**Preschool Development Grants CompetitionDevelopment Grants & Expansion GrantsState Applicants Technical Assistance WebinarQuestions & AnswersOctober 3, 2014**

**Announcer:** Good day everyone, and thank you for holding. We want to welcome you to today's Preschool and Development Grants Q&A webinar. I will now turn the call over to Steven Hicks, Senior Policy Adviser at the U.S. Department of Education. Mr. Hicks, you may now begin.

**Steven Hicks:** Thank you very much and welcome, everyone, for joining us for our final Preschool Development Grants Question and Answer webinar. I'm so thrilled to have so many of the States present on today's webinar. As you know, we received 31 Intents to Apply but I want to remind States that this was optional, the Intents to Apply. You may still apply if you have not submitted an Intent to Apply.

It's really been wonderful to see staff from both our Departments, ED and HHS, working side by side on the Preschool Development Grants competition, and come together as a single team. For today's presentation we have staff from both ED and HHS who will answer many of the questions you have sent over the last few days, and for which we know you need to complete for your applications.

I'd like to go over a few housekeeping items first. The Preschool Development Grants applications for both Development and Expansion Grants are available, as you know, for downloading at the Preschool Development Grants website at www.ed.gov. The applications, the Executive Summaries, Notices Inviting Applications, FAQs and other documents, as well as webinar recordings are available on the website. You may want to refer to them during this webinar.

I also want to note that this presentation we're having today will also be posted on the webinar as soon as we have the recording. During the presentation, all phone lines will be placed on mute to avoid feedback during the presentation. Please use the chat feature to submit questions, which we will answer at the end of today's presentation. The slides, transcript, and recording from today's presentation will be posted, as I said, probably early next week at the Preschool Development Grants website.

We want to remind you that Tips for Applicants using www.grants.gov is also available on our website and in the application package. To facilitate your use of www.grants.gov, this Tips for Applicants Guide includes important submission procedures for which you need to be made aware to ensure your application is received in a timely manner and accepted by the Departments.

Applicants should submit their applications a day or two in advance of the closing date as detailed in the Federal Register Notice. If you have any questions regarding this matter, please email the www.grants.gov contact center at support@grants.gov or call 1-800-518-4726. Again that is support@grants.gov or their phone number is 1-800-518-4726.

We have some important information to share with you about www.grants.gov. First, you should have already registered so I'm assuming if you're on this call, you probably have. One very important detail to note is that the www.grants.gov website is undergoing their scheduled maintenance from Saturday, October 11th until 6:00 a.m. Eastern Standard Time on Sunday, October 12th. Also, the www.grants.gov help desk will be closed on Monday, October 13th for Columbus Day. We advise you to plan ahead and submit as early as possible to account for any technical hiccups. We apologize for any inconvenience this may cause.

Finally, some news that we hope you will find helpful. In order to help with the maintenance period and holiday help desk schedule, we have postponed the due date by one day to October 15th. We will be posting a notice in the Federal Register about this change but please note the new deadline is October 15th.

This webinar is designed to answer any last questions that State applicants have before completing their applications. This means we will attempt to clarify any questions we have received from states thus far and any questions that arise during the course of this presentation. We will begin by explaining the new addenda to the applicant FAQs.

Next, we will take time to answer a few additional questions that we have received. As I mentioned earlier, you will be able to ask questions throughout the webinar using the webinar chat feature on your screen and we will attempt to answer these at the end of the call. We may be able to answer a limited number of questions about the information contained in the NIAs, the Notices Inviting Applications, today.

Since this is our final Q&A, please ask any questions you may have. This is your last chance before the deadline. Now I'm going to pass this over to my colleague from HHS, Senior Policy Adviser Richard Gonzales. Richard?

**Richard Gonzales:** Thanks, Steven. I'd like to start today by announcing that we now have two addenda to the FAQ documents posted on the Department of Education website. We have added the two addenda to the original FAQ document to make it one complete FAQ document and you will also see each FAQ addenda posted separately. In today's webinar we will cover all the FAQs in the two addenda.

Looking at the questions that have come to us, there seems to be some confusion about the distinction between an early learning provider, a subgrantee, and a high-need community. For a thorough explanation, please refer to the new FAQ Addendum 1, Question B20A.

