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Factors affecting the DHS 2003-2005 Legislatively Adopted Budget
DHS funding history
Sources of funds for the Department of Human Services
2003-2005 General Fund budget by cluster
2003-2005 Other Fund budget by cluster
2003-2005 Federal Fund budget by cluster
2003-2005 Total Fund budget and staffing by cluster
2003-2005 General Fund expenditures by category
2003-2005 Total Fund expenditures by category
Factors affecting the DHS 2003-2005 Legislatively Adopted Budget
During the 2001-03 biennium, the department's budget took a total of $273.4 million in reductions due to the state's declining revenue forecasts. This amounted to a 3.2 percent reduction in the department's overall budget. Development of the 2003-05 budget began while cuts were being made to many state services.
For more information about the 2001-03 budget reductions, see the DHS Web site.
The department's overall 2003-05 legislatively adopted budget grew less than 1 percent in the General Fund and about 2 percent in Total Funds from the 2001-2003 biennium.
As approved, the 2003-05 budget represents reductions from program levels originally approved for the 2001-2003 biennium, while restoring some of the most critical service reductions initiated over the past several months. The legislatively adopted budget for the current biennium is $2.4 billion General Fund and $9.3 billion Total Funds.
Factors affecting the budget
The department's budget reflects the revenue constraints under which the Governor and the Legislature worked. Below is a brief description of many of the factors that had an influence on the department's overall budget:
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Expected state General Fund revenue down 15.3 percent from the level anticipated at close of the 2001 Legislative Session
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State and national economies' minimal growth
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Oregon's high unemployment rate
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Changing demographics impact on service demand (population growth, especially of the aging population, and increasing racial and ethnic diversity)
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Stretched capacity of local government and other organizations that serve clients
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Growth in cost of serving many client groups in excess of the general rate of inflation — for example per capita medical costs on average have risen by more than 5 percent each year since 1991. In 2001 alone, the increase was 10 percent, and was the fifth straight year that the cost growth exceeded the previous year's rate.
Highlights of the 2003 Legislature's budget
The Oregon Health Plan has been redesigned to control expenses while extending medical assistance to as many Oregonians as possible. These changes require federal approval.
A tax on Medicaid managed care plans, hospitals and nursing facilities will support restoration of services and increased reimbursement for certain providers. The new tax will be implemented at the beginning of the 2004 calendar year, pending federal approval.
While the economic downturn has resulted in significant caseload increases in many program areas, such a food stamps, these have been partially offset by budget cuts that continue into 2003-05.
Children, Adults and Families highlights
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The Temporary Assistance to Needy Families (TANF) monthly cash grant restored to 1991 level, having been cut five dollars during the 2001-03 biennium
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Employment Related Day Care monthly co-pay levels decreased from $43 to $25
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Food Stamp households have increased significantly, by more than 55 percent since 1996. The food stamp caseload has grown by over 20,000 households in the last year alone and continues to climb.
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System of Care allocated $8 million General Fund in restored flexible funds for child welfare services that were eliminated in the 2001-03 biennium
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Foster care, special needs foster care and adoption assistance rate reductions of 7.5 percent reversed.
Health Services highlights
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Funding added to provide benefits for federally required groups of eligible persons as well as all adults (without Medicare coverage) with incomes up to 100 percent of the federal poverty level (FPL), children in households with incomes up to 200 percent of the FPL, and pregnant women with incomes up to 85 percent of the FPL.
