EEC Budget Overview Accelerating the Early Education

EEC Budget Overview: Accelerating the Early Education and Care System Agenda Presentation to the EEC Fiscal Committee June 4, 2012

Summary of FY 12 EEC GAA Sources 2

Summary of FY 12 EEC Other Budget Sources 3

Summary of FY 12 EEC ISAs 4

FY 12 Budget: State Portion l l Major Expenses: 1. Caseload: EEC has budgeted $433. 8 M for caseload in FY 12. This represents 87. 56% of the EEC state budget. 2. Grants: EEC has budgeted $43. 2 M for grants in FY 12. This represents 8. 73% of the EEC state budget. 3. Staffing Related: EEC has budgeted $10. 6 M for staff related cost (payroll, travel and payroll tax). This represents 2. 1% of the entire state budget. l 5 Description: The FY 12 overall state budget is $495. 4 M. Financial Supports: 1. 39. 37% of the budgeted state funds are directly supported by the CCDF block grant. 2. 37. 28% of the budgeted state funds are tied to EHS for the TANF block grant (and a few smaller federal grants) reimbursement program supported by the CCDF block grant. 3. 15. 36% of the budgeted state funds help fulfill requirements to access CCDF funds (state match and MOE). 4. 7. 48% of the budgeted state funds are completely supported by the general fund are not tied in any way to federal grant programs.

Budget Priorities l The following represents EEC goals within the next 18 months, listed by priority. Specifics related to each goal are discussed in subsequent slides: 1. 2. 3. 4. 5. 6. 7. 6 Summer Only Care Infant/Toddler Rate Increase (Previous Board Vote) Transportation General Access General Rate Reform Staffing: Licensing (Previous Board Vote) Staffing: Fiscal Monitoring (Previous Board Vote)

Budget Priorities 7

Budget Priorities 8

Budget Priorities 9

Budget Priorities Board Recommendations to Support Positions in Fiscal, Policy, Quality Supports, and Communication 10

Budget Priorities: Summer Only Care FY 13 Expense: $1, 577, 070 l Summer Care Only provides care to school-age children facilitating continuity of care and education. It also allows parents to maintain employment. Therefore, EEC sees this as a critical and timely priority. If all 769 children currently on the waitlist are requesting Summer Care for the first time, the estimated cost would be approximately $1. 76 M which includes transportation for FY 12 ($200 K) and FY 13($1. 56 M). l Opening access to Summer Only Care aligns with the FY 2013 Governor’s Budget Recommendation: “The Governor’s budget continues to support child care access to quality after school and day care programs for children within the Department of Children and Families, the Department of Transitional Assistance, and other qualified low income eligible families. Funding for early education and care remains a vital component to addressing the achievement gap and, this budget reflects the commitment through level funding the Reach Out and Read, Head Start Grants and Universal Pre-Kindergarten programs. ” 11

Budget Priorities: Infant/Toddler Rate Increase FY 13 Expense: $4, 244, 969 l l EEC’s original proposal was to provide a rate increase of about 3% for infant and toddler care only to providers achieving a rating of 2 or greater on the quality rating scale (QRIS), and potentially retroactive to January 1 st, dependent on funding. l Policy rationale is based on the fact that these rates are further from market rate than rates for other populations (pre-school and school age); this makes it more difficult to find providers willing to serve this population and limits our capacity for providing service more sharply than in other populations. l 12 The EEC Board approved the Infant/Toddler increase in December 2010. The decision to tie the rate increase to QRIS was made consistent with the long term goals of EEC and its mission, and is intended to begin the process of relating voucher and contract funding to quality improvements, and setting rates not only based on type of child receiving care but on the quality of care received.

Budget Priorities: Transportation FY 13 Expense: $12, 837, 175 l l l 13 Providing transportation aligns with EEC’s strategic goal to increase and promote family support, access, and affordability. EEC provides transportation for children who meet our criteria. Safety of the children being transported is a primary concern of EEC. The present recommendation is that the proposed rate increase for one-way should be $8. 25 and round-trip should be $12. 25 which represents the current cost to transport a child. EEC’s policies mandate compliance with transportation laws/policies. Transportation providers are impacted financially with the policy(s) requiring monitors and/or monitoring devices. Additional funding may be needed for the potential need for EEC oversight and monitoring. A transportation rate increase without additional funding could require access to remain closed or the need to seek supplemental funding.

