Massachusetts Developmental Disabilities Council

Department of Early Education and Care

Line Item	Description	FY01	FY02	FY03	FY04	FY05*	H1 for FY06
Department of Education (DOE)
7030-1000	ErlyLrn. Sch.Rdinss.^	114,551,675	103,725,068	$84,662,732	$74,604,130	$74,605,058	Transferred to 3000-1000 and 3000-3000. $N/A
7030-1000	Cmty. Prtnrs. Children	--	--	--	--	--	Transferred to 3000-3000; Not more than: $68,630,469
7030-1000	Mass. Fam. Networks	--	--	--	--	--	Transferred to 3000-3000. Not more than:  $5,295,694
7030-1004	Parent/Child Hm.Prog.^^	--	299,005	--	900,000	1,000,000	Transferred to 3000-3000. Not more than: $1,000,000
Department of Early Education & Care (DEE&C)
3000-1000	Admin.	n/a					9,114,743
3000-3000	Early Ed & Care Progs.						385,060,287
3000-3050	Supportive Child Care						49,077,019
Subtotals: DEE&C							443,252,049
Office of Residential and Placement Licensure, Executive Office of Health & Human Services^^^
4000-0351	Residntl & Plcmnt. Lic.	n/a					737,593
Totals	Early Ed.&Cr.	$523,981,230	$504,242,525	$465,635,266	$447,432,749	$449,845,031	$450,942,722

*  FY05 numbers are current as of January 25, 2005.

^  In FY01-FY05, this account includes Community Partnerships for Children and Mass. Family Networks.

^^    The Parent/Child Home Program (7030-1004) was separated from 7030-1000 in FY02.

^^^  As part of the proposed implementation plan for DEE&C, H1 for FY06 establishes this new office within the Executive Office of Health and Human Services (EOHHS) and transfers licensing of residential care programs, adoption agencies, and foster placement agencies formerly in the Office of Child Care Services (OCCS) to line 4130-0005.

Recognizing the critical impact of quality early education and care, and as a result of major advocacy efforts by the early education and care community, the legislature has recently and unanimously passed landmark legislation to create a new independent agency called the Department of Early Education & Care (DEE&C). The DEE&C will provide universal voluntary access to preschool education and centralize in one agency all infant, toddler, preschool, and school-age programs and related licensing. It will consolidate the existing state early education and care functions-which had been funded within the Department of Education (DOE) and the Office of Child Care Services (OCCS)-into one agency. The DEE&C will be located within the Executive Office of Health and Human Services (EOHHS).

Through FY05, OCCS has been responsible for supervising the Massachusetts childcare system. The DOE also has been funded through FY05 to provide programs-including "inclusive" programs for those with disabilities-for the care and education of preschool children. These systems are now undergoing a major reorganization to achieve the new state objectives for universal early education and care.

Functions previously funded within OCCS include:

·       Provision of services-OCCS provided special child care services for children who had been abused and neglected, home visiting programs for infants with teenage parents, and subsidized childcare for low-income families;

·       Administrative and regulatory oversight-OCCS was responsible for training and licensing all child care providers in the state, managing resource and referral systems for parents, and managing the voucher systems used to provide child care services to families receiving welfare benefits and low-income families; and

·       Provision of public information-OCCS educated the community about preventing and detecting the abuse and neglect of children.

Functions previously funded within DOE include:

·       Major early care and education programs-such as Head Start and early learning and school readiness programs such as Community Partnerships for Children and Massachusetts Family Networks; and

·       The Parent/Child Home Program (PCHP).

At present, the demand for affordable childcare-especially among low- and moderate-income families-and for specialized services for target populations, such as at-risk children, substantially outweighs capacity in Massachusetts. More than 60% of young children in Massachusetts live in families where both parents work.[1] BOSTNET reports that roughly 80% of families in Massachusetts with a child under 3 have a working mother.[2] These conditions particularly jeopardize the safety of at-risk children, including those with disabilities or who are in need of specialized services.

The Early Education for All campaign is focused on the key issues of universal access to high quality programs offered through public and private providers, and staffed by well-trained early educators. The research is clear and there is a consensus among advocates, state agencies, and professionals that improving the training, education and compensation of the early childhood and school-age workforce is critical to overall quality improvements.

DEE&C Charged with Ambitious, Laudable Goals

The new Board of Early Education and Care has four responsibilities: to administer a coordinated and consolidated early education and care system; oversee the development of a universal preschool program system; develop a school readiness assessment and program evaluation systems; and oversee workforce development. The strict timeline specified by the legislature calls for formation of the new Board of Early Childhood Education and Care by April 2005, and the start date for a new Commissioner and Department of Early Childhood Education and Care by July 2005.

