FY12 Budget and Caseload Update Fiscal Committee April 2, 2012

FY12 Caseload Overview Income Eligible: The Income Eligible account full year forecast is projecting a surplus of $6.4M, which is an increase of $1.5M from the prior update. The change in the projection is primarily due to an overestimation in late billing. The value of late billing is less than last year, in part, because of the effort we have put into addressing this issue. Also, we project contracts at maximum obligation and in the month of February total contract expense was $476,303 less than maximum obligation. This also contributed to the increase in surplus. DTA-Related Caseload: The forecasted surplus has increased from $1.96M to $3.6. The increase in the projected surplus is driven by a February caseload coming in at 16,617; this is 580 children less than projected for February in the last caseload update. The balance of the year spending projections include a two year historical average which anticipates decreases to caseload in May and June. The current forecast assumes the dollar impact for the DTA policy change for parent work hours for 6-8 year olds in the run rate. FY11 caseload on average was 16,377 children; EEC expended $133.7M in FY11. Supportive: The forecasted surplus of $836K has grown to $915,987, which is an increase of $79,687. Forecasted trends are based on a three year average historical trend. It was anticipated caseload would decrease in January. The decrease in surplus is driven by caseload continuing to increase and the DCF voucher activity. Ongoing discussions with DCF indicate an effort to fill open slots. This increase may be the result of the discussions. 2

FY12 Caseload Overview Summary As of April

FY12 Caseload Actual/Forecast Overview 4

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6 FY 2012 Income Eligible ( )

FY12 Voucher Late Billing 7 The following chart provides a dollar breakdown by funding stream, service date, and billing month. Income Eligible and DTA each make up 41.6% & 57.6% respectively the total dollars this month which, when combined, represents 99% of the total late billing for the billing months this fiscal year. February’s Late Billing totaled $315.K;.9% or $3K was for service months prior to January Billing Month Service Month8/1/20119/1/201110/1/201111/1/201112/1/20111/1/20122/1/2012 Grand Total ARRA7/1/2011 $ 14,023 $ 112 $ 985 $ 15,120 8/1/2011 $ 9,125 $ 3,641 $ 700 $ 13,467 9/1/2011 $ 760 $ 111 $ 871 ARRA Total $ 14,023 $ 9,237 $ 5,387 $ 811 $ 29,458 DSS7/1/2011 $ 3,893 $ (77) $ 3,817 8/1/2011 $ 360 9/1/2011 $ 1,745 10/1/2011 $ 1,211 11/1/2011 $ 939 $ 2,117 $ 3,056 12/1/2011 $ 3,167 1/1/2012 $ 2,450 DSS Total $ 3,893 $ 2,028 $ 1,211 $ 939 $ 5,284 $ 2,450 $ 15,805 DTA7/1/2011 $ 187,181 $ 11,648 $ 5,779 $ 2,569 $ 1,575 $ 746 $ 155 $ 209,654 8/1/2011 $ 395,991 $ 42,546 $ 8,450 $ 1,307 $ 5,733 $ (516) $ 453,509 9/1/2011 $ 328,079 $ 25,788 $ 1,431 $ 6,100 $ (4) $ 361,394 10/1/2011 $ 148,535 $ 16,140 $ 11,385 $ 1,647 $ 177,707 11/1/2011 $ 238,803 $ 17,280 $ 6,168 $ 262,251 12/1/2011 $ 115,161 $ 5,389 $ 120,551 1/1/2012 $ 169,120 DTA Total $ 187,181 $ 407,639 $ 376,404 $ 185,341 $ 259,257 $ 156,405 $ 181,959 $ 1,754,186 Income Eligible7/1/2011 $ 208,966 $ 35,075 $ 17,590 $ 2,770 $ 2,454 $ 915 $ (226) $ 267,544 8/1/2011 $ 440,823 $ 53,188 $ 10,946 $ 3,778 $ 7,101 $ (984) $ 514,851 9/1/2011 $ 342,389 $ 16,268 $ 6,727 $ 6,259 $ 978 $ 372,621 10/1/2011 $ 127,304 $ 17,145 $ 10,000 $ 807 $ 155,255 11/1/2011 $ 233,422 $ 35,681 $ 7,091 $ 276,193 12/1/2011 $ 112,621 $ (17,515) $ 95,106 1/1/2012 $ 141,306 Income Eligible Total $ 208,966 $ 475,899 $ 413,167 $ 157,287 $ 263,525 $ 172,577 $ 131,456 $ 1,822,877 Grand Total $ 414,064 $ 892,774 $ 796,986 $ 344,651 $ 523,721 $ 334,266 $ 315,865 $ 3,622,327

