1. FY13 Budget and Caseload Update Fiscal Committee April 1, 2013

2. FY13 Caseload Overview Income Eligible: The Income Eligible account FY13 forecast is projecting a surplus of $11.7M which is approximately $2.3M less than last month’s projected surplus of $14.0M. Late billing for February is almost double the amount projected ($152K vs. $86K). Recalibrating the late billing projection increased the projected cost ($500K). Included in this month’s forecast is additional access for 739 children ($1.8M) from three priority populations on the waitlist. We opened access to 144 slots for homeless children and 625 vouchers for children of military families (deployed or active duty) and vouchers for siblings. Additional savings may be realized because of the various dates children start services. DTA-Related Caseload: The forecasted deficit has increased to $6.5M, a increase of approximately $1.2M. The change in forecast is driven by late billing ($600K) and increase in caseload ($600K). Late billing for February was more than twice the amount projected ($222K vs. 100K). January caseload was reported last month at 16,196 after February billing, caseload for January increased by 443 to 16,510. Supportive: The projected surplus of $2.3M is a $100k increase from the projected surplus last month of $2.2M. Summary: The surplus in total changed from $10.7M to $7.6M. The primary factors driving the increase are the additional access for priority populations, late billing, and the increase in DTA caseload. Projections for late billing are based on the current month late billing and historical month to month fluctuations in SFY2012. Late billing had been trending down. The significant increase this month is projected for the remainder of the year until it can be determined if this increase was a one-time anomaly. 2

3. FY13 Caseload Overview Summary As of February 2013 3

4. FY13 Caseload Overview Summary 4

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7. 7 FY 2013 Income Eligible (3000-4060)

8. 8 FY 2013 DTA Related (3000-4050)

9. 9 FY 2013 Supportive (3000-3050)

10. 10 (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 February 2013 Voucher Expenditures paid is $6,260,015 Actual/Forecast includes projected cost for Infant Toddler Rate Increase Gray : FY13 Appropriation (Vouchers, Contracts & Grants) Blue: Actual/Forecast Expenditures

11. FY2013 DTA Caseload Actual/Forecast & Budgeted Expenditures 11 ( Amount in Thousands ) Blue: Actual/Forecast Expenditures Gray : FY13 Appropriation

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

13. FY12/13 IE Contract Slots - Regular and Flex 13 Total Awarded Slots is 14843 and Allowable Flex Slots is 857 24 Vendors representing 26 contracts are Over 5% Flex (99.5) 301 of the 355 additional contract slots awarded have been 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%.

14. New Children on Waitlist (July 2012 thru March 2013) 14 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

15. New Children on Waitlist (Jan 2012 thru June 2012) 15 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

16. Caseload Waitlist Since 02/2012 16 * 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.

17. 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 Released in early to mid May 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. 17