Department of Human Services (DHS) August Board Meeting

1

Department of Human Services (DHS)

Board Meeting Presentation RevisedLynn Vellinga, CFO

August 24, 2011

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Department of Human Services (DHS)August Board Meeting

Attached for your review and approval are our FY12 Amended & FY13 budget proposals, presented as follows:

Topic / Content Slides

DHS Budget Reductions: Calculation of Required Reduction Amounts 5

Budget Reduction Plan: Specific Activity Reductions for FY12A 6 - 30

Budget Reduction Plan: Specific Activity Reductions for FY13 32 - 56

Reduction Summary: 2% Reductions by Program 31 & 57

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The Governor’s Office of Planning & Budget (OPB) has issued the following directive for all State Agencies:

Submit a Budget Request Proposal to reduce state funds by 2% of the FY 2012 Appropriation for the FY 2012 Amended and FY 13 budget. The 2% directive exempts Medicaid recipients.

The Governor’s Office of Planning & Budget (OPB) has issued the following directive for DHS:

Submit Budget Request Proposals for new State Funding for Workload Adjustments that result from changes in the FMAP Rate and increases in EBT processing cost resulting from growth in SNAP clients.

OPB Guidance for FY 2012 Amended & FY 2013 Budget

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Department of Human Services Response

Over the last 3 budget cycles we have reduce our programs to the must-do work. We have removed discretionary services or what we have called nice-to do and many should-do activities.

We have focused on protecting the Maintenance of Effort (MOE) for TANF, Older Americans Act and Child Support to avoid significant losses of federal funds that support the citizens of Georgia.

Any additional cuts were again weighed on impacts to clients and protecting MOE. However, with little flexibility left any additional reductions will impact services provided.

We continue to monitor operations to reduce or control cost where possible which include personnel cost, contracts, operating cost and travel.

Additional actions will be described in the 2% budget reduction section.

5

Department of Human ServicesCalculation of Reductions per OPB

State Funds Only (w/o Attached Agencies)

FY 12 Amended Reductions FY 13 Reductions

FY12 Appropriations

(Base)excluding Tobacco $479,469,398 $479,469,398

Medicaid Funds $(41,226,277) $(41,226,277)Budget from

which Reductions are

Taken $438,243,121 $438,243,121

2% Reduction $(2,013,121) $(2,013,121)Workload

Adjustments $0 $5,559,817Revised Budget

Request $436,230,000 $441,789,817

66

DHS: 2% Reduction by Program

FY2012 Current Budget (State Funds) $34,059,119

Proposed Reductions (0)

FY2012 Budget After Proposed Reductions $34,059,119 State funds primarily tied to ongoing adoption assistance. Once

committed adoptions assistance is legally binding until child turns 18 and cannot be eliminated or reduced. Any reductions would limit ability to do new state funded adoptions. It is not feasible to run adoptions program for only IV-E eligible children. Reductions in Adoption Services would likely increase cost in Out of Home Care at a higher total cost to the state.

No reduction recommended to this program.

Highlights of the FY2012 Amended Budget Reductions Adoption Services

7


Highlights of the FY2012 Amended Budget Reductions After School Care

FY2012 Current Budget (State Funds) $0


FY2012 Budget After Proposed Reductions $0 100% Federally Funded Program

8


Highlights of the FY2012 Amended Budget Reductions Child Care Licensing (RCC)




99


Highlights of the FY2012 Amended Budget Reductions Child Care Services



FY2012 Budget After Proposed Reductions $54,234,300

Per OPB Instructions, no cuts are required in Child Care Services

1010


Highlights of the FY2012 Amended Budget Reductions Child Support Services


Proposed Reductions (502,849)

FY2012 Budget After Proposed Reductions

$24,639,589

State reductions will result is a loss of federal funds of $976,119.

These reductions will be offset with incentive funds of $1,478,968.

1111


Highlights of the FY2012 Amended Budget Reductions Child Welfare Services




The efforts to improve child welfare services and the use of

differential response will require investments in data systems and intake systems.

Any cuts would impact TANF MOE.


