ORD-2013-046 Ordinance approving Budget Amendment #3A - Social Services request for Additional Funds

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3 Report on the Impact of the Government Shutdown,Sequester and Other Fiscal Issues on the DSS Budget December 2013 The Department of Social Services(DSS)receives federal funds to support administration and direct services for many mandated programs at the Department.Approximately 50%of the staff costs and varying amounts of the services costs are provided with federal funding. Although these federal funds_ allow DSS to provide many needed services,the recent federal shutdown,sequestering of funds,and numerous budget impasses(for example,the Farm Bill)threaten the stability of these.programs. These threats have come in a year of high demand for various services at DSS. Some of the specific-programs and impacts are outlined below: Medicaid: Orange County has approximately 12,200 individuals who receive medical services valued at $104 million annually.These funds are paid directly by the state to qualified providers such as doctors, hospitals,pharmacies and residential facilities to support these individuals.Most of the services are provided to children,elderly persons, and people with disabilities.The agency anticipates receiving$1.1 million in federal funds for staff and other costs related to Medicaid administration. Although no federal impacts have occurred at this time and Medicaid is not subject to sequester,North Carolina continues to discuss various cost saving measures for Medicaid. Food and Nutrition Services(FNS): Orange County has approximately 6,600 FNS households receiving an estimated$19 million in benefits annually.These benefits are paid directly by the state to approved grocery markets in the community. In addition DSS expects to receive$960,000 in reimbursements for administrative costs. FNS was not impacted by sequester or shutdown. However all recipients experienced a reduction in benefits in November. This change was due to the end of an increase in benefits implemented during the federal stimulus efforts. There are also concerns about the failure of Congress to reauthorize this program as part of the Farm Bill. Temporary Assistance for Needy Families(TANF): These funds support child welfare staff,child care subsidies and cash payments to about 300 families in Orange County.Although TANF is not subject to sequester, Orange County received a reduction of$89,677 in TANF funds this year due to the loss of some contingency and emergency TANF grants to states.Due to concerns about cash flow problems,the state suspended employment programs and grants funded by TANF,including the Adolescent Parenting Program at DSS. Although the agency was advised to stop work in those areas,after the shutdown ended, any expenses incurred during the shutdown were reimbursed. Social Services Block Grant(SSBG): These funds support a variety of social work programs, particularly child welfare including adoption and protective services and adult services including protective services and in-home services.In addition some of these funds are transferred to the Home and Community Block Grant.Orange County has already experienced a cut in those funds of$2804 in the Home and Community Block Grant due to the sequester cuts in the last fiscal year.Funds at DSS and at the Department of Aging will be impacted again if additional sequestering occurs in 2014. In addition,if local DSS agencies receive a cut of 6%in early 2014,this will mean a loss of$21,000 in revenue for this fiscal year.