Oklahoma Department of Human Services FY 2016 Budget Proposal

DHS Oklahoma Pinnacle Plan Year Four

The Oklahoma Pinnacle Plan Year Four ($15.89M/40 full-time equivalent employees (FTE) – DHS received appropriations totaling $93 million in FY 2013, FY 2014 and FY 2015. The funding paid for additional staff for child welfare and staff pay raises, significant increases in rates paid to foster homes and adoptive homes, training for workers, communications and technology upgrades, contracts for foster home recruitment and retention, and contracts for services to children and foster homes. The funding received through FY 2015 has helped DHS to reduce caseloads for workers, reduce turnover among staff, reduce shelter placements for the youngest children, and increase the number of foster homes available to children in custody.

The budget request for FY 2016 will: • Increase in the monthly payments

to foster and adoptive homes to continue reducing the gap between Oklahoma rates and the national standards for the cost of raising children set in 2006 (“Hit the MARC”)

• Increase salaries for child welfare specialists to continue reducing the difference between Oklahoma salaries and target salaries from a 2012 wage survey

• Expand preventive services and reunification assistance to children and families through Oklahoma Children’s Services (Comprehensive Home-Based Services)

• Add 40 FTEs to reduce new foster care cases, improve permanency planning, and speed up the adoption process for custody children that are legally free for adoption

The success of the Pinnacle Plan and other efforts within Child Welfare Services will reduce the number of children coming into custody, reduce the length of time they remain in custody, and increase the number of children reaching permanency through reunification with their parents or through adoption.

2012

2013

2014

2015

proj.

2016

proj.

2017

proj.

DHS Adoption Subsidy Full Funding ($8.35M/0 FTE)

Adoption Subsidy Full Funding ($8.35M/0 FTE) – Placement of a custody child into an adoptive home is a successful outcome for the child and leads to an improvement in the child’s long-term chances for leading a healthy and productive life. The FY 2016 request for funds is twofold: 1. Fully fund growth in the number

of adoptions 2. Fund court-mandated adoption

subsidy payment increases

Adoption SubSidy populAtion And CoSt Continue to inCreASe

15,000 $800

$700

CoSt

per

Mon

tH p

er C

Hild

Actual/Est. Population

$/Mo./Child

14,500

14,000

13,500

13,000

12,500

12,000

$360

$420 $427 $484

$552

$620

popu

lAti

on

$600

$500

$400

$300

$200

FiSCAl yeAr

The number of children receiving an adoption subsidy has continued to increase by 300 per year for the past three years. This annual growth is expected to continue through FY 2016 and represents successful achievement of permanency for these children.

20

12

2013

2014

2015

proj.

2016

proj.

2017

proj.

DHS Adoption Subsidy Full Funding ($8.35M/0 FTE)

From FY 2013 through FY 2015, DHS will have provided $11.6M in state funding for this program, in addition to the $7.5 million in Oklahoma Pinnacle Plan appropriations over the same time period. DHS funding was provided annually from carryover and is not included in the Budget Work Program. Full funding will require an estimated $5.9M in FY 2016. Additional increases of $1.2M to $1.5M will continue for several years.

Adoption SubSidy CoStS exCeedS even tHe SigniFiCAnt inCreASe in reCent AppropriAtionS

$60.0

StAt

e Fu

ndS

(Mil

lion

S)

$50.0

$40.0

$30.0

$20.0

$10.0

$0.0

Pinnacle Rate Increase

Troxell Request

Full Funding Request

Appropriation

Actual & Est. Expenditures

FiSCAl yeAr

Also, the recent case of Troxell v. Oklahoma Dept. of Human Services, 2013 OK 100, decided Nov. 26, 2013, determined that adoptive homes are entitled as a matter of law to the amount paid for a similar child in a foster family home. Since 2003, DHS policy provided a cap of 90 percent of foster home payments for adoption subsidy payments.

Carryover funds are no longer available; in the absence of funding DHS will need to reallocate resources from other services. Increases might be covered in part or completely with savings in foster care payments beginning in FY 2018, if the number of children in state custody is significantly reduced as a result of the Oklahoma Pinnacle Plan and other programs.

This funding requirement is over and above the funding shortfall for the increase in the number of children. During FY 2015 and FY 2016, an estimated 60 percent of the cases will increase to the maximum amount, which will be an 11 percent increase over the current payment at an estimated cost of $2.4 million in state funding.

DHS Developmental Disabilities Waivered Services

Developmental Disabilities Home and Community-Based Medicaid Waiver Services ($4.64M/14 FTE) – There are currently 7,000 individuals with developmental disabilities on the request list for home and community-based services. This request will provide services to approximately 400 of these individuals.

Fourteen additional case managers are required to support the increase to the existing number of clients served. The number of DDS case managers is 8.5 percent lower than in FY 2009. Since that time, more than 400 new clients have been added to the home and community-based services program.

