1. January Board Meeting
January 9, 2007

2. 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

3. 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

4. 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 ( )
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.

5. 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.

6. 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 ( )
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.

7. 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.

8. 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.”

9. 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…”

10. 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

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

12. 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.

13. 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

14. 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

15. 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.

16. 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

17. 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)

18. 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. 

19. 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

20. 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.

21. 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.

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

23. 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

24. 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.

25. 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

26. 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.

27. 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.

28. Universal Pre-Kindergarten Pilot Proposed Timeline

29. 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

30. 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

31. 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

32. 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.

33. 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

34. 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

35. 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    

36. 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.

37. 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

38. Stages of EEC Family, Group, School Age Licensing Regulation Development
Board provides input on alignment approach December 2005
EEC develops draft regulations January – 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