76th Legislative Session _ 2001

Committee: Senate Appropriations
Thursday, January 25, 2001

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Putnam, Vice-Chair
P    Madden
P    Koskan
P    Kleven
P    Greenfield
P    Apa
P    Duxbury
P    Dennert
P    Drake, Chair

OTHERS PRESENT: See Original Minutes

(Meeting Jointly with the House)

The meeting was called to order by Chairman Drake

DEPARTMENT OF SOCIAL SERVICES

Mr. Reed Holwegner, LRC, presented budget information to the committee (Document #1).

Mr. Jim Ellenbecker, Secretary, Department of Social Services, introduced members of his staff and presented a FY 2002 Budget Overview (Document 2). He also reviewed the structure of the Department and those programs within each division. The newest division is Child Care Services which includes child care assistance for low-income and welfare families, quality improvement and child care licensing.

Welfare Reform-TANF Program

The TANF (Temporary Assistance for Needy Families) Program continues to help needy families and children by emphasizing a “work first” philosophy. The TANF Program was implemented in

December 1996 and at that time there were 5,319 families receiving cash assistance grants, of which 3,756 cases contained an able-bodied parent who must participate in work program activities. The caseload has continued to decline. The December 2000 caseload of 2,767 had 1,219 cases where the parent had to work.

South Dakota continues to successfully meet participation rate requirements. South Dakota's rate in federal fiscal year 1999 was 46.5 percent, exceeding the federally mandated 35 percent participation rate by 11.5 percent.

Health Care for Children

Since July of 1998 the Department has been committed to expand support and health coverage to children in more working families who can't afford health insurance. In July 2000, the Department increased the income eligibility level to cover children in families whose income is 200 percent or less of the Federal Poverty Level. Now there is a total of 48,000 children enrolled in both Medicaid (Title XIX) and the Children's Health Insurance Program (Title XXI).

Ms. Sharon Sonnenschein, Department of Social Services, responded to questions from the committee regarding income guidelines for eligibility. At 200 percent above the Federal Poverty Level, the income is $2,842 per month.

Child Support Enforcement

In order to receive federal funding, the Department of Social Services (DSS) administers South Dakota's child support enforcement program under the requirements of Title IV-D of the Social Security Act. DSS establishes paternity for children born out of wedlock; establishes, modifies, and enforces child support orders; and collects and disburses child support payment for over 30,000 families.

Child Care Services

The Child Care Services (CCS) Division works to increase the quality, availability, and accessibility of child care in South Dakota include:

1 *      Out-of-School Time (OST) Child Care Programs: DSS is using a community development process to increase the number of OST programs available statewide, with a goal of establishing 110 programs in the next two years.

2 *      Out-of-School Time Child Care Regulations: CCS is implementing regulations for out-of- school time child care programs. The goal is to make licensing of OST programs more user-

friendly and to provide programs access to funding such as: food program benefits, child care subsidies, etc.

3 *      Out-of-School Time Grants: Funding to 10 new Out-of-School (OST) programs was awarded last year. A total of 48 programs have been awarded $2,061,514 under the OST initiative, increasing the number of available OST slots to 3,783.
        
Child Care Inclusion Project: This project will increase the number of child care providers trained and committed to caring for children with special needs. This project is a collaborative effort with the South Dakota Developmental Disabilities Council, Child Care Services, and the Department of Education.

Responsive Parenting Project: The goal of Responsive Parenting is to help parents learn how their child, between birth to age three, is growing and developing so they can be more responsive to their child's needs.

Early Care and Education Apprenticeship Program: Child Care Services received a $350,000 grant from the US Department of Labor to implement a registered apprenticeship program designed to enhance recruitment and retention of quality child care workforce.

On-line Transaction Services: CCS is working to implement three new on-line services for the public. On-line applications will allow the public to apply for child care assistance on the internet. Child Care providers will also be able to complete payment request forms on-line.

FOOD STAMPS

For the sixth year in a row South Dakota's Food Stamp Program achieved the highest case payment accuracy rate in the nation: 97.8 percent. In recognition of that achievement, the US Department has awarded DSS with a bonus payment of $714,305. In total, food stamp staff has brought in over $8 million in bonus payments over the past 16 years. Mr. Ellenbecker added that receiving this bonus lowers the states share of the federal match from 50 percent to 40 percent.

Child Protection Services (CPS)

Family and Child Information System (FACIS).