12


Number of Child Protective Services Cases (includes Investigations and Family Preservation cases).

SFY Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunSFY 11 8,103 7,855 7,895 7,765 7,410 6,969 6,189 6,542 7,696 7,768 8,098 8,163SFY 10 9,624 9,796 10,489 10,734 10,165 10,357 9,833 9,856 9,834 9,950 9,479 9,105SFY 09 11,345 11,679 12,556 12,713 12,279 11,990 11,391 10,999 11,556 11,324 10,866 10,372SFY 08 18,115 17,033 16,090 15,801 14,105 12,142 12,428 11,703 12,122 11,769 11,719 11,380

SAFETY-RELATED OUTCOMES

0

5000

10000

15000

20000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunDef: Count of unique CPS Investigations or Family Preservation (Ongoing) stages open at any point during the month.

SFY 2011: 0.7%increase

Sources: IDS, SHINES

SFY 2008:37.2%decrease

SFY 2010: 5.4%

decrease

SFY 2009: 8.6%

decrease

1313


Highlights of the FY2012 Amended Budget Reductions Community Services



Total FY2012 Budget After Proposed Reductions $0

100% Federally Funded Program

1414


Highlights of the FY2012 Amended Budget Reductions Departmental Administration




$33,998,154

Administration continues to struggle with staffing levels to support the critical functions of the department. Reductions would be made in personnel services, regular operating cost and contracts. Impact in contracts would mostly be in IT support. This may impact the ability to upgrade or replace outdated systems, and provide IT support for the department.

1515


Highlights of the FY2012 Amended Budget ReductionsElder Abuse Investigation and Prevention




Investigation caseloads continue to grow. Any cut would require reduction in force and impede ability to respond to reports of abuse, neglect and exploitation.


16

Adult Protective ServicesAverage Cases per Month

1717


Highlights of the FY2012 Amended Budget ReductionsElder Community Living Services

FY 2012 Appropriated Budget (State Funds)$66,401,043

Less: Exemption for Medicaid $(41,226,277)FY2012 Current Budget (State Funds)

$25,174,766


FY2012 Budget After Proposed Reductions $24,366,351Center for Visually Impaired $177,859 - cancels entire contract does not impact MOE. Alzheimer Services $225,000 - loss of estimated 20,500 hours of day and mobile care. Respite Care $405,556 - loss of 40,556 units of respite care services. Alzheimer and Respite cuts have an impact on Older American Act MOE but does not take it below minimum.

Medicaid exempted from reductions by OPB.

1818


Highlights of the FY2012 Amended Budget ReductionsElder Support Services




Mostly federally funded program. State funds leveraged to increase federal funds for meals.


1919


Highlights of the FY2012 Amended Budget Reductions Energy Assistance



FY2012 Budget After Proposed Reductions $0


2020


Highlights of the FY2012 Amended Budget ReductionsFamily Violence Services




Will result in modest reduction to existing GOCF contract.

2121


Highlights of the FY2012 Amended Budget ReductionsFederal Eligibility Benefit Services




Continued record growth in food stamp and moderate growth in Medicaid caseloads. Staffing levels have been reduced, including loss of support staff provided with ARRA funds. Not feasible to make additional reductions to staffing. DFCS IT cost covers GETS contract which has a projected increase cost.


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DHS: 2% Reduction by ProgramFood Stamp Cases

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

435,804 446,050 456,274 468,848 480,103 493,228 500,954 509,986 521,253 535,605 551,498 568,542

581,710 598,126 609,475 624,308 637,514 650,005 658,911 666,885 677,503 685,252 695,062 705,734

716,749 729,470 736,976 747,818 759,277 766,565 767,530 771,191 781,487 787,080 799,688 812,078

Def: Includes all cases active at some time during the month.

350,000

400,000

450,000

500,000

550,000

600,000

650,000

700,000

750,000

800,000


SFY 2009 SFY 2010 SFY 2011Source: SUCCESS DMD 6929I

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DHS: 2% Reduction by ProgramMedicaid Cases


624,150 627,369 634,654 641,789 643,827 647,760 652,838 657,302 663,485 671,324 678,214 685,321

689,390 693,057 696,432 701,695 702,853 705,042 706,868 707,691 712,663 715,310 715,248 715,924

714,652 717,946 720,780 721,727 721,006 720,000 716,176 715,649 720,723 723,136 725,743 729,014

Def: Includes case active at the end of the month.

