American Recovery and Reinvestment Act (ARRA) EEC Board Meeting April 14, 2009

ARRA Requirements Overlay Existing Federal Law ARRA Requirements Federal Agency Guidance on ARRA Governor’s Office, State Comptroller, and Legislature EEC

ARRA Constraints Applicable Goals Funding is available on a two year basis only; Funding should expand, not supplant existing budgeted and appropriated funding; Expenditures must be directly tied to stimulating economic activity/creating and protecting jobs; Funds must be spent with transparency and accountability; Where applicable, funding will be subject to existing rules and regulations of the governing funding source with additional specific guidance to be provided by relevant federal agencies; Applicable Goals Spend quickly to preserve and create jobs and promote economic recovery; To assist those most impacted by the recession; To stabilize State and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases.

Administration for Children and Families: ARRA Guidance CCDBG EEC Award: $23.9 Million $20.1 Million to Provide Access to Financial Assistance for Child Care For Low Income Families $3.8 Million in Quality Set-Aside $1.1 Targeted to Infant Toddler Quality Wampanoag Tribe Award: $4,716 (Not Administered by EEC) Guidance Assist those most impacted by the recession through the provision of funds to expand services to additional children and families; Through targeted funds, improve the quality of child care to support the health and well-being of children; Activities allowable must fall within EEC’s existing program requirements, per State Plan.* *Any changes to program requirements such as provider rates (e.g., provider rate increases), income eligibility guidelines, and sliding fee scale require State Plan amendment and federal approval which may delay implementation of ARRA programming.

U.S. Department of Education: ARRA Guidance IDEA Part B- Preschool Special Education Award $10,263,466, to be distributed in 2 parts 1. First allocation: $5,131,733 available for FY09/FY10 2. Second allocation: $5,131,733 available in late Sept for FY10/FY11, with rigorous reporting requirements Guidance Must be used to support preschool special education; Funds must demonstrate a “sustainable commitment” given they are one-time in nature; 100% goes directly to school districts; no set-aside; ESE/EEC have limited discretion on use of funds, but may encourage certain expenditures.

Governor’s Office: MA Recovery Plan Mission Governor Patrick has unveiled a plan to secure our common economic future that will integrate state, federal and private resources so we can deliver immediate relief and long-term solutions. Deliver Immediate Relief: Road, bridge and rail projects that put people to work today Services such as unemployment insurance and health care that sustain people who are especially vulnerable during a crisis Invest in a Better Tomorrow: Education and infrastructure investments to position us for a better tomorrow Clean energy, broadband, and technology investments to cut costs and grow the economy Preparing workers for the jobs of tomorrow in growth and innovation industries Reform State Government: Eliminate Pension and ethics loopholes that discredit the work of government Revitalize transportation systems that have suffered from a pattern of neglect and avoidance on Beacon Hill

State Appropriations Process : CCDBG ARRA Funds EEC Board makes budget recommendation to Secretary of Education Secretary of Education makes final recommendation to Governor’s Budget Office (Administration and Finance) Appropriations bill needs to be filed

State Comptroller: ARRA Guidance Unprecedented reporting and monitoring requirements to ensure transparency Tracking and accountability of communication, decision making, and planning No “co-mingling” ARRA funds with existing federal revenue All ARRA programs must contain measurable goals closely tied to federal requirements All expenditures to be closely monitored

Draft Principles for ARRA Expenditures: EEC Board’s Fiscal and Budget Committee Sustainability Invest one-time ARRA funds thoughtfully to minimize the “funding cliff” Accountability Ensure transparency, reporting and accountability Economic Impact Spend funds quickly to save and create jobs Collaboration Develop cross-agency initiatives to maximize benefits to children Reform Use ARRA to promote reforms and cost saving initiatives that will provide a foundation for future growth Prioritization Prioritize limited resources toward children with the greatest education and care needs and multiple risk factors.  EEC’s Strategic Plan emphasizes that the Department values all children and all families.  In a fiscally constrained environment, the Strategic Plan also recognizes that children with the greatest educational needs and multiple risk factors come first.

EEC Outreach and Planning Process for ARRA 1 Solicit Ideas from the Field (77 unduplicated ideas) 2 Proposals evaluated based on ease of implementation and “match” to federal requirements, Strategy Screens, and Board Principles for ARRA Expenditures 3 Prioritize and refine proposals through Advisory Team and Board Committees 4 EEC Board Input 5 EEC staff develop cost estimates and implementation plan 6 EEC Board Final Recommendation to Secretary of Education

CCDBG ARRA Quality Funds: Ideas From Field Ideas for CCDBG ARRA Quality expenditures fall into the following key categories Invest in Programs to Meet and Maintain Quality Standards and Requirements QRIS Development and Implementation Expand Existing Quality Initiatives Local/Regional Coordination or Resources/Systems Building Development New Standards, Resources, and Opportunities Capital Improvements

CCDBG ARRA Quality Preliminary Priorities Total $3.8 M ($1.1 M for Infant Toddler Quality) Provide one-time funds to Invest in Programs to Meet and Maintain Quality Standards and Requirements * Please note: Maximum score on Board Strategy Screen is 11. Priority Strategy Screen Score Estimated Allocation Measurable Goals/ Outcomes Accreditation/ Assessment (fees, consultations, materials, etc.) 11 TBD Professional Development (fees, scholarships, etc.) New Licensing Requirements (behavioral health, playground renovations, oral health, etc)

CCDBG ARRA Access to Financial Assistance Preliminary Priorities Total $20.1 M * Please note: Maximum score on Board Strategy Screen is 11. Priority Strategy Screen Score Approx. Number of Children Served Estimated Cost Over 2 years Summer Only Vouchers 11 TBD Continuity of Care: Aging up Continuity of Care: Siblings Extend Job Search from 8 to 26 weeks 2 year Self Sufficiency Voucher

ARRA Key Next Steps Immediately develop policy implementation plan/recommendations for supporting Summer-Only Care through EEC Financial Assistance for working families in need with a focus on preventing summer learning loss Further analyze and develop other access and quality initiatives including cost estimates and implementation options Work closely with EOE, ESE and other state agencies to maximize funding and align ARRA funding priorities Further discuss all of the above at May 12th Board Meeting and make appropriate budget recommendations