The 2009 Executive Budget Document
Department of Social Services
Mission Statement
VDSS: People helping people triumph over poverty, abuse and neglect to shape strong futures for themselves, their families, and communities.
Operating Budget History
General Fund | Nongeneral Fund | Positions | |
---|---|---|---|
2005 Appropriation | $ 305,770,744 | $ 1,349,424,005 | 1,662.50 |
2006 Appropriation | $ 332,649,079 | $ 1,359,409,561 | 1,617.50 |
2007 Appropriation | $ 362,182,791 | $ 1,376,843,563 | 1,674.50 |
2008 Appropriation | $ 403,303,666 | $ 1,410,598,585 | 1,683.50 |
General Fund | Nongeneral Fund | Positions | |
---|---|---|---|
2009 Base Budget | $ 416,910,279 | $ 1,350,075,898 | 1,698.50 |
2009 Addenda | $ (21,743,070) | $ 62,399,786 | (37.00) |
2009 Total | $ 395,167,209 | $ 1,412,475,684 | 1,661.50 |
2010 Base Budget | $ 427,261,513 | $ 1,347,122,376 | 1,698.50 |
2010 Addenda | $ (22,312,717) | $ 100,495,841 | (37.00) |
2010 Total | $ 404,948,796 | $ 1,447,618,217 | 1,661.50 |
Recommended Operating Budget Addenda
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Conform service areas to reflect organizational restructuringTransfers appropriation within administrative subprograms to effectively align staff and resources. Included is a reallocation of funds to cover office rent to conform with the department’s cost allocation plan. In addition, funding is moved between child care administration and quality subprograms to more appropriately charge staff to matching federal funds. This amendment nets to zero.
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Make technical corrections to service areasMakes a number of technical corrections by moving appropriation between service areas and fund details. This amendment nets to zero.
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Provide appropriation for local staff and operationsReplaces appropriation for local staff costs that was erroneously removed. During the preparation of the 2008 biennium budget, the department estimated that federal revenue which supports local staff and operations would decline by $35 million per year (annual federal appropriation of $226.8 million). Based on subsequent data, the department determined that an error in the projection methodology was made and that the correct figure should have been $20 million. For each year, $15.0 million (NGF).
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Appropriate child support enforcement paymentsAppropriates additional child support enforcement collections that will be paid to clients. Routine collections and payments to clients are projected to increase beyond the appropriation by 1.3 percent per year or roughly $20.7 million in FY 2009 and $33.6 million in FY 2010. This amendment would provide the necessary appropriation needed to meet these expenditures. In addition, federal law changed to allow a greater share of collections previously returned to the federal government to instead be paid out to clients. Generally referred to as “disregards”, the projected payments for this purpose (an increase of $5.0 million in FY 2009 and $6.0 million in FY 2010) are also included in this amendment. For 2009, $25.7 million (NGF). For 2010, $39.6 million (NGF).
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Increase Low Income Home Energy Assistance Program (LIHEAP) fundsAppropriates additional federal dollars for the FY 2010 heating assistance program. The 2008 Session of Congress fully funded the federal appropriation for LIHEAP which will result in roughly a $85 million increase in the annual award to Virginia. Fifteen percent of this award ($13.0 million), as required by Appropriation Act language, will be transferred to the Department of Housing and Community Development for its weatherization program. It is anticipated that approximately $45-50 million will be administratively appropriated for client heating assistance payments in FY 2009. About $15 million is projected to be spent in FY 2010 for the LIHEAP cooling program and is being requested via this amendment. There is no impact on general fund expenditures because Virginia does not subsidize this federal program and no state match is required. The remaining funds ($7-12 million) will be available for other emerging needs such as the energy crisis program. For 2010, $15.0 million (NGF).
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Increase nongeneral fund appropriationProvides appropriation for various federal grant programs. The department has received a small number of federal grants for emergency shelter management preparation ($1.9 million per year); Food Stamp Employment and Training ($0.6 million per year); and Refugee Resettlement ($1.0 million per year). These grants neither receive nor require general fund dollars. In addition, the department will require additional special fund appropriation to handle the increased number of foster care parent criminal background checks. For 2009, $1.0 million (NGF). For 2010, $4.3 million (NGF).