400,000

450,000

500,000

550,000

600,000

650,000

700,000

750,000

800,000


SFY 2009 SFY 2010 SFY 2011Source: SUCCESS DMF8031I

2424


Highlights of the FY2012 Amended Budget ReductionsFederal Funds Transfer to Other Agencies





2525


Highlights of the FY2012 Amended Budget ReductionsOut of Home Care




$59,577,370

The FY 2012 budget was built based on projected continued decline in caseloads. As of January 2011, began to see modest growth in caseloads. If caseloads stay constant or growth continues we will need to seek additional funding.



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Number of Child Placement Services Cases

SFY Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunSFY 11 9,985 9,853 10,215 10,234 9,758 9,660 9,572 9,698 10,047 10,526 10,355 10,419SFY 10 11,437 11,362 11,260 11,676 10,708 10,625 10,552 10,462 10,446 10,687 9,997 10,041SFY 09 13,739 13,479 14,417 14,499 13,292 13,198 13,014 12,632 13,201 13,086 12,081 11,898SFY 08 13,935 13,839 13,568 13,398 13,595 12,985 12,793 12,891 12,886 13,230 13,315 13,409

PERMANENCY- RELATED OUTCOMES

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000


SFY 2011: 4.3%

increase

Notes: Count of unique childrenin foster care or adoptions stages open at any point during the month and cases active at some time during the month. Total count includes all cases active at some time during the month. Ofthe total number of placement cases: 7,844 children are in legal custody of DFCS under the age of 18; 502 children are in care of DFCS age 18 and over; 2,073 were Relative Placements and ICPC Children in placement at any point in time during the month. Percentages show increase/ decrease during each SFY.

Sources: IDS, SHINES

SFY 2008: 3.8%

decrease

SFY 2010: 12.2%

decrease

SFY 2009: 13.4%

decrease

2727


Highlights of the FY2012 Amended Budget ReductionsRefugee Assistance





2828


Highlights of the FY2012 Amended Budget ReductionsSpecial Project – Child Welfare Services

FY 2012 Current Budget (State Funds) $0




2929


Highlights of the FY2012 Amended Budget ReductionsSupport for Needy Families – Basic Assistance

FY2012 Current Budget (State Funds) $100,000


FY2012 Budget After Proposed Reductions $100,000

State funds are needed to fund two parent work participation. If funded with TANF would require significant increase in TANF MOE.


3030


Highlights of the FY2012 Amended Budget ReductionsSupport for Needy Families – Work Assistance


Proposed Reductions (0) FY2012 Budget After Proposed Reductions $0 100% Federally Funded Program

3131


Highlights of the FY2012 Amended Budget ReductionsTotal - All DHS Programs

FY2012 Total DHS - Current Budget (State Funds)$438,243,121

Total 2% Reductions in State Dollars Required ($2,013,121)

FY 2012 Budget After Proposed Reductions $436,230,000

3232




Workload Adjustment - FMAP 642,109

FY2013 Budget After Proposed Adjustment $34,701,228 State funds primarily tied to ongoing adoption assistance. Once

committed adoptions assistance is legally binding until child turns 18 and cannot be eliminated or reduced. Any reductions would limit ability to do new state funded adoptions. It is not feasible to run adoptions program for only IV-E eligible children. Reductions in adoptions would likely increase cost in out of home care at higher total cost to the state.

No reduction recommended to this program.Workload increase is to offset reductions in the FMAP rate.

Highlights of the FY2013 Budget Reductions Adoption Services

33


Highlights of the FY2013 Budget Reductions After School Care




34


Highlights of the FY2013 Budget Reductions Child Care Licensing (RCC)




3535


Highlights of the FY2013 Budget ReductionsChild Care Services




Per OPB Instructions, no cuts are required in Child Care Services

3636


Highlights of the FY2013 Budget Reductions Child Support Services




State reductions will result is a loss of federal funds of $976,119.