Budget Priorities: General Access FY 13 Expense: $14, 185, 246 (for 1, 000 children) l Access for Income Eligible vouchers has been closed from February 2011 through the present. Access was opened for siblings from early April through mid-May which represented approximately 3% of the total children on the waitlist. As of the April reports received May 20, approximately 570 siblings have been placed. General Priority waitlist has increased by 89. 7% from February 2011 to April 2012. l Access to contract slots remains open for those providers who are at or below their 5% flex allocation. l Closing access did stabilize expenses in FY 12. The continuation of keeping access closed has resulted in the Income Eligible caseload account to decrease. The Number of children served has decreased from 35, 904 children in February 2011 to 31, 193 children in March 2012. This represents a 13. 89% decrease. l l 14 Vouchers - From February 2011 to March 2012 caseload decreased 3, 995 - For the same time period 996 new IE vouchers were issued Contracts - From February 2011 to March 2012 caseload decreased by 1, 037

FY 12 Proposed Staffing Budget: A Review FY 13 Expense: $100, 530 (two child care licensing specialists) History l The EEC Board proposed that the FY 12 EEC Budget begin the rebuilding of the EEC Staffing Infrastructure by filling six essential positions at a total value of $379, 114. The six positions were: 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 was to be 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. • • l Positions Filled l We were able to fill the role of Chief Operations Officer only by redefining the Director of Human Resources position to include this important task. Essentially, we have combined two important personnel functions in one person and role. l We have filled one of the Fiscal Monitor positions using RTTT funding. l We are filling an Interagency Liaison Manager using RTTT funding, and will incorporate into the position the responsibilities associated with the Director of Community Partnerships and Outreach. 15

Budget Priorities: General Rate Reform FY 13 Expense: $137, 647, 245 (at the 60 th percentile) l A document published by the Congressional Research Service on the CCDF Grant published January 2010 states: “States are required to conduct a local market rate survey every two years to assess the price of child care being charged. Federal regulations suggest that states establish payment rates equal to at least the 75 th percentile of the market rate to ensure equal access for eligible families. (That is, HHS recommends that states set their payment rate ceiling at a level that, on average, equals or exceeds the rate charged by three out of every four providers who responded to the local market rate survey. ) However, federal law does not require that payments be set at this rate, nor that states use the most current market survey when setting rates. Instead, states must include a summary of the facts they used in determining the sufficiency of their payment rates to ensure equal access when they submit their state plans. ” l l 16 Our last market rate survey was done in FY 11; we will do another in FY 13. The following chart reflects the percentage on average for Infant, Toddler, and Preschool children. Our current rates are from the 50 th and 75 th percentile market survey results and represent FY 12 figures.

Early Learning Challenge Management Staff Expansion due to ELC 17

Advancing the Priority Areas l The child outcomes that we are trying to achieve require investment in four critical areas: l l program quality l screening and assessment l 18 educator quality engagement of communities and families

Priority: Educator Quality l In FY 12, EEC dedicated 2. 1% of the total funds it received to the priority area of Educator Quality: $11, 325, 305 - FY 12 GAA: $3, 200, 000 - RTTT-ELC: $8, 125, 305 19

Workforce Development: Educator and Provider Support (EPS) Networks l l 20 Purpose: To provide professional development that: l advances the professional growth (including degrees) of educators l enables providers (programs) to achieve accreditation and higher QRIS levels. Leaders: Adapt statewide initiatives to meet regional and local needs.

Educator Quality: ELC Initiatives l l Scholarship Expansion l EEC provided $1 million to support funding of additional coursework for recipients of the Early Childhood Educators’ Scholarship who work in a program that is engaged in QRIS. l 21 EEC/DHE Cross Agency Alignment l EEC transferred funds to the Department of Higher Education (DHE) via an Interagency Service Agreement (ISA) for a half time transfer/articulation specialist position to focus on implementation of the Early Childhood Education Transfer Compact, broadening access to higher education for educators who are English language learners (ELL), and to align higher education with best practices in the field. Media Partnership with WGBH l EEC has hired WGBH to develop media-based curriculum, professional development, and parent resources to support children’s early literacy development

Educator Quality: SAC Initiative l Early Education / Higher Education Workforce Preparation Partnership l l Phase I Study: Institutions of Higher Education Mapping Project l 22 Complete development of an early education and care workforce preparation data infrastructure partnership with DHE and with public/private higher education institutions. Phase II Study: Facilitate the transfer of credits between IHEs. Early childhood degree and certificate required coursework was compared at participating IHEs to identify common course themes and map courses to the Core Competency areas.

