Minutes 03/23/1971 - Laserfiche WebLink

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March 2~. ~971 71-117 "The City Council has requested budget of the new formulas established by the Department and the State take~over of certain a report.on the effect on the City'~s 1971-72 State for the administration of the Welfare assistance categories as~of January 1, 1972. Before reporting on the 1971-72 budget, I would like to report on the financial position of the appropriations for welfare in the current City Budget. The Director of Finance reporte to me that based on the current rate ~f expenditure as of March 1, there would be an over-ex- penditure of local funds in welfare of approximately $275,000. As the result of this, a letter was written to the Director of the State Department of Welfare advising him of the expiration of local welfare funds. He was further advised that due to the moratorium adopted by the City Council that no further local funds other than that appropriated would be available this fiscal year. The leter also requested advice from the State Welfare Department as to a solution to the problem. A representative from the State Department met with the City officials on Thursday, March 18. The City was informed that if additional local funds.were not available the State would take over the programs that are partially financed by Federal funds, but no categories that are not, such as General Relief, Foster Care, Aid to Blind, and Day Care. The State advises that we can transfer funds between categories which will allow the City ~o retain the balance of unexpended local funds to apply to the non-Federal programs. This will also mean a savings to the City in local funds of $75,000 to $100,000. After the meeting with the State, the Finance Director reevaluated the availability of local funds for transfer in categories. It has been established that as of March 17, 1971, there is available $167,342. This will service all welfare programs for the balance of the fiscal year except Aid to Dependent Children and Administrative expenses. These two will be turned over to the State for handling. This does mean that the State will withhold the City's Sales Tax in the amount of local funds due in these two categories. There will, therefore, be a reduction ~n realized revenues from Sales Taxes in the amount of $176,000. With regards to the effect of the changes in the welfare regulations and requirements and their effect on the 11971-72 City budget, I wish to report the following: The State Department of Welfare and Institutions issued instructions for the preparation of local budgets with a proposal whereby localities can receive, under certain conditions, an increased rate of reimbursement for administrative expenses. Under the proposed plan, the local cost of administration would be decreased from 40% to 20% with the State and Federal sha~ increasing from 60% to 80%. The proposed plan relates specifically to the class of staff used for adminstering the financial assistance programs, such as Old Age Assistance, Aid to Dependent Children, and Aid to the Permanently and Totally Disabled, and for administering the programs of social services such as Foster Care, Child Care, and adoption. The effect of this ~s to allow the use of Eligibility Technicians at a lower pay grade in the financial assistance progrmms, thereby re- leasing the Social Workers who are paid at a higher scale, for the social service programs. Fo qualify for the increased reimbursement, Eligibility Technicians can be used 6nlyrl~ staff- ing the financial assistance programs, and only Social Workers may be used to staff the social service programs. Localities become eligible for the increased administrative reimbursement only if complete sep'aration between the two programs is achieved and maintained~ The State Department of Welfare and Institutions has provided specific instructions to local agencies for determining staff needs to effect and maintain a program where functions of eligibility and services have been separated, or whet separation is being planned. The Attnrney General has rendered an opinion that the StategBoard has authority and responsibility to establish methods of determing staff needs for local agencies. As defined by the Board, staff need is based on the number of cases on which an employee can perform all the activities required by the State Department of Welfare and Institutions and the Federal Department of Health, Education and Welfare during a month's period of time. The following factors were used in determining the number of employees needed in the Portsmouth Welfare Department for the fiscal year of 1971-72: Eligibility Technicians and Social Workers (1) State requirement that a Technician process an average of 40 adult and medical assistance applications per month. (2) State requirement that a Technician process an average of S0 Aid to Dependent Children applications per month. (3) State requirement that a Technician handle 360 active adult financial assistance cases per month. (4) State requirement that a Technician handle 180 active ADC financial assistance cases per mont~. (S) State requirement that a Technician handle 175 Food Stamp applications and on- going cases combined per month. At present, the local department is four months behind in posting Food Stamp Authorizations returned from banks. (6) State requirement that a Social Worker handle between 40-60 active service cases during a month's periof of time. Based on the present caseload and projecting the increase for fiscal 1971-72, to meet the above requirements would require the employment of 73 additional personnel in ~he social