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HomeMy WebLinkAboutORD-2013-046 Ordinance approving Budget Amendment #3A - Social Services request for Additional Funds 1 ORD-2013-046 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 2, 2013 Action Agenda Item No. 4-d SUBJECT: Presentation on Economic Pressures on the Department of Social Services, Request for Additional Funds, and-Approval of Budget Amendment#3-A DEPARTMENT: Social Services PUBLIC HEARING: (YIN) No ATTACHMENT(S): INFORMATION CONTACT: Report on the Impact of the Government Nancy Coston, 919-245-2800 Shutdown, Sequester and Other Fiscal Issues on the DSS Budget PURPOSE: To receive an update on current economic pressures and consider a request for additional funds for crisis services to support families served by the Department of Social Services (DSS). -BACKGROUND: Orange County has historically provided assistance to low income families experiencing financial crises within guidelines developed by the Board of Social Services. The funds are used to pay utility bills, rent and deposits, prescription drugs, food and some other items needed to assure the safety of families. Most of the assistance is for utilities and rent. One significant issue impacting crisis funds at DSS is the implementation of NCFAST. Although agency staff has worked very hard to learn the new system, there have been times when the issuance of Food and Nutrition benefits has been delayed for individual families. Many resources, including the food bank, local pantries and food donated to DSS, have helped meet the need, but the agency has also provided food cards to families experiencing more significant delays. These costs have come from the County emergency funds. In addition to the impacts of NCFAST, all recipients of Food and Nutrition Services are also experiencing a federal cut in benefits effective with the November issuance. Although the amount of the cuts varies, it is approximately $36 per month per household or about $235,000 per month in loss food benefits for Orange County families and grocers. Even without these additional strains on the County funds, DSS has been expending funds at a higher rate than last year. Much of this is due to the increased costs for utilities, rent and deposits and the reduction in other funds to pay these costs. The costs to resolve many crises has increased from around $200 to close to $400. In the past, DSS has managed a large grant to prevent homelessness, but those funds are no longer available. Although DSS does receive similar funds through a smaller grant, it is very limited in the number of eligible families who can be served. 2 Another impact is related to a change in policy by the DSS Board. In order to contain costs, DSS stopped last year serving families without children or that did not have a vulnerable adult in the household. Because there were so many individuals needing assistance who did not meet these new criteria, the DSS Board changed-the policy in July 2013 to allow limited assistance to persons without children. Through October, DSS h-as spent approximately $150,000 of the $180,000 approved for crisis services. Of these costs, over $100,000 has been spent on rental assistance and $30,000 of that will be reimbursed through the Emergency Food and Shelter Program. Most of the_other funds paid for electric, gas and water services. In addition to other strains, the agency facilitated recovery efforts needed as a result of flooding in parts of Orange County in late June. Social workers assisted Red Cross efforts at the shelter and staffed the recovery center. At the time the shelter was closed by the Red Cross, sixteen families were identified for shelter at local hotels. Additionally, the Town of Chapel Hill provided shelter at hotels for some public housing residents impacted by the flood. Some families originally placed in hotels by the Red Cross did not have housing within the week and DSS extended the hotel stays for these families_ Some additional families were also-placed irr hotels after they were no longer able to stay or return to their homes. Forty-five agency staff worked with state officials to provide ongoing services to ninety-two impacted families. Although funds for impacted families from the State Division of Emergency Management were given to Social Services to assist families with relocation and replacement of personal items lost in the flood, hotel costs incurred by the County will not be reimbursed. The agency did receive donations from the public to help these families, but staff anticipates the County's cost to be approximately $20,000 after donated funds and state reimbursement. No actions or funding concerns are being requested as part of this agenda item, but will be addressed with the Board after the agency reconciles all expenditures supported by the state funds. Given the continuing impact of the slow economy, the anticipated delays in some NCFAST benefits and the rising costs of rent and utilities in Orange County, DSS is requesting $100,000 in additional funds to continue serving Orange County residents with these situations. The commitment of these funds and the social work services provided to these families is one of the County's strategies for reducing homelessness and stabilizing families. These funds also assure that utilities are in place to meet the basic needs of families. The attached report summarizes the impact of the government shutdown and other fiscal issues impacting the DSS budget. FINANCIAL IMPACT: The BOCC approved $250,000 for the Social Justice Reserve Fund during this year's budget process. The request for $100,000 could be accommodated with a transfer from this account or an appropriation from the General Fund. RECOMMENDATION(S): The Manager recommends the Board receive the update, and approve Budget Amendment#3-A to transfer $100,000 from the Social Justice Reserve Fund to the Department of Social Services for General Assistance for client payments. With approval of this allocation, a balance of $150,000 will remain in the Social Justice Reserve Fund for FY 2013-14. 