1. Budget and Caseload Update EEC Policy and Fiscal Committee April 14, 2011

2. FY11 Caseload through the Months 2 The big swing from October to November was partly due to the passage of the $5M PAC. The other swing in that period was in DTA, which, at the time, caseload information indicated a month decrease of 1,000 children. This information was amended after subsequent IT caseload reports that adjusted the deflated total upwards.

3. Recommendations to the Committee to Solve the Deficiency  December 6 Meeting: Request Full Transferability - allow EEC to transfer the surplus from the Supportive account to the Income Eligible and DTA- Related caseload accounts. STATUS: DONE. Language submitted in January and the House and Senate approved in March.  January 3 Meeting: Close Income Eligible voucher access for most cases effective February 15th. STATUS: DONE. Income Eligible voucher access for new families and siblings was closed effective February 4 th via EMB FY2011-07. 3

4. Recommendations to the Committee to Solve the Deficiency  February 7 Meeting: Prevent Vacant Contract slots from being filled effective March 1. STATUS: NOT DONE Eliminate additional Flex Pool Spending for Contract Providers effective March 1. STATUS: NOT DONE. However, contract slots and the flex pool for providers that are over 5% in the use of flex pool slots were closed in March (see March 7 meeting). Transfer costs for DCF children moved from DCF to the IE account from July through December prior to initiation of Transitional Supportive Child Care (TSCC). STATUS: PENDING. With the passage of transferability this option is less of a priority. Commissioner Killins to call Commissioner Kehoe and communicate that without supplemental funding in the DTA account we will spend all available funds by mid-May. If supplemental funds are not made available, and we want to prevent a deficiency, access to the DTA account must close access in March. STATUS: DONE. 4

5. Recommendations to the Committee to Solve the Deficiency  March 7 Meeting: Further Caseload Closure Actions: A) Close sibling access through vouchers and flex pool; B) Close contract slots and the flex pool for providers that are over 5% in the use of flex pool slots; and C) Close Teen Parent flex pool. STATUS: DONE via EMB FY 2011-09.  April 4 Meeting: In anticipation of the response to the increased deficiency, EEC announced we would be closing access to Teen Parent and homeless contract slots. STATUS: DONE via EMB FY 2011-11. 5

6. Deficiency Response Options 1. Close Access to Teen and Homeless Contract Slots effective May 1, 2011 ($402K). 2. Apply ARRA Funds to Income Eligible childcare services for care that is not supplanted. Potential source is to identify the number of new preschool children in FY11 that were assigned to IE vouchers and/or contracts. A. Eliminate Infant Toddler Increase ($1.9M) B. Support Income Eligible Caseload ($1.6M) 3. Allocate unspent grant balances: FY10 unspent balance ($185K). A. Income Eligible - Inclusive Classroom SPED Grant B. Supportive – Mental Health Collaborative Grant 4. State will not reimburse Providers for Income Eligible services provided to children for an estimated 3 days based on current projected deficiency. Reduction to be applied in May or June or split between months ($2.620M). 5. Reduce payment to 61 FCC systems from $10/day to $5/day for all contract slots and vouchers effective May 1, 2011 ($3.3M). 6. Postpone Access for Continuity of Care until July 1, 2011. Calculated savings is at 50% to account for timing. A. Effective May 1, 2011; projected savings for 2 months ($557K) B. Effective June 1, 2011; projected savings for 1 month ($226K) 6

7. Deficiency Response Options 7. Postpone reassessment placements until July 1, 2011. Calculated savings is at 50% to account for timing. A. Effective May 1, 2011 - projected savings for 2 months ($4.4M) B. Effective June 1, 2011 - projected savings for 1 month ($2.1M) C. Targeted reassessment – School Age ($1.4M) 8. Remove Add-on Payment from Teen and Homeless filled contract slots effective May 1, 2011 ($770K). 9. Request Supplemental Funding from the Legislature. This would require support from ANF and authorization from the legislature. 10. Transfer TSCC related spending from the Income Eligible to the Supportive Care Account ($0). 11. To eliminate the deficiency, 2,579 children would need to be removed from care effective May 1, 2011 ($2.873M). 7

8. Deficiency Response Options Policy and Fiscal Committee Response 1. Apply ARRA Funds to Income Eligible childcare services for care that is not supplanted. Potential source is to identify the number of new preschool children in FY11 that were assigned to IE vouchers and/or contracts. A. Eliminate Infant Toddler Increase $1.9M B. Support Income Eligible Caseload $1.6M 2. Reduce payment to 61 FCC systems from $10/day to $5/day for all contract slots and vouchers effective May 1, 2011 $3.3M 3. Postpone reassessment placements until July 1, 2011. Calculated savings is at 50% to account for timing. A. Effective May 1, 2011 - projected savings for 2 months: $4.4M B. Effective June 1, 2011 - projected savings for 1 month: $2.1M C. Targeted reassessment – School Age: $1.4M 8

