Implementation for 9c Budget Cuts:

1

• Implementation for 9c Budget Cuts
• Presentation to DCF Interested Parties
• October 22, 2008

2
Governor Patricks Fiscal Action PlanState of
Our Commonwealth

• International and national economic uncertainty
• has traveled from Wall Street to Massachusetts.
• FY09 Q1 Revenue is 225 Million below benchmark
• on which the budget was built.
• The total projected deficit is 1.4 Billion
• 1.1 billion - related to the total projected
  revenue shortfall
• 300 million - unexpected deficiencies related to
  increased human service caseload, snow spending
  other similar accounts.
• The Administration has been preparing since
  March,
• working proactively to prepare for a downturn.

3
Governor Patricks Fiscal Action PlanState of
Our Commonwealth

• Governor Patrick announced a proactive,
  multi-pronged fiscal action plan to close the
  projected deficit.
• This blueprint includes
• 1.053 billion in spending reductions through 9c
  cuts in Executive Branch agencies, voluntary
  spending reductions in other state agencies, a
  modest extension of the pension schedule, and
  other spending controls
• 168 million from additional revenues of which
  13 million comes from closure of the antiquated
  telecom loophole, 55 million from new federal
  funding, and 100 million from additional DOR tax
  settlements, and
• 200 million drawn from the Commonwealth
  Stabilization Fund bringing the total draw to
  601 million in fiscal 2009 the same level of
  reserves budgeted in fiscal 2008.

4
Secretary Bigbys Fiscal Action PlanEOHHS
Approach to Budget Cutting Process

• Guiding Principles
• Under Secretary Bigbys leadership, all HHS
  agencies agreed upon a set of principles to guide
  our work.
• Maintain Essential Services
• Among these principles were our commitment to
  maintain the essential and core services that we
  provide and to protect our currently served
  clients and most vulnerable populations. 
• Fiscal Year 2009 Strategic Priorities
• We strived to minimize provider instability and
  worked to align our work with our Fiscal Year
  2009 strategic priorities  ending homelessness,
  Community First, human services rate reform, and
  rationalizing health care costs. 
• EOHHS Agency Reductions
• 355m reduced across the 17 EOHHS Agencies.

5
DCFs Fiscal Action PlanDCF Budget Reduction
Target

• DCF faced a deficit of 7.2 million going into FY
  09.
• DCF was then asked to reduce spending by 7 or
  44 million to meet the 9c target.
• 44m (9c target) 7.2m (FY 09 deficit) a
  potential 52m short fall.
• However, the final 9c target was reduced down
  from 44m to 15.3m.
• 15.3m (9c target) 7.2m (FY 09 deficit)
  22.5m total.

6
DCFs Fiscal Action PlanDCFs Approach to the
Budget Cutting Process

• DCF approached the budget cutting process with a
  commitment to our priorities.
• Our decision-making was guided by
• Core Agency Mandate Strengthening Families,
  Where Child Abuse or Neglect has Occurred.
• Priority Population Under 18 18-21 previously
  involved with DCF.
• Priority Objectives Safely Stabilizing
  Preserving Families Safely Reunifying Families
  and Safely Creating New Families.

7
DCFs Fiscal Action PlanFinal DCF 9c Budget Cut
Summary
DOLLARS IN MILLIONS
Note FY09 Projected Deficit already assumed in
FY09 GAA totals. Net FY09 Available equal to
FY09 GAA less FY09 9C Cuts. Please note GAA 9C
Net Available
8
DCFs Fiscal Action PlanFinal DCF 9c Budget FY
09 Deficit Cuts Summary

• Major Areas affected by cuts are
• Services
• Community Based Services
• Congregate Care
• Intensive Foster Care
• Earmarks
• Program Development
• Personnel
• Clinical
• Management
• Administrative
• Administrative Spending
• Conferences
• Out of State Travel
• Lease Space
• Subscriptions

9
DCFs Fiscal Action PlanCuts to DCF Personnel -
5.210

• This includes
• Reduction in planned growth in social worker
  positions.
• Agency wide hiring freeze.
• Layoffs across all levels of the Department,
  potentially 100 or more.
• Freeze management pay raises.
• Additional options being considered include
• Furlough Program
• Voluntary Layoffs

10
DCFs Fiscal Action PlanCuts to Earmarks - 2.252

• 35 of 47 DCF Earmarks were reduced
• 100 of Earmarks in the 4800-0038 services
  account were reduced 50
• No Earmarks were reduced in the 4800-1400
  Domestic Violence Account
• With some outliers still being confirmed.

11
DCFs Fiscal Action PlanCuts to Congregate Care
- 5.331

• This includes
• Utilization of congregate care nearing the FY 08
  levels
• Intensive foster care services nearing the FY 08
  levels.
• Suspension of a latency-age STARR program.

