Director's Message

Feb. 17, 2006

To: DHS employees

From: Dr. Bruce Goldberg, DHS Director

"The other teams could make trouble for us if they win."  Yogi Berra

I have been keeping you updated about our budget.  This week I'd like to update you about another budget, the federal budget.

Last week, the governor publicly called on Congress to reject cuts to critical programs being proposed nationally. Here at the Department of Human Services (DHS) we are still grappling with what these cuts will mean to our clients, our programs and our services. Right now, the exact impact of federal reductions is unknown.  It will depend on the outcomes of the federal rule-making process and the phase-in times associated with these changes.

What is clear is that Deficit Reduction Act for federal fiscal year 2006 will impact on our ability to maintain our current level of services to Oregonians. The President's Federal Fiscal Year 2007 proposed budget also reflects the intent of the administration to reduce funding to states for the federal share of social and medical programs.

While we still don't have firm dollar estimates on what the impacts will be, we do have a sense of the areas of services that will be most impacted.

Food Stamp Program -- The reductions proposed to categorical eligibility would make eligibility more difficult and reduce the number of clients served by this program.

Temporary Assistance to Needy Families (TANF) -- New verification requirements are proposed, with no additional funding proposed to cover this increased workload.

Changes are also proposed relating to federal work requirements, with no credits assigned to states that are demonstrating continuing efficiencies in case management and services.

Medicaid -- Proposed changes continue to ask the states to administer an increasingly complex program but pay them less to do it. Changes are proposed that cut funding for targeted case management for certain clients -- like children in the welfare system, needy families and people with developmental disabilities. Additional cuts are proposed to eliminate or reduce access to Medicaid for schools -- which helps pay for essential student services.

Provider Taxes -- Oregon uses providers tax dollars to help fund long term care and the Oregon Health Plan Standard program. The President's budget proposes a reduction of the allowable rate from 6 percent to 3 percent.  This would significantly impact the Oregon Health Plan's standard program that currently provides health care for approximately 25,000 Oregonians.

Relative Foster Care Payments -- The federal proposal contains changes that could mean relative caretakers are no longer eligible to receive foster care payments. This could mean some may no longer be able to care for the children in their charge.

Key staff members are working hard to address these issues and we will be doing all we can to keep these proposed changes from negatively impacting the vital services we provide.  I will be going with the governor to the upcoming National Governor's Association Conference, to assist in advocating against these changes and to meet with our congressional delegation and federal officials.

Yogi Berra also said, "It's tough to make predictions, especially about the future." While I cannot predict the future, I can promise we will do all we can to avert these federal cuts. Any reductions in federal support will be extremely painful for those in need, because they come at a time when Oregon is seeing increasing demands on human services statewide.

This message is intended for all department employees. Please read it electronically, if possible. Managers and supervisors are asked to share the message each week with employees who do not have email access.

If you have a disability and need this message to be provided to you in another format, please send an email to dhs.forms@state.or.us, or call (503) 947-5107. You can also fax your request to (503) 373-7690, or call (503) 947-5080 for TTY service. If you know of others who need this accommodation, please let them know it is available.