HomeMy WebLinkAboutAgenda - 06-20-2002 - 4b dd-�1 4L
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Potential Uses for Social Safety Net
The list on the following pages outlines State cuts that the County has experienced in
the past year or anticipates to experience in the upcoming fiscal year. The General
Assembly continues to deliberate the State's 2002-03 budget, and it is likely that the
County will face additional cuts once the State budget is adopted. In anticipation of
these cuts, the Manager has included a reserve of$110,000 in the recommended 2002-
03 budget (Miscellaneous Function, beginning on page 12-23 of the Manager's
Recommended Budget document) to cover some of the cuts that may come our way.
The "reserve" was created by re-allocating funds from the Department of Social
Services ($70,000) and the Child Care Challenge Grant ($40,000).
Since the General Assembly has not adopted the State's budget, this is not intended to
be an all-inclusive list of cuts for next year. It is also important to note that the State
budget proposes significant cuts for Orange-Person-Chatham Mental Health. It is not
clear at this point, how much the cuts will total and what the impact will be for OPC. As
the State deliberates further and adopts the budget, staff will provide additional
information to the Board.
Page 1
6/20/2002
State Funding Cuts
Reductions that took place with State budget approval in fall 2002 or
Category 1. enacted mid-year by the Governor's Emergency Budget Actions. These
reductions were absorbed in the individual departmental budgets for
the current(2001-02)fiscal year.
Department Description $ Impact on
2002-03 Budget
Block Grant Reduction -used mainly to offset overall
salaries of DSS social work staff $21,851
Program Integrity -offset costs of fraud investigations $25,000
State Adult Home Specialist -offset cost of position
related to monitoring rest homes throughout the County $8,087
DSS Carolina Access -offset cost associated with the position
who coordinates services for recipients of this Medicaid-
related program $22,083
Smart Start -reduction in day care staff and elimination of
funding for the adolescent parenting program $35,616
Sub-Total DSS $112,637
Health Smart Start Programs -including elimination of Welcome
to the World Program and funding for associated position $63,280
Library State Aid to Libraries $17,703
Total Category 1 $193,620
Category 2. Reductions that were anticipated and incorporated into 2002-03
Manager's Recommended Budget
Department Description $ Impact on
2002-03 Budget
IV-E Administration -result of a change in federal
guideline interpretation; offsets child welfare costs $61,585
Smart Start -offset costs of Day Care Social Worker; DSS
DSS director has frozen position $40,000
Health Choice -offset total cost of Income Maintenance .
staff $81,000
Sub Total DSS $182,585
Block Grant- Associated with In-Home Care and Adult
Aging Day Care $3,798
Library State Aid to Libraries $10,721
Total Category 2 $197,104
Page 2
6/20/2002
State Funding Cuts
Potential reductions as proposed by the Governor and/or Senate
budget plans. This list is what staff is aware of at this point and is not
Category 3. meant to be an all-inclusive list. As the State deliberates further and
adopts the budget,staff will provide additional information to the
Board.
Department Description $ Impact on
2002-03 Budget
Communities Alternative Program(CAP) -Offsets costs of Final cuts to be
social work program that keeps disabled adults from going determined by
DSS to nursing homes Legislature
State Aid to Counties -offsets costs of public assistance
programs $58,000
Sub-Total DSS $58,000
Intensive Home Visiting Program -offset partial cost of
staff. $9,000
Overall reduction of public health programs and increased
Health fees for lab services $28,930
Revenues that offset costs of case management Final cuts to be
determined by
Legislature
Sub-Total Health $37,930
.Library Further reduction in State Aid to Libraries $1,245
Increase in amounts that Counties pay to the State for Final cuts to be
Sheriff "safe-keeping"of inmates determined by
Legislature
Total Category 3 $97,175
Page 3
6/20/2002
Orange/Chatham Justice Partnership
The Governor's proposed budget eliminates funding for the Criminal Justice Partnership State Funds. The
Senate proposal includes only a 33 percent reduction. Funds set aside in the Orange Chatham Justice
Partnership Reserve fund (page 12-23 of the recommended budget document) include$15,000 that the
Commissioners could add to the Orange and Chatham County contributions in order to fund the Pre-Trial
Release program for one-half of the year. Chatham has included a similiar scenario in the Manager's
Recommended budget.
