CountyWelfare Directors Association (CWDA)

Fiscal Committee Meeting Minutes – June 8, 2006

Library Galleria 828 I Street, West Room

Info for chairs & staff:

Jim Hunt – Sacramento – 916-874-3826

Cathi Grams – Butte – 530-538-7891

Graham Knaus CWDA – 916-443-1749

Housekeeping Items

  • Minute Taker for June is StanislausCounty
  • May Minutes were approved; thank you to SacramentoCounty

Subcommittee/Workgroup Report for FAADS – Terrie Concellos

  • STOP allocation methodology recommendation for 06/07 is to remain consistent with the prior year. FAADS has identified a goal to review this allocation with the Children’s Committee to consider both program and fiscal input for future policy decisions on any allocation methodology change.
  • IHSS allocation methodology recommendation from CDSS is to use the same method as 05/06. A concern is that the budget amount is only $3 million greater statewide in 06/07 due to caseload growth having slowed, and there may not be enough funding to cover the hold harmless provision in this allocation. If insufficient funding is available for the hold harmless, CDSS has recommended that we hold to the 05/06 allocation. CDSS agreed to revisit the Estimates calculations of caseload growth to determine if the funding amount is correct. If any changes are needed, increased funding could be provided within this allocation in the November subvention.
  • A question was asked regarding the status of the EA allocation due for FY 05/06 with additional state general funding to be provided. At the date of the meeting, no letter had yet been distributed; we will follow up with CDSS.

Subcommittee/Workgroup Report for EDP – Onita Spake

  • Meg Sheldon shared a draft ACIN that clarifies instructions for counties as relate to EDP claiming. Counties should use Division 28 and are reminded to secure prior approvals for all EDP purchases and claiming. The current CWS/CMS threshold for prior approval is $10,000, but the new Federal message is that there is no threshold and any EDP purchase regardless of cost requires this prior approval. Final letter is due late June, early July.
  • CDSS continues to work with contracted consultants and some county representatives on a fast-track project to modify the CEC to meet Federal requirements for claiming. M&O costs must be provided in more detail in this new model. The CDSS original goal was to implement the change in the first quarter of 06/07; time frame is unlikely but implementation of the change will happen at some point during the new fiscal year. County feedback is being considered in the design of a revised EDP claim schedule.
  • The EDP Workgroup is focusing on development of a decision tree tool that would assist counties in identifying correct claiming for EDP purchases and projects.
  • Fiscal Committee feedback on the CAPE process noted that the May 31 deadline was extended as needed for counties to complete the documents fully. Several counties had their CAPE requests returned for correction or clarification; most were quickly resolved. Graham requested counties with open CAPE issues email him with concerns or updates.

State Report from DHS MediCal – Rocky Evans

  • Counties can contact their individual analyst for preliminary allocation information, or go on-line to see county administration funding at:
  • DHS is continuing to negotiate the citizenship documentation requirement imposed by the Deficit Reduction Act with the Center for MediCaid Services (CMS), formerly known as HICFA. The effective date is July 1, 2006 and it is not clear if DHS will be enforcing this implementation date. Additional admin funding will be provided to counties to support the increase in workload related to citizenship verification requirements. Note that immigration status falls into “category 58” if citizenship is uncertain, the only covered services would be emergencies and ob-gyn.
  • Advance letters should be out soon with allocation letters issued within a couple of weeks after the budget is signed; target is mid July.

State Report from CDSS – Andy Kraus

  • Third Quarter audited expenses are summarized in a handout that highlights statewide spending on social services programs. Overall we have increased spending in 05/06 over 04/05 in most programs. CalWORKs Single remains at 68.71% expended versus 68.87% at third quarter last year.
  • A revised CWS allocation letter will be released in the next couple of weeks to reflect the amount of the CWS Hotline funding shift from IV-E to EA TANF based on the CWDA survey.
  • Allocations are being developed for 06/07 and at least half are done now and pending sign off. Planning allocations will be posted on the CDSS website in the next two weeks. Any allocation that has open items in Conference Committee will be held and not released in planning but wait for final calculations; this includes Kin Gap, Adoptions and all new CWS funding. In addition, CWS will take some time to prepare due to implementation of the Title IV-E CAP waiver and CalWORKs single will be pending development of an allocation methodology.

