Feb. 1, 2008

To: All DHS employees

From: Bruce Goldberg, M.D., Director

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"Never confuse movement with action."
~Ernest Hemingway

I have vowed to do my best to keep you informed about our budget and important policy issues. So this week I'd like to update everyone on our financial status.

Two weeks ago we presented the agency's first 2007-2009 biennium rebalance report to the Joint Ways and Means Committee. As you may recall, DHS routinely reports to the Legislature three times a biennium to adjust, or rebalance, our budget to reflect changing caseloads and service needs throughout Oregon.

With your help, we were able to deliver to the Joint Ways and Means Committee two resoundingly positive messages.

First, DHS concluded the 2005-2007 biennium within its budget. This is a significant accomplishment. Thanks to your efforts we have upheld a promise we made legislators last biennium to demonstrate good stewardship of agency funds. In addition, we made significant strides toward remedying some of the structural cash flow issues that have burdened our agency for years.

Second, with a full quarter of the current biennium behind us, our budget for 2007-2009 is on target and on track.

The details of how we accomplished this are available in the January 2008 Rebalance Report at www.oregon.gov/DHS/aboutdhs/budget/07-09budget/index.shtml.

I told you in December 2006 that your hard work in serving our clients, improving our financial systems and keeping our expenditures on track had made it possible for us to stay within our adjusted budget while continuing to improve the lives of Oregonians. Your ongoing efforts are the key to maintaining that success.

There are, however, two key risks we face that could affect our ability to deliver services. As you know from recent news reports, the country's economy may be turning downward. When there are problems with the economy, there is less state revenue at the same time there are more human service needs, which can create a deadly combination (literally). In addition, changes in caseloads and changes to federal policy greatly influence our ability to continue to deliver the same level of high-quality services within the confines of current budget allotments.

These factors make it even more important that we continue to manage our resources carefully. People's lives depend on it.

While speaking about budgets, I also want to share an additional piece of good news with you. This month, we learned that that our fiscal staff received the State Controller's Gold Star Certificate. This is the first time DHS has received the award since 2003. The recognition letter states, in part:

"The State Controller's Gold Star Certificate is awarded to state agencies that provide accurate and complete fiscal year-end information in a timely manner. Clearly, the Gold Star is a challenge to earn, and its achievement is due primarily to your agency's diligent efforts to maintain accurate and complete accounting records throughout the year. We are very happy to recognize your agency with this award. The diligent efforts of your fiscal staff truly make a difference in maintaining the state's accountability and credibility in financial reporting."

Congratulations to everyone who helped make this possible. I am confident we will see more recognitions of this type as we continue to strive for excellence in our management of funds and delivery of services.

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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.