budget Process


3000-7050 Family Support & Engagement

Senate funds this item $4.4M below the House $7.4M level and does not include any earmarks for specific programs (i.e. Massachusetts Family Networks, Parent Child Home Program, and Reach Out and Read). The Senate’s level of funding will require a dramatic reduction in support of family literacy and engagement activities at the community level.

Recommendation: Support the House’s final budget line item language to allow for coordination between this account and the new consolidated Quality account (3000-6000) in order to maximize access to high-quality child care and family supports in communities across the Commonwealth.

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FY10 Budget Process

Revised Governor’s Budget (Revised House1)

The Executive Office for Administration and Finance have revised House 1 to recognize the following constraints: Reduced revenues: tax revenue for April 2009 fell far

short of expectations, $456 million below the revised benchmark for the month and nearly $900 million below targets for the year.

Greater use of one-time funds: the need to solve much of the April shortfall by using more federal stimulus funds and state “Rainy Day” funds than originally planned, leaving less available for the next few fiscal years

As a result, the Governor asked agencies to adjust H.1 by nearly $2.0 billion to reflect the lost revenue and remove most of the Stabilization funds assumed in H.1.

For EEC, this exercise resulted in our House 1 funding level to be reduced by $8.4 million, from $542 million to $533 million.

EEC’s Revised House 1 Summary

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Account Descriptor FY2010 House 1FY2010 House 1

Revised

Variance House 1 vs. House 1

Revised

Administration $ 21,196,482 $ 21,319,318 $ 122,836

Low Income Child Care $ 474,043,743 $ 469,081,069 $ (4,962,674)

Universal PreKindergarten $ 20,556,823 $ 18,106,331 $ (2,450,492)

Quality Program Supports $ 14,837,112 $ 14,662,852 $ (174,260)

Mental Health $ 2,900,000 $ 2,000,000 $ (900,000)

Family Support and Engagement $ 8,476,556 $ 8,476,556 $ -

Total: 542,010,716$ 533,646,126$ $ (8,364,590)

EEC FY2010 Conference Budget Recommendations

Support consolidation of the child care financial assistance accounts into a single account will allow flexibility to ensure funds are maximized and targeted to our most vulnerable families. Critical to include language allowing for children in supportive child care to have a year of transitional care after their case closes and to open access for foster parents.

Include language within new consolidated Quality account to allow funding to be expended on new Local Coordinated Family and Community Engagement grants, to maximize access to high-quality child care and family supports in communities across the Commonwealth.

Encourage allocation of the ARRA funds as already approved and designated by the EEC Board ($3M) within FY2010 funding.

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FY10 Budget Process

Next Steps EEC working with the Secretary of Education and

the Executive Office for Administration & Finance (ANF) to submit Board approved Conference Preferences to the Joint House-Senate conference committee.

Joint House-Senate conference committee meets to reconcile budgets.

Target date for “conferenced” budget is July 1st

Governor has ten days to veto

Legislature has opportunity to override vetoes

General Appropriations Act is released

fiscal year 2010 budget update board of early education and care june 9, 2009

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