September Board Meeting FY08 and FY09 Spending Plan

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September Board MeetingFY08 and FY09 Spending
Plan
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FY08 and FY09 Spending Plan Maintenance
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FY08-FY09 Spending Plan

• Spending Plans Include Information On
• FY08, based on budget passed by Legislature
• FY09, based on agency growth cap of 1.5, set by
  Governors budget office, based on statewide
  projections.
• Board Approval of Spending Plan Means
• EEC projects a need for supplemental
  appropriations in FY08 to continue serving all
  children referred from DSS and DTA, pursuant to
  current mandates
• EEC has shown which actions would be necessary
  for the agency to live within the agency growth
  cap of 1.5
• Future Board Actions Will Provide Opportunities
  For
• Articulating need for FY09 funding above A F
  cap, both to avoid actions shown in spending
  plan, and to provide additional funding for other
  Board priorities and expansion

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FY07 Actuals vs. FY08 AppropriationsEEC budget
grows by 6.2
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FY08 Appropriations vs. FY08 ProjectionsAdditiona
l 2.7 growth needed to address unavoidable
deficiencies
Projected spending includes collective
bargaining reserve funding
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FY08 Spending Plan Financial Assistance Programs

• Transitional Assistance- additional need of 11M
• Children served in final months of FY07 exceeded
  both FY07 and FY08 projections by 5.
• The current projection for FY08 is based on FY07
  actual caseload and may change given the
  Department of Transitional Assistance (DTA)
  initiatives to move more families to self
  sufficiency.
• Additional funding in FY08 is necessary to comply
  with legal requirement to provide immediate
  access to children authorized by DTA (no
  waitlist)
• Supportive- additional need of 2.3M
• Original waitlist of 800 cleared in FY07 as
  required by budget language demand far exceeded
  original waitlist expectations
• Annualizing this increase and projecting the same
  growth rate of approximately 160 children per
  month in FY08 yields the unavoidable shortfall
• This rate of placement will result in
  approximately 21 of potentially eligible
  children being placed in supportive care, which
  is a 6 increase in the rate of access

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FY08 Spending Plan Financial Assistance
Programs, continued

• Income Eligible- adequate funding for waitlist
  priorities
• Can fund projected need for the following
  priority populations only
• Foster Care
• Homeless
• Military Personnel
• Teens and
• Continuity of care.
• Additional access for approximately 21,116 other
  eligible families on the waiting list would
  require additional funding or change in
  prioritization policy

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FY2009 Spending Plan DevelopmentMaintenance
Requirement

• Maintenance is defined by the Governors budget
  office as The development of funding levels,
  after minimal adjustments in specific areas, to
  enable a department to carry out the same level
  of service in FY2009 as was achieved in FY2008.
• No additional items, either expansion or savings,
  may be proposed as part of maintenance.

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FY2009 Maintenance Development
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FY09 Maintenance Increases

• Administration - 769,000
• 340K to maintain adequate administration and
  monitoring of budget growth and pursue new
  revenue maximization efforts
• 210K for additional full-year cost of FY08 hires
• 184K for regional office moves and
• 35K for increase in State IT charges.
• Supportive - 23.6 million
• Continued growth rate of 30 in placements and
  serving 27 of eligible DSS families.
• Transitional Assistance - 5.2 million
• 3 rate of growth subject to DTA initiatives.
• Income Eligible - 602,682
• Limited growth to maintain immediate access to
  priority populations

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FY09 Maintenance vs. FY09 CapSpending Plan
Assumptions of 5.8 vs. 1.5 required

• In order to comply with the AF spending plan
  requirement, EEC needs to show how it would
  reduce projected spending in FY2009 by 36
  million.

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FY2009 Maintenance vs. FY09 AF Cap

• EEC is statutorily required to maintain immediate
  access to financial assistance for families
  referred through DTA and DSS projected at
  277M of EECs FY09 budget.
• Submitting the FY09 spending plan within the
  required 1.5 growth cap would mean a 12.7
  reduction across EECs other spending projected
  at 282M of EECs FY09 budget.

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Spending Plan Process Is Only the First Step

• September EEC submits the AF FY08 spending plan
  and FY09 maintenance estimate.
• October/November Discuss FY09 budget priorities
  with EEC Advisory Team. EEC Board discusses and
  votes on budget priorities of the Department.
• December EEC staff meet with AF and Governors
  office regarding FY09 priorities.
• January Governor submits his recommendation of
  the budget to the Legislature.
• April House Ways and Means file their
  recommendation of the budget for consideration by
  the full House membership.
• May Senate Ways and Means file their
  recommendation of the budget for consideration of
  the full Senate membership.
• June Legislative Conference Committee meets to
  reconcile the differences between House and
  Senate recommendations of the budget. Approval
  of the budget is required by both the House and
  Senate.
• June Governor receives budget as approved by
  the Legislature reviews for vetoes and then
  signs the bill into law.
• July 1, 2008 State budget takes effect.