ARRA REVIEW Board of Early Education and Care June 8, 2010

ARRA: Spending Guidelines Since the $23.9M in ARRA funding comes in the form of CCDF Discretionary funding EEC must obligate funds by September 30, 2010 and liquidate funds by September 30, EEC must spend at least $1.15M on infant/toddler quality improvements and $1.9M for general quality improvements. ANF has imposed a.4% chargeback on all ARRA funds. This results in a $95K chargeback EEC must give to ANF to support the functions of the American RECOVERY Office. 2

ARRA Spending by Earmark 3 ARRA spending in the previous month’s update was $1.5M.

ARRA – Where we are: 14 months into having ARRA funds EEC has expended $1.8M, or just over 7.5%. The two major pieces of ARRA, Kindergarten Prep and the 18/15 month Program (to be renamed a 12 month program), are expected to begin this summer. To fully liquidate the remaining $21,167,851, EEC must spend an average (beginning July) of $1,411,190 per month. Below are the targeted monthly projections to ensure EEC fully liquidates the ARRA CCDF money: 18 Month Program (now 12 month): $868,933; Intensive Kindergarten Prep (summer only over two years) $943,073; Summer Only Voucher 2010: $520,149 (July through end of August). 4

Challenges in ARRA Access Programs Open Access has made it challenging to “sell” ARRA access voucher programs. Lack of established performance measures for access monitoring (e.g., outreach, enrollment, placement). The delay last Fall in the initial ANF approval for the $12 million access voucher program. 5

ARRA Spending Projections ARRA Funding: $23,942,923 Already Spent:$ 1,816, Ongoing (Balances to be Spent)$ 3,273, Starting Soon and Ongoing$ 1,950, Expensive Programs Starting Now$16,258, Not Yet Started$ 548, Other (Admin)$ 95, TOTAL$23,942,923 6

Ensure ARRA Spending Concerned that the $12.1 million 18 month ARRA Program may not achieve projected spending levels, EEC has readjusted its approach and offers the following for review: A revised 12 month voucher program Spending projections for the Kindergarten Enrichment Program A Before and After School Program beginning in September for the Children in the Kindergarten Enrichment Program continuing with care in July and August A Before and After School Program beginning in September for children in Head Start. A QRIS Program to begin in January,

Program Options Month Voucher Program $5,481,232 Kindergarten Enrichment Program $4,526,754 Before and After School Care in Beginning in September for Kindergarten Enrichment Kids $433,266 (funds above the original level of $4,093,488) Before and After School Care Beginning in September for Head Start Kids $569,108 QRIS $1,500,000 8

ARRA PROGRAM REVIEW 18 Month Voucher Program$12,165,067 RecommendationReason Month Voucher Program$5,481,232 We have not had success with opening access. Prepare for the worst case scenario. Kindergarten Enrichment Program$433,266 We have every reason to believe that this program can be successful. If this summer isn't successful, we have a full year to market for its success. Before and After School Care in Beginning in September for Kindergarten Enrichment Kids Followed by Care in July and August 2011$4,017,120 Prepare for the worst case scenario because of the failure to succeed at "selling" vouchers. Before and After School Care Beginning in September for Head Start Kids$569,108 We can provide assistance to families of kids in Head Start by providing wraparound services for children needing care. QRIS (January 2011)$1,500,000 We want to sustain the initiative we have begun this year by offering QRIS again in January We would hire a vendor to manage the process and make grant recommendations. $12,000,726 9