January Board Meeting January 9, 2007

EEC Guiding Principles Put children and family first Be flexible and accountable Balance access, affordability, quality, and coordination/continuity of care Prioritize the needs of low-income families Build on strengths of current system; minimize weaknesses; maximize resources Seek input from staff and stakeholders Keep interested parties informed of progress Provide timely and comprehensive information to Board for decision-making

Agenda Allocation of FY07 Accreditation and Professional Development Funds – Discussion and Vote FY07 Universal Pre-K Pilot Grant Criteria – Discussion and Vote FY08 Budget Priorities – Discussion and Vote Regulation Reform Update – Discussion

Allocation of FY07 Accreditation Funds September, 2006 Board voted to approve distribution of FY07 accreditation funds as follows: $ .89 M CPC Transitional Funding for July – Dec 2006 $ .85 M New Accreditation RFR for Jan – June 2007 $ 1.74 M Line item appropriation (3000-6000) Further review of grant award process revealed large gaps in statewide coverage due to: Structure of grant application; Variance in applications received; and Limited resources to fund program. Number of Cities/Towns receiving Accreditation Support through CPCs: 254 Number of Cities/Towns to receive Accreditation Support through Bids: 147 Restoration of Accreditation funds to CPCs will restore Accreditation services to 107 cities/towns for the second half of FY 2007.

Allocation of FY07 Accreditation Funds Recommendation Remainder of FY07 (January – June 2007) Award remaining accreditation funding based on CPC FY 2007 Continuation Grant applications. Vote required CPCs would be awarded about the same amount of funding they received in their transitional budget awards during the first half of this fiscal year. FY 2008 Begin work immediately on an FY08 bid process that more effectively reflects our common priorities regarding accreditation services.

Allocation of FY07 Professional Development Funds September, 2006 Board voted to approve distribution of FY07 accreditation funds as follows: $ .87 M CPC Transitional Funding for July – Dec 2006 $ .63 M New PD RFRs for Jan – June 2007 $ 1.5 M Line item appropriation (3000-6050) July – Dec 2006 Transitional Funding amount was based on FY07 Continuation Grant application requests. Further review of grant award process revealed large gaps in statewide coverage due to: Structure of grant application; Variance in applications received; and Limited resources to fund program. Two month delay caused by 9c cuts disrupted process further. Number of Cities/Towns receiving Accreditation Support through CPCs: 254 Number of Cities/Towns to receive Accreditation Support through Bids: 147 Restoration of Accreditation funds to CPCs will restore Accreditation services to 107 cities/towns for the second half of FY 2007.

Allocation of FY07 Professional Development Funds Recommendation Remainder of FY07 (January – June 2007) Award remaining professional development funding based on CPC FY 2007 Continuation Grant applications - Vote required Funds would be awarded to CPCs from the balance of available FY07 funding. Grant amounts would be pro-rated, based on remaining funding and would equals about 71% of CPCs’ proposed January-June 2007 professional development budgets. FY 2008 Begin work immediately on an FY08 bid process that more effectively reflects our common priorities regarding accreditation services. Worth mentioning: They may notice that the 2nd half of the FY07 funding is not equal to that of the first half.

Universal Pre-Kindergarten Pilot Current EEC Requirements UPK Pilot fulfills EEC enabling statute: “… oversee the development and implementation of a program of voluntary, universally accessible, high-quality early childhood education to all preschool-aged children in the Commonwealth, subject to appropriation;” “…encourage family choice by ensuring a mixed system of high-quality public and private programs, with local points of entry, staffed by well-qualified professionals;” “…advance the quality of early education and care programs in order to support the healthy development of children and preparation for their success in school.”

Universal Pre-Kindergarten Pilot FY2007 Budget/Legislative Requirements Pilot Implementation grants to be delivered through a mixed system of service delivery; Allows EEC to give preference for funding “…pre-school classrooms in towns and cities with schools and districts at risk or determined to be under-performing…”

Universal Pre-Kindergarten Pilot Current System for Pre-school Aged Children Background: About 160,000 pre-school aged children in Massachusetts Approximately 141,500 or 89% are served in: Family Child Care Center-based care Local Public Schools Head Start Other (e.g. private schools) EEC supports $167.4 M in financial assistance for approximately 31,731 pre-school aged children through contracts, vouchers and CPC grants Head Start and local public schools provide additional funding for an estimated 33,000 children

Universal Pre-Kindergarten Pilot Massachusetts Pre-School Age Population Overview

Universal Pre-Kindergarten Pilot Current System for Pre-school Aged Children Many strengths Existing mixed and diverse delivery system Adequate accessibility for pre-school age children at 89% Many challenges: Affordability/Payment to Providers: providers accepting state subsidies face administrative burden and inequitable/inadequate reimbursement. Quality: standards, policies and requirements not aligned to support continuous quality improvement. Access to high quality: differing eligibility criteria and inconsistent information lead to uneven access for families.