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Increase appropriation for the child support enforcement servicesProvides the Division of Child Support Enforcement with additional nongeneral fund appropriation to cover operating expenses. These expenses are associated with the division's privatized offices, customer service center (located in Martinsville) and mainframe costs. For 2009, $3.1 million (NGF). For 2010, $6.7 million (NGF).
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Adjust Temporary Assistance for Needy Families (TANF) appropriationAdjusts the TANF appropriation to reflect the anticipated expenditures. The changes in appropriation are necessary to cover the increased cost of benefit programs and remove excess appropriation. For 2009, a decrease of $3.2 million (NGF). For 2010, $2.7 million (NGF).
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Fund the increased cost of adoption subsidy paymentsIncreases support for payments made to adoptive parents on behalf of children with special needs. Based on recent data, foster care expenditures appear to be declining modestly; however this decline is being more than offset by a rise in adoption subsidy payments. This trend can be partially explained by the emphasis on moving children from foster care to permanent adoptive homes. This amendment would fund the anticipated FY 2009 need, which assumes a growth of 1.33 percent over FY 2008. For each year, $1.2 million (GF) and $907,527 (NGF).
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Relocate the Department of Social Services (DSS) central officeSupports the cost of moving the department's central office. The existing lease for the central office will end on December 31, 2009. After an extensive review of potential space, the Department of General Services has recommended and received approval to enter into a lease that would move the DSS central office to the Wytestone building located on Main Street. This request would fund one-time costs (furniture, information technology relocation costs, moving, etc.) associated with moving the office and provide additional support for increased rent cost. For 2010, $755,908 (GF) and $403,312 (NGF).
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Reflect Governor’s October reductions in agency budgetsReflects the reductions approved by Governor Kaine in October 2008 for 2009 and the corresponding continuation of savings in 2010. See Part D of this document for reduction details. For 2009, a decrease of $5.2 million (GF), an increase of $1.2 million (NGF), and a reduction of 37 positions. For 2010, a decrease of $3.8 million (GF) and $2.3 million (NGF).
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Implement targeted reductionsImplements targeted reductions for 2009 and 2010 included in Governor Kaine's 2008-2010 Budget Reduction Plan. Reduction details can be found in Part D of this document. For 2009, a decrease of $18.7 million (GF) and an increase of $18.7 million (NGF). For 2010, a decrease of $20.5 million (GF) and an increase of $18.1 million (NGF).
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Provide funding to the Federation of Virginia Food BanksProvides funding for the Federation of Virginia Food Banks to purchase food, which will be distributed to needy Virginians through the Commonwealth's network of food banks. None of the funding provided can be used for administrative or overhead expenses. For 2009, $1.0 million (GF).
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Allow for the creation of a auxiliary grant portability pilotProvides language to allow for the voluntary creation of auxiliary grant portability pilot. These pilot programs will permit auxiliary grant recipients who have been residing in an Assisted Living Facility (ALF) for six or more months and are receiving Medicaid-funded case management, support services from a community services board, and meet other criteria, to reside in an apartment or single-room occupancy setting and continue to receive auxiliary grant payments. This furthers Virginia's commitment toward community integration for people with disabilities and provides additional support to community mental health reform.
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Initiate a centralized, web-enabled, and streamlined eligibility determination system for benefit programsAdds language to develop an implementation plan to centralize, web-enable and streamline eligibility determination for benefit programs. The Department of Social Services, in cooperation with system partners and impacted agencies, shall develop the plan and seek necessary federal approvals to redesign existing work flow processes and develop a web-based automated system that incorporates an efficient and effective customer self-service model. This plan shall also address efficient utilization of local staff and potential for future savings.
Budget Reduction Strategies
October Reduction Strategies
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Capture cost allocation savings
The Department of Social Services allocates the expenses associated with operating the 2-1-1 information referral program. Based on current projections, the program is allocating more of its costs to nongeneral fund sources, thereby freeing some of the general fund originally budgeted. This general fund can be captured as savings with no impact on services.
FY 2009 FY 2010 General Fund Savings $ (250,000) $ (250,000) NGF Appropriation $ 250,000 $ 250,000 -
Capture excess postage associated with benefit programs
Postage costs associated with notifications to Temporary Assistance for Needy Families (TANF) clients are projected to decrease because more TANF payments are being made electronically. This strategy would capture the associated savings.