Before we jump into that explanation, here is a helpful way to think about it. A high-need community refers to a geographic area, while an early learning provider refers to an entity that serves that area. A subgrantee is an early learning provider that receives a subgrant from the State to serve one or more such high-need communities.

Let's take a look at the full explanation. On the slide in front of you you see the question, "What is the distinction among an early learning provider, a subgrantee, and a high-need community?" I'm going to take the time now to read the answer to this question in its entirety, so here we go. In general, an early learning provider is the entity that will implement or expand a high-quality preschool program funded under the Preschool Development Grants program. And the subgrantee is an early learning provider that receives a subgrant from a participating State for this purpose. To receive such a subgrant, the early learning provider must serve a high-need community.

In the ambitious and achievable plans, applicants to both the Preschool Development Grants - Development Grants and the Preschool Development Grants - Expansion Grants will describe how they will provide voluntary, high-quality preschool programs for eligible children through subgrants to subgrantees that are early learning providers serving high-need communities. Please see FAQ C10 for clarification on the number of high-need communities and subgrantees that applicants for the two different competitions need to include in their applications.

As included in the definitions from the Notice Inviting Applications, a high-need community is a geographically defined area such as a city, town, county, neighborhood, district, rural or tribal area, or a consortium thereof with a high level of need as determined by the State. An early learning provider is an entity that carries out an early childhood education program in a high-need community.

The entity could be an LEA, a charter school, an educational service agency, a head-start program, a licensed childcare provider, a municipality or other local government agency, a tribe or Indian organization, an institution of higher education, a library, a museum, another eligible licensed provider as defined by the State, or a consortium of these entities. A subgrantee is an early learning provider that serves at least one high-need community that receives a subgrant from the State and is participating in the State's ambitious and achievable plan.

We also want to clarify the answer to the question about how many communities an applicant must serve. If you are applying for a Development Grant, you need to include at least one high-need community. If you are applying for an Expansion Grant, you must include at least two high-need communities. Note that one subgrantee may serve two or more high-need communities. Please refer to C10 for further clarification.

Again, looking at the exact FAQ, "How many communities does an applicant need to include in its application?" A Preschool Development Grants - Development Grant’s applicant must ensure that at least one high-need community in the State is included in its plan. A Preschool Development Grants - Expansion Grant's applicant must ensure that at least two high-need communities in the State are included in its plan. Note that the applicant must propose to work with at least one subgrantee but one subgrantee may serve two or more high-need communities.

We have received some questions about whether funds may be used to support preschool services for children above 200% of the poverty line. While the answer is no, because such children do not meet the definition of eligible children outlined in the Notice, we strongly encourage states to serve eligible children in mixed-income class settings.

Looking at this question and answer, "May Preschool Development Grants funds be used to support preschool services for children from families with incomes above 200% of the Federal poverty line?" The answer is no, grantees may serve only eligible children, defined as four-year-old children from families whose income is at or below 200% of the Federal poverty line. However, we strongly encourage eligible children be served in mixed-income class settings as described in Selection Criteria (E)(7), provided that Preschool Development Grants funds are used only to support eligible children and that the program meets the definition of a high-quality preschool program.

Next I would like to clarify the difference between a new preschool program slot and an improved slot. You may find it helpful to refer to Selection Criterion (D)(4)(b), which details the five improvements that qualify for State Development Grant funds.

Question E16 asks "How does an applicant determine whether a State preschool program slot is new or improved?" See Selection Criterion (D)(4)(b). Our answer is a new State preschool program slot is a slot that will be created through the work described in the State's application using the Preschool Development Grants funds and will be created using the additional funding described in the State's application to the Preschool Development Grants program. If the State receives a grant and can fund the new slot, it will increase the number of overall State preschool program slots in the State and therefore, will count towards Competitive Preference Priority 3.

An improved State preschool program slot is a State preschool program slot that already existed at the time of the application and will be improved to meet the definition of a high-quality preschool program slot through the work described in the State's application. Specifically, Preschool Development Grants funds can be spent on any of the five improvements described in Selection Criterion (D)(4)(b)(ii): extending programs from half-day to full-day, limiting class size to 20 and decreasing child-to-staff ratios to 1:10, employing and compensating a teacher with a bachelor's degree, providing in-service evidence based professional development such as coaching, or providing comprehensive services.