12
DCFs Fiscal Action PlanCuts in Administrative
Spending - 1.522

• This includes
• Limit scope of external review.
• Moratorium on Admin spending.
• Reduced Adam Walsh implementation cost.
• Reduced Training Institute spending.
• Delayed Boston Regional office move.
• Delayed potential lease space moves.
• Reduced IT capacity.

13
DCFs Fiscal Action PlanCuts to Lead Agencies
Regional Resource Centers - 2.490

•  
• Suspension of Regional Resource Center contracts
• RRC contracts suspended effective 11/30/08
• Reduction in Lead Agency contracts.

14
DCFs Fiscal Action PlanCuts to Community Based
Services - 5.669

• This includes
• Support Stabilization funded at FY 08 level.
• Program development funds eliminated. (400k)
• Funding for Fire Setter Prevention program
  eliminated. (250k)

15
DCFs Fiscal Action Plan9c Process - Some Good
News

• We were able to preserve
• Foster Care Rates
• Foster Care Capacity
• Rates of Reimbursement for Providers
• 766 Rate of Reimbursement
• Congregate care services for developmentally
  disabled
• Reduction in Caseloads
• Adoption and guardianship subsidies
• Domestic Violence Services
• Enough community based services to serve families
  with high and moderate needs.
• Enough out of home placements to continue to
  reduce the CARD list.
• Services to Young Adults Over the age of 18
• Alternative Lock-up Program
• Sexual Abuse Intervention Network
• Benefits to Children (Holiday payments and
  clothing allotment)
• Significant Portion of our agency of last
  resort role within the system.

16
DCFs Fiscal Action Plan Final DCF 9c Budget
FY 09 Deficit Cuts Work Plan

• Implementation of the work plan includes
• Budget Management/Administration
• Line by line review of budget, spending controls,
  and revenue ideas.
• Communication/Information management
• Internal, external, union conversations, and
  timing.
• Services
• Service reductions, contract suspensions,
  reduction of earmarks.
• Reorganization Related Human Resources
• Staffing levels reduced, work with labor
  officials, reassignment, outplacement, call
  backs.
• Strategic Planning
• Accelerate strategic planning, integrate 9c
  exercise with strategic planning activities,
  define primary and secondary strategic goals, and
  make critical policy decisions.

17
DCFs Fiscal Action Plan Final DCF 9c Budget
FY 09 Deficit Cuts Work Plan

• As we move forward with implementation of our
  work plan, we will watch and monitor for the
  following metrics
• Increase in 51A Reports
• Increase in caseloads
• Increase in need for POS Services
• Increase in number of psych hospitalizations
• Increase in number of kids stuck in psych
  hospitals
• Increase in reliance on and wait for congregate
  care
• Increase in number of kids in foster care
• Increase in CHINS
• Decrease in number of families safety
  stabilized and safely reunited
• Increase in homeless adolescents
• Increase in adolescent unemployment
• Increase in referral to other EOHHS agencies
  (DMH, DMR, MRC)
• Reduction in revenue
• We will review data on a quarterly basis.

18
DCFs Fiscal Action Plan Partial Listing of
Impact of other Agencies 9c Reductions on DCF
Families

• Department of Early Education and Care (DEEC)
• 3.5m reduction in Supportive Child Care
  (preserves 7.1m increase over FY 08 spending)
• 3.5 m reduction in Income Eligible Child Care to
  bring all rates paid to providers of subsidized
  early education and care to a consistent state
  rate within regions and a 1.5 reduction in the
  daily administrative rate paid to family child
  care systems.
• Childrens Behavioral Health Initiative (Rosie
  D.)
• 3.5m cut in the overall reserve (from 25m to
  21.5m).
• Department of Youth Services (DYS)
• .200 cut to non-residential services for
  committed youth, .170 cut to residential
  services for detained youth, 1.0m cut to
  residential services for committed youth.
• Department of Public Health (DPH)
• 1.12m cut to early interventions services, .285
  cut to teenage pregnancy prevention services,
  .056 cut to school-based health programs
  reduction in dental, early intervention, and
  family health services.
• Department of Mental Health (DMH)
• 2.25m cut in child adolescent services, closure
  of an IRTP
• MassHealth
• Reduction in payment MBHP makes to hospitals for
  PAYAND, rollback of MBHP provider rates to
  8.1.08, reduction in spending on BH services
  through tightening utilization management.
• Department of Elementary and Secondary Education
  (DESE)
• 13.5m reduction in funding for special education
  reimbursement (circuit breaker)

19
For More Information

• www.mass.gov for a complete listing of the
  Governors Fiscal Action Plan.
• Please email me with any questions at
  DCFCommissioner_at_state.ma.us

20
DCF REGIONAL FORUMS STRATEGIC PLANNING

• OCTOBER 28 BOSTON
• NOVEMBER 7 NORTHEAST
• NOVEMBER 12 CENTRAL MASS
• NOVEMBER 17 METRO
• NOVEMBER 24 WESTERN MASS
• DECEMBER 2 SOUTHEAST