0 FY11 Budget Update Governor, House, and Senate budgets all rely on $600 - $700 million in additional federal reimbursement (“FMAP”) –Governor and House rely on $608 million; Senate relies on $687 million At this point, Congress has not authorized the FMAP funds, which will expire on December 31, 2010 –Both branches of Congress have passed the extension of FMAP in separate bills, but have not included it in a conferenced bill to send to the President –If FMAP isn’t authorized by the beginning of the fiscal year (July 1 st ) it will likely be necessary to ensure that the budget does not assume access to FMAP funds, either through the conference process, or through the Governor’s veto authority All program areas, including the IT should assume worst-case scenario for FY11 funding and begin planning now. Early planning will mitigate impact on programs and staff.

1 Section 2 Chargeback Rates Maximus will delivered draft rates to ANF, EOE, HED, and EEA last week –MassDOT, EHS, and LWD should engage a third party to update their Department Cost Allocation Plans Secretariats are meeting with Maximus this week to understand and confirm the rate methodology and to understand how they will be able to use the rates in FY11. Comptroller’s Office provided a training at last week’s IT Finance Subcommittee meeting on the “nuts and bolts” of establishing a chargeback account (e.g., creating a vendor code for the Secretariat to sell their services, entering ITI, ITA’s, etc.). These materials are posted to the Wiki

2 Shared Services – Contingency Plan The Conference Committee is currently considering the shared services language for FY11. The Senate language does not provide the authorization that IT lead agencies need to operate their administrative model in FY11. Therefore, the IT Finance Chair is actively advocating for the House language. If Shared Services authorization is not sufficiently reflected in the final GAA, it may be necessary to implement short-term ISAs within lead-agency Secretariats to allow time to explore three (or more) options: –Reassigning lead agency staff to the Secretariat (only if lead agency can absorb the loss of FTE) –Developing new Secretariat resources (only if Secretariat admin budget can absorb) –Identifying MMARS-based solutions (workflow, etc.) Conference budget may be released next week.

3 Other Things that IT Finance and Working On IT Bond Authorization Asset Management Fringe Recovery Position Reassignment for IT Staff Funding model in out years