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Department of Human Services
Department of Human Services

 

Director's Message

March 19, 2004

To: DHS Employees
From: Gary Weeks, Director

Re: DHS rebalance and Measure 30 reductions

In January, all General Fund agencies were required to submit plans for the possible failure of Measure 30. For the Department of Human Services, that plan also included an early glimpse into our rebalance. That preliminary proposal described many significant cuts to our programs and services.

Given the preliminary nature of the budget information available to us at that time, we told the Governor that our rebalance numbers would be updated for the April meeting of the Emergency Board.

What was submitted today is that update, using three more months of actual expenditure data.

In developing the April rebalance plan, we sought to follow the Governor's direction to provide sustainable, affordable services for the most vulnerable Oregonians.

The process: Twice each year, the department submits a plan to the Legislature to "rebalance" its budget. The process involves identifying those areas where our spending exceeds or falls below budgeted levels: "problems" and "savings."

We applied the savings we're projecting for the rest of the 2003-2005 budget to the budget reduction targets established in HB 5077. Additional savings above a cluster's reduction target have been applied to offset some of the significant reductions in the health plan.

Earlier this year, the department considered reducing or eliminating many services for the Oregon Health Plan "Plus" population in its planning for Measure 30. Our revised plan proposes to maintain health care services for the 300,000 people who comprise this population. They include foster children, people on public assistance, very low-income pregnant women, people who receive federal Supplemental Security Income benefit who are blind, elderly or have disabilities.

The savings identified through the rebalance process have allowed us to preserve prescription drugs, mental health care, alcohol and drug addiction treatment, therapies and other services for the Plus population.

Other services maintained. In addition to preserving services for the Plus population, the following services will be maintained under our plan:

  • Mental health and substance abuse services for families under the Oregon Children's Plan.
  • Medical coverage for children and pregnant women with incomes up to 185 percent of the federal poverty.
  • System of Care funds for children in state care at risk of coming into state care, due to abuse or neglect.
  • Childcare assistance for low-income parents seeking training and skills to become self-sufficient.
  • Long-term care services were cut last year for approximately 1,200 seniors and people with disabilities at survival priority levels 12 and 13. These will be restored July 1, 2004, pending federal approval.
  • Prescription drug coverage for people with HIV and organ transplants who were covered under the old medically needy program.
We have also been able to retain most of an increase to help communities with the care of adult psychiatric patients waiting for state hospital beds.

Reductions. Reductions in our April rebalance plan, while significant, and are not as deep as we anticipated in January. Reductions include:

  • Not implementing a planned expansion of the Children's Health Insurance Program. The expanded program would have covered 4,000 low-income children between 185 percent and 200 percent of the federal poverty level.
  • Not implementing the Medical Expansion for People with Disabilities and Seniors (MEDS) program. This program would have provided prescription drug assistance for about 6,700 low-income seniors and people with disabilities. This program was intended to replace the former Medically Needy Program if approved by the federal government.
  • Discontinuation of the Regular Emergency Assistance program, which helps families avoid the need for long-term assistance.
Absent additional revenue, services for the Oregon Health Plan standard population will be eliminated. This population consists of adults who are below the poverty line but who don't qualify for conventional Medicaid. About 50,000 adults now receive Standard coverage, a figure projected to grow to more than 60,000 during this biennium. However, we are working with the federal government to get approval for provider taxes to reinstate some services.

Staffing. Staff reductions are associated with the drop in the Oregon Health Plan standard caseload, the potential loss of the Standard program and the elimination of the emergency assistance program. We intend to use attrition to lessen the effect on our workforce. We will do everything we can to avoid any layoffs.

In some cases, the department has opted to forgo requests for staff "earned" due to rising caseloads. I recognize that for many months, you have been serving more clients with fewer resources. We project that caseloads will continue to rise. I appreciate your hard work and commitment to serving our most vulnerable clients.

Some reminders about the process. Remember that all of these recommendations are subject to the review and approval of the Emergency Board at its April 8-9 meeting.

The reductions associated with the standard population are not slated to go into effect until August. The rest of the reductions go into effect May 1.

Staying informed. I know that many of you are very interested in these developments. The letter we submitted today has been posted on the DHS Web site (PDF format).

I appreciate your patience and your commitment to serving Oregonians during these unpredictable times.

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Page updated: September 21, 2007