[Ohio-talk] Fw: OLRS likely going nonprofit

[Dr. Smith]

Now this could be a very interesting development so be vigilant and read on.

JW

----- Original Message ----- 
From: Sammons, Elizabeth 
To: Perry, Jason ; Hinton, Scott ; 'WILLIAM G CRUM' ; 'tango_lady at sbcglobal.net' ; 'Dr. Smith' 
Sent: Thursday, February 26, 2009 8:15 AM
Subject: OLRS likely going nonprofit



FYI from Elizabeth

***



>From Michael Kirkman, Executive Director of Ohio Legal Rights Services

---------------------------- Original Message ----------------------------
Subject: [fscouncil] State and federal budget update; transition study
From:    "Michael Kirkman" <MKirkman at olrs.state.oh.us>
Date:    Wed, February 25, 2009 3:03 pm
To:      mkirkman at olrs.state.oh.us
--------------------------------------------------------------------------

I wanted to update you on the biennial budget bill, House Bill 1, as it affects OLRS. Most importantly, I want to let you know about the provision of the bill that calls for a review of OLRS' status as a state agency, and directs the OLRS Commission to conduct a study, completed by the end of 2009, related to transition of OLRS' P&A funding to a non-profit organization, and to develop a transition plan.  I have attached the proposed language as introduced yesterday.

Appropriations -- As has been the case for the last two budgets, OLRS' state funding (GRF) is not being increased.  In the past, the budget was level funding or cut.  This time, the cuts are significant, around 20% of the already reduced amount of GRF for fiscal year (FY) 2009.

Nonetheless, the federal allocations for OLRS' protection and advocacy (P&A), Client Assistance Program, and Work Incentive Planning Act programs amount to around 95% of the agency's funding.  These are expected to be increased in federal fiscal year (FFY) 2009, once the Congress acts on the Omnibus spending bill.  This is expected to occur by no later than March 6, 2009, which is also when the current continuing resolution expires.
Congress will then take up the FFY 2010 budget, which takes effect in October of 2009.

OLRS may recognize some cost savings because of the ongoing labor negotiations that control a significant percentage of its payroll. But all of these factors remain subject to change, and it will not be until October of 2009 that OLRS has clear picture of its budget over the remainder of the calendar year and into the next fiscal year.

Transition study -- We have been very busy since the publication of the Governor's executive budget proposal (the "Blue Book").  It included a proposal, previously not seen by agency staff, that OLRS transition the federal P&A grants to a non-profit corporation, and that the GRF funded Ombudsman function be transferred to the Ohio Department of Aging.

In response to the proposal, at a special meeting of the OLRS Commission was held on February 11, 2009. The Commission unanimously passed a resolution "that it supports the continued role the Ohio Legal Rights Service and its Commission as an independent agency of the state of Ohio."

A meeting was scheduled with the Governor's Chief Counsel along with Office of Budget and Management staff and its Chief Counsel ("Governor's staff").
The OLRS Commission Chair attended the meeting and stated the Commission's reaction and resolution in opposition to the proposal.  There was frank discussion from all participants regarding how best to maintain the authority and independence necessary for OLRS to perform its mandated P&A functions under federal law. The topics discussed included:

* issues that had arisen periodically related to administration of the
grants as part of the executive branch of state government, including

* flexibility in allocating and managing federal funds;
* confidentiality and management of client data, particularly
electronically stored information; and
* personnel controls (hiring freezes, layoffs, etc.) that should apply
uniformly across the state but where federal law gives the P&A exceptional authority;

* both tangible and intangible reasons why a non-profit might not have
the same authority as a state agency P&A, including specific access authority in the current Revised Code that might be lost if the function were transferred to a non-profit;
* the synergy between the Ombudsman Section and P&A abuse and neglect
investigation authority, which has allowed the Ombudsman to remain effective even with reduced GRF funding;
* the impact of transition on the staff of OLRS, agency morale, and
retention of its knowledge, experience and capabilities;
* most of the nation's P&As are run by non-profit corporations, and
that the trend over the last 15 years has been for state agency P&As to make a transition out of state government;
* procedures, including public comment, and findings required by
federal law before a redesignation can take place.

The Governor's staff and OLRS agreed that the decision related to the management of the P&A grants must be made with the interests of Ohioans with disabilities foremost in mind. As a result of the discussion, OLRS proposed that the transition be delayed for further study.

The language in the budget bill is as a result of the meeting.  The bill charges the OLRS Commission to "conduct a study concerning a potential transition from a public entity to a nonprofit organization effective July 1, 2011."  The study must report on

1) feasibility of a transition to a non-profit;

2) effects on service delivery, including needed resources;

3) organizational effects, including potential costs savings and grant opportunities; and

4) the amount of time that would be needed to transition.

The study must be completed and delivered to the Governor and leadership of the General Assembly by no later than six months after the effective date of the bill.  The bill also requires the Commission to "develop a process plan by which a transition to a nonprofit organization could be implemented not later than July 1, 2011."

The Commission and I are most grateful to the Governor's office and OBM for agreeing that this important question needs to be thoroughly studied before a decision is made.  Once HB 1 is approved by the General Assembly, we intended to conduct the required study in a manner that involves input from people with disabilities and their families, OLRS staff, and other advocates, both in Ohio and nationally.

Periodic updates will be posted to listservs and on OLRS' web page.  Please feel free to call me if you have any questions.



Michael Kirkman, Esq.
Executive Director
olrs.ohio.gov <http://www.olrs.ohio.gov/>

. . . protection and advocacy for people with disabilities
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