Note that any preschool program must meet all of the characteristics specified in that definition in order to qualify as a high-quality preschool program. However, only preschool programs receiving Preschool Development Grants funds must meet this definition. Although funding an improved slot will increase the number of children served in a high-quality preschool, funding an improved slot will not increase the total number of state preschool program slots in the State, and therefore will not count towards Competitive Preference Priority 3.

On the other hand, using Preschool Development Grants funds to improve a slot that is not a State preschool program slot, so that it is a high-quality preschool program slot, will increase the total number of State preschool program slots in the State and therefore will count toward Competitive Preference Priority 3.

For example, an existing Federally-funded head-start slot is not currently part of the State's preschool program because it does not meet the definition of State preschool program in that it is not predominately supported with State funds. Therefore, using Preschool Development Grants funds to enhance a Federally-funded head start slot would not count as improving that slot. If the slot funded with Preschool Development Grants funds meets the definition of high-quality preschool program, it would count as a new slot.

For those of you still having difficulty with the answer to this question, that's a lot of information and I advise you to go to E16 and look at the exact wording yourself for further clarification.

The next question has to do with how the State's match is calculated as part of Competitive Preference Priority 1. We will revisit this topic later in the presentation with a visual that should clarify how match calculations work for each year of the grant period. Meanwhile, this question reads, "May all of a State's funds appropriated for the fiscal year prior to the first year of the grant period (i.e., FY 2014 funds) be used to meet the requirements of Competitive Preference Priority 1?" No. Only increased State funding in FY 2014 for the State fiscal year prior to the first year of the grant period may count towards the State's match as part of Competitive Preference Priority 1.

For example, a State that invested $3 million in its State preschool program in FY 2013 and $4 million in FY 2014 may only count $1 million toward its match as part of Competitive Priority 1. This amount should be entered into Competitive Preference Priority 1 table in the cell labeled "FY 2014 Investment". Note that the instructions to Part 2 of Table A in the Excel spreadsheets have been modified to clarify that only increased State funding in the State fiscal year prior to the first year of the grant period may count towards Competitive Preference Priority 1.

The last topic from the FAQ Addendum 1 that we want to touch on today is whether States are required to submit MOU's with each subgrantee. The answer is different for Development Grants and Expansion Grant applicants. So to the question "Are States required to submit a Memorandum of Understanding with each subgrantee as part of their applications?" States applying for Preschool Development Grants - Development Grants are not required to submit MOU's as part of their application, nor are these States required to have chosen each subgrantee at the time they apply.

However, as explained in Selection Criterion (D)(1), a Preschool Development Grants - Development Grant applicant that has already selected each high-need community to be served will be eligible for additional points. As part of the evidence for Selection Criterion (D)(1)(a), the applicant could choose to present a letter of support or preliminary MOU from identified subgrantees in each high-need community that the applicant has chosen to work with. However, an applicant is not required to do so in order to be eligible for the additional points under that criterion. An applicant could present other evidence of support from each high-need community such as a letter of support from representatives of the high-need community.

Under application requirement F, a State applying for a Preschool Development Grants - Expansion Grant must submit a letter of support or Preliminary Binding Agreement such as a preliminary MOU from each identified subgrantee attesting to the subgrantee's participation. Program requirement N requires the State to submit a final, signed MOU or other binding agreement between the State's lead agency and each subgrantee within 90 days after receiving an award. The Departments have included a model MOU in the application package to assist grantees in fulfilling program requirement N.

Moving on to Addendum II, we want to add further clarity on how State-matched funds are calculated. There was some confusion as to whether funding increases in FY 2014 only count if those increases are specifically for preschool or if any additional funding will apply. Again, the question, "Must the increased State funds for the fiscal year prior to the first year of the grant period be used to support only high-quality preschool programs in order to be considered as State match funds in Competitive Priority 1?"

The answer is, to the extent States propose to include increased State funding from the year prior to the first year of the grant period, funds are not required to have been used to support only high-quality preschool programs. However, States will receive credit for investments under Competitive Preference Priority 1 if they justify that the funds were used to support their State preschool program. States will list these funds in the Competitive Preference Priority 1 table under the column labeled "Increased State Funding in Fiscal Year 2014".