FY05 OVERVIEW

When Funding Doesn't Keep Up with Costs and Demands. . .

FY05 marked a reverse of the budget cutting trend at OCCS, with a very small (.6%) increase over FY04. Still, the agency has suffered an 8.5% decrease between FY01 funding ($402,600,507) and FY05 funding ($368,093,830) levels. Meanwhile, OCCS programs have faced cost inflation.

The cumulative impact of these cuts comes alongside a growing demand for services and has resulted in challenges for the OCCS system.

·       Waiting lists: Waiting lists remain large, with over 13,800 children waiting for Subsidized Childcare slots. In recent years, there consistently has been a waiting list of 600-700 abused and/or neglected children needing Supportive Childcare.

·       Capacity: Capacity has been negatively affected. Because fewer subsidized childcare slots are available, the total unduplicated number of children placed in subsidized slots in FY03 was 14,292 less than the number placed in 2001.

·       Quality: Agency staff and advocates state that the quality of services has been eroded. Consistently high turnover is reported throughout the childcare field. Programs are now restricting resources, such as transportation supports to families, in order to stretch limited funding.

On the bright side, the FY05 budget did include a helpful one-time $5 million Child Care Rate Reserve (line item 1599-1142), which is being distributed in the form of a 1.55% increase in rates for OCCS voucher providers and contractors. There was also an internal rate increase totaling approximately $7.6 million in FY04. However, as one advocate stated, health care cost growth alone will eat up virtually all of the new money for most providers.

Early education and care programs at DOE have experienced similar reductions in services and decreased access to resources as a result of major cuts. Early Learning/School Readiness programs were cut $38,947,545 (34%) from FY01-FY05. FY05 funding was nearly level with that of FY04. As a result, at least 2,000 fewer children are receiving child care tuition assistance through the DOE Community Partnership for Children (CPC). Head Start has been bearing the brunt of nearly level funding, by reducing the availability of a wide range of resources, as described in the line item analysis below. The reductions at Head Start illustrate how level funding leads to decreased resources and services available to children and families.

H1 for FY06 OVERVIEW

Reorganization on Track, but Substantial Funding is Needed to Move Forward

The new DEE&C continues to move forward in an organizational sense, with continued support from the governor for an independent, merged agency. However, the governor's H1 for FY06 budget risks derailing much of the momentum for improvements with nearly level funding. The total funding increase is less than $6 million-not nearly enough to cover even the larger number of families that will need to be assisted with childcare subsidies as a result of proposed welfare work requirement rule changes. [Editor's Note: See the introduction to the Department of Transitional Assistance (DTA) chapter for details on those proposals.]

Advocates Work to Sustain Legislative Commitment

To build on the existing community-based systems and lay the foundation for universal preschool, Early Education and Care and School Age Program advocates-including a network of at least 10 organizations and advocacy groups-seek the following funding in FY06:

·       $32 million to build the quality, infrastructure, and capacity of the system. The money would support reimbursement adjustments for providers to enhance quality and capacity, retention of early educators who have Associates or Bachelors degrees through increased compensation, expanded parent access to DEE&C services through the Resource and Referral Centers, and programs to meet new curriculum standards.

·       $18 million for workforce development. The money would enhance educational standards of the early education workforce by supporting their pursuit of Associate- and higher-level coursework.

·       Restoration of past funding cuts and full funding of the new DEE&C. Full operation of the new agency would include a system of accountability for expenditures of state dollars through statewide program and eligibility standards. It would also prioritize the allocation of equitable resources to support school-age children.

Line Item Analysis

Account:      Office of Early Education

Line Item:   7030-1000

The Office of Early Education account funds early childhood educational programs, primarily Community Partnerships for Children (CPC) and Massachusetts Family Networks (MFN). It also supports a number of inclusive DOE preschools designated jointly for at-risk children, children with special education needs, and typically developing children with or without disabilities.

Community Partnerships for Children (CPC) offers a variety of comprehensive services and programs for preschool age children, including health and mental health, family education and family literacy, as well as early care and education services. CPC supports local community-based councils to work collaboratively with many programs to develop a local system of early care and education, thereby addressing service gaps and reducing the duplication of services. CPC councils provide subsidies to low- and moderate-income working families and allow the families to choose the program that best meets their needs.

CPC has been able to support inclusive preschool for at-risk children, regardless of a family's working status. In addition to providing at-risk children with access to pre-school, CPC's funding is important because it is a large portion of the inclusive pre-school program funding base. (Children with Special Education plans are funded through DOE special education funds.) Historically, $12.9 million of the CPC annual budget has been used to support inclusive programs in public schools, Head Start, and private child care centers. The percentage of children with disabilities in inclusive programs with their peers has increased from 20% to 90% over the past 15 years.

