DCFS FY2010 BUDGET OVERVIEW Challenges

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DCFSFY2010 BUDGET OVERVIEWChallenges
Opportunities

• ERWIN McEWEN
• DIRECTOR, DCFS
• MATTHEW A. GRADY III
• DEPUTY DIRECTOR, BUDGET FINANCE

April 2, 2009
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STATEWIDE BUDGET DEFICIT( in billions)

• FY09 Deficit- 4.3
• FY10 Deficit- 7.3
• Total Deficit- 11.6
• Governors FY09-FY10 Plan
• Revenue Increases 8.5
• Spending Reductions 2.8
• Total Deficit Reduction 11.3
• Remaining Deficit 0.3

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DCFS BUDGET OVERVIEW( in thousands)
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DCFS Total Headcount Going Forward

• FY09 Affordable 2,917 FTE (including Lump Sum
  staff)
• Assumes attrition of 223 by 6/30/09
• FY10 Funded 3,091 FTE (including Lump Sum staff)
• Able to fund 174 additional heads
• 108 will not attrition out (actual thru Feb A -
  105)
• 6 FTE transferred from DHS effective 7/1/09
• 60 new hires (earmarked for Direct Staff)

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DCFS Opportunities

• Protect Core Services
• Safety
• Permanency
• Well-Being
• Maintain Benchmark Caseload Ratios for Frontline
  Staff
• Fund Support Key Programs
• Program Improvement Plan
• Integrated Assessment
• Trauma Informed Practice
• Residential Performance Based Contracting
• Family Advocacy Centers

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DCFS Challenges

• Must Earn 26 m in New Revenue
• FY10 Request Depends Upon Generating 26m
• Medicaid Counseling Expansion - 17 m
• Home of Relative Licensure - 9 m
• Daycare Licensing Fees
• Increase Operational Efficiency
• Frontline Focus for New Hiring
• (most non-direct vacancies to remain unfilled)
• Procurement Savings
• Facility Consolidations

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Childrens Services Fund (CSF)FY09 Cash Position

• FY09 CSF Shortfall approx. 80 m
• Requested GRF Supplemental Appropriation 42.7 m
• Continued Borrowing from Future Revenue

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Childrens Services Fund (CSF)FY10 Cash Position

• Zero Margin for Error
• Projected Revenue 406 m
• Projected Spending 406 m
• Cash flow Challenges
• Critical Payments Prioritized
• Non-Critical Payment Delays Likely
• Critical Payment Delays Possible if GRF Cash is
  Low

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Revenue Initiatives

• Efforts Needed to Maximize Base Federal Revenue
• Document services with client detail (ID, etc.)
• Respond accurately and timely to Random Moment
  Survey (RMS) Inquiries
• Maintain case files with all proper documentation
• Medicaid Counseling Expansion (by Line)
• Foster Care 12.9 m
• Adoption 2.2 m
• Counseling 1.9 m
• Home of Relative Licensure
• Must Achieve 80 Licensure by 6/30/10
• Progress Must Start Immediately
• Progress Must be Steady

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Random Moment Time Study (RMTS)

• RMTS is a statistical sampling process used to
  determine the proportional amount of time case
  worker staff spend on the various activities they
  perform in carrying out their job functions
• RMTS along with the eligibility percentages bring
  in over 90 million in federal Title IV-E dollars
  annually.
• RMTS is administered through a phone polling
  process whereby a random moment in time for a
  worker is selected to determine the activity
  being performed at the selected moment (6,600
  moments are selected each quarter 3,300 for
  DCFS workers and 3,300 for POS workers).
  Follow-up emails are sent if the caseworker
  cannot be reached by phone. For a response to be
  considered valid it must be submitted within 48
  business hours of the moment.

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Random Moment Time Study (RMTS) Continued

• Pre-placement case management costs can only be
  claimed on behalf of clients who are determined
  to be candidates for foster care as denoted in
  SACWIS case plan. Candidacy means that if our
  services are ineffective or refused we would
  remove the child from the home. There is a place
  in SACWIS to answer yes or no to document
  candidacy.
• RMTS proportional results for allowable
  activities along with the applicable Title IV-E
  client eligibility factor are applied to the cost
  pool (administrative and support costs associated
  with case work staff (both DCFS and POS) to
  determine Title IV-E Administration claiming.
  (Example on following slide)

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RMTS Formula

• Calls for an activity are divided by total calls
  to determine claimable for the activity. For
  example for Foster Care Unassigned Case
  Management Legal there were 393 calls during the
  quarter documenting that the worker was working
  on that activity at the time of the moment.
  There were a total of 1,740 RMTS responses for
  the quarter. So 393/1,740 is 22.586. The
  eligibility factor for Foster Care Unassigned for
  the quarter was 47.231. For simplicity lets
  say the cost pool for the quarter was 100,000.
  The RMTS costs would be calculated as follows
• 22.586 x 47.231 10.668
• 10.668 x 100,000 10,668 IV-E Administration
  for Case Management Legal Foster
  Care Unassigned
• 10,668 x 50 FMAP 5,334 IV-E net to DCFS

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RMTS Foster Care Candidacy

• Foster Care Candidacy is the provision under
  Title IV-E that allows DCFS to claim
  administrative costs for intact family case
  management. However,
• To qualify, the child / family must be documented
  as a Candidate for Foster Care in SACWIS.
• Thanks to training and collaborative efforts, the
  formerly low Candidacy Percentage has been
  growing (see chart on following page).
• Our goal is to reach 70 or better

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RMTS Foster Care CandidacyMonthly Change since
9/30/08 to 8/31/09
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HMR Licensure Plan
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Questions Answers