DCFS FY2010 BUDGET OVERVIEW Challenges & Opportunities

1. DCFSFY2010 BUDGET OVERVIEWChallenges & Opportunities ERWIN McEWEN DIRECTOR, DCFS MATTHEW A. GRADY III DEPUTY DIRECTOR, BUDGET & FINANCE April 2, 2009

2. STATEWIDE BUDGET DEFICIT($ in billions) FY09 Deficit- $4.3 FY10 Deficit- $7.3 Total Deficit- $11.6 Governor’s FY09-FY10 Plan: • Revenue Increases: $8.5 • Spending Reductions: $2.8 • Total Deficit Reduction: $11.3 • Remaining Deficit: $0.3

3. DCFS BUDGET OVERVIEW($ in thousands)

4. DCFS Total Headcount: Going Forward • FY09 Affordable: 2,917 FTE (including Lump Sum staff) • Assumes attrition of 223 by 6/30/09 • FY10 Funded: 3,091 FTE (including Lump Sum staff) • Able to fund 174 additional heads: • 108 will not attrition out (actual thru Feb A - 105) • 6 FTE transferred from DHS effective 7/1/09 • 60 new hires (earmarked for Direct Staff)

5. DCFS Opportunities • Protect Core Services • Safety • Permanency • Well-Being • Maintain Benchmark Caseload Ratios for Frontline Staff • Fund & Support Key Programs: • Program Improvement Plan • Integrated Assessment • Trauma Informed Practice • Residential Performance Based Contracting • Family Advocacy Centers

6. DCFS Challenges Must Earn $26 m in New Revenue FY10 Request Depends Upon Generating $26m Medicaid Counseling Expansion - $17 m Home of Relative Licensure - $9 m Daycare Licensing Fees Increase Operational Efficiency Frontline Focus for New Hiring (most non-direct vacancies to remain unfilled) Procurement Savings Facility Consolidations

7. Childrens Services Fund (CSF)FY09 Cash Position • FY09 CSF Shortfall approx. $80 m • Requested GRF Supplemental Appropriation: $42.7 m • Continued Borrowing from Future Revenue

8. Childrens Services Fund (CSF)FY10 Cash Position Zero Margin for Error Projected Revenue: $406 m Projected Spending: $406 m Cash flow Challenges Critical Payments Prioritized Non-Critical Payment Delays Likely Critical Payment Delays Possible if GRF Cash is Low

9. Revenue Initiatives Efforts Needed to Maximize Base Federal Revenue Document services with client detail (ID, etc.) Respond accurately and timely to Random Moment Survey (RMS) Inquiries Maintain case files with all proper documentation Medicaid Counseling Expansion (by Line): Foster Care: $12.9 m Adoption: $ 2.2 m Counseling: $ 1.9 m Home of Relative Licensure Must Achieve 80% Licensure by 6/30/10 Progress Must Start Immediately Progress Must be Steady

10. Random Moment Time Study (RMTS) • RMTS is a statistical sampling process used to determine the proportional amount of time case worker staff spend on the various activities they perform in carrying out their job functions • RMTS along with the eligibility percentages bring in over $90 million in federal Title IV-E dollars annually. • RMTS is administered through a phone polling process whereby a random moment in time for a worker is selected to determine the activity being performed at the selected moment (6,600 moments are selected each quarter – 3,300 for DCFS workers and 3,300 for POS workers). Follow-up emails are sent if the caseworker cannot be reached by phone. For a response to be considered valid it must be submitted within 48 business hours of the moment.

11. Random Moment Time Study (RMTS) Continued • Pre-placement case management costs can only be claimed on behalf of clients who are determined to be candidates for foster care as denoted in SACWIS case plan. Candidacy means that if our services are ineffective or refused we would remove the child from the home. There is a place in SACWIS to answer “yes” or “no” to document candidacy. • RMTS proportional results for allowable activities along with the applicable Title IV-E client eligibility factor are applied to the cost pool (administrative and support costs associated with case work staff (both DCFS and POS) to determine Title IV-E Administration claiming. (Example on following slide)

12. RMTS Formula • Calls for an activity are divided by total calls to determine % claimable for the activity. For example for Foster Care Unassigned Case Management Legal there were 393 calls during the quarter documenting that the worker was working on that activity at the time of the moment. There were a total of 1,740 RMTS responses for the quarter. So 393/1,740 is 22.586%. The eligibility factor for Foster Care Unassigned for the quarter was 47.231%. For simplicity let’s say the cost pool for the quarter was $100,000. The RMTS costs would be calculated as follows: • 22.586 % x 47.231 % = 10.668% • 10.668% x $100,000 = $10,668 IV-E Administration for Case Management Legal Foster Care Unassigned • $10,668 x 50% FMAP = $5,334 IV-E net to DCFS

13. RMTS Foster Care Candidacy • Foster Care Candidacy is the provision under Title IV-E that allows DCFS to claim administrative costs for intact family case management. However, • To qualify, the child / family must be documented as a “Candidate for Foster Care” in SACWIS. • Thanks to training and collaborative efforts, the formerly low Candidacy Percentage has been growing (see chart on following page). • Our goal is to reach 70% or better

14. RMTS Foster Care CandidacyMonthly Change since 9/30/08 to 8/31/09

15. HMR Licensure Plan

16. Questions & Answers