Wow, who doesn’t love a contract where they can just change the amount of money you’re getting to do the same services? And more questions about how the executive can over-rule the legislative branch of government. In the past 5 years, the Tenant Resource Center hasn’t gotten an increase in funding from the county for operational funds, in fact, the County added $8,000 of expenses during this time (charge us for rent, phone calls and make us make our own copies). Meanwhile, our health care costs nearly doubled, all of our expenses have gone up and the level of services that we have to provide has remained the same and has gotten more difficult as the problems of our clients get more and more complex with less and less resources to help resolve their issues. Last year, we finally got a 1% increase in funding, and now they want to reduce that by 2% or even more.
This is also another interesting separation of powers local government issue. The County Board voted to, for the first time in 5 years, increase the funding to non-profit service providers by 1%. Now the staff is reducing it by 2%. It was a nice 6 months while it lasted! The question is, how can the staff do this without a vote by the county board, and a public process? I know Kathleen Falk has decided that everyone needs to feel the pain, but has the County Board acted? Does the staff have the authority to do this?
I suppose, the questions are kind of rhetorical. If they want to do this, they will find a way and we will have very little options. We’ll just have to grin and bear it and be thankful that we aren’t being cut more. Ah, the life of a non-profit Executive Director is always a joy! Do more with less! I can hardly wait to see if they want to get more than 2% from us. Do you think maybe we can use it as leverage to finally get the moldy carpeting removed from the space we rent?
Meanwhile, here’s the official word . . .
May 19, 2009
Purchased Service Providers:
As you already know based on my past communications, Dane County’s fiscal situation is most problematic as the year’s mid-point approaches. National and State economic difficulties with which all of you are familiar strike Dane County hard at this time. The proposed State budget contains major reductions for human services. Revenue declines in areas such as sales tax have been dramatic. County Executive Kathleen Falk has communicated to the Dane County Board of Supervisors that the County faces a shortfall of as much as $5-6 million in the absence of prompt action. In addition, the State recently announced increased deficit figures, and we are anticipating more reductions at the local level.
The Department of Human Services is the County’s largest department. It commands fully half of the total County budget. We are currently projecting a 2009 deficit of $3.4 million. It is our legal responsibility to address this budget problem and balance our budget by the end of the year. The Department of Human Services has implemented numerous cost saving efforts within the Department and must implement a mid-year reduction in our provider contracts.
Internally, County staff may be compelled to take unpaid leaves, new hires are frozen, limited-term-employee utilization has been curbed, all staff conferences and trainings are frozen, all discretionary spending is frozen, capital outlays are being carefully reviewed, and more. In addition, we have put increased efforts into psychiatric hospitalization and juvenile residential diversion and maximizing revenues in all areas. It is hoped that these actions and more will solve the majority of the Department’s 2009 budget problem.
That said, due to the magnitude of our deficit and the fact that 59% of my Department’s budget goes to purchase services, we are unable to cover the entire deficit without the assistance of our contracted providers. As a result, all agencies that provide purchased services to consumers and are not 100% supported by earmarked grant funds will be required to accept a two percent (2.0%) base budget reduction effective July 1, 2009. An across-the-board reduction is the most equitable way to treat all of our valuable agencies and services and maintain the continuum of services to our consumers.
Please anticipate a formal contract amendment from the Department in the very near future. I ask that you work closely with your contract manager as to the manner in which you may practically effectuate this reduction. Maximizing services to consumers should of course be paramount.
Please note that your contract manager may implement other reductions at this time as well. I have asked managers to remove outside revenues (Medical Assistance monies, for example) which are not materializing from agencies’ budgets if there is no reason to believe that those revenues will in fact materialize in the second half of the year. The Department is not in a position to absorb revenues shortfalls, as it has done in many years, in 2009.
I regret all of these actions, but they are necessary in this unprecedented negative fiscal environment of Federal and State reductions in human service funding and unrealized revenues. I have tried to be as fair as possible to our partner agencies. You will note that reductions are borne internally to the greatest extent possible. I hope for better budget news at some point in the future, but I must in honesty write that such is not likely to be forthcoming soon. In fact, indications are that we will be getting news shortly of further State reductions when the Governor announces amendments to his budget proposal based on projected decreased State revenues. Nevertheless, I truly believe that if we work together we can maintain quality services to our consumers and insure their safety and the safety of the community.
Sincerely,
Lynn Green
Director
