FY14 Budget

Report
FY14 State Budget Discussion
Fiscal Committee
May 6, 2013
0
FY14 EEC Budget
House and Governor’s Budget Comparison
Line Item
3000-1000 Adm inis tration
Com pliance
3000-1001 Managem ent
3000-2000 Acces s Managem ent
3000-3050 Supportive
TANF Related Child
3000-4050 Care
Incom e Eligible Child
3000-4060 Care
Early Education Provider
Quality Enhancem ents
3000-4065
3000-4070 Pre-School Initiative
3000-4075 Infant Toddler
3000-4080 Quality Efforts
Kindergarten Entry
3000-4090 As s es s m ent Sys tem
3000-5000 Grants to Head Start
3000-5075 UPK
3000-6075 Mental Health
Services for Infants and
3000-7050 Parents
Fam ily Engagem ent to
Support Reading
3000-7051 Proficiency by Grade 3
3000-7070 Reach Out and Read
Com prehens ive Support
3000-8000 Services
XXXX-XXXX Salary Rate Res erve
1
FY13 Total
Available
Descriptor
FY14 H.1
HWM FY14
House
Reccommended Amendments
FY14 House
Final
$
12,112,954
$
12,844,972
$
12,353,980
$
-
$
12,353,980
$
$
$
5,933,862
77,330,875
$
$
$
7,933,862
80,227,189
$
$
$
200,000
5,933,862
80,821,506
$
$
$
-
$
$
$
200,000
5,933,862
80,821,506
$ 125,495,740
$ 128,063,499
$ 128,063,499
$
-
$
128,063,499
$ 231,870,452
$ 226,697,976
$ 214,340,742
$
-
$
214,340,742
$
$
$
$
$
$
$
$
30,586,713
25,150,000
31,600,000
30,000,000
$
$
$
$
150,000
-
$
$
$
$
-
$
$
$
$
150,000
-
-
$
$
$
$
8,000,000
7,432,383
750,000
$
$
$
$
3,200,000
8,000,000
7,432,383
750,000
$
$
$
$
7,500,000
5,000,000
750,000
$
$
$
$
500,000
2,500,000
-
$
$
$
$
8,000,000
7,500,000
750,000
$
18,164,890
$
18,164,890
$
16,164,890
$
2,000,000
$
18,164,890
$
750,000
$
$
3,000,000
750,000
$
$
800,000
$
$
$
$
800,000
$
$
$
7,500,000
484,578,479
$
$
$ 487,841,156
$
5,000,000
$
$ 619,401,484
$
$
$ 472,078,479
-
$
$ 7,500,000
$ 12,500,000
FY14 House Final Budget – Non Caseload









2
3000-1000 Administration: The House has funded this account at
$12,353,980 which is an increase of $241K from FY13 (or 2%). This amount
enables EEC to meet its FY14 maintenance needs. (CBA salary related increases
and space rental increases are the major forces driving the FY14 maintenance
increases).
3000-1001 Compliance Management: This is a new line offered by the
House. Notwithstanding the existing caseload forecasting office, this line item
supports the House initiative to create a special commission to study and enhance
early education services.
3000-2000 Access Management: The House level funds this account at
$5.9M.
3000-5000 Head Start Grants: The HWM originally reduced the appropriation
by $500K. The $500K amount was restored during the House floor debate,
bringing the FY14 House budget recommendation for Head Start level funding.
3000-5075 Universal Pre-Kindergarten (UPK): HWM originally reduced the
appropriation by $2.5M. The $2.5M was restored during the House floor debate,
bringing the FY14 House budget recommendation for UPK to level funding.
3000-6075 Mental Health: The House level funds this account at $750K.
3000-7050 Family Engagement: HWM originally reduced the appropriation by
$2M. The $2M amount was restored during the House floor debate, bringing the
FY14 House budget recommendation to the FY13 level.
3000-7070 Reach Out and Read (ROR): The House increase the ROR
appropriation in FY14 by $50K to $800K in FY14.
Rate Reserve: The House also added $7.5M for a one time rate reserve
payment. Such funds would be used to help increase rates for early education
and care providers.
FY14 Budget Process: Caseload Accounts
DCF
DTA
IE
3
Current Maintenance Number
$
80,248,174
$
130,396,104
$
226,479,673
$
437,123,951
House Number
$
80,821,506
$ 128,063,499
$ 214,340,742
$ 423,225,747
Difference
$
573,332
$
(2,332,605)
$ (12,138,931)
$ (13,898,204)
FY14 Budget: Caseload Accounts - Supportive

