Support Adequate Funding for Human Services

 

The MICA Board of Directors supports adequate state and federal funding for human services, which are delivered predominantly by counties at the direction of the state and federal governments.  The Board urges the Legislature and the Governor to fully fund basic services that protect the life and health of vulnerable children and adults.

 

The MICA Board of Directors urges the Legislature and the Governor to allocate sufficient funds for the delivery of social services the state and the federal government have directed the county to provide.  Protecting vulnerable citizens and supporting individual and family self-sufficiency is a foundation of Minnesota’s state-directed/county-managed social service system.  Without adequate funding the goals of our efforts are lost.

 

State and federal funding cuts to counties for health and human services over the last several budget cycles have forced counties to prioritize basic core services that are essential to maintaining a humane quality of life for all state residents.  Resources for services such as child protection and licensing activities related to providers who care for vulnerable children and adults are stretched ever thinner.  Prevention and early intervention efforts, which save money in the long run and preserve quality of life, are being squeezed out of county budgets.  Counties have creatively pursued efficiencies, streamlining administrative functions, combining similar services and in many instances, working cooperatively with other counties to maximize the benefit of services to their communities.  At a time when federal Medicaid matching funds to counties has been drastically cut the state needs to step up, not back from its partnership with counties.

 

Replace Lost Federal Funding for Child Support Collections

 

The MICA Board of Directors supports permanent state funding to replace federal funding cuts for the child support collection system.

 

The federal government requires that states provide child support collection services to all families requesting them.  In Minnesota, this responsibility is delegated to counties.  Last year Minnesota counties helped over 250,000 families collect child support.  The Federal Deficit Reduction Act of 2006 changed federal matching fund rules, resulting in an annual loss of $24 million.  Last session the Minnesota Legislature appropriated $7.3 million in one-time funding to off-set the loss of federal incentive matching funds.  This delays the impact of the federal cuts by one year, but does not address the ongoing cost to counties or the impact on families using collection services. 

 

Without the addition of ongoing state funding, counties will be pressured to decrease staff and increase worker caseloads, making it more difficult to meet performance standards, resulting in the loss of additional federal funds.  Even more disturbing is the impact on low income families.  Statewide, over 60% of families who got help from their counties in collecting child support are former welfare recipients.  Another 18% are currently receiving MFIP (2005).  A high proportion of these mostly low-income families depend on their child support to move from welfare to self-sufficiency.  The loss of regular monthly child support will push a significant number of these families back on welfare.  An increase in the state's welfare rolls would not only demand more state funds, it would make it more difficult for the state to meet its federal welfare work participation targets, thus jeopardizing another federal bonus (about $24 million per year). 

 

Assist Counties with Targeted Case Management Costs

 

The MICA Board of Directors urges the 2008 state Legislature to make permanent financial assistance to counties for the lost federal funding for targeted case management.

 

Targeted case management provides for the effective coordination of health and social services that allows Minnesota counties to minimize health care outlays and out-of-home placements for the mentally ill and at-risk children, respectively.  Vulnerable adults and the developmentally disabled also benefit from targeted case management services.  The Deficit Reduction Act that Congress enacted in February of 2006 threatens the federal government’s payment of 50% of targeted case management’s costs.  Once the long-awaited regulations implementing the act are issued, counties’ costs and their property tax levy for these services would either double - by as much as $90 million – or the services would be eliminated.  This would undoubtedly result in increases in hospitalizations at largely state expense at the Regional Treatment Centers and other institutionalizations of affected clients. 

 

The 2007 Legislature provided $32.7 million of one time funding to replace the lost federal dollars over the next two years.  The 2008 Legislature now needs to step-up and permanently replace the lost federal funding to minimize the adverse impacts on the affected individuals and moderate the property tax increase that would otherwise ultimately occur without the state’s assistance.

 

Provide Adequate Funding for Child Protection System

 

The MICA Board of Directors supports the appropriation of adequate, stable state funding to support the delivery of basic child protection services to all children and families needing them. 