Ensuring Competency: Plans for Workforce Knowledge, Skills and Practice-Based Support Programs Supported by RTTT Funding l l Institutions of Higher Education training of early childhood educators in an innovative program for English language learners educators. l Post-Master’s degree certificate in early education and policy leadership. l Infrastructure for evidence-based coaching and mentoring that will greatly enhance the quality of the early childhood education workforce. l 23 Validation of workforce core competencies in social/emotional development and literacy/ numeracy and to conduct a study of best practices in supporting social and emotional development. Create an online curriculum hub for early educators and a “School Readiness” website for parents through expansion of the state’s (ESE) media partnership with WGBH.

Priority: Program Quality l In FY 12, EEC dedicated 6. 4% of the total funds it received to the priority area of Program Quality: $35, 160, 225 - FY 12 GAA: $8, 617, 995 - RTTT-ELC: $26, 542, 230 24

Program Quality: Current Initiatives In FY 12 EEC dedicated $8, 617, 995 in GAA funds to Program Quality. l l 25 UPK l Focus on serving high needs children, and requirements that providers must be at self-assess Level 3 in QRIS and that a competitive compensation package be provided for lead teachers. Services for Infants and Parents l This includes QRIS grants and initiatives and conferences like Tools of the Mind, Early Literacy Conference, pre-STEM training, and the Conference on Literacy, Numeracy, Social, and Emotional Well-Being.

Program Quality: ELC Initiatives l l 26 QRIS Program Quality Grant Expansion l Additional $315, 004. 00 to 90 programs that completed the QRIS On-line Fundamentals Course. On Line QRIS Course: l 2 hour course on the fundamentals of the QRIS, released in English, Spanish, English and Haitian-Creole. • Introduction to the QRIS • Current science of brain development • Five categories of the QRIS Standards • Measurement tools and structural quality indicators • Apply knowledge to identify program improvement

Step/Level 1: EEC QRIS Steps and Phases of Quality Licensed QRIS Step/ Level 1 Programs: Licensing License. Exempt Programs: Licensing Self. Assessment QRIS Step/ Level 2 QRIS Step/ Level 3 Step/Level 2: Self Assessment Validation QRIS Step/ Level 4 QRIS Step/ Level 5 27 Measured Growth

Program Quality: SAC Initiative l Policy and Best Practices for Children & Families with Limited English Proficiency and/or Developmental Delays or Multiagency Involvement l l 28 Development of policy and best practices and recommended models for early education and care serving limited English proficient children and families and/or children with developmental delays or multiple system involvement. Through three in-depth meetings EEC will support Principals and communitybased providers in spending time learning together in three areas of timely importance to the Commonwealth: • Child growth and development • Literacy • Dual language learners

Priority: Assessment and Outcomes In FY 12, EEC dedicated 83. 7% of the total funds it received to the priority area of Assessment and Child Outcomes: $456, 388, 299 - FY 12 GAA: $450, 504, 829 l - RTTT-ELC: $5, 863, 470 - Help Me Grow National Technical Assistance Center: $20, 000 29

EEC Comprehensive Assessment Strategy Access to growth and developmental screenings and assessments for all children Screening Assessments Program Environment Norm Referenced Summative Assessment Adult/Child Interactions Formativ e Assessm ent Estimated 450, 000 children: in communities, EEC programs, and schools – including Child Find, CFCE programs

Assessment/Outcomes: ELC Initiatives l Common Metric Project l EEC and ESE will develop a common metric to measure students at entry to kindergarten and provide a statewide picture to guide professional development, policy planning and intervention in preschool and K-3. l l 31 This common metric will be built off the use of one of three evidence based assessments which teachers will use at multiple points in the Kindergarten year to individualize teaching. Massachusetts Alignment Study Plan l Columbia University is evaluating the state’s early learning and development standards for infants, toddlers, preschoolers, and kindergarteners, to evaluate alignment between the standards and selected assessments.

Assessment / Outcomes: SAC Initiatives l Early Childhood Information System Development and Use l l Work on the next phase of the state’s ECIS to enhance connections and information exchange with the SLDS. Needs Assessment l l 32 Design and implementation of the required needs assessment with a special emphasis on multi-risk families with infants and toddlers Needs assessment will be conducted analyzed throughout the tenure of the SAC ARRA grant.

