Governor's Budget - May 12, 2006

Social Services Consortium Members,

I sent out to you on Tuesday a link to the Governor's budget http://www.osbm.state.nc.us/files/pdf_files/2006-2007_adjustments.pdf .

I've tracked down information that will help clarify some of the items in his budget. Below are the issues that will impact DSS:

Child and Family Support Teams - $720,804 has been allocated for 21 positions in the County DSS agencies to pay for social services care coordinators (Child and Family Team Facilitators). Not sure at this time which of the counties participating in the Gov's Child and Family Support Teams will be receiving the positions.

Public Awareness of Safe Surrender of Infants - $100,000 will pay for radio ads, billboards, print ad campaigns, posters, etc to inform the public of the Safe Surrender Act.

Reserve for Utility and Fuel Costs - $1.271 million in additional funds will be placed in a reserve fund for emergency energy assistance. A distribution formula to counties will be developed by State DSS.

Home and Community Care Block Grant - $3 million in funds to increase the HCCBG to reduce waiting list for services.

Child Care Subsidy - $20 million has been allocated that covers the cost of the one time money, annual inflationary costs, and will serve 2,939 of children currently on the waitlist.

Smart Start - $10 million for local Smart Start initiatives, including subsidized child care.

Federal Budget Impact on Foster Care Services - $2 million has been allocated to assist the state with the Board costs for relatives who choose to be licensed. *****This does not provide any money to counties that is lost as a result of the IV-E changes that will no longer pay for social worker time in unlicensed relative placements.  The way that the language reads in the Governor's budget, it does appear that this money will be allocated to counties but it is misleading.

Where did these numbers come from:

  • State DSS took a rough estimate of the number of children currently in unlicensed relative placements.
  • They assumed half of those relatives would be willing to be licensed.
  • They calculated the increased Board cost for the families that became licensed and added to it the cost of the lost IV-E money for the families who chose not to be licensed. This came to a total of $5.872 million.
  • The Receipts is the amount of Federal dollars that would pay for the licensed families and included in the receipts is the COST THAT COUNTIES WOULD PAY TO MAKE UP THE LOST IV-E DOLLARS FOR THEIR UNLICENSED FAMILIES.
  • The total of $2 million would go to State DSS to assist in the increase State cost for Board.

Foster Care and Adoption Assistance Payments – pays for the increase in the foster care and adoption assistance payments as a result of increased growth.

Child Support Enforcement Call Center - $2 million in funds to replace the Voice Response Unit and upgrade the telephone system for the Child Support Enforcement Call Center .

Paternity Testing for Child Support Enforcement - $151,500 will maintain the existing funding level for paternity testing expenses. This is needed as the Federal Reconciliation Act reduces the federal financial participation from 90% to 66% for paternity testing in child support cases.

Mental Health Reform – Expand Community Capacity - $16 million to expand community-based services including funding for child and adult substance abuse services and child and adolescent crisis services and supports.

Mental Health Reform – Funding for the MH Trust Fund - $15 million for program start-up and operating support for community treatment services.

MH – Initiative for Health Families - $1 million that will target pregnant women and women with dependent children hwo are at increased risk of mental health and SA problems due to DV or SA.