 

In 2003 the Legislature consolidated multiple funding streams into the new Children and Community Services block grant (CCSA). While CCSA gave counties more flexibility in tailoring services to meet local needs, that gain was significantly eclipsed by the $25 million per-year base cut in CCSA funding.  At the same time, county social services budgets have been battered by federal cuts - in Medicaid, the Social Services Block Grant, and Title IV-E foster care reimbursements.  While the one-time funding of $32.7 million provided by the 2007 legislature will help ease the impact of cuts for one year, counties need ongoing state funds to address the federal cuts.  Minnesota has built its reputation as a good place to live, in part by investing in preventive and early intervention programs that save money and support healthier outcomes for troubled families and children.

 

Currently, counties fund nearly half of the costs for child protection, foster care, adoption and other child safety services.  The federal government provides 36 percent and the state only 14 percent.  Minnesota's children and families need more involvement from the state to provide the core services essential to an effective child protection system.

 

Pay the State Share of the Civil Commitment

Hold Costs for Sex Offenders

 

The MICA Board of Directors urges the 2008 Legislature to pay the state’s statutory share of 50% of the “hold” costs for sex offenders being petitioned for civil commitment.

 

Since 1999, MS 253B.185 has required the state to pay for 50% of the costs of “holds’ (temporary confinement) of sex offenders being petitioned for civil commitment.  The state’s obligation is limited to the amount appropriated.  In only one year since 1999 has the legislature appropriated any money for this purpose.  As a result, counties have ended up paying the full costs of holds, costs that have risen dramatically - nearly 10-fold from FY 2003 to 2006.   Changes in the state’s policy for referring imprisoned sex offenders for civil commitment have largely precipitated the increase.  Legislators may naively believe that the statutory requirement that the Department of Corrections make their referrals one year before a sex offender’s release from prison addresses the counties’ cost concerns.  The reality is that many referrals are not made within this deadline.  Dakota County received timely referrals in only 40% of the cases referred between 2003 and the middle of 2007.  Furthermore, last session’s enactment of a requirement that county attorneys file commitment petitions within 120 days of the referral also does not reduce the counties’ costs for sex offender civil commitment holds.  The filing of the petition only formally initiates the civil commitment process.  A preliminary hearing as well as at least one, if not two, psychiatric exams have to occur before the commitment hearing occurs and the commitment order is issued.  In part because of the shortage of examiners, this process can take months.

 

Repeal County Mental Health MOE

 
The MICA Board of Directors supports the repeal of the Mental Health maintenance of effort (MOE) imposed on counties by the state.  

 

Prior to the 2006 Legislative session, counties were required to maintain their spending at a certain level for three different mental health programs.  These required maintenance of efforts (MOEs) were based on the amount a county spent on a service during a specified time prior in the past - usually the year each MOE was adopted into law.  The three MOEs applied to: 1) adult and children's mental health targeted case management, 2) adult mental health rehabilitation services, 3) children's Rule 5 residential treatment.  As part of the mental health reformed passed by the 2006 Legislature, these individual MOEs were repealed.  Unfortunately, a new, more comprehensive MOE was enacted.  Then in 2007, the legislature expanded the mental health MOE by including community support program services. 

 

Because the MOEs are based on historic spending by each county, the amount a county must continue to spend varies widely across the state.  In those counties that had very high mental health expenditures - either due to unusually high mental health needs or due to progressive programming by the county to deliver services to a broader population - the MOE is particularly burdensome. 

 

Counties should not be locked into spending for specific programs based on historic outlays.  Needs for services change, as does the availability of local funds.  Given the steady, deep cuts in the overall human services funding from the federal and state governments in recent years, counties need to have increased - not decreased - flexibility in their human service budgets.  Requiring that a county spend a minimum amount on mental health, when basic child protection budgets are being severely cut, is not productive, and perhaps detrimental to the well being of children and families at risk.  Additionally, a repeal of the MOE is budget neutral to the state. 

 

Conform Treatment of Carver County MR/RC Waiver

Overages with Other County Overages

 

The MICA Board of Directors supports the forgiveness of the repayment MR/RC Waiver over-expenditures by Carver County to conform with the treatment of other county over-expenditures. 