Priority: Family/Community Engagement l In FY 12, EEC dedicated 4. 4% of the total funds it received to the priority area of Communities and Families: $23, 945, 500 - FY 12 GAA: $20, 949, 500 - RTTT-ELC: $ 2, 996, 000 33

Family/Community Engagement Current Initiatives In FY 12 EEC dedicated $20, 949, 500 in GAA funds to Program Quality. l Coordinated Family and Community Engagement Grantees l l l Mental Health l l l Promote the healthy social and emotional development of all children, particularly those children whose emotional development is compromised by poverty, biological, or family risk factors, or other circumstances which may contribute to toxic levels of stress; Build the capacity of early education and care program staff to enhance children’s learning through positive, nurturing interactions with children and with their families and to address the needs of children who exhibit behavioral challenges; Attend to social-emotional needs of children so they are ready to learn and be successful in their early education; Maximize resources by ensuring that certain mental health interventions are funded, when appropriate, through insurance payments. Access Management l 34 Through a network of 101 grantees across the Commonwealth, actively identify and serve families that are the most socially isolated, “hard to reach, ” and hence at greatest risk for developmental delays; Provide high-quality, accurate consumer information and parent education based on science; Provide evidence-based early and family literacy programming; Support families through the continuum of services and supports needed for child development birth to 13, including intentional support into kindergarten, and Funds given to CCRRs to support the management of the voucher system and delivery of voucher and access information to the general public. Voucher Management pilot implemented. Review being done on the efficiency of the system.

Family/Community Engagement: ELC Initiatives l Financial Literacy Education l EEC hired the Massachusetts Community Action Programs (MASSCAP) to develop a Financial Literacy Education online course and accompanying webinar, and will provide trainer’s training on these to the Coordinated Family and Community Engagement Grantees (CFCE) in the Commonwealth. l Refugee and Immigrant Families l Interagency Service Agreement with the Office of Refugees and Immigrants to hire an Early Education and Care Liaison to improve communication between programs and immigrant/refugee families l Museums and Libraries Partnership l Boston Children’s Museum is implementing a statewide strategy to provide a shared framework and resources to increase the capacity of museums and libraries to support the optimal development of all children through intentional family engagement activities and early learning opportunities. l Four areas of focus: early literacy, school readiness including preparation for Kindergarten, interest and awareness of STEM (Science, Technology, Engineering and Math), and public awareness of the importance of early education and care through Brain Building in Progress l l 35 Media Partnership with WGBH l EEC has hired WGBH to develop media-based curriculum, professional development, and parent resources to support children’s early literacy Parent Brochures l EEC is developing parent brochures for the Pre-school Leaning Experiences for release in July 2012.

Family/Community Engagement: ELC Initiatives Early Learning Guidelines for Infants and Toddlers l Online course through Westfield State University l l Stress the importance of interaction and early literacy in the healthy development of young children. Materials for Parents Inspired by the Infant and Toddler Guidelines l Parents have the greatest impact on their children’s life. The first three years of life are a time of rapid brain development and learning. l The “Early Learning Guidelines for Infants and Toddlers”, were developed with the focus on relationships between all significant people in the child’s world. l EEC has developed “Learn and Grow Together” materials for parents which are inspired by these guidelines. l The documents were translated into Haitian, Khmer, and Spanish Sustaining Program Effects in the Early Elementary Grades l 36 Activities include the Early Educators’ Fellowship Initiative, grants to existing Regional Readiness Centers to provide professional development opportunities to the early education and care workforce, and alignment of PK to 3 as part of the rural grant strategy.

Family / Community Engagement: SAC Initiative SAC Funds have supported a Two Year Process Year One l l Rural Community Strategic Planning: One-time grants to selected Coordinated Family and Community Engagement (CFCE) grantees serving rural communities to support community birth through age 8 (“B-8”) three year strategic plans. Birth to 8 Assessment, Screening, and Curriculum Support and Alignment: One-time grants to non-profit entities serving rural communities in partnership with public school, public school districts, and/or a Charter school serving children pre-kindergarten to third grade to support assessment, screening, and curriculum support and alignment within the communities. schools? Year Two l l 37 Community Strategic Planning: One-time grants awarded to selected Coordinated Family and Community Engagement (CFCE) grantees serving in Gateway, District Level 4 Schools, and Home Visiting communities to support community birth through age 8 (“B-8”) three year strategic plans. Birth to 8 Assessment, Screening, and Curriculum Support and Alignment: One-time grants to Gateway, District Level 4 Schools, and Home Visiting Communities. Applicants had to be in partnership with non-profit communities including public schools, public school districts, and/or charter schools serving children pre-kindergarten to third grade to support assessment, screening, and curriculum support and alignment.