[nfbwatlk] FW: Director's Update: budget cut scenarios

Thu Sep 8 00:03:23 UTC 2011

FYI.

Michael J. Mello | Adaptive Technology Specialist

Washington State Department of Services for the Blind

Direct: 206-906-5552

Toll Free: 800-552-7103

Mobile: 206-605-7332

Fax: 206-721-4103

Michael.Mello at dsb.wa.gov

3411 South Alaska Street

Seattle, WA 98118

From: Durand, LouOma (DSB) 
Sent: Wednesday, September 07, 2011 4:33 PM
To: DSB DL All DSB
Subject: Director's Update: budget cut scenarios

Hello All,

You have probably already heard that the situation in our state
regarding the economy, and therefore revenue for state services, is not
improving as rapidly as we had hoped.  The Governor has asked state
agencies to prepare for another (dismal) projected revenue shortfall by
planning ahead and submitting proposals for how we would deliver
services to our constituents within the parameters of even further
diminished resources.  This means that we need to submit two budget
reduction proposals to OFM by September 22nd - two separate proposals
for a 5% reduction in state dollars for each level of the possible
reductions, 10% in total.

I want to share with you information about how we think we might
approach these reductions, and also get your feedback.  Our current
state dollar appropriations are at about $ 2.2 million per year.  A 5%
cut would mean about $114,000 cut per year in state only dollars.  Let
me remind you that any new cut to state dollars unfortunately boils down
to an impact on our Independent Living services, because that's where we
have been devoting every extra state dollar we have had available.   We
value the importance of the services that we provide to the IL
population under age 55, but unfortunately these are the services that
would be most impacted by any further cut to our state dollars. 

Once again, because of our prudent and proactive fiscal strategies, we
are in a good position to address these possible cuts.  Here are the two
scenarios we are planning to submit as proposals to address the mandate
for an additional 10% reduction in state funding.  Please let me know if
you have feedback or questions.

Scenario A - Transfer the Business Enterprise Program (BEP) cost
allocation from General Fund - State (GF-S) into the Vocational
Rehabilitation (VR) federal grant.

BEP expenditures are eligible to be used as match for the VR program as
long as the agency provides financial support to BEP.  DSB has been
providing cost allocation coverage for support operations such as office
space, fiscal services and information technology support out of General
Fund State resources.  This resulted in a 5 to 1 leverage of matching
funds for VR.  The Rehabilitation Services Administration of the US
Department of Education indicated that they would allow support of BEP
to be paid from VR grant funds.  GF-S savings from this shift cover the
5% scenario of $114,000 in FY12 and $113,000 in FY13.  The VR grant
currently has an adequate reserve to pay for the increased costs without
impacting service levels to clients.

Scenario B - Reduce program activity in the Independent Living, Part B
program.

The Independent Living, Part B (IL) program provides services to two
groups.  For children, DSB provides information on resources available,
training and counseling for families, assistance with education plans
and the opportunity for families to network with each other.  The other
group is adults that are not seeking employment services.  These
individuals receive assessments, training, counseling and basic devices
to assist them with independence to be involved in the community and to
function at home.  The current budget for IL is $300,000 per year.  Of
this, less than $60,000 is funded by the Federal government.
Additionally, over $225,000 of the budget is for direct and supporting
salaries and benefits.  The reduction proposal is to redirect staff time
from IL services into VR services.  This will limit family services to
information referral and minor networking.  Services to adults would be
limited to basic assessment, counseling and devices with a stronger
emphasis on employment services.  Both of these will have an impact on
the quality of services provided to these communities.  GF-S savings
from this reduction in services cover the 5% scenario of $114,000 in
FY12 and $113,000 in FY13.  The VR grant currently has an adequate
reserve to pay for the increased costs and will provide additional
capacity within VR.

Thank you for your continued interest and support.

I look forward to your feedback.

Lou Oma