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Item L9BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: August 15, 2012 Division: BOCC 3 Bulk Item: No X Department: Heather Carruthers Dist 3 Staff Contact /Phone #: Carol Schreck 305-292-3430 AGENDA ITEM WORDING: Discussion of Florida State's new Early Learning Coalition (ELC) funding formula impacting funding for early childhood readiness in Monroe County and approval of a resolution urging restoration of funding to Miami-Dade/Monroe County. ITEM BACKGROUND: On June 25, 2012 (4 days before the beginning of FY 12/13, Florida's Office of Early Learning (OEL) released a new School Readiness (SR) funding allocation formula. The new formula attempts to achieve "equity" for all 67 Florida counties by redistributing the existing state SR allocation. For the fiscal year that began 7/1/12, the overall reduction to Miami-Dade/Monroe counties is $3,771,397 (Monroe $206,920). This amount includes Miami-Dade/Monroe's share of an $8,523,450 reduction of non -recurring dollars. Even with this reduction to Miami-Dade/Monroe, a number of counties received an increase in their allocation. Provided that the statewide School Readiness allocation remains unchanged, the ELC of Miami- Dade/Monroe will lose a total of $22,334,067 over the next 6 years. The reduction represents approx. 20% of total SR funding. It is important to note that this is not an overall reduction of the statewide SR allocation; it is a shift of dollars from one county to another. However, there is no definition of "equity" in statute, in regulation or in the funding allocation formula. * Total reduction Year 1— Year 6 in funding to Monroe County is $1,618,842 (-51.22%) * Projected loss of a total of 350 child care slots in Monroe County Year 1— Year 6. PREVIOUS RELEVANT BOCC ACTION: CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATIONS: TOTAL COST: 0 INDIRECT COST: 0 BUDGETED: Yes No DIFFERENTIAL OF LOCAL PREFERENCE: COST TO COUNTY: 0 SOURCE OF FUNDS: REVENUE PRODUCING: Yes No 0 AMOUNT PER MONTH Year APPROVED BY: County Atty OMB/Purchasing Risk Management DOCUMENTATION: Included X DISPOSITION: Not Required AGENDA ITEM # Revised 07/09 Commissioner Carruthers RESOLUTION NO. - 2102 A RESOLUTION BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA URGING THE GOVERNOR AND FLORIDA LEGISLATURE TO RESTORE FUNDING TO MIAMI- DADE/MONROE COUNTIES FOR RECENT CUTS TO SUBSIDIZED CHILD CARE SLOTS AND TO DEVELOP A NEW FUNDING FORMULA BASED ON EQUITY THAT CONSIDERS SOCIO-ECONOMIC VARIABLES AND THE NUMBER OF CHILDREN ON THE WAITING LIST. WHEREAS, on June 25, 2012, 4 days before the beginning of FY 12/13, Florida's Office of Early Learning (OEL) released a new School Readiness (SR) funding allocation formula; attempting to achieve "equity" for all 67 Florida counties by redistributing the existing state SR allocation; and WHEREAS, as of June 30, 2012, 710 Monroe County children are already enrolled in the SR; and WHEREAS, for this fiscal year (7/1/12 — 6/30/13) the overall reduction to Miami- Dade/Monroe counties derived from this new formula is $3,771,397 (Monroe = $206,920); and WHEREAS, the impact of the new OEL School Readiness Funding Formula for Monroe County Year One is a projected loss of 40 child care slots; and WHEREAS, the Year One — Year Six projected impact from the new OEL SR Funding Formula to Monroe County is a loss of $1,618,842 (-51.22%) and a projected loss of a total of 350 child care slots; and WHEREAS, the possible consequences in Year One funding loss includes establishment of a Wait List with priority to serve ages birth to 5; and WHEREAS, there will be no funding for school age care (ages 5-9) seriously impacting 2 afterschool care providers (Boys & Girls Club and Upper Keys YMCA) which may threaten continued operation; and WHEREAS, there will be a projected decrease in dollars to improve the quality of care in contracted School Readiness centers and family child care homes (warehousing of children vs. preparing children for success in Kindergarten and beyond); and WHEREAS, an increase in parent fees will create additional hardships to "working poor" familes struggling in this economy; and Res ELC funding (Car uthers/kp) Page 1 of 3 BOCC 8/15/12 WHEREAS, this loss of funding will negatively impact the child care provider community jeopardizing continued operation; and WHEREAS, a typical family in the program uses about 7 percent of income to pay for child care, and without this assistance, the cost of child care for a working poor family increases to 50% of income; and WHEREAS, inadequately funding the child care