Child care programs which participate in CPC-including public schools, Head Start centers, and child care or family child care facilities-must seek appropriate accreditation. CPC provides trainings and support for the accreditation process. CPC programs operate in 336 Massachusetts communities (representing 95.4% of all state municipalities). Funding for this program provides child care tuition assistance to over 14,900 children of working parents. CPC funding has also enabled approximately 1,000 early childhood centers and schools to become accredited and 400 family child care providers to obtain their credentials.

Massachusetts Family Networks (MFN) support community efforts to bring families together for enrichment activities, education, and community building. MFN's ultimate goal is to create quality networks for family support and parent education accessible to all families with children from the prenatal period through age three. The MFN is presently available in 164 communities through 42 grants, serving approximately 22,000 families with children from birth to age four. Programs vary from community to community because they are designed to respond to particular local needs. As part of the parenting education and support services, 5,700 home visits were conducted and more than 4,360 parents attended 510 parenting workshops, which were offered in several languages.

Line Item	Description	FY01	FY02	FY03	FY04	FY05	H1 for FY06	Transfer To
7030-1000	Early Learning/ School Readiness.**	$114,551,675	$103,725,068	$84,662,732	$74,604,130	$74,605,058	n/a	3000-1000 3000-3000
3000-1000	Admin.	--	--	--	--	--	n/a*
3000-3000	EE&C Programs: CPC	--	--	--	--	--	Not more than $68,630,469
3000-3000	EE&C Programs: MFN	--	--	--	--	--	Not more than $5,295,694
Totals:		$114,551,675***	$103,725,068	$84,662,732	$74,604,130	$74,605,058	n/a

*     The 3000-1000 account combines a portion of former 7030-1000 and former 4130-0001

*** The FY01 total is not directly comparable to totals from other years because the Parent/Child Program was funded in this account prior to FY02.

FY01-FY05 Impact

In FY04, CPC's funding fell to $68.6 million from $104 million in FY01, a cut of 34%. In FY05, the program was level funded with the FY04 allocation. In FY02, CPC served 24,065 children, but more recent data report CPC serving at least 2,000 fewer children.

In FY04, MFN was cut back to $5.2 million from $6.4 million in FY01, a nearly 19% reduction. In FY05, MFN was level funded with the FY04 allocation. MFN programs have tried to absorb budget reductions by offering fewer home visits, family events, or parent-child activities. They also may reduce the staffing hours; thereby reducing case management and outreach services.

FY06 Needs

Keeping these programs intact and maintaining continuity in the context of the transition to the new department is of primary concern. The CPC programs operate under high quality standards. At the same time, the flexibility CPC and MFN have had in working collaboratively with the community councils to define community service needs has been an integral part of the success of both programs. As new means for organizing and delivering services through the new DEE&C are defined, it is worthwhile to view these successful programs as models.

H1 for FY06 Recommendations

H1 would transfer these accounts at nearly level funding into the DEE&C Early Education and Care Programs account (line item 3000-3000). Level funding, in the face of ongoing inflation and increasing operating costs, strains the resources of programs.

Account:      Parent/Child Home Program (PCHP)

Line Item:   7030-1004

The Parent Child Home Program (PCHP) account funds intensive home visiting services targeting families whose income or education level may put a child at risk developmentally or educationally. Services focus on parent-child verbal interaction and developing critical language and literacy skills in children aged 18 months through 3 years. The goal is to facilitate school success through strengthened parental involvement. The program is a national model. In FY04, PCHP funded 25 sites statewide and served 350 families.[3]

Line Item	Description	FY01	FY02	FY03	FY04	FY05	H1 for FY06	Transfer To
Department of Education
7030-1004	Parent/Child Hm.Prog.*	--	2,995,005	0	900,000	1,000,000		3000-3000
Department of Early Education & Care
3000-3000	Early Ed & Care Progs.	--	--	--	--	--	1,000,000
Totals:		--	2,995,005	0	900,000	1,000,000	1,000,000

*     The Parent/Child Home Program was moved out of line item 7030-1000 into line item 7030-1004 in FY02.

FY01-FY05 Impact

In FY01, the legislature expanded the program from $2 million to $3 million (within account 7030-1000, above). The allocation funded 26 existing sites and 13 new sites, serving a total of 1,200 children in 39 communities.

In FY03, PCHP was vetoed and hundreds of children lost services. FY04 restored $900,000 and FY05 projected spending is $1,000,000. The program now has less than a third of the funding it had in FY01.

FY06 Needs

PHCP is considered a model in meeting the needs of a target population. It needs adequate funding and continuity. Level funding strains programs, and ultimately restricts the resources available to families.

H1 for FY06 Recommendations

H1 would transfer this account at no more than level funding into the DEE&C Early Education and Care Programs account (line item 3000-3000).