Universal Pre-Kindergarten Pilot Proposal Designed to address challenges of existing system: Affordability/Payment to Providers New, consistent funding for quality grants in addition to basic EEC rate Quality Defining a quality standard across all program types, leading to . . . Access to high quality On a more even basis for children from all incomes

Universal Pre-Kindergarten Pilot Short Term Goals Meet short-term challenges first: Define measurable characteristics of quality that lead to positive outcomes; Focus on defining and supporting quality first, then expand access; Provide adequate and consistent funding for programs meeting quality criteria; Test funding approaches to ensure participation from all components of mixed system; and Define scope of data collection and technology system needs to support good decision making at Board/policymaker level and accountability/efficiency at program level. Provide technical assistance and funding to support programs in reaching UPK criteria for future years

Universal Pre-Kindergarten Pilot FY08 and Beyond Goals Further refine assessment criteria by: Working with assessment publishers to further align assessments; Adding other tools that align with Standards and Guidelines and can be used electronically; Developing statewide indicators that can be assessed with or without purchased assessment tools. Continue working on cost/quality analysis to determine award amount Provide technical assistance and funding to support programs in reaching UPK criteria Propose options for increasing statewide access for all children Review and adjust UPK program standards/criteria as needed to improve program quality.

Universal Pre-Kindergarten Pilot FY2007 Proposal Overview Program participation is optional NO changes to current provider requirements for other programs Quality bar is set intentionally high Emphasis on defining and incentivizing quality standard Eligible programs determined by currently identifiable quality characteristics Assessment is critical component Funds awarded directly to eligible programs Funded as quality grant in addition to current EEC rate

Universal Pre-Kindergarten Pilot Proposed Program Criteria For FY07 UPK quality grant funding, eligible programs would need to: Be serving or willing to serve publicly subsidized children Be providing or directly connected to provider of full-day, full-year care for working families Be providing a developmentally appropriate program, as evidenced by use of: Guidelines for Preschool Learning Experiences One of four EEC-approved assessment tools, for at least a year prior to grant award (Work Sampling, High Scope Child Observation Record (COR), Creative Curriculum Developmental Continuum, and Ages and Stages); Having access to qualified professional to ensure appropriate administration of a developmentally appropriate program Meet two out of three additional quality criteria: EEC Licensed or License-Exempt a. NAEYC accreditation for group child care programs b. CDA or NAFCC for family child care Provider has bachelor’s degree (BA/BS in any subject, with specialized training in early education)

Universal Pre-Kindergarten Pilot Request for Information (RFI) - Review Assessed the feasibility of the proposed pilot eligibility criteria; Gathered information to assist EEC in estimating the minimum number and extent of providers eligible to apply for UPK pilot implementation grants and the number children served; and Informed the Request for Response (RFR) that will be the basis for the application and awarding of UPK pilot grants to programs. 

Universal Pre-Kindergarten Pilot Implications/Findings from RFI Analysis Because of fixed amount of FY07 funding: Keeping grant criteria as proposed and allowing all eligible providers access to some funding would lead to very minimal awards. Broadening criteria to include more programs (e.g. allowing more assessment options) would further decrease awards amounts, but broaden access. Narrowing criteria (e.g., requiring BA degree to qualify) would ensure more meaningful awards, but would narrow access. Number of programs that qualify if: 1. Other assessments allowed: Private 12 Public 69 Licensed Center-based 89 System Affiliated FCC 35 FCC Independent 3 Total 208 (could be ANY kind of assessment – very loose. We would need to do much more work to understand the range of tools and practice out there. 2. Same four tools, less than 1 year: 73 additional providers 3. BA required, in addition to other requirements: 69 fewer providers will be eligible Private 0 Public 0 Licensed Center-based 21 System Affiliated FCC 46 Independent FCC 2 Total: 69 fewer eligible

Universal Pre-Kindergarten Pilot RFR Criteria Comments from EEC Board and Transition Team Criteria can remain unchanged HOWEVER size and distribution of awards should be: Large enough to be meaningful, Focused on most needy communities/children, and Designed to ensure a mixed delivery system with regional representation.

Universal Pre-Kindergarten Pilot Proposal for formula funding distribution Total Classroom Enrollment X $500 (A) + Total Children Receiving Financial Assistance* $1500 (B) First-Year Additional Funding (one-time) 20% of (A+B) = Total UPK Classroom Grant** CHANGE to reflect latest proposal Includes children receiving financial assistance through CPC funding, vouchers, contracts, and Head Start. EEC will use a proxy for subsidy level for schools. ** Total UPK Classroom Grant is in addition to EEC basic rate. Amounts shown are based on a full-time, full-year program.

Universal Pre-Kindergarten Pilot Examples of formula funding distribution But funding will be prioritized….

Universal Pre-Kindergarten Pilot Prioritization of Grant Awards Fund programs with highest concentrations of children receiving financial assistance Ensure participation across all regions Ensure participation across types of programs

Universal Pre-Kindergarten Pilot Possible Fund Uses If recipients do not have the capacity to submit assessment data electronically to EEC in required form, they must use funds for that purpose first. On-going funds may be used to: Increase teacher salaries; Enhance program ability to interpret and use assessment data effectively; Enhance developmentally appropriate practice; Support staff professional development opportunities; Incorporate ancillary services into the program (e.g. social workers, speech therapists, etc.) Provide or facilitate access to wrap-around services for working families; One-time start-up funds may be used to: Upgrade technology systems to enable electronic assessment data collection and submission; Provide one-time training needs for staff/administrators in administering one of the four assessments; Improve classroom materials or equipment or purchase program supplies/equipment needed to support the delivery of UPK quality level services. Recipients will need to verify the use of awarded funds.