To the extent States propose to provide matching funds in years 1-4, for the Competitive Preference Priority 1 table as described in F11, these funds can only be counted toward the match if they constitute allowable costs under the Preschool Development Grants program. Please see FAQs E1, E2 and E3 for more information on allowable uses of funds.

Next within Addendum II we have C12, which deals with school day, school week and school year length provisions of the high-quality preschool program definition. Question, "Must high-quality preschool programs funded by the Preschool Development Grants program be provided for the equivalent of a full school week and the equivalent of a full school year?" Answer: Yes, to meet the definition of high-quality preschool programs, preschool programs must be full-day programs, which mean they must operate for the same number of hours as public elementary schools in the State and must serve children for at least 5 hours. The high-quality preschool programs must be provided for, at a minimum, the equivalent of a full school week in a full school year at the public elementary schools in the State.

Finally our last addendum question has to do with the ability of States to institute a fee system for eligible children in programs funded by a Preschool Development Grant. "May a fee such as a sliding scale fee based on family income be charged for eligible children to attend a high-quality preschool program funded by the Preschool Development Grants program?" The answer is no, subgrantees are required to implement and sustain voluntary, high-quality preschool programs for eligible children free of charge. They may not charge a fee for high-quality preschool programs for eligible children funded by this grant.

This does not include any early care and education programs provided before or after the high-quality preschool program. We strongly encourage that eligible children, see C11, be served in mixed-income class settings as described in Selection Criteria (E)(7), provided that Preschool Development Grants funds are used only to support eligible children and that the program meet the definition of a high-quality preschool program. Preschool Development Grants funds may only be used to support the proportion of the high-quality preschool program, such as the teacher's salary, reflective of the proportion of the number of eligible children in the class. Grantees will need to show, through their budget and accounting system, that Preschool Development Grants funds are only used to support eligible children.

Now I'd like to turn things back over to Steven to address some other questions we have received that are not covered in these new addenda.

**Steven Hicks:** Great, thank you, Richard. I just want to note for everyone what Richard had said, that the two addenda are posted on our website as well as a consolidated, revised FAQ that includes all the FAQs, including the two addenda, and they are posted on the website on the FAQ tab. You've already probably had an opportunity to look at Addendum I because we posted that on September 16th, right after our webinar. The new addendum that was posted, Addendum II, would be new to you and we just posted that today after it had cleared the Department's clearances.

We have a couple of errors that we want to point out. One of them we talked about already on September 16th, but on the Expansion Grants application in NIA, we have a typo in the Appendix A, Part II. This is in the Appendix section. It's correct in the application and in the NIA in the Selection Criteria, but if you've looked at the abbreviated rubric of all the points in the Appendix A for Expansion Grants, you would have noticed that there's a piece in there that talks about how the State will conduct outreach. That's in D3. The text should have said, "how the State conducted outreach".

As we stated already in some of the FAQs that Richard was reading to you, we talked about how Development Grants need to identify their high-need communities and probably not necessarily their subgrantees, but that Expansion Grants will have already identified their subgrantees, so it's important that they address this question of how the State conducted their outreach. They would have already done that.

We also updated our Excel spreadsheets following the September 15th webinar, where we discussed how we've added text in red to just clarify some things that weren't spelled out completely and that particularly in the matching portion we talked about, and we'll refer on that on slide in a moment, how it's increased State funding in FY 2014 before years one, two, three and four for the Competitive Priority.

We’ve received a few questions from States expressing difficulty using the statewide budget Excel spreadsheets. When we made the corrections, I think that some of the cells on the overall statewide budget Excel spreadsheet may have been locked inadvertently. If you find that the table is locked, all you have to do is click on the "unprotect sheet" tab. It's on the review tab, of the Excel spreadsheet. Hopefully you can see from this illustration where that is, and unlock the spreadsheets. We haven't really gotten a lot of calls on this so either people haven't started on their budgets or they have figured this out themselves.

In this section we're going to answer some other questions that we received and were not quite clarified. We had a question, "When do the grant funds have to be spent?" We want to make sure that you understand that States are expected to obligate each year's funds by the end of the grant year and the Departments will work with grantees if extensions are necessary.

For example, in budget year 1, 2015, the State may present a budget that includes a school year from September 15th through June 2016. In budget year 4 (that would be the last year of the grant in 2018) the State may want to include a school year from September 2018 thorough June 2018. We know there's a little bit of mis-match with the way in which the grant years are set up and an actual school year.

