NOTIFICATION OF HEAD START FUNDING INCREASE.PDF

Office of Head Start Policy Page 1 of 3
From: Office of Head Start <no-reply@hsicc.org >
Sent: Monday, February 10, 2014 2:50 PM
To: Donald Bower - HSDX
Subject: ACF-PI-HS-14-01 FY 2014 Head Start Funding Increase
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1.21,410F.
U,S. Depattas .r•in twif littaith ik Human
OFFICE OF HEAD START
U.S. DEPARTMENT
OF HEALTH AND HUMAN SERVICES
1. Log No. ACF-IM- 2. Issuance Date:
ACF HS-14-01 02/1012014
Administration for 3. Originating Office:
Children Office of Head Start
and Families
4. Key Words: Fiscal
Year 2014 Funding
Increase; Appropriations;
COLA; Sequestration
PROGRAM INSTRUCTION
TO: Head Start and Early Head Start Grantees and Delegate Agencies
SUBJECT: FY 2014 Head Start Funding Increase
INSTRUCTION:
President Obama signed the Consolidated Appropriations Act of 2014 on
January 17, 2014. This Act includes $8,598,095,000 for programs under the
Head Start Act, representing an increase of approximately $1.025 billion
over the fiscal year (FY) 2013 funding level.
The approximately $1.025 billion increase restores the 5.27 percent
reduction from sequestration and provides all grantees with a 1.3 percent
cost-of-living adjustment (COLA). The FY 2014 funding level also includes
$500 million for expansion through the Early Head Start-Child Care (EHS-
CC) Partnership to support communities in expanding high-quality early
learning and development opportunities for infants and toddlers.
This Program Instruction provides information about the additional funds that
are available to Head Start and Early Head Start grantees in FY 2014 and
describes the requirements for applying for the portion of these funds that
are available for restoring operational funds reduced by sequestration and
providing the COLA. The Administration for Children and Families (ACF) is
developing a separate announcement about the EHS-CC Partnership funds
and will be providing more information in the coming weeks about how to
apply for these funds.
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Office of Head Start Policy Page 2 of 3
Grantees that already received partial funding for FY 2014 are eligible to
receive a supplemental award to reflect the increased appropriation.
Grantees that successfully competed for funds and received reduced
awards due to sequestration are also eligible to receive these increases. All
grantees are required to request these funds through a grant application.
Restoring Sequestration
The FY 2014 appropriation restores the 5.27 percent reduction grantees
received in FY 2013 due to sequestration. The expectation is that grantees
will use these funds to restore the number of funded enrollment slots, the
number of days or weeks in the program year, or the other cuts programs
made to absorb the reduction. If there are any circumstances that make full
restoration of services or slots challenging, grantees should work with their
Regional Office.
FY 2014 Cost-of-Living Adjustment (COLA)
Each grantee may apply for a COLA increase of 1.3 percent of the FY 2012
base funding level. Base funding excludes training and technical assistance
funds and any one-time funding grantees may have received in FY 2012.
COLA funds are to be used to increase staff salaries and fringe benefits and
to pay for higher operating costs.
Programs that use COLA funds to increase staff salaries should increase
the hourly rate of pay and permanently increase the Head Start pay scale
rather than only increase the salaries of current employees. Sections 653
and 640(j) of the Head Start Act provide further guidance on the uses and
limitations of the COLA funds. Section 653 of the Act restricts compensation
to a Head Start employee that is higher than the average rate of
compensation paid for substantially comparable services in the area where
the program is operating. Section 640(j) of the Act requires that the
compensation of Head Start employees must be improved regardless of
whether the agency has the ability to improve the compensation of staff
employed by the agency that do not provide Head Start services.
Each grantee, as specified in 45 CFR 1301.31, is required to have
personnel policies that specify salary rates and fringe benefits. Any grantee
proposing differential COLA increases to staff or delegates must justify its
rationale in its budget narrative.
Application Requirements
Grantees must submit a grant application or application amendment in the
Head Start Enterprise System (HSES) that includes the Grant Application
Budget Instrument (GABI), SF-424 Application for Federal Assistance, board
and Policy Council approvals, program narrative, and budget narrative.
Information on the increased amount of funds available to your agency for
the restoration of operational funds reduced by sequestration and for the
COLA will be available in HSES. Due dates for amended applications will
also be available in HSES. Grantees that may need an extension of the due
date for their grant application should contact their Regional Office.
As always, grantees encountering one-time needs, especially related to
health and safety concerns, should contact their Regional Office throughout
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Office of Head Start Policy Page 3 of 3
the year.
Please direct any questions regarding this Program Instruction to your
Regional Office.
Thank you for your work on behalf of children and families.
/ Ann Linehan /
Ann Linehan
Acting Director
Office of Head Start
Office of Head Start (OHS) I 1250 Maryland Avenue. SW I 8th Floor Portals Building I Washington, DC 20024
tiltpileclkic ohs ad nhs soy I 1-886-763-.6481 I Contact Us
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