9. Deficiency Response Options 9 Ref. No. Response Option$ Impact Effect On Children Contract Change Program Change 1 Close Access for Teen and Homeless Contract Slots. $402K 2 Apply eligible ARRA Funds to Income Eligible childcare services. $3.5M 3 Allocate unspent grant balances. FY10 $185K 4 State will not reimburse Providers for Income Eligible services. $2.620M 5 Reduce payment to 61 FCC systems from $10/day to $5/day. $3.3M 6 Postpone Access for Continuity of Care until July 1, 2011. $226K- $557K 7 Postpone reassessment placements until July 1, 2011. $1.4M- $4.4M 8 Remove Add-on Payment from Teen and Homeless filled. $770K 9 Request Supplemental Funding from the Legislature $ required to offset deficiency 10 Transfer TSCC related spending. (IE to Supportive) $0M 11 Children removed from care. $2.873M Effect on Children: Services are impacted or children are removed from care. Contract Change: Requires a document amending the contract. Program Change: Notification if change in program and/or policy and oversight required by EEC.

10. Deficiency Response Options 10 Ref. No. Response Option 9 Request Supplemental Funding from the Legislature Total $ required to offset deficiency 7A Postpone reassessment placements until July 1, 2011. Effective 5/1/2011 $4.4M 2 Apply eligible ARRA Funds to Income Eligible childcare services. $3.5M 5 Reduce payment to 61 FCC systems from $10/day to $5/day. $3.3M 11 Children removed from care. $2.873M 4 State will not reimburse Providers for Income Eligible services. $2.620M 7B Postpone reassessment placements until July 1, 2011. Effective 6/1/2011 $2.1M 7C Postpone reassessment placements, school age only. Effective 5/1/2011 $1.4M 8 Remove Add-on Payment from Teen and Homeless filled. $770K 6A Postpone Access for Continuity of Care until July 1, 2011. As of 5/1/2011 $557K 1 Close Access for Teen and Homeless Contract Slots for open slots. $402K 6B6B Postpone Access for Continuity of Care until July 1, 2011. As of 6/1/2011 $226K 10 Transfer TSCC related spending. (IE to Supportive) $0M 3 Allocate unspent grant balances. FY10 unspent balance $185K Dollar Impact on Deficiency – Greatest to Least to Reduce Deficiency

11. Deficiency Response Options 11 Ref. No. Response Option 9 Request Supplemental Funding from the Legislature Total $ required to offset deficiency 2 Apply eligible ARRA Funds to Income Eligible childcare services. $3.5M 3 Allocate unspent grant balances. FY10 unspent balance $185K 4 State will not reimburse Providers for Income Eligible services and not pass on expense to families. $2.620M 1 Close Access for Teen and Homeless Contract Slots fro open slots. $402K 6A Postpone Access for Continuity of Care until July 1, 2011. As of 5/1/2011 $557K 6B Postpone Access for Continuity of Care until July 1, 2011. As of 6/1/2011 $226K 7A Postpone reassessment placements until July 1, 2011. Effective 5/1/2011 $4.4M 7B Postpone reassessment placements until July 1, 2011. Effective 6/1/2011 $2.1M 7C Postpone reassessment placements, school age only. Effective 5/1/2011 $1.4M 5 Reduce payment to 61 FCC systems from $10/day to $5/day. $3.3M 8 Remove Add-on Payment from Teen and Homeless filled. $770K 11 Children removed from care. $2.873M 10 Transfer TSCC related spending. (IE to Supportive) $0M Impact on Children & Families–Least to Greatest Impact on Services

12. Deficiency Response Options 12 Ref. No. Response Option 7A Postpone reassessment placements until July 1, 2011. Effective 5/1/2011 $4.4M 5 Reduce payment to 61 FCC systems from $10/day to $5/day. $3.3M 11 Children removed from care. $2.873M 4 State will not reimburse Providers for Income Eligible services and not pass on expense to families. $2.620M 7B Postpone reassessment placements until July 1, 2011. Effective 6/1/2011 $2.1M 7C Postpone reassessment placements, school age only. Effective 5/1/2011 $1.4M 8 Remove Add-on Payment from Teen and Homeless filled. $770K 6A Postpone Access for Continuity of Care until July 1, 2011. As of 5/1/2011 $557K 6B Postpone Access for Continuity of Care until July 1, 2011. As of 6/1/2011 $226K 1 Close Access for Teen and Homeless Contract Slots for open slots. $402K 2 Apply eligible ARRA Funds to Income Eligible childcare services. $3.5M 3 Allocate unspent grant balances. FY10 unspent balance $185K 9 Request Supplemental Funding from the Legislature Total $ required to offset deficiency 10 Transfer TSCC related spending. (IE to Supportive) $0M Impact on Providers– Greatest to Least on Provider Budget