 

Beginning in 2003, counties were assigned full responsibility for any costs for MR/RC waivered services that exceed the allocation set by the state.  In calendar years 2004 and 2005, counties overspent their allocation by a combined $5.5 million.  The 2006 legislature provided a one-year delay of the repayment of over expenditures.  Last session, the legislature cancelled the repayment of over expenditures of 3 of the 4 over-spending counties.  Carver County's repayment was merely delayed another year.  No explanation was offered regarding the differential treatment.  Carver County should be forgiven repayment as the other counties were. 

 

Allow Voluntary Expansion of County-Based

Purchasing as a Single-Payer Plan

 

The MICA Board of Directors supports state policy that allows all counties the option to develop county-based purchasing (CBP) as a single plan whenever possible.  Clearer direction to the Department of Human Services (DHS) need to be established in law to facilitate county expansion of this option for the delivery of health care services to their residents.

 

Currently, 25 Minnesota counties have developed county-based purchasing, single payer plans.  Savings are typically realized through simplified administration.  Earnings from the plan are reinvested in services in the community, which means that public dollars more directly benefit citizens.  Single payer county-based purchasing also allows for better integration of medical and social services to address individual needs.  Additionally, for some chronic diseases, county-based purchasing plans have demonstrated superior outcomes over private plans.  In the counties that currently offer single payer plans, it has been demonstrated that consumer choice of provider is not compromised.  In fact, choice is enhanced.

 

State law gives the Commissioner of the Department of Human Services the authority to allow more counties to offer county-based purchasing.  A change in statute is needed to direct the commissioner to support single-payer plans over multiple payer plans in counties where federal regulations can be satisfied.

 

Improve Access to Basic Sliding Fee Child Care Subsidies

 
The MICA Board of Directors supports the restoration of funds for the Basic Sliding Fee (BSF) Childcare Subsidy program.  Further, the Board supports simplifying the administration of the BSF child care program and increasing equity and access across the state through allocation formula changes  
 
Childcare costs are a major barrier for low and moderate-income families in reaching and maintaining family self-sufficiency.  Employment is threatened and the health and safety of children is put at risk when reliable, quality childcare is priced beyond the means of low and moderate income working families.  
 
Funding for childcare subsidies was cut by 50 percent in 2003.  These cuts withdrew significant support for many marginally self-sufficient working families, and for counties, intensified the difficulty of balancing budgets.  Restoration of funding, and re-expansion of eligibility would enable more working families to secure the child care they need to safely care for their children while they work.  
 
The 2003 cuts also exacerbated a flaw in the current structure of the program that results in unequal access to childcare subsidies.  Under the current system, each county receives a portion of the state allocation, based on a "snap-shot" of participating and wait-listed families.  Due to the dynamic nature of enrollee and applicant eligibility, this allocation formula makes it difficult for counties to anticipate expenditures.  In 2006, 19 counties exceeded their allocation, while 43 under spent, leaving over $9 million of state funds unspent.  If county allocations were based on the average of the last 6 months of their wait list and the number of transition year families, allocations would more closely mirror needs.  These formula changes would not require any additional state expenditure.  

 

Reduce and Equalize or Eliminate Direct Service

Match for Childcare BSF Subsidies

 

The MICA Board of Directors supports the equalization or elimination of the required direct service match for Basis Sliding Fee (BSF) Childcare. 

 

The required direct service match for BSF makes it necessary for counties to spend a state-required amount of local money as part of their eligibility to receive state dollars appropriated for this program.  Counties, therefore, cannot reduce their level of funding even when state dollars are reduced.  This limits the amount of local flexibility counties have as they adjust budgets and service delivery levels in response to large cuts in state funding.

 

In addition, state formulas used to determine required levels of county funding have caused inequities in state allocations and availability of subsidies to eligible families from county to county.  The average statewide local match for BSF childcare is 3 percent, but some counties pay as much as 14 percent. Equalization of the county match would reduce state funding inequities across counties.

 

Improve Background Studies for Licensing

by Allowing Access to Corrections Data

 

The MICA Board of Directors supports county social services department access of the Department of Correction’s Statewide Supervision system to improve background studies done by counties as part of foster care, child care and adoption licensing activities.

