1. 1 Department of Human Services (DHS) Board Meeting Presentation Revised Lynn Vellinga, CFO August 24, 2011

2. 2 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

3. 3 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

4. 4 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. 5 Department of Human Services Calculation of Reductions per OPB State Funds Only (w/o Attached Agencies) FY 12 Amended ReductionsFY 13 Reductions FY12 Appropriations (Base) excluding Tobacco $479,469,398 Medicaid Funds $(41,226,277) Budget from which Reductions are Taken $438,243,121 2% Reduction $(2,013,121) Workload Adjustments $0$5,559,817 Revised Budget Request $436,230,000$441,789,817

6. 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. 7 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions After School Care FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2012 Budget After Proposed Reductions$0 100% Federally Funded Program

8. 8 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Child Care Licensing (RCC) FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $0 100% Federally Funded Program

9. 99 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Child Care Services FY2012 Current Budget (State Funds) $54,234,300 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $54,234,300 Per OPB Instructions, no cuts are required in Child Care Services

10. 10 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Child Support Services FY2012 Current Budget (State Funds) $25,142,438 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.

11. 11 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Child Welfare Services FY2012 Current Budget (State Funds) $89,712,644 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $89,712,644 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. No reduction recommended to this program.

12. 12 DHS: 2% Reduction by Program

13. 13 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Community Services FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) Total FY2012 Budget After Proposed Reductions$0 100% Federally Funded Program

14. 14 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Departmental Administration FY2012 Current Budget (State Funds) $34,666,911 Proposed Reductions (668,757) FY2012 Budget After Proposed Reductions $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.

15. 15 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Elder Abuse Investigation and Prevention FY2012 Current Budget (State Funds) $12,287,841 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $12,287,841 Investigation caseloads continue to grow. Any cut would require reduction in force and impede ability to respond to reports of abuse, neglect and exploitation. No reduction recommended to this program.

16. 16 Adult Protective Services Average Cases per Month

17. 17 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Elder 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 Proposed Reductions (808,415) FY2012 Budget After Proposed Reductions $24,366,351 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.

18. 18 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Elder Support Services FY2012 Current Budget (State Funds) $1,729,095 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $1,729,095 Mostly federally funded program. State funds leveraged to increase federal funds for meals. No reduction recommended to this program.

19. 19 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Energy Assistance FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $0 100% Federally Funded Program

20. 20 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Family Violence Services FY2012 Current Budget (State Funds) $1,655,000 Proposed Reductions (33,100) FY2012 Budget After Proposed Reductions $1,621,900 Will result in modest reduction to existing GOCF contract.

21. 21 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Federal Eligibility Benefit Services FY2012 Current Budget (State Funds) $99,903,637 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $99,903,637 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. No reduction recommended to this program.

22. 22 DHS: 2% Reduction by Program

23. 23 DHS: 2% Reduction by Program

24. 24 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Federal Funds Transfer to Other Agencies FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $0 100% Federally Funded Program

25. 25 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Out of Home Care FY2012 Current Budget (State Funds) $59,577,370 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $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. Any cuts would impact TANF MOE. No reduction recommended to this program.

26. 26 DHS: 2% Reduction by Program

27. 27 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Refugee Assistance FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $0 100% Federally Funded Program

28. 28 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Special Project – Child Welfare Services FY 2012 Current Budget (State Funds)$0 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $0 100% Federally Funded Program

29. 29 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Support for Needy Families – Basic Assistance FY2012 Current Budget (State Funds) $100,000 Proposed Reductions (0) 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. No reduction recommended to this program.

30. 30 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Support for Needy Families – Work Assistance FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2012 Budget After Proposed Reductions $0 100% Federally Funded Program

31. 31 DHS: 2% Reduction by Program Highlights of the FY2012 Amended Budget Reductions Total - 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

32. 32 DHS: 2% Reduction by Program FY2012 Current Budget (State Funds) $34,059,119 Proposed Reductions (0) 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. 33 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions After School Care FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2013 Budget After Proposed Reductions$0 100% Federally Funded Program

34. 34 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Child Care Licensing (RCC) FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $0 100% Federally Funded Program

35. 35 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Child Care Services FY2012 Current Budget (State Funds) $54,234,300 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $54,234,300 Per OPB Instructions, no cuts are required in Child Care Services

36. 36 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Child Support Services FY2012 Current Budget (State Funds) $25,142,438 Proposed Reductions (502,849) FY2013 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.

37. 37 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Child Welfare Services FY2012 Current Budget (State Funds) $89,712,644 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $89,712,644 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. No reduction recommended to this program.

38. 38 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Community Services FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) Total FY2013 Budget After Proposed Reductions$0 100% Federally Funded Program

39. 39 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Departmental Administration FY2012 Current Budget (State Funds) $34,666,911 Proposed Reductions (668,757) 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)

40. 40 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Elder Abuse Investigation and Prevention FY2012 Current Budget (State Funds) $12,287,841 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $12,287,841 Investigation caseloads continue to grow. Any cut would require reduction in force and impede ability to respond to reports of abuse, neglect and exploitation. No reduction recommended to this program.

41. 41 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Elder Community Living Services F FY 2012 Appropriated Budget (State Funds)$66,401,043 Less: 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

42. 42 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Elder Support Services FY2012 Current Budget (State Funds) $1,729,095 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $1,729,095 Mostly federally funded program. State funds leveraged to increase federal funds for meals. No reduction recommended to this program.

43. 43 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Energy Assistance FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $0 100% Federally Funded Program

44. 44 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Family Violence Services FY2012 Current Budget (State Funds) $1,655,000 Proposed Reductions (33,100) FY2013 Budget After Proposed Reductions $1,621,900 Will result in modest reduction to existing GOCF contract.

45. 45 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Federal Eligibility Benefit Services FY2012 Current Budget (State Funds) $99,903,637 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $99,903,637 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. No reduction recommended to this program.

46. 46 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Federal Funds Transfer to Other Agencies FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $0 100% Federally Funded Program

47. 47 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Out of Home Care FY2012 Current Budget (State Funds) $59,577,370 Proposed Reductions (0) Workload Adjustment – FMAP 504,514 FY2013 Budget After Proposed Reductions $60,081,884 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 No reduction recommended to this program.

48. 48 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Refugee Assistance FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $0 100% Federally Funded Program

49. 49 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Special Project – Child Welfare Services FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $0 100% Federally Funded Program

50. 50 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Support for Needy Families – Basic Assistance FY2012 Current Budget (State Funds) $100,000 Proposed Reductions (0) 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. No reduction recommended to this program.

51. 51 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Support for Needy Families – Work Assistance FY2012 Current Budget (State Funds) $0 Proposed Reductions (0) FY2013 Budget After Proposed Reductions $0 100% Federally Funded Program

52. 52 DHS: 2% Reduction by Program Highlights of the FY2013 Budget Reductions Total - 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 $441,789,817 and Adjustments