Director's Message

April 27, 2007

To: All DHS employees

From: Bruce Goldberg, M.D., Director

"I want to stay as close to the edge as I can without going over. Out on the edge you see all kinds of things you can't from the center."
~Kurt Vonnegut (who sadly passed away last week)

This week I thought I'd take a few minutes to keep my promise to update you about what's been happening at the Legislature. Unfortunately, the most recent news isn't good. Yesterday we moved a step farther away from being able to keep Oregon's children healthy with the defeat of the Healthy Kids Plan in the House. This continues to leave 117,000 Oregon children without the security of affordable health care. What happens next remains to be seen, but I hope the Legislature will continue to work on a proposal that provides children the health care they need. If we are a just society, a caring society, then we must ensure a safe and supportive environment and a basic level of health care for our children, their parents and for all others in need.

There are of course many other policy issues the Legislature is addressing. Too many to even summarize here, so I'd like to update you on several budget-related issues.

As you know, due to the effects of changes in the needs of Oregon communities and ever-adjusting caseloads, we regularly report back to the Legislature to adjust areas within our budget. This is called a "rebalance." At the December 2006 rebalance DHS requested $73.4 million of the $83.3 million special purpose appropriation set aside at last April's special session for the department for the rest of this biennium. I committed we would stay within that April funding level and not request more than the remaining $9.8 million made available for 2005-2007. And with your help, we did it. At our most recent rebalance we required $9.1 million of that remaining $9.8 million, and I don't anticipate that we will be requesting more.

As you can see, we are still very close to our 2005-2007 funding limit, and as such it is imperative that we manage our resources very carefully for the next several months to continue to stay within our budget. There are always risks related to unexpected caseload increases, rising fuel costs and other unanticipated expenses, but I am confident that our continued improvements to our financial planning and tracking systems, and our careful stewardship of our resources, will keep us within budget.

A second budget issue involves the proposed funding for next biennium. Last December Governor Kulongoski released his Governor's Recommended Budget for 2007-2009. Then, a few weeks ago, the co-chairs of the Ways and Means Committee released the Co-Chairs' Budget for 2007-2009. As expected, the two budgets reflect slightly different priorities. For example, unlike the Governor's budget, the co-chairs' budget does not include needed funding for substance abuse treatment for parents whose children are at risk of being placed in foster care, does not include funding to allow more people to be covered by OHP Standard, and makes no investments in local public health infrastructure. All of these items, among others, are important program areas that provide significant assistance to Oregonians throughout the state.

You can find a more detailed comparison of the two budgets here and here. I believe we must continue to advocate for the funding levels included in the Governor's Recommended Budget if we want to effectively respond to the many unmet human services needs in Oregon. It's also important to remember that these two budgets aren't about DHS, they are about local communities. Since fully 85 percent of the department's budget dollars are spent in communities, these two budgets are really about meeting the needs of Oregon's communities and their residents.

The third budget issue on the horizon is the May "reshoot," when the Governor's Recommended Budget for DHS is revised based on new forecasts. Once that occurs we will have a better idea of the actual budget picture proposed for DHS for the 2007-2009 biennium.

Finally, I want to thank all of you who have worked so hard to serve our clients, improve the lives of Oregonians, improve our financial systems, keep our expenditures on track, and make it possible for us to stay within our adjusted budget. I also want to thank everyone who has testified on behalf of the programs and services we provide to Oregonians. Thanks to your combined efforts, the Legislature has a renewed confidence in DHS to deliver effective services and manage the public's money in a transparent, effective and accountable manner. Your good work is paying off. Thank you.

To provide feedback email: DHS.Directorsoffice@state.or.us

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.