 

On behalf of the state, counties conduct licensing of foster care and some child care providers and assess prospective adoptive families for children who are wards of the state.  A major part of the licensing activity is focused on background studies, which include criminal records checks.  The current protocol checks finger prints obtained by the counties against the state's BCA and the federal government's FBI data bases.  The BCA system does not include many older prints.  Additionally, it takes 4-6 weeks before counties get results from the state.  Under this system, vulnerable children could be exposed to care involving people not eligible under licensing exclusions.  To minimize this risk, the Statewide Supervision System - or S3 - maintained by the Department of Corrections could be made available to county social services departments.  The S3 system contains lists of every individual on probation in the state and includes criminal histories and the names and contact information of assigned probation officers.  Access to S3 would provide more timely, accurate and complete information, ensuring safer care for our most vulnerable children and adults. 

 

Increase Insurance Limits for Foster Care Homes

 

The MICA Board supports an increase in the amount of liability insurance provided by the state to foster care homes.

 

Liability insurance is provided by the state to foster care providers caring for a child or adult in their homes.  The insurance covers up to $250,000 for each occurrence involving bodily injury, property damage or personal injury involving the providers and the foster child or adult.  Without this insurance, foster families would be faced with prohibitive increases in their homeowner's insurance.  Far fewer families would open their family home to take in foster children.  The monetary per-incident coverage has not kept up with inflation or expanding liability exposure.  An increase in the tort limitations to $300,000 and a per occurrence limit of $1 million is needed to address the liability exposure of providers.  The annual estimated cost to the state for this change - of $127,000 - is wise investment to protect the valuable resource of licensed foster care homes throughout the state.

 

Expand MSA Eligibility for Individuals Moving Out

of Corporate Foster Care

 

The MICA Board supports expanded Minnesota Supplemental Aid (MSA) eligibility for disabled individuals moving out of corporate foster care settings to less restrictive community settings.

 

Currently, Minnesota's Supplemental Aid (MSA) provides additional cash assistance to SSI recipients under the age of 65 who are moving into less restrictive community settings from regional treatment centers (RTCs), nursing facilities (NFs) or Intermediate Care Facilities for the developmentally disabled (ICF/MRs).  The additional cash assistance allows these individuals to secure adequate housing so they can live more independently in the community.  Individuals moving from corporate foster care facilities into the community are not eligible for additional cash assistance under the current "shelter needy" provisions of MSA.  Eligibility for additional cash assistance should be expanded to include individuals who want to move out their current corporate foster care settings when they are capable of living more independently in the community.  The expansion would be budget neutral to the state and counties because the newly-eligible individuals receiving MSA cash assistance would move out of the MA waivered services program. 

 

Fully Fund Family Stabilization Services Program

 

The MICA Board of Directors supports adequate and ongoing funding to support the Family Stabilization Services (FSS) Program.

 

Under the new federal welfare work participation rates that states must achieve in order to earn TANF incentives, it was apparent that almost all states would miss the mark - including Minnesota.  To improve Minnesota’s rates, last year the legislature created a separate program for families facing multiple barriers to employment, funded without federal dollars.  Now these families will not be counted by the federal government in assessing our participation rate. 

 

Unfortunately, the legislature only provided one-time funding for the service-intensive FSS program.  The Department of Finance estimated that counties statewide would have to spend $16.6 million each biennium to assist the estimated 6,200 eligible families.  County efforts to strengthen challenged families, as mandated by this new program, need to be funded by the state. 

 

Reform Consolidated Chemical Dependency Treatment Fund

 

The MICA Board of Director supports reforms to the Consolidated Chemical Dependency and Treatment Fund (CCDTF) that provides sufficient and flexible state funding for the proactive treatment of chemical dependency.

 

Since its creation in 1986, the Chemical Dependency Treatment Fund has provided vital funding for treating chemical dependency.  Unfortunately, funding cuts, restricted use of funds and structural problems in the funding formula have created barriers to effective treatment for many who depend on the fund for access to treatment.  The maintenance of effort (MOE) requirements included in the original legislation have compounded funding inequities across Minnesota counties.  The following changes would improve access to treatment and the rate of successful outcomes:

 

1.          Increase funding to enhance access to treatment:  The elimination in 2003 of sliding fee funding for individuals with moderate incomes and those without insurance coverage, limited access to treatment for a significant number of people.  Currently, CCDTF funding is only available for no or low income individuals who qualify for MA, GAMC or MinnesotaCare.  For all others without insurance who are placed in treatment by the counties or the courts, the counties pay 100 percent of the treatment costs. 