FY 2009 FY 2010 General Fund Savings $ (93,330) $ (93,330) NGF Appropriation $ (93,330) $ (93,330) -
Capture one-time savings associated with freeze on travel
The department has implemented a severe restriction on out-of-state and conference travel to generate a one-time savings in FY 2009.
FY 2009 FY 2010 General Fund Savings $ (38,919) $ 0 NGF Appropriation $ (47,568) $ 0 -
Capture one-time vacancy savings
The department has held a number of positions in its central office vacant to generate a one-time savings in FY 2009.
FY 2009 FY 2010 General Fund Savings $ (12,973) $ 0 NGF Appropriation $ (15,855) $ 0 -
Capture savings associated with the latest projections of auxiliary grant program expenditures
Based on the latest projections, expenditures for the auxiliary grant program are expected to fall below appropriations by approximately 2.9 percent. This will free general fund dollars that may be captured without having any impact on recipients or services.
FY 2009 FY 2010 General Fund Savings $ (700,000) $ (700,000) -
Eliminate over 80 positions in the Department of Social Services' central operations
The Department of Social Services has completed a thorough examination of its state administrative operations in an effort to reduce costs. This strategy will eliminate more than 80 wage, contractual, and classified positions.
FY 2009 FY 2010 General Fund Savings $ (1,000,000) $ (2,000,000) NGF Appropriation $ (1,220,000) $ (2,440,000) Position Changes (37.00) (37.00) Layoffs 9 0 -
Reduce child care information systems initiative
Funding was provided in the 2007 budget for the creation of an automated child care management and payment system. This new system was intended to improve accuracy of payments to providers and track provider quality for the public. This strategy would remove the general fund provided for this project.
FY 2009 FY 2010 General Fund Savings $ (750,000) $ (750,000) -
Revert child protective service registry special funds
The department charges a five dollar fee for child protective services registry searches that is deposited in a special fund. This fee supports the operations of the child protective services registry and child abuse hotline. Over the past several years, the number of registry searches has increased thereby creating an excess balance in the Child Protective Services Registry fund. This strategy would sweep all unneeded nongeneral fund cash.
FY 2009 FY 2010 Revenue / Transfers $ 500,000 $ 200,000 -
Revert nongeneral fund revenue associated with child support operational balances
The Department of Social Services has accumulated excess balances in its Temporary Assistance for Needy Families (TANF) retained collections fund. This fund supports the administrative operations of the Division of Child Support Enforcement. This strategy would capture these balances without any impact on services or support collections.
FY 2009 FY 2010 Revenue / Transfers $ 15,170,000 $ 4,380,000 -
Substitute one-time food stamp bonus award for general fund
The Department of Social Services received a one-time bonus from the Food Stamp program for federal FY 2005 performance. This strategy will substitute the bonus money, on a one-time basis, for general fund that supports local department operations. There will be no impact on services.
FY 2009 FY 2010 General Fund Savings $ (1,400,000) $ 0 NGF Appropriation $ 1,400,000 $ 0 -
Supplant general fund support of child care activities with Temporary Assistance for Needy Families (TANF)
The department estimates that it will be able to substitute a portion of its projected FY 2009 TANF balance for a number of general fund activities that support child care. There will be no impact on services or caseload.
FY 2009 FY 2010 General Fund Savings $ (964,878) $ 0 NGF Appropriation $ 964,878 $ 0
December Reduction Strategies
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Capture Title IV-E revenue surplus
Captures savings associated with a one-time Title IV-E revenue surplus. The department has recently determined that an additional $16.8 million of Title IV-E revenue can be accounted for in this biennium. These additional funds were based on the findings of an extensive internal review of all nongeneral fund revenues over the last 10 years. The federal authorities have been contacted and have verified that the funding can be retained by Virginia.
