2008-2009 CHILDREN SERVICES BUDGET REDUCTION PROPOSAL 1, Personnel Reductions: We propose the elimination of 10,5 FTE’s. The elimination of these positions will save $552,611 in 2009 and annually thereafter. Plus we eliminated a whole layer of administrative and supervisory positions earlier this year saving $448,933, For a total annual savings of $1,001,544 or a 10% reduction in our personnel costs for 2009, a, Of the 10,5 FTE positions to be eliminated, four of these positions are located in the Bargaining Unit, 6.5 are non-Bargaining Unit positions. Half of these job eliminations will be achieved thru attrition and five and a half will be layoffs. — 2, Merger benefits: Move the Children Services Finance Department payroll to the Butler County Job and Family Services payroll. This represents a cost shift (and for us a savings) of approximately $900,000 per year. 3. Eederal TANF Funding of Agency Personnel: We've asked the Ohio Department Job and Family Services to approve the use of Federal TANF. funds to pay for fifteen direct-service positions in Children Services. If approved (and we believe it will be) these salaries will be paid directly with federal funds as opposed to local levy dollars. If approved, this shifts approximatley $900,000 in payroll expense to federal TANF dollars. 4, Rederal TANF Funding of Agency Contracts: Shift funding of Children Services contracts traditionally funded by local levy funds to federal TANF dollars, The contracts shifted include, but are not limited to, Wraparound services and other in-home services. By shifting the contract expenses to Federal TANF dollars our agency realizes a savings of $410,000 annually. ‘We are also reviewing other contracts that may be eligible for TANF funding, and as we identify them we will shift as many as possible, within the federal TANF guidelines. We have also included a $50,000 reduction in the Children Services GAL contribution to the general fund. '5. Elimination of the Professional Education Program (PEP). This program partially reimburses staff for mostly post-graduate education, The state is also expected to eliminate funding for this program, Savings from this action is $92,800 per year. 6. Improved Management of Costs Associated With Juvenile Court Kids; We will significantly improve our management and control of costs shifted to our budget by Juvenile Court by working with them to optimize our access to federal funding. This year (2008) Juvenile Court shifted approximately $1.1million in expenses to our budget for children ordered into out-of-home care placement by the court who are not in the custody of Children Services. The 2008 expenses are 200% more than the, $543,642 paid for Court 2007. By utilizing funding available through Title IV-E for these children and implementing a new pre-authorization process we can control our costs and potentially increase our revenues by $396,000 in our 2009 proposed budget. 7. Total Placement Reductions: Reduce our total placement costs of children in includes the “Court Kids,” by 20% between now and paid placements, whi the beginning of calendar year 2009 and maintain that reduced rate throughout the year. This reduetion along with the savings from improved management of “Court Kids” placement costs will result in a total net savings of $660,000 for budget year 2009. savings Summ: ‘The net result of these seven actions along with other strategies to control and reduce our costs and increase our revenues will be a 12.2% reduction in the 2009 budget compared to 2008, This proposed budget reduces spending; maintain our direct service levels and lower caseloads by reducing our administrative staff, improving productivity, and reducing our placement costs, TOTAL AMOUNT OF PERSONNEL REDUCTIONS/SHIFTS : $2,352,611 TOTAL AMOUNT OF CONTRACT SHIFTING: $460,000 ELIMINATION OF PEP PROGRAM: $92,500 NET PLACEMENT REDUCTION SAVINGS ‘$660,000 TOTAL BUDGET REDUCTIONS: $3,565,111 IA yeCash Balance Projections 2008 - 2011 2007 2008 2009 2010 2014 Revenue Revenue Revenue Revenue Revenue | 26,718,303 25,610,449 26,293,458 27,635,783] 28,834,307 | -4.15%| 2.67% 5.11% 4.34% | Expenditures [Expenditures | Expenditures | Expenditures | Expenditures | 27,134,583 29,949,854 26,294,530 27,552,953 28,530,897) | 10.38% -12.20%| 4.79% 3.559% Cash Balance | Cash Balance | Cash Balance | Cash Balance | Cash Balance 6,225,641 1,886,236] 1,885,164] 1,967,994 2,271,404 69.70% 0.06% 4.39% 15.42% COMPARISON 36,000,000» 30,000,000 +— SEE 7 I++-Revenue 25,000,000 $d 20,000,000 |} $a imami$mjNmma | | | |= Expenditures | 18,000,000 +— — ~ 9,000,000 | @$a miami mam “+ Cash Balance 5,000,000 +— 0} 2007 2008 «= 2009S 2010S tt | | |