Currently, an average of 2.5 cases on the waiting list are closed for each additional case that is served. We project this to reduce to one case closed for each case served as current applications are addressed. As shown in the figure, the $4.64M requested will lower the waiting list by a net of 280 persons in FY 2016; this results from removing 1,000 persons from the waiting list while 50-60 new applications are received each month. In FY 2017, unless additional funds are available, waiting list growth will resume.

requeSt would MAke biggeSt reduCtion to wAiting liSt in 10 yeArS

wAi

ver

Clie

ntS

And

Appl

iCAn

tS

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0 2009 2010 2011 2012 2013 2014 2015 2016 2017

proj. proj. proj.

Currently Served with Waivers FiSCAl yeAr Waiting List

7,300 7,020

4,900

5,300

DHS Community Living Services for Seniors and Disabled Adults

Community Living Services for Seniors and Adults with Disabilities ($1.18M/1 FTE) –This request addresses the need to increase capacity for community services for persons 60 years of age and over, adults with disabilities, and their family members or caregivers through the use of three existing programs, which are described in greater detail below. • The Aging and Disability Resource

Center (ADRC) Web-based information and referral service

• The Older Americans Act (OAA) nutrition and social services

• Adult Day Health Services (ADH) center-based respite care

The ADRC assists individuals and families of all ages and all incomes in making informed decisions about the future by providing access to a website with information, resources, and care-planning services. ADRC is the “No Wrong Door” portal built on the resources of many partners, including the 211 information system. The website will connect users to options counselors, who will help locate and access publicly and privately provided long-term services and supports needed for independent living. ADRC will bring together federal, state and interagency funding for the development, licensing and hosting of the Web-based case management and resource service. The requested funding moves the ADRC from federally funded planning to full, state-supported operation. Funding is requested to complete and support the website, train options counselors, match Medicaid funding for options counseling, and convert two FTEs from federal to state funding.

DHS Community Living Services for Seniors and Disabled Adults

The next step in keeping individuals in their own homes in a community of their choice is OAA. This uses a three pronged approach toward increasing the number of home-delivered meals: The funds will be used to directly fund: 1. Increase the number of home-

delivered meals to reduce the number of seniors on the waiting list

2. The replacement of equipment to build capacity for congregate or home-delivered meals covered under the OAA

3. Add one new FTE to more efficiently and thoroughly monitor Area Agency on Aging (AAA) programs

Currently two staff members are primarily responsible for monitoring 11 AAA contracts, programs and services in all 77 counties. Monitoring includes training the AAA staff, administering an Area Plan process, verifying data and monitoring reports for accuracy. This funding will provide 24,000 more home-delivered meals statewide and will serve 100 of the 1,000 seniors currently on the waiting list. ADH, a final step toward keeping seniors and individuals with disabilities out of residential care and in the community of their choice, is the addition of new adult day health centers in unserved or underserved areas. Funding from ADH will provide for a total of 15 paid respite spaces among the new facilities.

2012

2013

DHS Legislative Mandate Full Funding

Legislative Mandate Full Funding ($1.97M/39 FTE) – In recent years, the Department of Human Services received two legislative mandates designed to create a safer environment for Oklahoma children. First, DHS was required to expand the Child Welfare hotline call center from a night-and-weekend service to a full-service call center to make it easier for consistent, statewide reporting of abuse or neglect of children (Oklahoma Statutes Title 10A Section 1-2-101).

CHild CAre bACkground CHeCkS Are growingAnd will StAy HigH due to induStry turnover

35,000

30,000

25,000

20,000

15,000

10,00

5,000

0

2014

2015

proj.

2016

proj.

FiSCAl yeAr

Annu

Al b

ACkg

roun

d CH

eCk

requ

eStS

Second, the agency is required to evaluate national criminal history records based upon submission of fingerprints for all current and future employees who work in child care facilities. (Section 401 et seq. of Title 10 of the Oklahoma Statutes, Oklahoma Child Care Facilities Act).

Legislative mandates did not include appropriations, but required DHS to purchase equipment, maintain services, train staff and meet mandated time limits. The agency has spent an average of $1.7 million per year over the budget to manage the calls coming into the hotline call centers over the past three years.

DHS funding has been provided in part from carryover and is not included in the FY 2015 Budget Work Program. Carryover funds are no longer available; in the absence of funding DHS will need to reallocate resources from other services. Funding these mandates is critical to the safety and welfare of the children the agency serves.

2012

2013

2014

2015

2016

20

17

DHS Foster Care Full Funding

Foster Care Full Funding ($8.15M/0 FTE) – The population of children in family foster care has grown steadily from 6,135 in October 2012 to 8,416 in July 2014, an increase of 35 percent in 21 months. The costs of caring for children in foster care have exceeded appropriations earmarked for this purpose.