FY 2009 FY 2010 Revenue / Transfers $ 16,828,841 $ 0 -
Eliminate earmarked funding for Bristol/Washington Child Advocacy Center
Removes earmarked state support for the Bristol/Washington Child Advocacy Center for FY 2010. The center is one of 22 centers statewide that provide services to victims of child abuse and neglect through a multidisciplinary team approach. The 2005 General Assembly appropriated $1.0 million general fund in the Office of the Secretary of Health and Human Resources for the development and enhancement of Children's Advocacy Centers in Virginia. In addition, $300,000 is appropriated in the Department of Social Services, $200,000 for the centers in general and $50,000 for each of the centers in Bristol-Washington County and Lenowisco Planning Districts. This strategy would only eliminate the $50,000 general fund earmarked for the Bristol/Washington Center; this center will continue to receive its allocation of the $1.2 million similar to the other centers.
FY 2009 FY 2010 General Fund Savings $ 0 $ (50,000) -
Eliminate earmarked funding for Lenowisco Child Advocacy Center
Removes earmarked state support for the Lenowisco Child Advocacy Center. The center is one of 22 centers statewide that provide services to victims of child abuse and neglect through a multidisciplinary team approach. The 2005 General Assembly appropriated $1.0 million general fund in the Office of the Secretary of Health and Human Resources for the development and enhancement of Children's Advocacy Centers in Virginia. In addition, $300,000 is appropriated in the Department of Social Services, $200,000 for the centers in general and $50,000 for each of the centers in Bristol-Washington County and Lenowisco Planning Districts. This strategy would only eliminate the $50,000 general fund earmarked for the Lenowisco Center; this center will continue to receive its allocation of the $1.2 million similar to the other centers.
FY 2009 FY 2010 General Fund Savings $ 0 $ (50,000) -
Eliminate funding for child care resource and referrals
Removes state support for the child care resource and referrals. The department contracts with a network of child care resource and referral agencies to provide assistance to working parents in locating child care programs. This strategy would eliminate this specific child care referral service and thereby rely solely on the state's 2-1-1 information referral service, which can also help identify child care for families.
FY 2009 FY 2010 General Fund Savings $ 0 $ (350,000) -
Eliminate funding for Northern Virginia Family Services
Removes state support for Northern Virginia Families services for FY 2010. Funding for Northern Virginia Family Services was provided by the 2008 General Assembly to expand its Georgetown South Community Center. This strategy would eliminate the earmarked funding for the Northern Virginia Family Services Georgetown site.
FY 2009 FY 2010 General Fund Savings $ 0 $ (100,000) -
Eliminate funding for People Inc.
Removes earmarked state support for People Inc. This organization is a community action agency that serves parts of southwest Virginia. This funding has historically been used by the organization to establish individual development accounts for low-income families. This strategy would eliminate all earmarked general fund for this community action program; however, this agency would still receive its share of about $6.3 million of state support provided to all community action agencies.
FY 2009 FY 2010 General Fund Savings $ 0 $ (42,500) -
Eliminate funding for the Tri-County Community Action Partnership
Removes earmarked state support for the Tri-County Community Action Partnership. The organization is one of 26 local community action agencies that provide a wide array of services for low-income families and individuals. This strategy would eliminate funding exclusively earmarked in the budget for this community action program; however, this agency would still receive its share of about $6.3 million of state support provided to all community action agencies.
FY 2009 FY 2010 General Fund Savings $ 0 $ (100,000) -
Eliminate funding for United Community Ministries
Removes state support for United Community Ministries for FY 2010. This strategy would eliminate earmarked support for this northern Virginia based assistance project.
FY 2009 FY 2010 General Fund Savings $ 0 $ (38,500) -
Re-direct Americorp grant funds to community non-profit organizations
Increases the amount of Americorp grant funding available to community non-profit organizations. The department currently receives an Americorp grant to subsidize volunteers at 17 local departments of social services and 13 community action agencies. This strategy would require the department to forgo the federal grant and allow the federal dollars to flow to other community non-profits that promote volunteerism. In addition, the general fund that is currently being used as the required match will be captured.
FY 2009 FY 2010 General Fund Savings $ 0 $ (125,000) -
Reduce administrative costs for the social worker educational incentive program
Reduces the administrative costs associated with the social worker educational incentive program. The social worker educational incentive program provides stipends to students seeking social work degrees. Over half of the program's budget currently supports the administrative costs of the universities that provide field coordinators. The department plans to bring the administration of the program 'in-house' to significantly reduce the overhead. This strategy will capture a portion of that savings.