system will cost the State of Florida more money as parents lose access to child care and potentially lose their jobs and need to utilize public assistance programs such as Medicaid, unemployment and food stamps; and WHEREAS, high quality early education is a strong investment that yields a high public return ($1 invested saves at least $7 in avoided unemployment and criminal justice costs) and creates and preserves jobs; and WHEREAS, these cuts, resulting from a change in the School Readiness funding formula, shift dollars ($22.3 million from Miami -Dade and Monroe counties alone) to other counties in need; and WHEREAS, the funding formula has been changed to create "equity" when no definition of "equity" in this context has been established; and WHEREAS, a formula that takes from counties such as Miami-Dade/Monroe to give to give to other counties such as Osceola County is flawed and that The Office of Early Learning should not have to make these choices, and WHEREAS, no parent should have to choose between work and safe, quality child care for their young children; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA that: Section 1. The Governor and Florida Legislature should restore funding to counties such as Miami-Dade/Monroe that have recently experienced cuts as a result of the change in funding formula, Section 2. The Office of Early Learning is encouraged to meet with all stakeholders, including child care providers, and staff and board members of Early Learning Coalitions in upcoming workshops as well as annually prior to the submittal of the funding formula by January 1 of each year, as required by Florida Statute. Section 3. As the recession subsides and revenues begin a steady climb, it is critical to the well-being of young children that the Florida Legislature provide a meaningful increase to the school readiness program to ensure Florida has a strong foundation for the talent pipeline, so necessary to our future economic vitality. Res ELC funding (Carruthers/kp) Page 2 of 3 BOCC 8/15/12 Section 4. The Clerk shall send a copy of this resolution to: a. Governor Rick Scott, The Capitol, Tallahassee, Florida 3230 b. FL Representative Ron Saunders, 1402 The Capitol, 402 South Monroe Street, Tallahassee, FL 32399-1300 C. FL Senator Larcenia Bullard, 218 Senate Office Building, 404 South Monroe Street, Tallahassee, FL 32399-1100 d. Mel Jurado, Director, Florida's Office of Early Learning, 250 Marriott Drive, Tallahassee, Florida 32399 e. Octavio A. Verdeja, Chairman, Early Learning Coalition of Miami -Dade I Monroe, 2555 Ponce de Leon Blvd, 5th Floor, Coral Gables, Florida 33134 f. Evelio Torres, President & CEO, Early Learning Coalition of Miami- DadelMonroe, 2555 Ponce de Leon Blvd, 5th Floor, Coral Gables, Florida 33134 PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of said Board held on the _ day of , 2012. Mayor David Rice Mayor Pro Tem Kim Wigington Commissioner Heather Carruthers Commissioner Sylvia Murphy Commissioner George Neugent (SEAL) Attest: DANNY L. KOLHAGE, Clerk By Clerk BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By Mayor David Rice Res ELC funding (Carruthers/kp) BOCC 8/15/12 Page 3 of 3 Impact of OEL School Readiness Funding Formula on Monroe County Year One Reduction in Funding to Monroe County = $ 206,920 (- 6.5%) o Projected loss of 40 child care slots in Year One ■ 72% of funding is spent on child care slots ■ 710 children currently enrolled as of June 30, 2012 Year Two Reduction in Funding to Monroe County = $ 235,320 o Projected loss of an additional 46 child care slots in Year Two Total Reduction Year One — Year Six in Funding to Monroe County = $1,618,841.87 (- 51.22%) o Projected loss of a total of 350 child care slots Year One— Year Six Possible Consequences in Year One: o Establishment of Wait list with priority to serve ages birth to 5; o No funding for school age care, ages 5 to 9 ■ Serious impact to 2 afterschool care providers, Boys and Girls Club and Upper Keys YMCA, which may threaten continued operation o Decrease in quality dollars to improve the quality of care in contracted School Readiness centers and family child care homes ■ Warehousing of children verses preparing children for success in kindergarten and beyond o Increase in parent fee (creating additional hardship to "working poor" families struggling in this economy) o Negative impact to child care provider community ■ Open slots; parents inability to pay the full cost of care; jeopardizing continued operation Long Term Consequences: Dire Source: Early Learning Coalition Miami-Dade/Monroe and Wesley House Services