2.          Allow reimbursement for services related to positive treatment outcomes:  If counties could use the CCDTF for services that support treatment - like detox, intensive case management, transportation services, rent deposits and other one-time services - treatment outcomes would improve.  Additionally, services related to mental health needs of those with chemical dependency issues need to be considered.  A large segment of the treatment population has a dual diagnosis requiring chemical dependency treatment geared toward treating other behavioral health problems as well. 

3.          Eliminate or reduce county maintenance of effort requirements:  Under the current parameters of the CCDTF, each county must spend a set amount of county taxpayer dollars each year relative to the state dollars they receive.  The requirements from county to county vary widely - from 4 to over 60 percent.  In the least, MOEs should be equalized across counties.  A graduated equalization that does not raise the current rates of any counties (holds harmless) should be instituted to provide for uniform access to treatment across the state. 

 

Provide Dedicated Funding for Social Services and

Public Safety Costs Related to Alcohol Abuse

 

The MICA Board of Directors supports the enactment of an alcohol beverage tax to generate funding dedicated to addressing problems associated with the over-consumption of alcohol.   The Board supports the allocation of these funds to counties, who are required to provide a vast array of services related to the abusive consumption of alcohol.

 

Nationally, to cover the costs associated with alcohol and other drug use, each man, woman and child in the United States would have to contribute $1,000 per year (1995 estimate, NIH).  In Minnesota, the Department of Health estimated costs of alcohol abuse across all government programs and the private sector at $4.5 billion for 2001.  Yet federal and state funding for the myriad of services related to alcohol abuse has eroded.  The loss of funding for prevention, detoxification, treatment and other social services related to the abuse of alcohol has left counties with a mandate to provide services and limited funding to do so.  The $20 million annual cost for detox services is covered almost entirely with county property taxes.  Funding earmarked for transportation of intoxicated individuals to detox facilities by law enforcement was eliminated several years ago.  Costs to counties for one DWI often exceed $10,000.  Corrections and public safety costs as well as child protection, domestic violence and other family services costs are also directly impacted by alcohol abuse.  Education and early intervention efforts have been all but abandoned, disregarding demonstrated effectiveness and significant savings from investments in preventive programs.

 

A per-drink tax would provide funding that could be used across the state where the need arises.  Dedicating these taxes to a statewide fund would provide stable funding and tie the source of revenue to the source of costs.

 

Fund County Processing of MinnesotaCare Application

 

The MICA Board of Directors supports the processing of MinnesotaCare applications by counties and the direction of funding to counties for that processing.

 

All Minnesota counties process applications for all state health care programs except MinnesotaCare.  Currently, only 26 counties process MinnesotaCare applications as well.  With the implementation of Health Match, processing MinnesotaCare applications differently than other health care program applications no longer makes sense.  Health Match consolidates the application process, building on administrative and system efficiencies and streamlining the process for applicants.  Currently, all of the funding for the processing of MinnesotaCare goes to the Department of Human Services.  If counties process these applications, they should receive the funding previously flowing to DHS for the same service.  Funding should be redirected to counties, the amount of which should be determined by the current formula of MinnesotaCare cases designated to that county. 

 

Assign Responsibility for Investigation of Reports of Maltreatment

of Juveniles to Agencies with Oversight Jurisdiction

 

The MICA Board of Directors recommends that the investigation of maltreatment reports of minors in corrections facilities be the responsibility of the Department of Corrections and for school-based reports to be the responsibility of the Department of Education.  Alternatively, if the responsibility remains with counties, under the direction of the Department of Human Services, the Board supports the allocation of additional funding to counties to pay for training and the expanded responsibility of counties for these investigations. 

 

Under current state laws and rules, counties are responsible for assessing or investigating reports of maltreatment of minors in foster care, family and legally licensed child care and juvenile correctional facilities.  The responsibility for in-school reports are assigned to the Department of Education.  Responsibility for reports involving after-school activities that take place on school property is not clearly defined in state statute.

