Governor Strickland's Executive Orders to cut state adoption assistance program

Executive Orders Implement Cuts in Adoption Assistance, Child Care
Hannah News

Gov. Ted Strickland this week issued two Executive Orders (EOs) implementing cuts to the state's adoption assistance programs and child care program that were included in HB1, the FY10-11 budget. The first, EO 2009-15S, which was effective Monday, Aug. 10, addresses reductions in certain adoption expenses while EO 2009-16S, which was effective Wednesday, Aug. 12, deals with the publicly funded child care program. Both put into immediate effect revised rules reducing expenditures in these areas for 90 days. This gives the Department of Job and Family Services (ODJFS) time to pursue revised rules through the normal rule-making process. Both executive orders are posted on www.hannah.com

The adoption changes center on ODJFS appropriation line item 600-528 Adoption Services which, according to Crystal Ward Allen, executive director of the Public Children Services Association of Ohio (PCSAO), covers expenditures in four major areas:

- The Post Adoption Special Services Subsidy (PASSS). Funding and eligibility criteria for this program, which offers eligible families up to $10,000 a year to help pay for the treatment of a physical, developmental, mental or emotional conditions, has been kept the same as in FY09 by ODJFS.

- The State Adoption Maintenance Subsidy (SAMS) program. This is a state program for adoptive children who are not eligible for the federal Title IV-E program but who have special needs. This covers approximately 7 to 8 percent of the special needs adoptions - children who by 2018, Allen explained, will be covered under the federal program.

- State match for the federal Title IV -E. Title IV-E program covers 92 to 93 percent of the special needs adoptive children; it is a federal, state and locally funded program. The feds share in the cost at the same rate as the state's Medicaid reimbursement which is currently at an uncharacteristically high 68.34 percent due to the American Recovery and Reinvestment Act (ARRA). Normally, according to Allen, the federal reimbursement is between 60 and 62 percent.

- Non-Recurring Adoption Expenses. This state/federal program provides a one-time payment for non-ongoing expenses. The cap on this payment had been $2,000; it now goes to $1,000. The federal government covers 50 percent of the amount.

According to the emergency rules, the state's portion for both SAMS and Title IV-E drops from $300/month to $240/month per child beginning with the September payment. This presents a problem for the counties, Allen said, explaining that the average subsidy amount is approximately $550/month. In addition, federal requirements, backed by a couple of court decisions, preclude reducing the IV-E subsidy based on lack of state funds. Allen estimated counties face an $8 million funding gap, which she said they are in the process of "trying to determine how to manage ....

"Some counties have resources and can increase their local share." Others may have to renegotiate the subsidy amount with each of the affected families or adjust other programs. The following summarizes the funding for this line item:

Adoption Services FY09 FY10 FY11
State $43.7 million $22.8 million $24.1 million
Federal 42.8 million 49.3 million 46.3 million
TOTAL $86.5 million $72.2 million $70.4 million

Allen said her association is supporting SB155, sponsored by Sens. John Carey (R-Wellston) and Dale Miller (D-Cleveland), which "makes a slight change to Ohio's tax code" and designates the resulting funds for adoptions and Disability Medical Assistance. She expressed the hope that the bill will be incorporated into the budget correction bill which may done as early as the end of September.