FY 2009 FY 2010 General Fund Savings $ 0 $ (200,000) NGF Appropriation $ 0 $ (100,000) -
Reduce foster care rate increase to six percent in FY 2010
Reduces the family foster care rate increase to six percent in FY 2010. The 2008 Appropriation Act increases the foster care rate by 15 percent in FY 2009 and an additional eight percent in FY 2010. Foster care payments are made to foster family homes, group homes, and independent living placements to cover the cost of room, board, and other necessary expenses. Any increase/decrease in foster family home rates are applied to the adoption subsidy payments. This strategy would lower the FY 2010 increase from eight percent to six percent, which would generate an estimated $1.2 million general fund per year.
FY 2009 FY 2010 General Fund Savings $ 0 $ (1,200,000) -
Remove additional funding for pay practices
Removes the half-percent pay practices funding granted to Executive branch agencies in the 2006-08 biennium.
FY 2009 FY 2010 General Fund Savings $ 0 $ (73,122) -
Require the Virginia Retirement System to absorb Workforce Transition Act retirement costs
Normally, when an agency implements layoffs for employees eligible for retirement, in lieu of severance, the employee is offered an enhanced retirement package. In such cases, the agency would pay the Virginia Retirement System for the cost of the enhanced package. This savings strategy would require the Virginia Retirement System to temporarily absorb such costs incurred as the result of layoffs in the Governor's October 2008 reduction plan and build the amounts into future contribution rate calculations.
FY 2009 FY 2010 General Fund Savings $ (38,583) $ 0 -
Supplant general fund support for Centers for Employment and Training with Temporary Assistance to Needy Families (TANF)
Supplants general fund support for Centers for Employment and Training with TANF dollars. The centers provide employment training for low-income individuals across the Commonwealth. This strategy would substitute projected TANF balances for all of the general fund that is currently supporting the centers.
FY 2009 FY 2010 General Fund Savings $ 0 $ (323,202) NGF Appropriation $ 0 $ 323,202 -
Supplant general fund support for Community Action Agencies with Temporary Assistance for Needy Families (TANF)
Supplants general fund support for Community Action Agencies with TANF dollars. Community action agencies provide a wide variety of services designed to ameliorate the effects of poverty and build self-sufficient families and communities. Some of these services include workforce services and early childhood programs for TANF and other low-income families. This strategy would substitute projected TANF balances for all of the general fund that is currently supporting the community action agencies.
FY 2009 FY 2010 General Fund Savings $ 0 $ (4,640,805) NGF Appropriation $ 0 $ 4,640,805 -
Supplant general fund support for domestic violence programs with Temporary Assistance for Needy Families (TANF)
Supplants general fund support for domestic violence programs with TANF dollars. Domestic violence program funds are used to provide grants to support the victims of domestic violence through local programs and provide for an awareness campaign. This strategy would substitute projected TANF balances for general fund that is currently supporting the domestic violence grant program and awareness campaign.
FY 2009 FY 2010 General Fund Savings $ 0 $ (1,515,000) NGF Appropriation $ 0 $ 1,515,000 -
Supplant general fund support for Healthy Families of Virginia with Temporary Assistance for Needy Families (TANF)
Supplants general fund support for Healthy Families of Virginia with TANF dollars. Healthy Families of Virginia is a voluntary program that offers home visiting services for up to five years to high risk families who need individualized and comprehensive support. Services include in-home parenting education, child development, preventive health care and support services. This strategy would substitute projected TANF balances for all of the general fund that is currently supporting the Healthy Families programs.
FY 2009 FY 2010 General Fund Savings $ 0 $ (3,472,779) NGF Appropriation $ 0 $ 3,472,779 -
Supplant general fund support of at-risk child care and adoption services with Temporary Assistance for Needy Families (TANF)
Supplants general fund support of at-risk child care and adoption services with TANF and Social Services Block Grant (SSBG) dollars. The department estimates that it will be able to substitute a portion of its projected TANF balances for a number of general fund activities that support at-risk child care and adoption services. There will be no impact on programs, services, or caseload.
FY 2009 FY 2010 General Fund Savings $ (18,700,000) $ (8,200,000) NGF Appropriation $ 18,700,000 $ 8,200,000