There has also been a little bit of confusion over the State match calculations and we know the match is a little bit complicated, so we've prepared a bit of an example to give you more intuitive explanation. Note that while the upper table is from the Excel spreadsheet, the lower one was created solely for the purpose of this example. You're not creating a State preschool budget table at all. We're just trying to show you how your State budget for preschool may relate to the match.

For the purpose of this example, we're going to suppose that the State spent $60 million in FY 2013 for preschool funding in their preschool budget. That was in 2013. As you can see here in the example, the State increased funding in 2014 by $10 million, making the match $10 million. So, $60 million to $70 million was a $10 million match that they can count. At the bottom you can see that the State preschool budget for FY 2014 was $70 million.

In year one of the grant period, the State increases spending by $1 million and receives a combined $1 million of funding match from local and philanthropic sources. So this $2 million increase from FY 2014 gives the State, in year one, match of $2 million, so that's in the "Year One" column. To calculate the year one budget, we add that match to the baseline established in 2014, which was $70 million. So $70 million plus $2 million gives us a State preschool budget of $72 million.

In year two, so take a look at the "Year Two" column, the State's overall match increases to $6 million, which we again add to the 2014 baseline of $70 million, bringing the State's preschool budget to $76 million. Note that each year's match is calculated in comparison to FY 2014 so you can add the $6 million to the $70 million instead of, you wouldn't add it to the $72 million from year one.

In year three, take a look at the "Year Three" column, the State keeps the same level of funding of match from year two giving them a match of $6 million because it’s still a $6 million increase compared to the base match. Then you add their match from that year to the $70 million baseline, so the year three budget is $76 million. The State budget stayed the same. The match was $6 million.

Finally, in year four the match increases to $10 million compared to FY 2014, giving them an overall preschool budget of $80 million and a cumulative match of $34 million. Remember, the baseline year is 2014 for both the State match and the overall State preschool budget. I know that's a lot to take a look at, but we try to make it so that you could understand how this match related to the State preschool budget each year.

Staying on the topic of matching funds, we've received some questions about appropriate uses for those funds. We want to clarify that matching funds must be used in the high-need communities in the State identified in the State's plan or for State level infrastructure. The question we had was, "Do matching funds have to be used in the high-need communities identified in the State?"

The matching funds, remember, can be used for high-need communities in a State or for State-level infrastructure. The State may want to use the 65% of grant funds for Development or the 95% of grant funds for Expansion that are subgranted and used in some high-need communities and their matching funds in other high-need communities. But matching funds must meet the allowable use of funds described in the notice and in E1, E12, and E3 of the FAQs.

The State is expected to describe all high-need communities in which they're working and are included in their plan. Note that matching funds do not need to meet the same requirements as outlined in the Absolute Priorities around distribution between State-level infrastructure and subgrants to high-need communities.

Another question we had is, "What are the funding bands for the four years of the grant?" We just want to make sure that we have been clear about how much you are actually going to apply for in your grant application. If the annual funding band is up to $10 million, then your State would be eligible to apply for up to $40 million, as an example, for the entire four years of the grant period.

We want to remind you about www.grants.gov site is undergoing scheduled maintenance from Saturday October 11th until 6 a.m. Eastern Standard Time on Sunday, October 12th. Also, the www.grants.gov help desk will be closed on Monday, October 13th for Columbus Day and we advise you to plan ahead and submit as early as possible to account for any technical difficulties, and we apologize for any inconvenience this may cause you.

At this time, we're going to answer some of the questions we received during the webinar and for those of you who submitted questions, we're going to see if we can address as many as we can right now. Here are a couple of questions that we received. One of the questions is this, "When completing the application's assurances and certifications, is the Governor's office the applicant or the lead agency that will be actually running the program?"

As you can see in FAQ A5, where we ask who must sign the State's application, the State's application must be signed by the Governor or an authorized representative and an authorized representative from the lead agency. The State must provide the required signatures in Section 4, Application and Assurances, and Certifications of the Application.

Another question we received, "Do you want us to upload the indirect cost rate agreement or is completing the form in the application sufficient?" If you can, please upload the form. If you have difficulty uploading it, we will work with you if you receive a grant.