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Mental health crisis services and community services restored to 2001-03 levels
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Adolescent day treatment services partially restored
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Alcohol and drug treatment services partially restored
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School-based health clinics support restored
Seniors and People with Disabilities highlights
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Services to clients in survival priority levels 10-13 restored (Levels 10 through 17 were eliminated during the 2001-03 biennium)
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The General Assistance program partially restored (eliminated in 2001-03 biennium)
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Oregon Project Independence programs partially restored
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Funding for long-term care facilities (nursing, residential, adult foster homes) remains at 2001-2003 levels
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Assisted living rates increased 2.6 percent each year of the biennium
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Home care worker collective bargaining agreement funded at $25 million General Fund
Department-Wide Support Services (DWSS) highlights
The DHS reorganization in the 2001-03 biennium completed the consolidation of support services functions including accounting, personnel and payroll, contract administration, budget coordination, building operations, and information systems functions begun in the 1995-97 biennium. The reorganization moved 280 administrative and support positions from the program units to DWSS.  Go to top
DHS funding history
* Includes: Lottery Funds, Tobacco Funds, and Other Funds
History of funding ($ millions)
| Biennium | General
Fund | Lottery | Tobacco
Funds | Other
Funds | Federal
Funds | Total
Funds |
| 1995-97 | $1,835.8 | - | - | $436.4 | $2,971.1 | $5,243.3 |
| 1997-99 | $1,886.3 | - | $224.9 | $369.3 | $3,850.0 | $6,330.5 |
| 1999-01 | $2,234.3 | $5.3 | $215.5 | $620.5 | $4,546.2 | $7,621.8 |
| 2001-03 | $2,341.3 | $5.9 | $484.2 | $771.0 | $5,571.2 | $9,173.6 |
| 2003-05 | $2,394.6 | $5.6 | $458.1 | $655.2 | $5,807.3 | $9,320.8 |
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Sources of funds for the Department of Human Services
2003-2005 legislatively adopted budget
Total Funds = $9,320.8 million
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2003-2005 General Fund budget by cluster
General Fund = $2,394.6 million
| | Percent | General Fund
(millions) |
| CAF - Children, Adults and Families | 8.3% | $199.3 |
| CHS - Community Human Services | 9.4% | $226.4 |
| HS - Health Services | 45.6% | $1,091.7 |
| SPD - Seniors and People with Disabilities | 32.7% | $782.3 |
| DWSS - Department-Wide Support Services | 4.0% | $94.9 |
| Total | 100% | $2394.6 |
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2003-2005 Other Fund budget by cluster
Other Fund = $1,118.9 million
| | Percent | Other Funds
(millions) |
| CAF - Children, Adults and Families | 10.6% | $118.7 |
| CHS - Community Human Services | 1.8% | $19.8 |
| HS - Health Services | 70.1% | $784.0 |
| SPD - Seniors and People with Disabilities | 14.0% | $156.6 |
| DWSS - Department-Wide Support Services | 3.5% | $39.8 |
| Total | 100% | $1118.9 |
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2003-2005 Federal Fund budget by cluster
Federal Fund = $5,807.4 million
| | Percent | Federal Fund
(millions) |
| CAF - Children, Adults and Families | 21.6% | $1,253.8 |
| CHS - Community Human Services | 5.3% | $305.3 |
| HS - Health Services | 46.6% | $2,709.8 |
| SPD - Seniors and People with Disabilities | 22.7% | $1319.0 |
| DWSS- Department-Wide Support Services | 3.8% | $219.5 |
| Total | 100% | $5,807.4 |
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2003-2005 Total Fund budget and staffing by cluster
Total Fund = $9,320.8 million
  
| | Percent
FTE | Total FTE | Percent
Funds | Total Fund
(millions) |
| CAF - Children, Adults and Families | 2.2% | 199.46 | 16.9% | $1,571.7 |
| CHS - Community Human Services | 47.2% | 4320.53 | 5.9% | $551.5 |
| HS - Health Services | 23.4% | 2138.76 | 49.2% | $4,585.5 |
| SPD - Seniors and People with Disabilities | 17.3% | 1585.33 | 24.2% | $2,257.8 |
| DWSS - Department-Wide Support Services | 9.9% | 904.17 | 3.8% | $354.3 |
| Total | 100% | 9148.25 | 100% | $9320.8 |
Note: FTE includes staffing for Institutions, Program Support and Administration
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2003-2005 General Fund expenditures by category
General Fund expenditures = $2,394.6 million
| | Percent | General Fund (millions) |
| Client benefits/purchased services includes payments to clients, Food Stamps, provider payments, Oregon Health Plan and child support payments. | 73.6% | $1,762.1 |
| Institutional services include institutions in Salem, Eastern Oregon, Portland and state-operated group homes. | 6.9% | $164.8 |
| Services provided by DHS include case managers, hearings staff, child protective services and collections staff. | 13.7% | $329.0 |
| Central Administration includes department management, information services, human resources and financial services staff. | 5.8% | $138.7 |
| TOTAL | 100% | $2,394.6 |
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2003-2005 Total Fund expenditures by category
Total Fund expenditures = $9,320.8 million
| | Percent | Total Fund (millions) |
| Client benefits/purchased services includes payments to clients, Food Stamps, provider payments, and Oregon Health Plan. | 82.3% | $7,672.2 |
| Institutional services include institutions in Salem, Eastern Oregon, Portland and state-operated group homes. | 2.5% | $231.0 |
| Services provided by DHS include case managers, hearings staff, child protective services and collections staff. | 10.1% | $939.0 |
| Central Administration includes department management, information services, human resources and financial services staff. | 5.1% | $478.6 |
| TOTAL | 100% | $9,320.8 |
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