ARRA REVIEW Policy and Budget Committee June 7, 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 months 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 (over two years) $943,073; Summer Only Voucher 2010: $520,149 (July through end of August). 4

Challenges Open Access has made it challenging for CCRRs to sell ARRA voucher programs. Competitive bid for CCRRs forced attention elsewhere. The abundance of bids has removed attention from programs. Focusing on program development has required time and effort for an already time-challenged staff. 5

ARRA Spending Projections ARRA Funding: $23,913,356 Already Spent:$ 1,816, Ongoing (Balances to be Spent)$ 3,252, Starting Soon and Ongoing$ 1,950, Expensive Programs Starting Now$16,258, Not Yet Started$ 548, Other (Admin)$ 95, Please see two pass-outs which: Provide more detail on the numbers and percentages stated above; Offer a spending plan from now through September

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 A Before and After School Program beginning in September for children in Head Start. 7

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 $3,312,302 Before and After School Care Beginning in September for Head Start Kids Discussion Required. Pass-out provides more detail. 8