2013 Housing Bond Bill Fiscal Committee February 3, 2014

1. 2013 Housing Bond BillFiscal CommitteeFebruary 3, 2014

2. Housing Bond Bill: A Bit of History • Children’s Investment Fund (CIF) first presented the possibility of a capital bond request of $45 million for early care and education and out-of-school time facilities to the EEC Fiscal Committee on 12/3/12. • During that presentation Mav Pardee from CIF noted that the results of a statewide survey conducted in 2010-2011 showed: • Substandard space is the norm • Lack of resources in program budgets • Competing demands: teacher pay, rates • Few have experience working in good settings • Good space is a critical factor in program quality • Supports meaningful interactions • Supports parent engagement • Supports staff professionalism, morale, & commitment • Key concerns included: • Building Code: 12 – 17% • Classrooms without windows: 20% • Indoor air quality: 22% • Lack of adult workspace: 22% • Thermal comfort: 34% • Lack active play space: 54% • Lack technology for teachers: 65% • Lack classroom sinks: 70%

3. Housing Bond Bill: More History • Mav Pardee offered the same presentation as offered to the Fiscal Committee to the Board on January 8, 2013. • Her goal was to secure the support of the EEC Board. • Board Member Beth Childs reported that the Fiscal Committee was very enthusiastic about this opportunity and offered that endorsement by EEC’s Board would be viewed as a significant statement to move this project forward. Board Member Wasser Gish thanked Ms. Pardee for her persistence in getting this important work done and noted the striking alignment between program facility needs and program quality across all domains. • On a motion duly made and seconded, it was: VOTED that the Board of Early Education and Care support the capital bond bill, as presented by the Children’s Investment Fund at the board meeting on January 8, 2013, and authorizes the Department to issue a letter of endorsement. The motion passed by majority vote.

4. Overview: 2013 Housing Bond Bill • The 2013 Housing Bond Bill, now Chapter 129 of the Acts of 2013, added a new section to M.G.L. c. 15D, and created a new Early Education and Out of School Time Capital Fund under the Department of Early Education and Care with a $45M initial capital expenditure authorization for grants. • The aim of this new program is to issue grants for the development or renovation of licensed early education and out of school programs. The idea for this program came from a 2010-2011 statewide survey that revealed a need for bond funds to improve existing facilities and to open new facilities. • Grant recipients are required to demonstrate: • That there is a need for the project, including a need for financial assistance; • That the project benefits low-income children and the community; • That there is local support for the project • EEC may give preference to projects that have suffered damage due to a natural or man-made disaster, such as the 2011 Springfield tornado

5. Bond Bill Process

6. Early Education and Out of School Time Capital Fund – Timeframe • Expenditure Authorization: This would come from the Secretary of Administration and Finance after the passage of the terms bill. This authorization may give us guidance as to how much funds we can spend in a given year and if we need to do multiple rounds of grant awards. At this time, we believe that we can complete the next two steps listed below while waiting for this authorization. • Regulatory Process: The Housing Bond Bill requires EEC to promulgate regulations for the implementation, administration, and enforcement of this grant program. This requires at least a 21 day notice period and a public comment process in order to finalize the regulations for approval and promulgation. • Administrative Entity: Per the Housing Bond Bill language, EEC may contract with a quasi-public or non-profit entity to administer this program. EEC, at its discretion, may contract with Community Economic Development Assistance Corporation (CEDAC) to administer the grant program since this entity was named specifically in the approved legislation. • Open grant application process • Award Grants

7. Early Education and Out of School Time Capital Fund Expenditure Authorization • The terms bill for the Housing Bond bill was filed on January 27, 2014. • No expenditures can occur without authorization. • EEC will continue to check-in with the Executive Office for Administration and Finance on the projected timeline for expenditure authorizations. • Contract with an administrative entity since this entity may wish to provide feedback on potential regulations.

8. Early Education and Out of School Time Capital Fund – Create Regulations • EEC Legal has outlined a very optimistic timeline for the promulgation of regulations. Presuming the process flows without flaw, the schedule is as follows: • March 4: Final draft of the regulations • April 8: Board vote on regulations • For Twenty One (21) Days After Vote: Public Comment • April 30 – May 12: Review comments, evaluate, and revise regulations if needed. • April 30: We must submit the proposed regulations to H/SWM and the Joint Committee on Education Sixty Days prior to Adoption. • May 14: Board vote to approve regulations • June 28: Receive comments from H/SWM and Ed Committee. • Mid-July: Submit for publication in accordance with the MA Register schedule. • Mid-July: A grant proposal cannot be released until the regulations have been published.

9. Early Education and Out of School Time Capital Fund – Contract with Agency • EEC may contract with a quasi-public or non-profit entity to administer the program. • EEC, at its discretion, may contract with Community Economic Development Assistance Corporation (CEDAC) to administer the grant program since this entity was named specifically in the approved legislation. • This entity could provide feedback on potential regulations. • Such an entity can assist us with the grants review process and formulation of recommendations.