1. Creating a Policy Framework and FY14 Proposed Budget Presentation to the EEC Board October 16, 2012

2. Strategic Plan Context The presentation of the FY14 budget is in the context of the EEC Strategic Plan. WORKFORCE: Create a workforce system that maintains worker diversity and provides resources, supports, expectations, and core competencies that lead to the outcomes we want for children. QUALITY: Create and implement a system to improve and support quality statewide. ACCESS: Increase and promote family support, access, and affordability. 2

3. Building the Foundation 3 Over the past three years we have made a significant amount of progress improving the infrastructure and delivery of the early education and care system. We are ready for an investment in our future to sustain these initiatives and create new ones. QRIS Professional Qualifications Registry Workforce Development Kindergarten Readiness Assessment RTTT-ELC: Birth to Grade 3 Alignment Learning Standards Aligned with Common Core Updated Regulations

4. EEC Total Available Budget 4 (Amount in Millions)

5. EEC Waitlist vs. IE Children Served 5 Spike in July 09 is due to 3A to 3D transitional children from DTA to IE.

6. Immediate Needs 6 In a time of limited resources, and in the absence of any funding increases, we have many immediate needs to consider, as follows: 1. A Rate Increase: The most recent Massachusetts Market Price Child Care Survey shows that we are not close to reimbursing at the federally suggested level of the 75 th percentile. There has not been a rate increase since March 2009, after 9C which was less than 1%. 2. Access for high needs children: Voucher access has been closed since February 2011. 3. Staffing to Support Historical Deficit in Licensing, Monitoring, and Implementation of Systems to Support Policy for Closing the Proficiency Gap. 4. Transportation: Funding is needed to support the actual cost of transportation in the field.

7. Responding to Immediate Needs 7 In a time of limited resources, and in the absence of any funding increases, we have many immediate needs to consider, as follows: Rate Increase: $13,790,577 or 28% of $50M The cost of a 3% increase rate increase for programs in QRIS has been added as a separate cost for each of the caseload accounts and is part of the overall $50M request. IE: $7,645,174 DTA: $4,397,492 DCF: $1,747,911 Quality: $12,500,000 or 25% of $50M 25% of the total is set aside for grants to QRIS validated programs which could include grants to programs for salary, structure and additional education for staff. Access for high needs children: $23,709,423 or 47% We estimate that we could serve 2,790 IE children on an annualized basis.

8. Proposed FY14 EEC Budget 8

9. APPENDIX 9

10. Early Education and Care System Non CCDBG-Eligible Children 10 Children on Waitlist Possibly Eligible Age Criteria Infant (0 – 14 months): 5,129 Toddler (15 months – 2.9 years): 9,722 Preschool (2.9 years – 5 years): 15,239 Example of No. of potential children served Infant/Toddler Rate (3% Level 2 increase has been applied.) Cost estimate assumes Center Based Program for 261 days

11. Access to Care: Cost of Staffing 11 In November, 2010, the Board recommended the staffing pattern recommended below. If we were to increase funding for access, it is even more critical to fill the open positions in Fiscal, Policy, Quality Supports, and Communication.

12. 12 Center Based Prices by Age The most recent Massachusetts Market Price Child Care Survey shows that even with the implementation of the infant rate for all infants and toddlers, we will not be close to reimbursing at the federally suggested level of the 75 th percentile. Rate Comparison

13. 13 Family Child Care Prices By Age The most recent Massachusetts Market Price Child Care Survey shows that even with the implementation of the infant rate for all infants and toddlers, we will not be close to reimbursing at the federally suggested level of the 75th percentile.