Change in Program Revenue2008 Budget vs. 2007 ForecastResidential 2,032,524 49.50% Residential 1% Foster Parenting 3% 3% 2% 2% Teen Transitional ServicesFoster Parenting 742,761 18.09% 21% 50% Education CounselingTeen Transitional Services 856,916 20.87% Family Based U-Lead 18%Education 122,800 2.99% Flexible Use FundsCounseling 139,784 3.40% • Residential rate increased from $271 - $310 • Average Residential census increased from 44 to 59Family Based 90,285 2.20% • Increased census in Traditional HMR Foster Parenting with partially offsetting reductions in Spec and AdolescentU-Lead 64,182 1.56% programs • Expanded capacity in the TTS program with the opening ofFlexible Use Funds 56,500 1.38% the Keystone property in addition to a 17% rate increase • Counseling Services expects increased opportunities from partnerships with the Juvenile Courts and the Children’s Advocacy Center.Total Revenue increases 4,105,752 • Education expects a 2% rate increase. •Family Based programs, U-Lead and Flexible Use Funds all have very moderate to no expected gains.
Change in Program Revenue2008 Budget vs. 2007 ForecastTeen Parenting (316,731) 30.50% 9% 31% Teen ParentingCHA Housing (624,858) 60.18% CHA Housing Prevention/OtherPrevention/Other (96,736) 9.32% 60% • The decline in CHA Housing revenue is the result ofTotal Revenue decreases (1,038,325) across the board declines in Service Connector contracts and a 60% reduction in relocation revenue to $475,000 • Teen Parenting continues to have declining census • Conservative revenue estimates are budgeted for Prevention/Other Category. These are composed of Parents Anonymous, Office of Mission and Spiritual Care and HomeworkNet Revenue Change 3,067,427
Other Income and SupportNet Unrestricted Foundation Net UnrestrictedGrants 184,854 Foundation Grants TrustsTrusts 618,923 8% 32% Miscellaneous Contracts 25%Miscellaneous Contracts 90,000Foundation Grants 363,500 Foundation Grants 4%Board Restricted Investments 383,116 Board Restricted 16% 15% InvestmentsState Appropriated Grants 800,000 State Appropriated GrantsNon Fee for Service 2,440,393 • Conservative estimate in unrestricted grants in 2008. Many grants anticipated in 2007 did not materialize • Trust income is based on 5% total return model • MIS costs are partially offset by the acquisition of an external consultancy contract • Current budget contemplates a 2% reduction in allowable spending of investment income • State Appropriations are conservatively estimated due to many unknowns regarding the state finances
Expense Reductions 1% 2% 6%CHA Housing (831,805) 15% CHA Housing 48% Residential Teen Parenting Family BasedResidential (492,449) Counseling Prevention/Other 28%Teen Parenting (264,937) • Reductions in the CHA Housing program a reflected in the Service Connector program where CDHS announced a program contractionFamily Based (106,246) in January 2007. Also as more and more residents are place in alternative housing we anticipate fewer cases in the relocation project.Counseling (26,537) • High fixed cost in the Residential program limit immediate cost reductions in the program but under Dr. Guidis leadership, we anticipate generating increased efficiencies reflected in reducedPrevention/Other (24,570) overtime, food and turnover. • Reduced census in the Teen Parenting program will call for reduced pass-through cost and a generally smaller programTotal Expense Reductions (1,746,544) • Family Based programs will achieve greater productivity from existing headcount and will benefit from intense monitoring from Finance
Expense Increases 1% 3%Teen Transitional Services 868,619 Teen Transitional Services 10% Foster ParentingFoster Parenting 363,919 Education U-Lead 25% 61%Education 150,195 Flexible Use FundsU-Lead 48,995 • Cost will increase in Transitional Teen Services due to the expanded capacity brought by opening 2153 NFlexible Use Funds 17,547 Keystone • Higher caseload from former Catholic Charity clientsTotal Expense Increases 1,449,275 will call for increased headcount. Close fiscal monitoring will be focused on cost control. • Education cost increases are primarily inflationaryNet Expense Change (297,269)
Other Expenses andManagement Overhead Significant reduction in M&G due to reduction in outside help, search fees and headcount The sale of Jefferson will reduce depreciation cost, but the establishment of the Damen rental will offset these savings 2% increase projected for salary increases (leading and impacting only) 1% 401(k) contribution (increase tied to budget performance) 0% increase projected for VP staff
Risks Inability to make census target (5% shortfall approximates $350,000 in revenue State/Federal appropriations for child welfare programs fall victim to other priorities (fully funding state pension, lack business tax revenue, defense spending etc.) Expense creep in smaller programs such as Counseling and Family Based