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State Board of Social Services Finance Update

State Board of Social Services Finance Update. J. R. Simpson Chief Financial Officer August 18, 2010. Finance Update . Discussion Topics FY10 Review FMAP Extension FY11 Local Challenges FY11 Projected VITA Costs Others. Finance Update. FY10 Review

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State Board of Social Services Finance Update

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  1. State Board of Social ServicesFinance Update J. R. Simpson Chief Financial Officer August 18, 2010

  2. Finance Update • Discussion Topics • FY10 Review • FMAP Extension • FY11 Local Challenges • FY11 Projected VITA Costs • Others

  3. Finance Update • FY10 Review • Ended FY without making reductions to local funding other than one day furlough • Central Office - series of reductions over past three fiscal years resulted in: • Loss of 62 classified positions • Loss of 47 contract and part-time positions • Identification of over $100M in one time “savings” • Reduction to base budget for administration of $1.2M • Improved Federal and State reporting

  4. Finance Update • FMAP Extension • Original proposal was for six months at 6.2% which was to provide the State ~ $417M • Based on approval, the State budget restored cuts to local staff and operations of 2.4%/5%, Chore and Companion Services of 24%/50%, theGeneral Relief Program and a 50% reduction to Other Purchased Services • Actual approval was for six months at 3.2% and 1.2% first and second quarters, respectively – provides ~ $250M to the State • State Budget Language: “The Governor shall have the authority to direct that the reduction authorized in this paragraph be imposed, either partially or in full, as he deems necessary in order to ensure that the costs to the Commonwealth of contingent restorations in various items within this act do not exceed the amount of funding made available due to an extension of the increased Federal Medical Assistance Percentage.” • DPB developing alternatives for the Governor’s consideration

  5. Finance Update • FY11 Local Challenges • 2.4% Reduction in Staff and Operations General Funds • Significant Reduction to Chore and Companion Program • Virtual elimination of the General Relief Program • Other Purchased Services Reduction • Significantly Increased Workloads in Benefit Programs

  6. Finance Update • FY11 Projected VITA Costs • FY10 Payments of $53M • $38M for mainframe computing • $15M for infrastructure support • Projection for FY11 ~$46M • ~$29M for mainframe computing • ~$17M for infrastructure • Good News … but • VITA overstated DSS FY10 revenue by ~$3M • Anticipate DPB will look for equivalent general funds to be returned • Projection may be soft … all parties have agreed to a three month review of FY11 mainframe computing charges before decisions are made

  7. Finance Update • Other Items of Interest

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