T To:

Jay Gonza alez, Secreta ary Executive Office for Administrati and Fina e A ion ance Commonw wealth Supe erintendents

F From:

Gary J. La ambert, Assi istant Secret tary for Oper rational Serv vices Operation Services Division nal October 1, 2011 1 Estimated Rate of Inf d flation for Fiscal Year 20 013

D Date: R Re:

T Operati The ional Servic Division is required by M.G.L Chapter 7, Section 22N, to su ces n L. ubmit an estimated rate of inflat tion for soci service programs to the Secret ial p o tary of the E Executive O Office for A Administrati ion and Fin nance by October 1st of each yea for consideration in preparation of the O o ar n n G Governors annual budge recommen a et ndation. T Operati The ional Services Division is also req n quired by th above st he tatute to no otify Commonwealth S Superintende ents of this estimated ra of inflati for their use in plan ate ion r nning for increases to A Approved P Private Special Education programs. A Attached is the Operation Services Divisions analysis whi results in an estimate rate of inf t nal s ich n ed flation of 2 2.13% for Fi iscal Year 20 013. S Should you or your staf require fu ff urther inform mation regar rding the es stimated rate of inflation, please e c contact Monica Synnott at (617) 720 0-3371.

c cc:

Matth J. Gorzk hew kowicz, Und dersecretary, Executive O , Office for A Administratio and Finan on nce Brian Gosselin, Chief of Staf Executive Office for A n C ff, e Administrati and Fina ion ance Mich Esmond, Budget Dir hael rector, Execu utive Office for Adminis stration and Finance

EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE OPERATIONAL SERVICES DIVISION ESTIMATED RATE OF INFLATION - FISCAL YEAR 2013 October 1, 2011 PERCENTAGE OF TOTAL EXPENSES 44.62% 3.55% 6.59% 7.38% 1.61% 0.28% 3.76% 7.95% 0.19% 0.52% 1.53% 1.34% 0.10% 0.15% 3.04% 0.15% 0.05% 4.02% 3.13% 1.62% 8.42% 100.00% ADJUSTED REFERENCE PERCENTAGE NORTHEAST 45.47% SERVICE OCCUPATIONS 3.66% SERVICE OCCUPATIONS 6.79% BOSTON 7.40% NORTHEAST 1.64% NORTHEAST 0.29% 3.76% NORTHEAST 8.10% NORTHEAST 0.19% BOSTON 0.57% BOSTON 1.56% BOSTON 1.46% BOSTON 0.10% 0.15% 3.04% 0.15% 0.05% BOSTON 4.21% BOSTON 3.22% BOSTON 1.67% BOSTON 8.66% 102.13%

COMPONENT PERSONNEL PAYROLL TAX FRINGE BENEFITS OCCUPANCY DIRECT CARE CONSULTANT TEMPORARY HELP CLIENTS & CAREGIVERS REIM. SUBCONTRACTED DIRECT CARE STAFF TRAINING STAFF MILEAGE/TRAVEL MEALS CLIENT TRANSPORTATION INCID. MEDICAL/MEDICINE/PHAR. CLIENT PERSONAL ALLOWANCES PROVISION MAT. GOODS/SVS./BEN. DIRECT CLIENT WAGES OTHER COMM. PROD/SVS. PROG. SUPPLIES/MATERIALS OTHER EXPENSE TOTAL DIRECT ADMIN EXP. (PROG.) ADMINISTRATION TOTAL

FACTOR 1.019 1.030 1.030 1.003 1.019 1.019 1.000 1.019 1.019 1.089 1.018 1.089 1.028 1.000 1.000 1.000 1.000 1.047 1.029 1.029 1.029

SOURCE ECI ECI ECI CPI ECI ECI Note 1 ECI ECI CPI CPI CPI CPI Note 1 Note 1 Note 1 Note 1 CPI CPI CPI CPI

Note 1: Inflation is not applicable for "pass through" items. Percentage of Total Expenses: The Percentage of Total Expenses is based on FY 2010 Uniform Financial Report data. Sources: ECI: The Employment Cost Index represents a 12 month average change to 6/30/11. CPI: The Consumer Price Index represents a 12 month average change to 7/31/11.
Sensitivity level - low