Another question we received, "Are the Competitive Priorities counted toward the 75-page application limit or the 125-page application limit?" Page limits are recommendations only. Yes, the Competitive Priority would count in this page recommendation but remember, the limit is non-binding and is only a recommendation, but peer reviewers do appreciate brevity and applicants being concise.

Another question we received is, "Can transportation be paid for by the grant? And if the Districts offer transportation, can this be counted as in-kind matching?" I'm going to answer both of those questions, but I'll take them one at a time. The first one: "Can transportation be paid for by the grant?" You should look at FAQ E1 and E2 for more information on allowable uses of funds, but yes. The costs must be reasonable and necessary.

The second question about, "If Districts offer transportation can this cost be counted as in-kind match?" Please keep in mind the supplement not supplant requirement that applies to all Preschool Development Grants funds and matching funds to be used in your plan. Matching funds must be in addition to the State or local funds that would otherwise be available for improving quality of the State preschool program and increasing access to high-quality preschool programs. See also the FAQs on matching in Section F.

We have a question that was phrased this way, "Does Selection Criteria A, The Executive Summary, require a high-quality plan?" Yes. In the Executive Summary A we say that you need to present an ambitious and achievable plan and that's explained in the rubric.

Hold for just a moment, we're going to take a look at some other questions.

Okay, we have a couple of questions and we will try to interpret them as best we can and then try to answer them. One of the questions we have is, "Will you be providing any guidance reviewers on how to determine whether the planned matching contribution plan is credible?" Please look at F8 regarding what documentation to submit, and this applies to the Selection Criteria and as well, on what documentation to submit. In FAQ F8 we talk about the appropriate documentation to submit for peer reviewers.

We had a question about adding clarity to non-State preschool programs being recognized as State preschool programs, found in FAQ E16. We addressed this earlier a little bit on the webinar today around this added question E16 that's in our addendum, so please do look at that question again and the example. The questioner is asking if non-State preschools participate in opportunities to improve State preschool program slots and they meet the five criteria for being recognized as a high-quality preschool program, that means the five criteria in which you are using to improve that program or that slot, is the recognition as a State preschool program in name only as they meet the high criteria or will State funding needed to be allocated to these programs in order for them to be recognized as a State preschool program?

This is how I understand this question: once you've improved the slot which was not a State preschool program funded slot, now we're calling it a State preschool program slot but no State funding may actually be used. This is the same with the slots that we fund as new slots. We're calling them State preschool slots but they're funded from the Federal funds.

They asked, in other words, would this be considered an increase in slots for Competitive Priority 3? Yes, this would count as an increase in slots if I'm understanding your question correctly.

We had another question, "Can funds be used for construction and minor remodeling if the modifications being made are in order to meet licensure requirements?" As we state in our notice and our FAQs, construction is not allowable.

Please see E1 for information on this issue. It's in the second paragraph of E1: "As specified in program requirement L, funds, including any matching funds, cannot be used for construction, renovation, modernization, or other facilities-related activities. However, construction does not include minor remodeling as defined in 34 CFR 77.1(c). Under that definition, minor remodeling means, in general, minor alterations to a previously completed building. Minor remodeling does not include building maintenance and repairs and is an allowable expenditure to the extent that it’s necessary and reasonable for grant purposes."  In other words, to ensure safe and appropriate environments for preschoolers. The analysis is the same if the modifications are for the purposes of meeting licensure requirements.

We have a question that, "Without knowing what the increase will be for years two, three, and four, are priority points given for year one match?" Competitive Preference Priority 1, again, for the Competitive Preference Priority would include in your proposed plan what you would contribute as a match for years two, three and four. I'm sorry, I was looking for the priority so I could just read it to you but the Competitive Priority 1, you can include the match that you propose in your plan for the increase from FY '14 and then what you propose to match in year one, what you propose to match in year two, three and four.

Oh, we had a question about when the webinar will be posted. Probably early next week. We can probably do it pretty quickly, but probably by Monday or Tuesday.

"How does the match investment differ from the allocation of matching and in regards to points?" One moment, please. All right, let me read the question again. "How does the match investment differ from the allocation of matching and in regards to points?" We're interpreting this question as asking, do we care about how the State plans to spend the match for points purposes. No, as long as the fund is used is consistent with the administrative regulations and Section F of the FAQ's.

One moment, we're going to look and see if we have any other additional questions.

