FY 2012 Budget Process Update

House FY12 EEC Recommendation

On April 28, 2011 the House engrossed H.3400, the FY2012 budget totaling $30.5B.

The House has recommended a budget for EEC of $501.28M, which is $2.5M higher than the Governor’s FY12 recommendation.

The House’s commitment to the children and families of the Commonwealth in spite of scarce resources to deal with crippling budget demands is demonstrated in its FY12 budget recommendation.

The House did not consolidate the caseload accounts, but did consolidate the Quality Supports and Family Engagement account. The House also recommended dedicating a separate line item for the “Reach Out and Read” program, which is currently funded from the Family Engagement line item.

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The House’s FY12 Recommendation

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Line Item Descriptor FY11 FY12 Proposed

Budget Governor (H.1) House HWM vs. House 1

3000-1000 *Administration $ 11,417,421 $ 12,101,394 $ 11,683,491 11,683,491$ -$

3000-2000 Access Management $ 5,933,862 $ 6,083,862 $ 5,933,862 5,933,862$ -$

3000-3050 Supportive $ 85,713,529 $ 92,767,534 $ 90,567,752 77,448,576$ (13,119,176)$

3000-4050 TANF Related Child Care $ 127,358,313 $ 136,244,249 $ 136,244,249 133,371,287$ (2,872,962)$

3000-4060**Low Income Eligible Child Care $ 233,527,427 $ 234,929,254 $ 219,325,346 237,397,940$ 18,072,594$

3000-5000 Grants to Head Start $ 7,500,000 $ 7,500,000 $ 7,500,000 7,500,000$ -$

3000-5075 UPK $ 7,500,000 $ 7,500,000 $ 7,500,000 7,500,000$ -$

3000-6000 Quality Supports $ 14,011,633 $ 18,511,633 $ 14,011,633 -$ (14,011,633)$

3000-6075 Mental Health $ 750,000 $ 1,000,000 $ 750,000 750,000$ -$

3000-7050Family Supports and Engagement $ 5,000,000 $ 5,000,000 $ 5,000,000 18,986,633$ 13,986,633$

3000-7070 Reach Out and Read $ - $ - 500,000$ 500,000$

498,712,185$ 521,637,926$ 498,516,333$ 501,071,789$ 2,555,456$

*Includes CBA reserve draw

**Includes PAC of $5M

FY12 Budget Process

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3000-1000 Admin: Build and Maintain Quality InfrastructureBoard Approved Action:

Step 1: Support maintenance needs of admin accountValue: $304,859 (Payroll Relate:$288K; Lease Spaces $38K; and ($22K Miscellaneous) This figure is based on the cost of negotiated step increases, the value of collective bargaining agreement raises, the cost of lease increases in the Boston and Springfield offices, an increase in the cost of postage, and other minor costs.

Governor: Did support maintenance needs. Funded the admin account at $11,683,491.Governor did provide enough funding to support our Admin maintenance needs, which include CBA increases, step increases, and anticipated lease increases.

House: Funded at the level recommended by the Governor.

FY12 Proposed Budget and House 1 Board Approved Action:

Step 2: Rebuild EEC Staffing InfrastructureValue: $379,114 (Fill 6 positions essential to EEC infrastructure).

• Director of Community Partnership and Outreach: ($75,000)• Chief Operations Officer: ($85,000)• Two (2) Fiscal Monitors: ($59,292 each for a total of $118,584)• Two (2) Child Care Licensing Specialists: ($50,265 each for a total of

$100,530)

This is the first stage in a multi-year effort to rebuild the EEC staff to levels appropriate to provide quality management and delivery of the EEC mission.

Overall admin increase would be $683,973 ($304K for maintenance and $379K for 6 additional positions).

Governor: Did not support the additional positions requested.

House: Not requested - the budget submission to the legislature was restricted to maintenance.

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FY12 Budget Process

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FY12 Proposed Budget – Structure Issues

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Quality Supports and Family Engagement: The House consolidated the Quality Supports account into the Family Engagement item and level funded.

Child Care AccountsGovernor: recommends consolidating the three caseload accounts into one (3000-

4060) and level funds the proposed account at $446M.House: Does not recommend consolidating the three caseload accounts, but funds the

caseload at a total of $448.2M ($2M higher than the Governor’s recommendation).1. Supportive: Funds at $77.5M, which is 4.2% increase over projected FY11

spending.2. DTA-Related: Funds at $133.3M, which is $222K more than FY11 projected

spending.3. Income Eligible: Funds at $237.4M, which is roughly $4M more than

appropriated in FY11, but $1.6M less than anticipated expenditures inFY11. The FY12 recommended amount would enable EEC to provide care to roughly 34,168 children, on average, per month.

FY12 Budget Process

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