From FY 2013 through FY 2015, DHS will have provided $17.3 million in state funding for this program in addition to the $7.6 million in Oklahoma Pinnacle Plan funding appropriated over the same time period. DHS state funding has been provided annually from carryover and is not included in the FY 2015 Budget Work Program. Carryover funds are no longer available; in the absence of funding the agency will need to reallocate resources from other services. Full funding will require an estimated $8.15M in FY 2016.

tHiS requeSt will eliMinAte tHe long-terM gApbetween budget And ACtuAl FoSter CAre CoStS

StAt

e Fu

ndS

(Mil

lion

S)

$35.0

$30.0

$25.0

$20.0

$15.0

$10.0

$5.0

$0.0

Pinnacle Rate Increase

Full Funding Request

Appropriation

Actual & Est. Expenditures

FiSCAl yeAr

2012

2013

2014

2015

2016

2017

DHS Foster Care Full Funding

The $8.15M request is based upon the estimate that DHS efforts to reduce the number of children coming into custody, and increase the number exiting custody, will be successful and result in an estimated number in family foster care of 8,319 through the end of FY 2016.

Should the statistical growth pattern continue on its present course, DHS predicts a population of approximately 9,738 children in family foster care by June 2016, 15.7 percent increase over the July 2014 population. DHS expects to decrease the number of children in foster care beginning in FY 2015.

tHe requeSt ASSuMeS An end to populAtion growtH, but iS well below tHe potentiAl level needed

14,000

12,000

10,000

8,000

6,000

60012,889

11,114

9,583

8,319 8,319 8,319 8,319

7,040 6,212

500

400

300

CoSt

per

Mon

tH p

er C

Hild

popu

lAti

on 2004,000

1002,000

0 0

FiSCAl yeAr

Actual/Est. Population

Potential Pop.

$/Mo./Child (Right Scale)

DHS Fleet Improvement Plan

Fleet Improvement Plan ($0.9M/0 FTE) – This funding will allow for a major investment in vehicle purchases to continue centralizing agency fleet management. Vehicle purchases will reduce employee mileage reimbursement costs and retire dilapidated vehicles. Both long-and short-term savings include: lower operating costs for travel; 55 cents per mile reimbursement for employees vs. 23 cents per mile on agency-owned vehicles; and reduced maintenance and fuel costs for agency-owned vehicles. Savings achieved through lower operating costs will be reinvested in additional vehicle purchases.

tHe Fleet MAnAgeMent requeSt will reduCe eMployee MileAge CoSt And renew tHe dilApidAted Fleet

Employee Mileage140,000$8,000,000 $7,354,479 Reimbursement

Mil

eAge

rei

Mbu

rSeM

ent

to e

Mpl

oyee

S

120,000$6,829,229 (Left Scale)$7,000,000

Average Odometer Reading (Right Scale) $6,000,000

110,988 100,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

0

88,269 80,000

60,000

40,000

20,000

0 Aver

Age

odoM

eter

reA

ding

For

pASS

enge

r ve

HiCl

eS

FiSCAl yeAr 2011

2012

2013

2014

2015

2016

2017

2018

The combination of budget appropriation and savings achieved will insure DHS creates and sustains a safer, more reliable fleet that reduces risk to staff and clients.

As shown in the chart below, the odometer reading of agency vehicles has continually increased to the current average of approximately 111,000 miles. With the proposed budget appropriation and savings investment, within three years the average odometer reading can be reduced to approximately 88,000 miles by 2018. Additionally, with the gradual expansion of fleet vehicles the current trend of rising employee mileage expenditures can be reversed, with annual mileage reimbursement costs lowered by approximately $500,000 by 2018.

–

– –

Oklahoma Department of Human ServicesFY 2016 Budget Request Summary

TOTAL STATE FTE

FY 2015 Budget Work Program and State Appropriation $ 2,373,623,424 $ 672,069,684 7,522

PRIORITY

1 Oklahoma Pinnacle Plan Year Four $ 21,470,879 $ 15,887,053 40 2 Adoption Subsidy Full Funding 13,743,997 8,353,248 3 Developmental Disabilities Waivered Services 5,208,941 4,636,936 14 4 Community Living Services for Seniors and Disabled Adults 1,177,285 1,177,285 1 5 Legislative Mandate Full Funding 2,537,992 1,968,956 39 6 Foster Care Full Funding 13,242,629 8,150,724 7 Fleet Improvement Plan 1,487,357 900,000

FY 2016 Request for Funding Above Current Appropriation $ 58,869,081 $ 41,074,202 94

Total Proposed FY 2016 $2,432,492,505 $713,143,886 7,616

S14084 DHS Issued 12/2014 This publication is authorized by Oklahoma Department of Human Services Director Ed Lake and printed by = in accordance with state and federal regulations at a cost of $71.92 for 95 copies. Copies have been deposited with the Publications Clearinghouse of the Oklahoma Department of Libraries.