 

Counties, under the direction of the Department of Human Services (DHS), oversee licensing and the ongoing operations of foster care and child care providers.  Juvenile correctional facilities are licensed and regulated by the Department of Corrections (DOC).  Schools are regulated by the Department of Education.  While county social service agency staff are familiar with the foster and child care operations in their jurisdiction and are well-trained to assess and investigate maltreatment reports in these facilities, they have not received the specialized training required to assess and investigate reports involving DOC and DOE facilities.  Additionally, funding is not provided by the state to provide the volume of correctional facility and school-related reports.  Either funding needs to be provided to counties for the hiring and training of staff to meet the expanded responsibilities or the state agencies with oversight authority of the involved facility should be assigned to investigate reports. 

 

Change Requirements Regarding PMAP Information Mailings

 

The MICA Board of Directors supports a change in the required PMAP information mailings that allow counties to mail health plan summaries to enrollees, followed by full program brochures upon request.

 

Counties are required to send health plan booklets to all Medical Assistance clients enrolled in Prepaid Medical Assistance Programs (PMAPs) to inform them as to their available plan options.  In some counties, there are up to five options.  The cost for these mandated mailings approaches $6.00 per client. 

 

The cost to continue these mailings exceeds the benefit to clients.  The booklets are lengthy and difficult to read and understand.  Summaries of the plans would be far cheaper to mail, saving tax payer dollars, and would provide information that is more likely to help clients make informed decisions.  Booklets could then be mailed out only to those clients requesting them.

 

OTHER H&HS ITEMS CONTAINED IN OTHER SECTIONS OF THE MICA PLATFORM

 

FROM THE PUBLIC SAFETY AND CORRECTIONS RECOMMENDATIONS

 

Provide Sufficient Funding for Public Defender

Representation in Child Protection Cases

 

MICA urges the 2008 Legislature to clearly identify the Public Defense Board as responsible for providing representation of all parties in CHIPS cases and to provide necessary funding for the Board to meet this responsibility.

 

Over the past decade, the Board of Public Defense has assumed responsibility for providing the representation of both children and adults of children in protective services (CHIPS) cases, but the statutory authority remains confusing.  Counties gave up significant state aid in the 1990s in order to allow for the public defenders' budgets to be increased so they could handle these types of cases. Counties do not have the appropriate staffing to provide quality representation at affordable prices.

 

Proponents of county funding argue that requiring counties to pay for representation of adults in child protection cases will reduce the number and costs of cases.  However, counties already pay for the social worker, prosecutor, probation officer, and out of home placements, so there is no fiscal incentive for counties to bring CHIPS cases in lieu of other forms of intervention.  Counties are working hard to reduce the overall cost of child protection cases while still assuring the safety of children.  Counties do not need additional unfunded mandates to motivate them to find efficiencies in CHIPS cases. 

 

FROM THE TAX AND REVENUE SECTION OF THE RECOMMENDATIONS

 

The State Should Pay Its Share of the Hold Costs

for the Civil Commitment of Sex Offenders

 

The MICA Board of Directors urges the 2008 Legislature to pay the state’s statutory share of 50% of the “hold” costs for sex offenders being petitioned for civil commitment.

 

Since 1999, MS 253B.185 has required the state to pay for 50% of the costs of “holds” (temporary confinement) of sex offenders being petitioned for civil commitment.  The state’s obligation is limited to the amount appropriated.  In only one year since 1999 has the legislature appropriated any money for this purpose.  As a result, counties have ended up paying the full costs of holds, costs that have risen dramatically - nearly 10-fold from FY 2003 to 2006.  Changes in the state’s policy for referring imprisoned sex offenders for civil commitment have largely precipitated the increase.  Legislators may naively believe that the statutory requirement that the Department of Corrections make their referrals one year before a sex offender’s release from prison addresses the counties’ cost concerns.  The reality is that many referrals are not made within this deadline.  Dakota County received timely referrals in only 60% of the cases referred between 2003 and the middle of 2007.  Furthermore, the complexity of the commitment process, the shortage of examiners and the frequent requests for multiple exams make commitment within even nine months of a commitment petition’s filing difficult.