4
3000-3050: Supportive

FY13 Available Funding: $77,330,875

FY14 EEC Current Maintenance Need: $80,248,174

Current Maintenance Definition: EEC’s current FY14 maintenance
projection includes additional funding that will support services for
approximately 340 children. Note that we have offered 200 “slots” to
DCF under a statewide expansion slot policy to alleviate the DCF waitlist.

House: $80,821,506: House Final recommendation is $593K greater
than EEC’s current maintenance need.
FY14 Budget: Caseload Accounts - DTA
The House Final recommendation is approximately $4.9M less than EEC’s current
FY14 maintenance need. If expenditures align with FY14 forecast, we will have a
built in deficiency of approximately $2.4M at House Final Budget at $128M that
will need to be resolved through a supplemental budget later in FY14 or a
transfer from the Income Eligible appropriation.

5
3000-4050: DTA Related

FY13 Available Funding: $125,495,740

FY14 EEC Current Maintenance Need: $130,396,104

Current Maintenance Definition: Historical caseload fluctuations have
been built into the FY14 current maintenance need figure. Using a 3 year
historical average (month to month caseload percentage change by age
group), expenditures are estimated to be approximately $4.9M more than
the FY13 appropriation. Expenditures were calculated using a 3 year
average cost per child by month and by age group.

House: $128,063,499. Language provides standard transferability (3%
to DCF and Income Eligible.)
FY14 Budget Caseload Accounts – Income Eligible
The funding level of $214.3M creates a shortfall $12.1M. If the projected DTA
deficit is funded through the IE account the shortfall will increase by $2.4M to
$14.5M. In either scenario backfilling attrition will not be possible, unused
contract slots may need to be terminated from the contracts, and children
could potentially be removed from care if these initiatives do not reduce
expenditures to the appropriation budget levels.
FY14 budget language for the Income Eligible appropriation account stipulates
the following:
“and provided further, that any unexpended funds in this item at the
end of fiscal year 2013 shall not revert and shall be made available for
the purposes of this item until June 30, 2014” .
If this language prevails, the current projected FY13 IE surplus of $13.7, after
transferring $6.1M to eliminate the projected FY13 DTA deficit, will result in
$7.5M available for FY14. This reduces the forecasted FY14 IE shortfall to
$4.6M to $7.0M (if we have to cover the DTA deficit).
6
FY14 Budget: Caseload Accounts – Income Eligible

7
3000-4060: Income Eligible

FY13 Available Funding: $231,870,452

FY14 EEC Current Maintenance Need: $226,479,673

Current Maintenance Definition: Voucher access has been closed
since February 2011. Effective April 2013 EEC opened limited access to
allow EEC to backfill attrition. Approximately 1100 vouchers and contract
slots have been added gradually since February 2013. Backfilling attrition
and having every contract slot filled is the basis of EEC Income Eligible
FY14 maintenance need. Expenditures have been calculated using a 3
year average cost per child by month and by age group. The maintenance
need supports voucher caseload of 14,480 and, on average, contract
caseload at 15,903.

House: $214,340,742 and provides standard transferability language
(3% to DTA and Supportive)
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 by HWM on April 10, 2013 and finalized by the House a few weeks later. The House does not
embrace any early education initiatives offered by the Governor. On the contrary, the House budget
slashed Income Eligible funding and included PAC language reasoning that there is a surplus currently in
the account. The House does recommend maintenance funding for all other non-caseload accounts .
•To be released on May 15 and will be debated the following week.
Senate
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.
•Governor may sign the bill with objections to certain items.
• Everything outside of those vetoed items become law July 1.
Veto &
Override •The vetoed items must be overridden by 2/3 of the House and then the Senate.
•Once vetoes and overrides are done the FY14 budget is complete.
FY14 GAA
8

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