Fiscal Year 2013-2015 Special Budget Meeting

HONORABLE MAYOR AND CITY COUNCIL Subject: Proposed FY 13-15 Proposed Policy Budget Date: June 7, 2013 Page 5 essential supports necessary to be economically self-sufficient). A general priority order is as follows with an ideal that would include some restoration in all three of the following categories: • Restore classrooms plus the associated Family Advocate (variable depending on site: range $184,000 - $330,000 per 34 student, part day, double session). The Federal regulations governing early childhood classrooms dictate teacher/student ratios. As such, half day Head Start classrooms are limited in size to 17 children in both a morning and afternoon session,^for a total of 34 children per classroom. On average, the restoration of Head Start services would then necessarily take place by classroom and thus in increments of 34 children. • Restore portion of the 15 day reduction to Head Start Full Day Classrooms - This reduction makes this program a less viable option for working parents, an incremental restoration of 5 or 10 days is a priority. Each 5 day increment is valued at about $51,000. • Restore mental health support services, incremental restoration is helpful given the vast need. The reduction taken is over $77,884 across both Head Start and Early Head Start. The elimination of the Administrative Assistant II in Early Start will result in an increased workload for management staff in that program and reduced support for site based staff. Reduction to O&M due to sequestration has been minimal ($4,500) with only a modest classroom impact. However, additional O&M reductions were also necessary because the grant funds did not accommodate increasing program and staffing costs. As a result, prior to sequestration, staff made steep reductions in the classroom supplies budget ($10,500) and eliminated most parent/staff travel for training, and parent incentives ($53,000) which are a vital component of the program. 3) What reductions (including sequestration) have impacted the services of the Community Housing Division of the Department of Human Services? Where do the City's Permanent Access to Housing (PATH) Funds originate from? Attachment F outlines the primary, on-going funding sources for the Community Housing Services (CHS) Division in the Department of Human Services (DHS) and the anticipated and/or confirmed sequestration related changes for FY 2013-14. It also outlines anticipated service reductions, although staff is still in the process of assessing the impact to the City's adopted plan for Permanent Access To Housing (PATH). It should be noted that additional sequestration reductions will take place in FY 2014-15 unless an alternative federal budget is adopted. The former Oakland Redevelopment Agency provided upwards of $625,000 in support of the Community Housing Services (CHS) Division. When the Redevelopment Agency was dissolved. Community Development Block Grant (CDBG) funding was provided to backfill but this has proven problematic to sustain given the pressures on that fund as well. Most CHS funding sources have highly restricted administrative caps (frequently between 3-5%) and high levels of match required. This division leverages its General Purpose Fund (GPF),