FY12 Contract Late Billing 8 The following chart provides a dollar breakdown for contract late billing by funding stream, service date, and billing month. February's Late Billing totaled $80.8K; 49% or $39.8K was for service months prior to January Billing Month Service Month8/1/20119/1/201110/1/201111/1/201112/1/20111/1/20122/1/2012 Grand Total HOME7/1/2011 $ 294 $ 1,368 $ 1,662 8/1/2011 $ 830 $ 1,498 $ 2,328 9/1/2011 $ 3,696 $ 1,370 $ 54 $ 69 $ 5,189 10/1/2011 $ 1,845 $ 192 $ 1,443 $ 3,480 11/1/2011 $ 3,076 $ 2,940 $ 54 $ 6,070 12/1/2011 $ 4,330 $ 2,155 $ 6,484 1/1/2012 $ 3,023 HOME Total $ 294 $ 830 $ 6,561 $ 3,215 $ 3,322 $ 8,782 $ 5,231 $ 28,237 IE7/1/2011 $ 24,488 $ 6,289 $ 2,573 $ 673 $ 771 $ (3,768) $ (2,256) $ 28,770 8/1/2011 $ 32,383 $ 8,253 $ 692 $ 1,437 $ (4,584) $ (2,077) $ 36,104 9/1/2011 $ 46,613 $ 10,822 $ 9,346 $ (3,041) $ (641) $ 63,100 10/1/2011 $ 41,321 $ 15,781 $ (3,429) $ 4,046 $ 57,719 11/1/2011 $ 25,097 $ 10,321 $ 8,220 $ 43,637 12/1/2011 $ 27,287 $ 12,116 $ 39,403 1/1/2012 $ 20,060 IE Total $ 24,488 $ 38,672 $ 57,439 $ 53,507 $ 52,432 $ 22,786 $ 39,468 $ 288,793 SUP7/1/2011 $ 7,790 $ 2,284 $ 1,753 $ 22 $ 187 $ 12,036 8/1/2011 $ 14,635 $ 4,451 $ (231) $ 1,090 $ 19,945 9/1/2011 $ 19,859 $ (3,202) $ (307) $ 2,323 $ 887 $ 19,559 10/1/2011 $ (934) $ 1,683 $ 5,368 $ 1,161 $ 7,278 11/1/2011 $ 11,603 $ 6,400 $ 1,091 $ 19,094 12/1/2011 $ 15,186 $ 4,074 $ 19,260 1/1/2012 $ 9,219 SUP Total $ 7,790 $ 16,919 $ 26,063 $ (4,345) $ 12,980 $ 29,277 $ 17,708 $ 106,392 TEEN7/1/2011 $ 1,394 8/1/2011 $ 1,337 $ 60 $ 1,358 $ 2,755 9/1/2011 $ 30,867 $ 1,050 $ 2,474 $ 162 $ 34,554 10/1/2011 $ (85) $ 1,378 $ 2,615 $ 1,137 $ 5,044 11/1/2011 $ 4,534 $ 1,444 $ 2,381 $ 8,359 12/1/2011 $ 4,048 $ 6,020 $ 10,068 1/1/2012 $ 8,707 TEEN Total $ 1,394 $ 1,337 $ 30,927 $ (85) $ 6,962 $ 11,940 $ 18,407 $ 70,882 Grand Total $ 33,967 $ 57,759 $ 120,991 $ 52,292 $ 75,697 $ 72,784 $ 80,815 $ 494,304

FY12 Contract Late Billing 9 The following chart provides the number of Contract Providers by month that submitted their entire billing for the month late (after 20 th of the month). System related issues resulting in late billing are not included. Providers who have been late have not been late for more than two months within the Billing months of July 2011 through February 2012 Billing Month Number Of Providers That Submitted After Due date 11-Jul2 11-Aug0 11-Sep13 11-Oct62 providers had been late in the prior month 11-Nov51 provider had been late in a prior month 11-Dec6 1 provider had been late in the prior month 2 providers were late in a prior month 12-Jan2 12-Feb31 provider had been late in a prior month

10 FY 2012 DTA Related ( )

11 FY 2012 Supportive ( )

12 (Amount in Thousands) FY2012 Income Eligible Total Caseload Actual/Forecast & Budgeted Expenditures Total Appropriation of $232.9M includes $9,019,276 for Grants and $750K Reserve for Late Billing January 2012 Voucher Expenditures paid is $7,193,091. Gray : Appropriation Budget (Spending Plan Projection) Purple: September Board Report (July Actuals/Aug-Jun Forecast) Blue: Actual/Forecast Expenditures

FY2012 DTA Caseload Actual/Forecast & Budgeted Expenditures 13 ( Amount in Thousands ) Blue: Actual/Forecast Expenditures Gray : Appropriation Budget (Spending Plan Projection) Purple: September Board Report (July Actuals/Aug-Jun Forecast)

FY2012 Supportive Caseload Actual/Forecast & Budgeted Expenditures 14 ( Amount in Thousands ) Blue: Actual/Forecast Expenditures Gray : Appropriation Budget (Spending Plan Projection) Purple: September Board Report (July Actuals/Aug-Jun Forecast) - Represents Budget Appropriated to Supportive

FY2012 Contract Slots - Regular and Flex 15 Total Awarded Slots is and Allowable Flex Slots is Providers representing 40 contracts are Over 5% Flex (441.5) **No. of children filling slots may be greater than slots awarded.

Income Eligible – Sibling Access As mentioned earlier, the Income Eligible account has a surplus of $6.4M. With a growing surplus, EEC is confident that access to siblings on the waitlist can be opened in FY12 and sustained in FY13. Below is a chart of the current number of siblings on the waitlist: 16 The FY12 cost to support these groups is $1,982,592 for the 556 vouchers and $1,018,978 for the contracts.

Caseload Waitlist Since 12/ *Waitlist Data as of August 2011 is reported from KinderWait.