These reductions will be offset with incentive funds of $1,478,968.

3737


Highlights of the FY2013 Budget Reductions Child Welfare Services




The efforts to improve child welfare services and the use of differential response will require investments in data systems and intake systems.



3838


Highlights of the FY2013 Budget Reductions Community Services



Total FY2013 Budget After Proposed Reductions $0


3939


Highlights of the FY2013 Budget ReductionsDepartmental Administration



Workload Increases EBT 3,000,000

FY2013 Budget After Proposed Adjustments

$36,998,154 Administration continues to struggle with staffing levels to support the

critical functions of the department. Reductions would be made in personnel services, regular operating cost and contracts. Impact in contracts would mostly be in IT support. This may impact the ability to upgrade or replace outdated systems, and provide IT support for the Department.

Workload increase is to provide funding for growth in EBT cost related to Food Stamps (SNAP)

4040


Highlights of the FY2013 Budget ReductionsElder Abuse Investigation and Prevention




Investigation caseloads continue to grow. Any cut would require reduction in force and impede ability to respond to reports of abuse, neglect and exploitation.


4141


Highlights of the FY2013 Budget ReductionsElder Community Living Services

F FY 2012 Appropriated Budget (State Funds) $66,401,043Less: Exemption for Medicaid $(41,226,277)FY2012 Current Budget (State Funds)

$25,174,766

Proposed Reductions (808,415)Workload Adjustment-FMAP 1,413,194

FY2013 Budget After Proposed Adjustments

$25,779,545 Center for Visually Impaired $177,859 - cancels entire contract does not

impact MOE. Alzheimer Services $225,000 - loss of estimated 20,500 hours of day and mobile care. Respite Care $405,556 - loss of 40,556 units of respite care services. Alzheimer and Respite cuts have an impact on Older American Act MOE but does not take it below minimum.

Medicaid exempted from reductions by OPB

4242


Highlights of the FY2013 Budget Reductions Elder Support Services




Mostly federally funded program. State funds leveraged to increase federal funds for meals.


4343


Highlights of the FY2013 Budget Reductions Energy Assistance





4444


Highlights of the FY2013 Budget ReductionsFamily Violence Services




Will result in modest reduction to existing GOCF contract.

4545


Highlights of the FY2013 Budget ReductionsFederal Eligibility Benefit Services




Continued record growth in food stamp and moderate growth in Medicaid caseloads. Staffing levels have been reduced, including loss of support staff provided with ARRA funds. Not feasible to make additional reductions to staffing. DFCS IT cost covers GETS contract which has a projected increase cost.


4646


Highlights of the FY2013 Budget ReductionsFederal Funds Transfer to Other Agencies





4747


Highlights of the FY2013 Budget ReductionsOut of Home Care



Workload Adjustment – FMAP 504,514


The FY 2012 budget was built based on projected continued decline in caseloads. As of January 2011, began to see modest growth in caseloads. If caseloads stay constant or growth continues we will have to seek additional funding.Any cuts would impact TANF MOE


4848


Highlights of the FY2013 Budget ReductionsRefugee Assistance





4949


Highlights of the FY2013 Budget ReductionsSpecial Project – Child Welfare Services





5050


Highlights of the FY2013 Budget ReductionsSupport for Needy Families – Basic Assistance

FY2012 Current Budget (State Funds) $100,000


FY2013 Budget After Proposed Reductions $100,000

State funds are needed to fund two parent work participation. If funded with TANF would require significant increase in TANF MOE.


5151


Highlights of the FY2013 Budget ReductionsSupport for Needy Families – Work Assistance




5252


Highlights of the FY2013 Budget ReductionsTotal - All DHS Programs

FY2012 Total DHS - Current Budget (State Funds)$438,243,121

Total 2% Reductions in State Dollars Required ($2,013,121)

Total State Dollar Amount of Workload Adjustments $5,559,817

FY 2013 Budget After Proposed Reductions $441,789,817and Adjustments

Documents

Department of Human Services (DHS) August Board Meeting