3 Report on the Impact of the Government Shutdown,Sequester and Other Fiscal Issues on the DSS Budget December 2013 The Department of Social Services(DSS)receives federal funds to support administration and direct services for many mandated programs at the Department.Approximately 50%of the staff costs and varying amounts of the services costs are provided with federal funding. Although these federal funds_ allow DSS to provide many needed services,the recent federal shutdown,sequestering of funds,and numerous budget impasses(for example,the Farm Bill)threaten the stability of these.programs. These threats have come in a year of high demand for various services at DSS. Some of the specific-programs and impacts are outlined below: Medicaid: Orange County has approximately 12,200 individuals who receive medical services valued at $104 million annually.These funds are paid directly by the state to qualified providers such as doctors, hospitals,pharmacies and residential facilities to support these individuals.Most of the services are provided to children,elderly persons, and people with disabilities.The agency anticipates receiving$1.1 million in federal funds for staff and other costs related to Medicaid administration. Although no federal impacts have occurred at this time and Medicaid is not subject to sequester,North Carolina continues to discuss various cost saving measures for Medicaid. Food and Nutrition Services(FNS): Orange County has approximately 6,600 FNS households receiving an estimated$19 million in benefits annually.These benefits are paid directly by the state to approved grocery markets in the community. In addition DSS expects to receive$960,000 in reimbursements for administrative costs. FNS was not impacted by sequester or shutdown. However all recipients experienced a reduction in benefits in November. This change was due to the end of an increase in benefits implemented during the federal stimulus efforts. There are also concerns about the failure of Congress to reauthorize this program as part of the Farm Bill. Temporary Assistance for Needy Families(TANF): These funds support child welfare staff,child care subsidies and cash payments to about 300 families in Orange County.Although TANF is not subject to sequester, Orange County received a reduction of$89,677 in TANF funds this year due to the loss of some contingency and emergency TANF grants to states.Due to concerns about cash flow problems,the state suspended employment programs and grants funded by TANF,including the Adolescent Parenting Program at DSS. Although the agency was advised to stop work in those areas,after the shutdown ended, any expenses incurred during the shutdown were reimbursed. Social Services Block Grant(SSBG): These funds support a variety of social work programs, particularly child welfare including adoption and protective services and adult services including protective services and in-home services.In addition some of these funds are transferred to the Home and Community Block Grant.Orange County has already experienced a cut in those funds of$2804 in the Home and Community Block Grant due to the sequester cuts in the last fiscal year.Funds at DSS and at the Department of Aging will be impacted again if additional sequestering occurs in 2014. In addition,if local DSS agencies receive a cut of 6%in early 2014,this will mean a loss of$21,000 in revenue for this fiscal year. ' 4 Low Income Energy Assistance: These funds provide one-time energy payments during the winter and crisis intervention payments throughout the year.The Low Income Energy Assistance Program ($524,890)provides one-time payments that are targeted to vulnerable adults during the first two months of the program and then to other low income families with any remaining funds. In FY2012-13,the program provided energy assistance to 1,018 families.Crisis Intervention Program funds are available to pay heating and cooling costs to prevent health issues related to the weather. Orange County's allocation is estimated at$349,879 this year. Last year 2,661 families-received energy assistance through this program. These funds are subject to sequestering although prior year funds have helped the state to manage some of these cuts. Child Care Development Fund: Orange County receives$4.1 million for child care subsidies. These funds support more than 600 children monthly. Although several sources are used to provide this blended funding,it does appear that some if not all of these funds will be subject to sequester. DSS is unsure of the amount of subsidy that would be impacted. Given that there is already a significant waiting list for subsidy in Orange County,any loss of funds is difficult. These funds were also impacted by the shutdown since the state could not assure reimbursement of services being provided. Orange County suspended services to some Work First clients,but continued providing services to all other children. After the shutdown was over,all expenses were reimbursed. Flooding in Southern Orange-County: On June 30,2013 flooding displaced families in Chapel Hill and Carrboro. Staff members from DSS were at the shelter each day until July 4t'when it was closed by the Red Cross. Many of the first issues involved immediate needs such as clothing,food and transportation. Social-workers from DSS were also available at the Recovery Center at University Mall during the time it was operated by Red Cross and then later by the state Division of Emergency Management. When the State Division of Emergency Management approved the area for disaster assistance,Orange County DSS was.asked to assist with providing state assistance for the impacted families. This was done because DSS had already starting assessing over 100 families. During the time since the flood,ninety-two families have received assistance from forty-five staff at DSS. Although most families have moved to other housing or returned to their former homes,this process has required a significant investment of staff time. Social Workers are still working with the State to provide rental assistance and household items for these families. Although the contract from the state will pay many of the direct costs for the families,some of the initial costs including the hotel stays will not be covered. The public donated funds to assist these families so DSS anticipates county costs of less than $20,000 to provide these services. Although this work placed a strain on child welfare,employment and adult services social workers,the services provided have helped to stabilize the housing for numerous families. In summary,there have been cuts to the DSS budget during this fiscal year,mostly in TANF,and also disruption to some services due to the federal shutdown. Some impacts of sequestering have been felt and if Congress does not agree on a budget,more cuts are anticipated,particularly in SSBG and Low Income Energy Assistance. Exactly how the cuts impact counties is influenced by a number of issues including carry-forward availability and state level cuts.There is also concern that another federal shutdown could disrupt critical services again. These cuts and threats to services have come at a time when the agency has experience high demand for services,including the impact of a natural disaster. Since DSS manages many mandated services with federal funds,it is impossible for the agency not to feel the impacts of federal cuts and shutdowns.