1. FY13 Budget and Caseload Update Fiscal Committee May 6, 2013

2. FY13 Caseload Overview Income Eligible: The FY13 Income Eligible forecast is projecting a surplus of $13.7M which is approximately $2.0M more than last month’s projected surplus of $11.7M. Despite opening over 1,100 points of access over a period of three months the IE caseload has had minimal change since February. To project IE contract caseload we rely on the maximum obligation of the contracts. We have, however, underutilization that affects the maximum obligation. Recently, underutilization has lowered the IE contract maximum obligation for the remainder of FY13. In applying the amended lower maximum obligation to the last quarter of FY13, the IE contract projected monthly cost has significantly decreased. This, along with late billing adjustments and timing of access placements, are the driving forces behind the surplus growth. DTA-Related Caseload: The forecasted deficit has decreased to $6.1M, a swing of approximately $400K. Late billing for February was more than twice the amount projected ($222K vs. 100K). Last month’s forecast was modified to incorporate the change in late billing. March’s late billing, however, was approximately $100K less than February and $73K less than projected. The current forecast anticipates lower late billing, more in line with previous months prior to February for the remainder of the year. Supportive: The projected surplus of $3.0M is a $700k increase from the projected surplus last month of $2.3M. Caseload billed for March 2013 is approximately 5% lower than forecasted attributing to $200K of the $700K increase in surplus. The remaining $500K is the full year impact for the caseload decrease. This change in surplus may be the result of a minor system issue preventing some billing to be processed in April. The full impact of the unbilled activity could not be fully determined. The forecast includes an offset to prevent an underestimated projection. The next billing cycle should align actual expenditures as we approach the end of the fiscal year. Summary: The surplus in total changed from $7.6M to $10.6M. The primary factors driving the increase is the impact of IE contract underutilization on the maximum obligation, timing of placements for the additional access for priority populations and contract slots, and adjusting late billing projections to align with the trend prior to the month of February. 2

3. FY13 Caseload Overview Summary As of March 2013 3

4. FY13 Caseload Overview Summary 4

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8. 8 FY 2013 Income Eligible (3000-4060)

9. 9 FY 2013 DTA Related (3000-4050)

10. 10 FY 2013 Supportive (3000-3050)

11. 11 (Amount in Thousands) FY2013 Income Eligible Total Caseload Actual/Forecast & Budgeted Expenditures Total Appropriation of $231.9M includes $9,019,276 for Grants and $600K Reserve for Late Billing March 2013 Voucher Expenditures paid is $6,698,148 Actual/Forecast includes projected cost for Infant Toddler Rate Increase Gray : FY13 Appropriation (Vouchers, Contracts & Grants) Blue: Actual/Forecast Expenditures

12. FY2013 DTA Caseload Actual/Forecast & Budgeted Expenditures 12 ( Amount in Thousands ) Blue: Actual/Forecast Expenditures Gray : FY13 Appropriation

13. FY2013 Supportive Caseload Actual/Forecast & Budgeted Expenditures 13 ( Amount in Thousands ) Blue: Actual/Forecast Expenditures Gray : : FY13 Appropriation

14. FY13 Late Billing As of March 2013 14

15. FY13 Late Billing As of March 2013 15

16. FY12/13 IE Contract Slots - Regular and Flex 16 Total Awarded Slots is 14834 and Allowable Flex Slots is 857 24 Vendors representing 26 contracts are Over 5% Flex (100) 296 of the 355 additional contract slots awarded have been filled as of April 29, 2013. Last month EEC reported 317 of 355 were filled. **No. of children filling slots may be greater than slots awarded. Effective Reporting Month February 2013 flex over 5% no longer includes Supportive (expansion slots) over 5%. Total awarded slots for Homeless is 693 and Teen 519. - Homeless: filled 568, open 125. An additional 100 slots were awarded in April 2013 - Teen: filled 453.5, open 65.5

17. New Children on Waitlist (July 2012 thru April 2013) 17 Note: This report shows the number of children who first time entered waitlist, as active child, within specified period of time and still active when the report is created. Number of New Children on Waitlist

18. New Children on Waitlist (Jan 2012 thru June 2012) 18 Note: This report shows the number of children who first time entered waitlist, as active child, within specified period of time and still active when the report is created. Number of New Children on Waitlist

19. Caseload Waitlist Since 03/2012 19 * Waitlist Data as of September 2011 is reported from KinderWait ** Excludes Unborn children, Children 13 or older, “0” zip codes and towns out of state.

20. FY14 Budget Process Prep Initial maintenance building process for FY14. starts in the summer of 2012. GOV Released on January 23, 2013. Funded EEC account at $619.4M, making significant investments in child care quality and access totaling $131M. Outside of the investments the Governor offered maintenance funding throughout the accounts House Released in April. Senate To be released on May 15 and debated the following week. Conf To reconcile the difference between the House and Senate versions a Conference committee is established comprising 3 members from each the House and Senate. The report of that committee is typically completed by mid to late June. The House and Senate enact the bill and send it to the Governor for his signature The bill becomes law upon the Governor’s signature. Veto & Override Governor may sign the bill with objections to certain items. Everything outside of those vetoed items become law July 1. The vetoed items must be overridden by 2/3 of the House and then the Senate. FY14 GAA Once vetoes and overrides are done the FY14 budget is complete. 20