Should funding be eliminated completely, there would be no funds for the Pre-Trial Release or Substance Abuse
Programs that are currently funded by the grant.
Allocation
re-I nal Substance
Total Release Abuse Administra
Revenue Program Treatment tion Programs
Criminal Justice Partnership
State Funds 165,221 65,514 89,707 10,000 0
Juvenile Justice State Funds 261,250 0 0 15,500 245,750
included in the
Orange County Contribution County's Contributions
(As included in Manager's to outside Agencies
(page 12-1 of the
Recommended 2002-03 Recommended
Budget) 11,514 0 0 11,514 66,353 budget)
Chatham County Contribuilon
(As included in Manager's
Recommended 2002-03
Budget) 59,237 0 0 28,000 31,237
Page 4
A CALL FOR ADEQUATE FUNDING FOR NORTH CAROLINA HUMAN SERVICES PROGRAMS
WHEREAS, the State of North Carolina has experienced a significant increase in population including the
nation's fastest growing Latino population, many of whom require support and assistance, and;
WHEREAS, the State of North Carolina has experienced a devastating economic downturn with some counties
facing the highest unemployment rate in the nation, and;
WHEREAS,the State of North Carolina's economy has been dependent upon textiles and manufacturing
industries which have lost thousands of jobs, leaving employment opportunities very scarce,and;
WHEREAS, Human Services Agencies in North Carolina, including the Departments of Social Services have
experienced increased demands on all public assistance programs; Work First Family Assistance,Child Care
Subsidy, Food Stamps,Medicaid,Child Support,Transportation, and Emergency Assistance programs,and; _
WHEREAS, these same North Carolina County Departments of Social Services have also experienced increased
demands on all service programs, as unemployment and economic stresses contribute to increases in crime,
juvenile delinquency, child neglect and abuse,elder neglect and abuse, dmglalcohol abuse, and an erosion in the
quality of life for all citizens, and:
WHEREAS, the Covernor of the State of North Carolina has withheld millions of dollars from county
governments forcing many counties to increase property taxes and with legislative approval a one-half cent in
sales tax, and:
WHEREAS, the Senate Human Resources Appropriations Committee's Budget includes a reduction of$5.5
million for County Departments of Social Services for the administration of programs of public assistance. The
reduction of$5.5 million equates to an$I I million cut and the reduction of 392 position. The State funds are
used to leverage federal funds. These funds are used to support staffs who deliver direct services to the State's
most vulnerable citizens. The reduction will severely hinder our ability to provide essential services.
WHEREAS, the State of North Carolina operates Social Services programs in partnership with county
government but the portion of cost paid by county governments places us in the top 10% of counties nationwide,
and:
WHEREAS the State of North Carolina has seen a 60%reduction in Work First Family Assistance caseloads
county governments have maintained the same level of financial support to this program while the State reduced
its financial commitment to the Work First Program.
THEREFORE BE IT RESOLVED, the State of North Carolina shall explore all avenues to increase revenues,
including tax on tobacco and alcohol to invest in all the State's children, families,disabled and elderly
individuals so that they can all fully participate in the American Dream.
PROPOSED ADDITION TO SECOND RESOLUTION
PROPOSAL
Insert the following as Item#11 under the SOCIAL SAFETY NET section of the
second resolution and renumber all remaining items consecutively:
11) Support legislation to maintain the current level of funding for State Aid to
Counties in the Social Services Budget. These funds have been available
from the state for decades to support the administration of state and federal
public assistance programs provided through county governments. These
funds are used to pay some of the costs of the staff who determine
eligibility for Food Stamps,Medicaid and other financial assistance
programs. These programs are experiencing growth in the number of
persons needing assistance,which has increased the workload for the staff
at Social Services. The state should maintain its current level of funding
to support the county administration of these programs, especially since
this is one of the few sources of state funds in any of the operational costs
of the local Social Services programs. The Senate budget proposes to cut
$5.5 million of these funds which would reduce Orange County's
allocation from approximated$69,000 to$11,000 annually. Since these
funds can be used to match federal funds, loss of these funds could result
in$116,000 in funds for staff at Social Services.