FY14 Caseload Spending Plan
Fiscal Committee
September 9, 2013
FY14 July Caseload Review
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Note: The department is still in the midst of processing July caseload; therefore,
we are not prepared to verify the updated caseload projections until we have fully
reviewed the July reports. Below are some observations of the caseload:
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DTA-Related Caseload: The FY14 Spending Plan was prepared prior to the
receipt of actual FY14 spending reports; we projected at the time a deficiency in
DTA of $2.4M. Preliminary numbers from July suggest that the deficiency has
grown to $4.5M. The increase in deficiency (if accurate) will be supported by the
Income Eligible account.
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Income Eligible: The FY14 Spending Plan was prepared prior to the receipt of
actual FY14 spending reports; we projected spending the full appropriation while
committing to the following:
 Transfer $2.4M to DTA to cover the projected deficiency in that account; and
 Open access to roughly 900 children in October (exclusive of the 3000-4070
waitlist remediation item) to help backfill voucher attrition.
A preliminary review of July’s figures suggest that IE cost projections for FY14
have decreased enough to support an apparent increase in the DTA deficiency
and continue with the plan of backfilling voucher attrition.
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Supportive Caseload: Preliminary figures suggest we are on target to spend
the full appropriation, which is slightly less than FY13. We recently lifted local
expansion limits so that more children can be served in areas where there is the
capacity and the need.
FY14 Spending Plan – Supportive Care
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Line Item Description: Provides early education and care and afterschool
services for children referred by the Department of Children and Families (DCF).
This account is intended to provide immediate access to all eligible families.
This account is funded at $76.9M in FY2014 and EEC anticipates that FY2014
expenditures will be $77M.
FY2014 expenditure projections are based on the following assumptions:
 Monthly caseload is forecasted using a three year average percentage
change by age group for FY2011, FY2012, and FY2013. A three average
was used because a review of fiscal years 2011 thru 2013 indicates that
spending levels have not fluctuated significantly as noted in the chart
below.
Total Supportive Expenditures
$
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3
2013
73,769,587 $
2012
74,672,943 $
2011
74,636,187
Cost per child was calculated using the FY2013 average cost by month and
age group.
The FY2014 expenditure projection anticipates that approximately 376 open
slots will be offered to children on the DCF waitlist. The current DCF waitlist
is approximately 850 children
We anticipate that the approved Infant Toddler Rate Increase at current run
rates will cost approximately an additional $300K in FY2014 as more
providers meet the QRIS requirements. This cost has been included in our
projected FY14 expenditure of $77M.
FY14 Spending Plan – DTA Related
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Line Item Description: This line item provides early education and care
and after school services for children referred by the Department of
Transitional Assistance (DTA). This account is funded at $128.1M in FY2014
which is an increase of $2.6M when compared to the FY2013 GAA
appropriation.
Based on the projected FY14 caseload we forecast the FY2014 DTA caseload
cost to be approximately $130.5M which, at the FY14 appropriation, is a
deficit of $2.4M. If realized, this can be remedied only by transferring funds
from the Income Eligible account or a supplemental appropriation.
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4
FY2014 expenditure projections are based on the following assumptions:
 Monthly caseload is forecasted using the FY2013 percentage change in
caseload by age group.
 DTA caseload over the past three years does not have a specific trend;
therefore, caseload projections are based on FY2013 trends only. The
following chart reflects inconsistent spending and caseload over the past
four fiscal years.
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The cost per child was calculated using the FY2013 average cost by
month and age group.
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Late billing caseload or prior period caseload adjustments are based on
the FY2013 percentage caseload change by month. The cost projections
for late billing are based on the average cost by month.
FY14 Spending Plan – Income Eligible
5
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Line Item Description: Provides child care, early education, and
afterschool financial assistance for children from low income and at-risk
families through vouchers and contracts.
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The total amount available under the approved budget is $222.8M ($214M
appropriated and $8.5M PAC’d from FY13). Due to transferability language
included in the budget, however, any analysis of the Income Eligible funding
level is incomplete without factoring potential exposures in the other caseload
accounts. If the projected FY14 DTA deficiency of $2.4M is realized then funds
from the IE will be transferred to cover the deficit. The FY2014 Income
Eligible projection $220.4M assumes the DTA transfer.