State Report from CDSS – Julie Kimura

  • IV-E Waiver Update – CDSS is working on Q&A from the Forum. The difficulty in finalizing instructions is the linkage between Title IV-E and the matching state general funds for all related programs. For example: there is state general funding in State Family Preservation but those funds are used to match PSSF so they can’t be used to match IV-E for waiver funding purposes. Once final instructions are released, county letters of intent will be due 30 days later and then MOU’s will be developed. Counties can charge time and costs for waiver planning to the special time study code established in 05/06: all costs are charged to the CWS allocation.

Discussion Items - Graham

  • Foster Care Overpayments are a hot issue right now. CDSS just received a letter from Federal oversight agency requiring a new process and accounting for all overpayments; the federal portion of the overpayment would be required to be repaid to the Federal government at the time the overpayment is identified, regardless of when recoupment (if any) is received. Essentially, the Federal funds would be paid back at 100% effective September 30, 2006. Counties expressed great concerns regarding this request: currently counties have no legal authority to pursue foster care overpayments; collection from foster agencies/homes could jeopardize safety of child placement; this change would be inconsistent with the treatment of overpayment collections in every other federally funded social services program; counties should not be 100% responsible for error payments, but share at their appropriate percentage; significant automation changes would need to be programmed in all counties to accommodate this type of change which would be extremely costly and not a quick process. Graham will keep the Committee informed of the CDSS negotiations on this issue, in the meantime, we will spend some time as a group looking at the creative strategies some counties are using to minimize overpayments in this program.
  • 06/07 Allocation Debrief – we are still working under the over-arching principle that if there are no new dollars to allocate we won’t change the allocation methodology. However a concern exists that we have a growing list of allocations with only 1 year plans with a directive that we figure out a new methodology prior to 07/08. FAADS intends to update the allocation matrix annually with the current estimates and allocation logic. Discussion by the group is supportive of working on new methodologies but the plans would need to be set by November to affect January budget estimates. Lots of committee work remains with the development of the CalWORKs allocation plan and there is the need to work with Children’s Committee on some of the smaller CWS-related allocations that are so difficult to account for. This issue will be discussed and action/decision made in August.
  • Status of Budget Committee Hearings – see CWDA budget highlight #5; handout has been updated through June 7 actions. For Single Allocation purposes, the budget is essentially based on current year projected spending; fourth quarter expenditure data is critical in order to assess the performance incentive funding available for 06/07. Agreement that 07/08 budget development should be cost-based. Some type of PCAB will need to be developed.
  • Current year CalWORKs redistribution is a one-time commitment and will not affect future county allocation calculations.

Hot Topic: 06/07 CalWORKs allocation

  • Discussion of CalWORKs Single allocation development for 06/07. FAADS recommends pulling out child care and Cal Learn and using the prior allocation methodology which is based on expenditures. We then need a one year plan for Eligibility and employment services in hopes of the 07/08 “PCAB” process.
  • Agreement that the expenditure base should not be based on 04/05 expenditure levels but the most current information possible.
  • The $140 million restoration is not a “done deal” yet. CalWORKs funding continues to be a point of contention in the budget negotiations. We need to fully spend the 06/07 CalWORKs Budget to restore credibility with the Legislature or we can expect reductions in the 07/08 budget process. So our suggested allocation methodology must have equity for counties but speak to the political context in which we find ourselves.
  • The Committee had lots of discussion on scenarios, alternatives and the concept of “girdling’ certain aspects of the allocation. Ultimately, the following recommendation was approved to send to the Board:
  • The methodology is intended to be a one-year agreement.
  • Exclude CalLearn and Child Care and compute those allocations separately.
  • The base for the allocation should be 05/06 actual expenditures for Eligibility and Employment Services. For the fourth quarter, unaudited expenditures shall be used.
  • The Performance Incentives related reduction shall be based on the remaining balance following the 05/06 fourth quarter. Defer to the Board for direction on how the reduction should be allocated.
  • Develop a hold harmless or safety net girdle on a percentage of the prior year allocation.

Next Meeting Date: Thursday, August 10, 2006, Library Galleria

Recorded by: Patrice Dietrich, StanislausCounty

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