This child welfare information system has been implemented in eight DSS offices to date and it will be expanded statewide. All adoption subsidy payments have been paid from FACIS since January 2000. Some benefits include eliminating to need to enter duplicate demographic data on families, the ability to have case file information readily available by computer, elimination of paper forms and processing, and availability of better data on families. Efforts during the next year include continued implementation of additional offices and the development of interfaces between Medicaid,

Child Support Enforcement and TANF.

Family Centered Practice

The Department is continuing to revise its Child Protection Services practice. Rapid City has been selected as a pilot location to implement a model based on principles of family centered practice. This practice model will provide better safety assessment of children and allow more families to receive services before issues reach levels constituting serious child abuse and neglect.

Adult Services & Aging

Home & Community Bases Services- DSS continues to develop and expand home and community- based services, identifying problems and provide early intervention to help elderly people avoid institutionalization. This includes efforts to: develop and implement enhanced programs for care givers; enhance in-home services for the elderly by collaborating with the USD School of Medicine; and distribute a statewide Resource Directory of Services for the Elderly.

The RxAccess program is intended to help individuals age 65 or over to gain access to medically necessary medications which they can not otherwise afford. Individuals eligible for this program do not qualify for medication coverage through Medicaid and do not have private insurance coverage. Many of these people are subsisting on limited, fixed incomes, mainly Social Security, with little or no assets.

Foster Care Independence Act

The Foster Care Independence Act of 1999 (also known as The John H. Chafee Foster Care Independence Program) essentially doubles federal funds made available to states for Independent Living Services.

Representative Derby brought to the Committee a letter from a resident in Rapid City regarding a Department of Social Services policy of giving a child who had matriculated from Foster Care (usually 18 years of age) a $500.00 stipend for purposes of renting an apartment and setting up housekeeping. He explained that it is literally impossible for the child to survive on that (Document #3).

Mr. Ellenbecker reviewed the monthly averages for the Child Care, TANF and Food Stamps Programs. Child care for FY 2000 had 3,928 children representing 2,174 families, the projection for FY 2001 is 4,154 children representing 2,308 families. TANF cases for FY 2000 was 2,852 with 2,889 projected for FY 2001; food stamp households for FY 2000 was 6,541 with FY 2001 projected to be 16,813.

Sharon Sonnenschein responded to questions from the Committee regarding the eligibility guidelines

for child care, and food stamps. Child care guidelines are 150 percent of the Federal Poverty Level so a family of four could have an annual income of $25,575. At the request of the Committee, a list of deductions for each program will be provided.

Adults and children eligible for medical services (Title XIX, XXI). Title XIX projections for FY 2001 include 27,612 adults;42,354 children except CHIP; and 74,437 children in CHIP. Ms. Sonnenschein explained that they are anticipating an increase of all catagories in medical services, except CHIP.

Child Support Collection Data

Actual FY 2000 collections: OCSE - $49.1 million and non-OCSE $6.5 million; projected for FY 2001: OCSE $53.6 million and non-OCSE $8 million. The average collection per payer for FY 2000 was $2,096 and in FY 2001 the projection is $2,190.

Mr. Mike Vogel, Department of Social Services, explained that no longer will child support payments go through the clerk of courts but will come directly to the Department. He said they have investigators that will be working to locate the absent parents.

TANF Cases Non Reservation and Reservation Counties

Mr. Ellenbecker explained that there has been a decline in TANF cases due to the success of more people working. He said there has also been a change in the case mix between non reservation and reservation. In the Committee discussion that followed, it was pointed out that one-third of the jobs on the reservation have been created in the casinos, but the creation of these jobs are leveling off. Mr. Ellenbecker said TANF caseworkers in mid-sized counties have also seen a drop in their caseloads. .

In a Committee discussion that followed, Mr. Ellenbecker explained they have 20 TANF people in school and as long as they maintain nothing below a C they are still eligible to obtain benefits.

Nursing Facility Caseload: FY 2000 was 4,250; FY 2001 is projected to be the same.

Assisted Living Caseload: FY 2000 528 cases; FY 2001 is projected to be 540.

At the request of the Committee, a meeting will be set so the Department of Social Services can explain the reimbursement rates for nursing homes.

A brief discussion followed on nutrition sites and the amount they are funded by the state. Mr. Vogel explained they receive11 percent general funds, community funds, and donations.



MOTION:     ADJOURN

Moved by:    Koskan
Second by:    Duxbury
Action:    Prevailed by voice vote.

Jeanette Black

____________________________

Committee Secretary
Bob Drake, Chair


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