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FY2014 expenditure projections are based on the following assumptions:
 Monthly caseload (voucher and contract slots) is forecasted using the
FY2013 percentage change in caseload by age group with the exception
of the months of May and June for voucher caseload. In April of FY2013
limited voucher access was made available to siblings and children of
military families which resulted in a spike in the month to month
caseload change.
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We mirrored in FY14 the FY13 month to month caseload variance
because access was closed. Voucher access was closed in Feb. 2011
(FY12), the impact to caseload began in Sept. 2011 (FY12) resulting in a
significant surplus (reversion).
FY14 Spending Plan – Income Eligible
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FY14 Assumptions Continued:
 The drop in contract expenditures is a direct correlation to the contract
providers not filling all of their contract slots and not because access
closure. Making voucher access available, through backfill attrition, will
ensure compliance to the CCDF block grant which mandates parental
choice. Establishing a backfilling process managed by the CCRRs and
monitored by EEC should facilitate serving additional children and
minimize a surplus (reversion). Please refer to the following chart which
shows that contract spending has remained relatively stable while
voucher spending has decreased significantly since FY12.
 Voucher cost per child was calculated using the FY2013 average cost by
month and age group.
 Contract cost is based on the maximum obligation for Income Eligible,
Teen and Homeless contracts, and Flex slots. The projection includes an
estimated underutilization savings.
 Late voucher billing caseload or prior period caseload adjustments are
based on the FY2013 percentage caseload change by month. The cost
projections for late billing are based on the average cost by month.
 Recognizing that Income Eligible voucher caseload was closed for the
majority of FY2013, voucher caseload projections are based on FY2013
trends.
 A formulized process to back fill attrition will be implemented. New
access for approximately 800 new children, although limited, will be
made available commencing October 1, 2013.
FY14 Spending Plan – Waitlist
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7
Line Item Description: This is a new account funded at $15.0M to reduce
the waitlist for income-eligible early education and care programs.
As of August 22, 2013 there are over 41,000 children on the waitlist. These
are children that have been placed on or have received an updated status
within the past 12 months.
Using the average Income Eligible cost per child, and starting October 1,
2013, EEC estimates we can serve in FY2014 2,367 additional children.
(The number of children served would increase if the plan is implemented
after October.)
Caseload Waitlist
Priority
Child Of Foster Care
Child Of Homeless Family
Child Of Military Personnel
Child Of Teen Parent
Child with Special Needs
Continuity of Care: Prior Year Summer Only
Continuity Of Care: Aging Out
Continuity Of Care: Approved Break in Service
Continuity of Care: ARRA
Continuity Of Care: Geographic Relocation
Continuity Of Care: Homeless Contract
Continuity Of Care: Supportive Referral
Continuity Of Care: Teen Parent Contract
General Priority
Grandparent/Guardian Families
N/A
No Priority - Other Family Member
Parent with Special Needs
Sibling: Contract
Sibling: Voucher
Summer Only Care
Grand Total
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Total July
31, 2013
169
454
68
365
1,776
139
205
484
51
145
29
256
16
32,881
349
4
357
436
737
544
853
40,318
Total
August
30, 2013
180
458
44
389
1,893
151
248
493
54
154
30
265
18
34,266
344
6
381
424
753
566
856
41,973
FY14 Caseload Access
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EEC has appealed to ANF for permission to open access and begin the work
necessary to fulfill the intent of 3000-4070 in advance of formal Spending Plan
approval. We employed the following positions in making our request:
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As of August 22, 2013, there are over 41,000 children on the waitlist. These
are children that have been placed on or have received an updated status
within the past twelve months.
We need to start immediately to put all policies and procedures in place to
open access effective October 1 and, according to our projections, serve
2,367 from the waitlist.
Any delay in the process will delay implementation, and a delayed
implementation means delayed access, particularly if we starting bumping
against the holidays.
In particular, we want to begin working with the CCRRs to bolster their
network to prepare for this work.
We do not want to impede in any way serving children in need.