OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www. cga. ct. gov/ofa

sSB-1106

AN ACT CONCERNING THE ESTABLISHMENT OF THE DEPARTMENT OF EARLY EDUCATION AND CHILD DEVELOPMENT AND A COLLECTIVE BARGAINING PROCESS FOR FAMILY CHILD CARE PROVIDERS.

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

The bill transfers upwards of $251 million and corresponding positions from various state agencies into the new Department of Early Education and Child Development (DEECD). Additionally, the bill requires DEECD to perform a number of existing and new duties that will result in a fiscal impact to the state and municipalities. These provisions are effective in FY 15. A section by section breakdown of the bill appears below.

Section 1 of the bill establishes DEECD. The bill transfers into the new agency programs related to early childhood, which are currently located within the State Department of Education (SDE), the Department of Social Services (DSS), the Department of Developmental Services (DDS), and the Department of Public Health (DPH). The tables on the following page identify: (1) the state agency where the program is currently located, (2) the name of the program, (3) any positions associated with the program, and (4) the funding associated with the program (although the transfer would not be effective until FY 15, the Governor's recommended FY 12 and FY 13 budget is provided for illustrative purposes in the following tables). Where positions are not provided, it is assumed that staff associated with administering these programs would also be transferred.

SDE Programs

Positions

FY 12 $

FY 13 $

Family Resource Centers

. 5

49,000

49,000

Early Childhood

2

199,200

199,200

Data Collection & Assessment

1. 5

138,000

138,000

Managers

. 5

64,000

64,000

Sub-Total SDE Programs

4. 5

450,200

450,200

SDE Grants

FY 12 $

FY 13 $

Family Resource Centers

6,041,488

6,041,488

School Readiness (Priority School District)

69,813,190

69,813,190

School Readiness (Competitive)

5,007,354

5,007,354

Head Start Link

2,090,000

2,090,000

Head Start Services

2,748,150

2,748,150

Head Start Enhancement

1,773,000

1,773,000

Community Plan for Early Childhood

427,500

427,500

Improving Early Literacy

150,000

150,000

Sub-total SDE Grants

88,050,682

88,050,682

SDE Total

88,500,882

88,500,882

DSS Programs

FY 12 $

FY 13 $

Child Care Services - TANF/CCDBG

97,598,443

104,304,819

Child Day Care

16,379,895

16,379,895

Child Care Quality Enhancements (School Readiness)

4,496,365

4,496,365

DSS Total

118,474,703

125,181,079

DDS Programs

FY 12 $

FY 13 $

Early Intervention

36,288,242

36,288,242

DDS Total

36,288,242

36,288,242

The DDS Early Connections program which is the state operated direct service provider of birth to three services remains in DDS under the bill. The state receives approximately $4. 1 million in federal Individual with Disabilities Education Act (IDEA) Part C funding for birth to three. The Early Connections program is supported by $1. 3 million in federal IDEA Part C funding and the balance of the $2. 8 million would be in DEECD.

The birth to three program currently generates $19 million per year in federal Medicaid revenue which is deposited as General Fund revenue. It is unclear how the provisions of the bill would impact this state revenue.

DPH Programs

FY 12 $

FY 13 $

Genetic Diseases Program

828,744

828,744

Children with Special Health Care Needs

667,604

667,604

School Based Health Centers

2,095,851

2,095,851

Healthy Start (state)

100,000

100,000

Immunizations

4,280,285

4,280,285

Healthy Choices for Women and Children

89,983

89,983

DPH Total

7,972,574

7,972,574

The DPH tables above do not include services by the agency's Public Health Laboratory, Drinking Water, Child Day Care, Youth Camp, Food Protection, School Assessment, Child Sexual Assault Prevention and other programs provided, or funded by the agency that are not tracked by age of beneficiary, or a reliable proxy. It is unknown to what extent those services contribute to the health and well-being of children birth to eight years, but it is assumed that there are significant additional dollars across DPH that could be associated directly or indirectly to early childhood.

Section 1 also establishes a commissioner position for the agency. It is anticipated that the annual salary for the new commissioner would be $180,000 plus fringe benefits1.

Section 2 specifies a number of duties that the new agency must be responsible for. Currently, a number of these duties are being carried out within state agencies and would not require additional resources. However, some of these duties are not being performed by existing state agencies, and would therefore require additional resources. Additional duties that DEECD would be responsible for, which would result in an additional cost, include: (1) quality assessment and longitudinal data analysis, (2) Pre-K-2 assessment tools, quality rating and improvement system, and (3) development and administration of comprehensive early childhood councils. The cost of these additional duties is unknown, as these functions are not currently being completed at this time, and there is no department established to assume the responsibility of these proposals. However, based on similar duties and proposals within SDE, it is anticipated that the cost to establish these additional duties will be greater than $2. 0 million. 2

Section 3 requires DEECD to establish an early education and child development system to improve child health, safety and learning. The cost of this system is unknown at this time, as this system currently does not exist, and there is no department established to assume the responsibility of the system. However, based on similar data systems established within SDE, it is anticipated that the cost would be greater than $1. 0 million.

Section 3 also states that by using the early education and child development system, DEECD must help municipalities establish local and regional early childhood councils. This requirement would not result in an additional cost to the state, but could result in an additional cost of up to $50,000 for various local and regional school districts to comply with the data collection, analysis and evaluation component.

Section 4 gives DEECD the authority to enter into agreements with other state agencies. This is not anticipated to result in a fiscal impact.

Section 5 requires DEECD to report to five General Assembly committees, by February 1, 2015. This is not anticipated to result in a fiscal impact.

Sections 6-35 make various conforming, procedural, and technical changes that establish DEECD. The fiscal impact of these sections is a transfer of programs, dollars, and positions for a number of existing state agencies into DEECD. The tables above reflect the transfer.

Section 36 makes family child care providers state employees for the purposes of collectively bargaining, and gives the DSS Commissioner the authority to bargain and enter into agreements with an organization representing such providers. To the extent that a collective bargaining agreement is reached and is approved by the legislature, the state could realize a cost or savings3. Child care providers are not eligible for benefits available to a state employee.

The Out Years

The fiscal impact stated above would continue into the future subject to the rate of inflation.

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated non-pension fringe benefit cost associated with personnel changes is 23. 76% of payroll in FY 12 and FY 13. In addition, there could be an impact to potential liability for the applicable state pension funds.

2 For FY 08 and FY 09, SDE was appropriated $1 million per year, to develop and maintain a quality rating system. However, the funds were never utilized for this purpose.

3 The agreement only requires legislative approval if it requires additional state funding, and is therefore not binding until the General Assembly approves the appropriation of such funds.