Agenda - 05-08-2014 - 7d - Laserfiche WebLink

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will be for all children and adults who need assistance to receive Medicaid services. These changes will actually increase the funding available across the state to help with coordination for all Medicaid cases, although it will adversely impact counties like Orange which had programs directed toward children in schools. Officials from the North Carolina Department of Health and Human Services have indicated that the program will transition on July 1, 2014. There are currently seven Social Worker II's employed by DSS to work in the Orange County Schools and there is one vacant position. Since the financial incentive no longer exists for DSS to provide this service, OCS has indicated its intent to provide the service directly thus ending this contract effective June 30, 2014. The annual cost of the contract is up to $692,283 for all direct and indirect costs related to this program. This cost is based on the federal cost allocation plan at DSS which requires that all administrative and supervisory costs be allocated proportionately to direct staff and their programs. This also allows for the calculation of the correct costs to be billed to Medicaid. When there are vacancies DSS adjusts the billing to the schools accordingly. In 2012 -2013 Medicaid contributed $234,138 and the schools provided $387,192 of the total costs of $621,330 for the year. The cost for each staff position without inclusion of administrative and supervisory costs is $62,810. Orange County DSS must develop a plan for addressing the employment of the seven social workers currently on staff by either providing ongoing employment after June 30, 2014, or by developing a Reduction in Force plan. Due to the timing of this change and the need to provide timely notice to the impacted staff, this item could not be deferred until the budget decisions in June. Currently there are two vacant Social Worker II positions at DSS that had been advertised but held awaiting the outcome of this issue. In addition, the budget developed by DSS included two new Social Worker II's to work with adult services and child welfare utilizing funds from the new Medicaid funding source. Given the current workload at DSS and the value placed on employees by the County, DSS is recommending continued funding of all seven social workers. Four would be assigned to the four positions described above. The remaining three would be assigned to assist with some of the high need areas including employment, homelessness, justice programs, emergency assistance and other programs addressing the needs of low income families. If the current employees vacate any of these three positions within the next year, the positions would not be filled without prior approval of the BOCC. Given that the budget for next year will not be approved until June, DSS recommends that this plan be approved now so that plans can be made for the employees without the development of a Reduction in Force plan. FINANCIAL IMPACT: The salary and benefit cost for the seven positions is $439,669, and the reduction in cost for eliminating the two vacant positions is $113,516. Additional revenue anticipated in next year's budget for the positions that will be able to utilize the new Medicaid program is $123,600, with the net County cost of $202,398. RECOMMENDATION(S): The Manager recommends that the Board fund the current seven Social Worker II positions at DSS in Fiscal Year 2014 -2015 and eliminate two vacant positions at DSS effective July 1, 2014.