Universal Pre-Kindergarten Pilot FY07-FY08 Appropriation Allocation Use of Funds FY07 FY08 UPK Pilot Quality Grants to qualifying programs based on priority $2.3M ongoing Initial six month grant for 2007, January-June +$0.5M one-time $4.6M continuation grant to same programs for full 12 months Qualifying programs not prioritized through FY07 RFR will be included in future requests for on-going funding. To be informed by RFR One-time planning grants for programs qualifying but for assessment criteria $1M UPK statewide system capacity $0.8M Total

Universal Pre-Kindergarten Pilot UPK Assessment Planning Grants For programs meeting all quality criteria but assessment; To plan for participation in UPK classroom funding in subsequent years; Grant would range from $2,500-$10,000 based on program size; Fund uses would include: Purchase of assessment instruments including electronic reporting system; Professional development for staff to perform ongoing child assessments; use assessment results to adapt program curriculum and improve child outcomes; and share progress reports with parents, and with other schools and programs when children transition.

Universal Pre-Kindergarten Pilot Projected UPK Implementation Rollout In future years, EEC would continue to prioritize programs serving higher proportions of subsidized children, and move toward universal eligibility over time with additional funding.

Universal Pre-Kindergarten Pilot Proposed Timeline

FY07-FY08 Spending Plan Administration and Finance capped FY08 at 1% FY07 Budget* FY08 Spending Plan Total EEC 463.74 499.4 506.74 $ Change from Prior Year   35.66 7.34 % Change from Prior Year 7.7% 1.5% Administration and Finance capped FY08 at 1% FY08 Spending Plan not yet approved * Assumes that all 9c cuts are restored

FY08 Budget Additional Proposals FY08 spending plan assumes full restoration of all 9c cuts. In addition to FY08 spending plan, EEC is proposing additional budget requests and changes in the following areas: Affordability- provider rate increase Access- financial assistance for families Quality initiatives Behavioral/Mental Health line item consolidation and expansion Administration

FY08 Budget Additional Proposals Affordability – Increasing rates to the 50th market percentile would cost $56M Increasing rates to the 75th percentile (federal state plan goal) would cost $129M FY08 Proposal: $56M to raise rates to 50th percentile Plan for future increases to 75th percentile in conjunction with cost and quality analysis

FY08 Budget Projections for Raising EEC Rates Note: Increases are based on existing rates and market data from the 2006 Market Rate Survey. FY07 rate increases are not included.

FY08 Budget Additional Proposals Access – FY06 14,000 children on waiting list for financial assistance Increased access for 3,600 children 8,289 children served through vouchers FY07 to date 19,000 children on waiting list With restoration of 9c cuts, maintaining same access as FY06 FY08 Proposal Increase access for 2,000 children $14M at 50th percentile

FY08 Budget Additional Proposals Quality – $15 million expansion for Practitioners: Scholarships Training and workforce development Programs: Assessment assistance Accreditation Early Childhood System: Mass Family Networks Statewide Information Technology system

FY08 Budget Additional Proposals Consolidation of Behavioral and Mental Health funding: FY07 (in millions)                   Mental Health Pilot Project for supportive child care             $0.63 and behavioral support funds for flex pool providers  Early Childhood Mental Health grants (before 9c)                  1.40 Behavior Management grants                                                  0.75                                                                                                       2.78 FY08 (in millions)                   Early Childhood Behavior and Mental Health supports    $4.49 Reflects additional demand ($1.7M) for Mental Health supports funding    

FY08 Budget Additional Proposals Administration- $500K above spending plan submission Needed to support reorganization and new EEC responsibilities, including: Five new grants Scholarships Workforce Development plan Quality Rating System UPK program monitoring UPK assessment data collection and analysis Regulation Reform Contract re-procurement $700K for 14 additional licensors and 4 additional investigators to: restore staffing to prior FY2001 levels and reduce caseloads for Family Child Care and Group Child Care licensors and investigators.

FY08 Budget Summary of Additional Proposals Affordability $56M to bring rates to 50th percentile Access $14M to take 2,000 children off waitlist Quality $15M for program quality improvement supports Administration $1.2M for new licensing staff and to support EEC admin and monitoring efforts Mental Health and Behavioral Issues Consolidation of line items and additional $1.7M to support additional need for mental health funding. Additional funding for UPK informed by RFR

Stages of EEC Family, Group, School Age Licensing Regulation Development Board provides input on alignment approach December 2005 EEC develops draft regulations January 2006 – March 2007 Intensive informal external review process April-June 2007 Board vote to send out for public comment Fall 2007 Implementation preparation Fall 2007 Board vote on final regulations after revisions Winter 2007 Technical assistance/training Spring/Summer 2007 New regulations take effect* Fall 2008 *Some regulations may be phased in over time