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.
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
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.
$800
15,000 14,500
$620
$600
14,000 $552 $420
$427
$500
$484
13,000
$400
$360
$300 $200
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20
17
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20
16
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15
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14 20
13 20
12
12,000
20
populAtion
13,500
12,500
$700
FiSCAl yeAr
CoSt per MontH per CHild
Adoption SubSidy populAtion And CoSt Continue to inCreASe
Actual/Est. Population $/Mo./Child
DHS Adoption Subsidy Full Funding ($8.35M/0 FTE)
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.
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 $50.0 $40.0 Pinnacle Rate Increase
$30.0
Troxell Request
$20.0
Full Funding Request
$10.0
Appropriation Actual & Est. Expenditures
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.
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20
17
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20
16
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15
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14 20
20
20
13
$0.0
12
StAte FundS (MillionS)
$60.0
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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 communitybased 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
wAiver ClientS And AppliCAntS
9,000 8,000
7,300
7,000 6,000
7,020
5,300 4,900
5,000 4,000 3,000 2,000 1,000 0 2009
2010
2011
2012
Currently Served with Waivers Waiting List
2013
2014
2015 proj.
2016 proj.
2017 proj.
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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 homedelivered 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.
DHS Legislative Mandate Full Funding
CHild CAre bACkground CHeCkS Are growing And will StAy HigH due to induStry turnover 35,000
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.
30,000 25,000 20,000 15,000 10,00 5,000
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15
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14 20
13 20
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0
20
AnnuAl bACkground CHeCk requeStS
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-andweekend 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).
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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.
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 gAp between budget And ACtuAl FoSter CAre CoStS $35.0
$25.0 $20.0 $15.0
Pinnacle Rate Increase
$10.0
Full Funding Request
17 20
16 20
20
20
20
15
Actual & Est. Expenditures
14
$0.0
13
Appropriation
12
$5.0
20
StAte FundS (MillionS)
$30.0
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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 12,889
12,000
8,319
8,319
8,319
8,319
7,040
6,212
300
4,000
200
2,000
100
Actual/Est. Population Potential Pop. $/Mo./Child (Right Scale)
17 20
16 20
15 20
14 20
13
0
20
12
0
20
populAtion
400
9,583
8,000 6,000
500
11,114
10,000
600
CoSt per MontH per CHild
14,000
FiSCAl yeAr
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 longand 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
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.
$6,829,229
120,000 100,000
110,988
$5,000,000 88,269
80,000
$4,000,000 60,000
$3,000,000
40,000
$2,000,000
20,000
$1,000,000
0
20 18
20 17
16 20
20 15
20 14
20 13
0
20 12
Average Odometer Reading (Right Scale)
AverAge odoMeter reAding For pASSenger veHiCleS
$6,000,000
Employee Mileage Reimbursement (Left Scale)
140,000
$7,354,479
$7,000,000
20 11
MileAge reiMburSeMent to eMployeeS
$8,000,000
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.
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Oklahoma Department of Human Services
FY 2016 Budget Request Summary TOTAL FY 2015 Budget Work Program and State Appropriation
STATE
$ 2,373,623,424 $
FTE
672,069,684
7,522
15,887,053 8,353,248 4,636,936 1,177,285 1,968,956 8,150,724 900,000 41,074,202
40
PRIORITY 1 2 3 4 5 6 7
Oklahoma Pinnacle Plan Year Four Adoption Subsidy Full Funding Developmental Disabilities Waivered Services Community Living Services for Seniors and Disabled Adults Legislative Mandate Full Funding Foster Care Full Funding Fleet Improvement Plan FY 2016 Request for Funding Above Current Appropriation
$
Total Proposed FY 2016
$2,432,492,505
$
21,470,879 $ 13,743,997 5,208,941 1,177,285 2,537,992 13,242,629 1,487,357 58,869,081 $
$713,143,886
– 14 1 39 – – 94 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.