**Richard Gonzales:** There were a number of questions that had to do with situations where the legislature may have proposed increases in future use, but clearly there are no appropriations tied to those proposals yet. An applicant can include that as a match and would have to describe in their application its reasoning, its rationale, how it was proposed by legislature, whatever evidence it has that it's likely that it would be used to the degree that you can propose it and then that would be considered by the reviewers as they are reviewing the application. Hold again.

**Steven Hicks:** We have another question regarding indirect costs. They ask, "Can a subgrant charge indirect costs?" Yes, a subgrant team may charge indirect costs. Please look at E9 for that information. FAQ E9.

**Richard Gonzales:** There was another question, "Are there specific parameters tied to the per-child costs, or are States allowed to determine the per-child rate as long as it’s reasonable and sufficient to ensure a high-quality preschool?" The answer is that the State must show evidence that it is reasonable and necessary. Hold again.

Hello everybody, here's a question. "I understand that if a State increased State-funding for Pre-K in fiscal year 2014, that we're to record this amount under the first column in row 2E. However, if the State funding added to Pre-K during FY 2014, its also recurring funding that will be available on an ongoing basis with the subsequent years covering the grant, are those State funds also entered on the worksheet to reflect the ongoing funding? In other words, does the FY '14 increase in funding, if it's recurring, count towards years 1-4?" The answer is no, it does not count. It’s only against the base year.

**Steven Hicks:** One moment, we're going to look at some other questions.

Okay, we received this question which is part of our new FAQ, so I know folks have not had a chance to digest that. Plus, there could be different nuances, but this question that we received says, "States will receive credit for investments under Competitive Preference Priority 1 if they justify the funds were used to support their State preschool program. This appears that investment in State preschool programs is different than an investment towards the grant program."

I just want to read, for those who don't have it in from of them, F13. The increased State funds for the fiscal year prior to the first year of the grant period be used for only high-quality preschool programs in order to be considered as a State match funds in Competitive Priority 1 to the extent States propose to include increased State funding from the year prior to the first year of the grant period. Funds are not required to have been used to support only high-quality preschool programs. States will receive credit for investments under Competitive Preference Priority 1 if they justify that the funds were used to support their State's preschool program. States will list these funds in the Competitive Preference Priority 1 table under the column labeled "Increased State Funding in Fiscal Year 2014".

To the extent States proposed provide matching funds in years 1-4 for the Competitive Preference Priority 1 table as described in F11, these funds can only be counted towards the match if they constitute allowable costs under the Preschool Development Grants program. Please do see FAQs E1, E2 and E3 for more information on the allowable uses of funds and those would apply to years 1-4.

Please hold for some other questions.

We have a couple of questions that we received that we would like to address. The first question is, "Is the match information also to be included in Section B, ED form #524?" First, we want to make sure that you are using the correct form. You need to use the budget form that's in the Excel spreadsheets that are on our website and then you would enter that information, that match information, on Line 14 for other resources.

Another question we received, "In expanding opportunities for full-day for children with disabilities, we have had some questions arise about issues with equity if the community is not able to include all slots for preschoolers in 6-19. Can you please address this?" We do want to direct you to FAQs B28-31. We'd like you to do the best that you can in your application in addressing the requirements of the Selection Criteria and in creating your plan and, should you receive a grant, we will work with you around these challenges.

One moment please, we're going to look at a couple of other questions.

**Richard Gonzales:** Hello everybody. There was a question, "Identifying numbers of children meeting 200% of poverty is proving difficult, as most data looks at income up to 185% of poverty. Any suggestions on where to get this information?" For the purposes of this application, you want to provide the best information you have. You want to explain your sources, you want to explain how you came up with what you did, and all you can do is the best you can do. So provide whatever information is available to you and explain why you think that information is valid.

On hold again.

**Steven Hicks:** All right, those are all the questions we have right now. We thank you so much for attending all of our webinars and we appreciate the time you are spending in looking at these applications and thinking about them, and writing your ambitious and achievable plans. On behalf of my colleague, Richard Gonzales, and myself we want to thank you and we look forward to having your applications received by the new deadline, October 15th. Thank you very much.

**Richard Gonzales:** Best wishes to all.

**Announcer:** Ladies and gentlemen, that does conclude the webinar for today. We thank you for your participation and ask that you please disconnect your line.

1