Key Issues in FY 2006-2007 Legislative Appropriation Request (LAR) Development

2. Department of Family and Protective Services Key Issues in FY 2006-2007 Legislative Appropriation Request (LAR) Development Public Hearing July 20, 2004

3. Policy letter from LBB and Governor’s Office limits an agency’s baseline request for general revenue-related funds to 95% of the sum of amounts expended in FY 2004 and budgeted in FY 2005. POLICY GUIDANCE

4. IMPACT OF 5% REDUCTION A 5% reduction is approximately $9.4 million in general revenue funds and $36.3 million in all funds for the biennium.

5. APPROACH TO BASELINE REDUCTION DFPS is considering these guiding principles: • Maintain viability of all programs • Maintain appropriate and necessary infrastructure • Consider exceptions for federally funded and other non-general revenue programs

6. RECOMMENDED EXCEPTIONAL ITEMS • Costs for some items have not yet been determined • Dollars and FTEs shown are preliminary • Does not respond to any potential recommendations related to the APS and CPS reviews • Shown in recommended priority order

7. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 TBD TBD TBD TBD 1. Restore FMAP Decline The Federal Medical Assistance Percentage (FMAP) rates estimated for FY 2006 and FY 2007 are lower than the combined rates in effect for FY 2004-2005, requiring more state matching funds.

8. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 36,337,364 9,495,161 TBD TBD 2. Restore 5% Base Reduction This item requests the funding necessary to restore the 5% reduction to the base request.

9. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 11,266,940 7,314,290 135.0 135.0 3. Maintain CPS Phased-In Staff This request is needed to maintain the additional 356 FTEs provided to DFPS on a phase-in schedule over the FY 2004-2005 biennium. More dollars are required due to the annualization of the cost for FY 2006 and FY 2007.

10. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 TBD TBD TBD TBD 4. Restore Loss of CPS Targeted Case Mgmt The federal Center for Medicaid and Medicare Services has disallowed a portion of the agency’s Medicaid claims for CPS Targeted Case Management services. DFPS expects to lose the ability to claim Medicaid funds for these services in FY 2006 and FY 2007. This item requests general revenue to replace the loss of federal funds to prevent a funding cut for CPS staff.

11. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 TBD TBD TBD TBD 5. Maintain Current Caseload per Worker The agency needs additional direct delivery staff to meet the projected increased demand for services in CPS, APS, and Statewide Intake for FY 2006-2007. This initiative seeks funding to maintain the current quality of service delivery by maintaining the current caseload per worker.

12. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 2,823,489 873,513 32.0 32.0 6. Increase Monitoring of Licensed Facilities Funds additional Child Care Licensing staff to increase monitoring, training, and technical assistance activity for licensed centers, and to conducta broader monitoring of foster homes.

13. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 2,225,603 2,068,007 N/A N/A 7. Statewide Intake Technology Funding included in this item would replace and/or enhance the existing Statewide Intake automated call distribution system, improve features in routing and reporting, and provide a long-term disaster recovery solution.

14. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 17,889,348 17,874,670 4.9 4.9 8. Increase/Re-establish Prevention Services This initiative would provide increased funding levels for STAR and CYD, and re-establish the At-Risk Mentoring and Healthy Texas Families programs, which would allow a greater number of at-risk children, youth and families to be served to help prevent abuse and neglect.

15. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 6,409,740 5,342,104 4.9 4.9 9. Infrastructure Upgrades/Improvements Funding is being requested for upgrades and improvements to the agency’s technology infrastructure to ensure effective service delivery. This includes upgrades to router equipment and software for proper security assurances, server upgrades/replacement, Microsoft Exchange Server license upgrade, IMPACT enhancements, and web farm expansion.

16. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 TBD TBD N/A N/A 10. Foster Care Rate Adjustment A rate adjustment will be requested for foster care based on rate analysis and rate-setting methodologies. Each 1% incremental increase in the average foster care daily rate equates to approximately $7.8 million all funds for the biennium.

17. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 37,276,782 31,750,299 59.0 63.0 11. Enhance Permanency for Children This initiative has a number of components for improving permanency, including increasing family group decision making and kinship care initiatives, increasing the recruitment of foster and adoptive parents, and initiatives to strengthen the supports for adoption and post adoption.

18. Funding – Biennial Total FTEs All Funds GR FY 2006 FY 2007 788,378 557,956 N/A N/A 12. Program Director/Program Administrator Upgrades for CPS, APS, and Statewide Intake This item requests salary increases for Program Directors and Program Administrators for the CPS, APS, and Statewide Intake program areas to provide a greater incentive to tenured workers to become supervisors. This initiative would help improve retention and develop a better-trained and more competent staff.

19. PROCESS AND TIMELINE • Agencies receive public input • Agencies have follow-up meetings with HHSC to discuss public input in late July • Agencies finalize their LARs and submit to HHSC for review in late August • Agencies submit LARs to LBB and Governor’s Office in early to mid September

20. Contact Us This document is posted on the website of the Department of Family and Protective Services, http://www.dfps.state.tx.us, under the News Section. Comments regarding LAR development will be accepted through Friday, July 23, 2004 via: e-mail at DFPS.LAR@dfps.state.tx.us or by Fax at 512-438-4853.