Linking Fiscal

CalWORKs

and CWS

CalWORKs/Child Welfare Partnership ProjectPhase II – Convening II

October 27, 2005

Fiscal Linking

Funding essentials– CalWORKs– CWS– Other funding – First 5

Linking the funding Linking time studies Leveraging grant funds

Introduction

Presenter: Dan Gardner, CPA– Former fiscal officer

San Luis Obispo County

– UC Davis trainer Fiscal Management for Human Services Fiscal Essentials for Children’s Services

– Fiscal consultant County Human Services County First 5 Commissions

Note: This presentation has not been reviewed or approved by CDSS.

Presentation Objectives

How to fund your county’s Linkages Program and activities

How to leverage your Linkages Grant

REV MAX = SERVICE MAX

Finding the Money

CalWORKs allocation

CWS allocation

Other sources

CWS compared to CalWORKs

When the Linkages Project began in California, many county directors believed CalWORKs was better funded than CWS.

Now, many directors believe both programs are inadequately funded.

CalWORKs Essentials

PCAB State budget County allocations “MOE” structure Closeout More info

Golden Days of PCAB

PCAB = Proposed County Administrative Budget

Ask for what you want– More staff!– New facilities!– Community contracts!– Cost of business increases!– Subject to CDSS review and approval

State Budget - CalWORKs

Funded by PCAB up until FY 00-01

Thereafter:– No more cost of business additions– Negative premises have reduced funding

Quarterly Reporting / Prospective Budgeting

State Budget - CalWORKs

-

500

1,000

1,500

2,000

Millions of Dollars

01-02 02-03 03-04 04-05 05-06

Fiscal Year

But … Many counties are not spending their

full CalWORKs allocation.

A serious problem …– Counties say they need more funding– But the lack of full spending sends a

message that more funding isn’t needed.

County Allocations CalWORKs

The slicing of the budget pie

PCAB days: based on each county’s request

Now: based mostly on prior expenditures and caseload – There can be substantial differences between

the state budget and the allocation for a specific county.

MOE Funding Structure Maintenance of Effort

Federal and State Dollars

$50

$100

Allocation

Over-MatchCo.$

$120

CountyDollars

$0

$10MOE

CloseoutCalWORKs

For most allocations, at closeout any unspent funds are redistributed to the County’s that overmatched.

However, not in CalWORKs.– For the past few years, any unspent

funds have been rolled over to the next year after being reappropriated.

Roll over is not county specific.

More Info

UC Davis training– Fiscal Management for

Human Services– Two days

CWS Essentials

SB 2030 PCAB State budget County allocations “Share of Cost” structure Closeout More info

Hopeful Days of SB 2030

Since 1984, each county’s allocation was based on its workload by component, and statewide workload standards.

In April 2000, SB 2030 recommended these statewide standards increase about 50% to fund new mandated activities since 1984.

Augmentation to CWS

Instead of up updating the statewide workload standards, the legislature in FY 00-01 approved an “augmentation” to the CWS allocation.

Also known as Emergency Workload Relief.

An increase of about 12%. May be used for Linkages activities

related to CWS

PCAB

Up until FY 01-02– Used to determine

estimated cost of business for the upcoming year.

Included increases for wages, benefits, overhead, etc.

State Budget - CWS

Up until FY 01-02, funded using 1984 workload standards and current cost of business.

Since FY 02-03, no more cost of business additions.

Some increases for new activities, such as relative home approvals and AB 636.

State Budget - CWS

-

200

400

600

800

1,000

1,200

1,400

Millions of Dollars

01-02 02-03 03-04 04-05 05-06

Fiscal Year

County Allocations CWS

County workload

/ Statewide standards

= Justified FTEs (Hold Harmless)

X County cost from FY 01-02

= CWS basic allocation

“Share of Cost”Funding Structure

Federal Share

State Share

County Share

Allocation

$0

$50

$100State

Augmentation$110Co.

Overmatch$120

CloseoutCWS

For most allocations, at closeout any unspent funds are redistributed to the County’s that overmatched.

This applies to CWS, however there is a limited amount available.– Recently, about 20-30% of county

overmatches have been reimbursed at closeout.

More Info

UC Davis training– Fiscal Essentials for

Children’s Services– Two days

Fiscal Academies– Bakersfield Nov. 7-8 2005– Santa Rosa Mar. 1-2 2006– Chico May 2-3 2006

CWS compared to CalWORKs

When the Linkages Project began in California, many county directors believed CalWORKs was better funded than CWS.

Now, many directors believe both programs are inadequately funded.

But, many counties are not spending their CalWORKs allocation and may use it for “eligible” Linkages activities.

Questions

About funding and allocations for CalWORKs and CWS.

How this information relates to your Linkages Program.

Other Funding

PSSF STOP CAPIT First 5 – Proposition 10

First 5 Proposal The county will develop a Linkages

Program for the benefit of children aged 0-5.

Services ABC will be provided and benefit DEF at a cost of XYZ.

First 5 will pay for 50% of the costs, and the county the remaining 50% with federal, state, and county funds.

Linking the Funding

Claiming Model

County costs, including salaries, benefits and overhead

Time study and direct cost codes

Program costs

PCD – Program Code Descriptions

Time Studies

Social workers may time study to a CalWORKs code if they perform the activity detailed in the PCD, Program Code Description.

Eligibility and employment services workers may time study to a CWS code if they perform the activity detailed in the PCD.

PCD Handout

Includes the CalWORKs and CWS Program Code Descriptions

PCD Example 6641

– CALWORKS INFORMATION AND REFERRAL

– Includes providing applicant with information regarding programs and services available within the CDSS. Includes referrals to community agencies. Activities include explaining support services for employed persons, diversion program, childcare program, Welfare-to-Work Supportive Services, Cal-Learn Program, Food Stamp Program, voter registration, etc.

Digging Deeper

So what exactly does this PCD mean? What does the term “etc.” mean?

We can compare the PCD to the legislation to understand in a broader context the phrase “information and referral.”

Comparison Handout This handout is based on a download

of AB 1542, the original CalWORKs legislation.

A word search is made on “information,” “referral,” “resource,” and “at risk.”

The document is summarized to show the context in which “information and referral” is used.

Comparing TSC 6641 to AB 1542 - CalWORKs

After reviewing time study code 6641 and the comparison handout of AB 1542, does it appear that a Social Worker could time study to 6641 when performing certain “linkages” activities?

Questions

About time study codes?

About PCD interpretations?

About funding your Linkages Program?

Leveraging Grant Fundingin CWS

It depends …

– on how it is handled in the CEC (County Expense Claim)

– and your county’s level of funding its CWS allocation

Extraneous One way is to charge the related grant

expenses to the “Extraneous” area of the CEC.

This removes the costs from CDSS programs on the CEC.

However, the grant funding is not leveraged. Another option is to create in the CEC a

County Only Program Code.

Extraneous Example

County expenditure (5,000)

County revenue: Grant 5,000 Total revenue 5,000

NCC - Net County Cost -

CWS Allocation Underspent

If your county does not fully fund your CWS allocation, you can use the grant as county

Federal Share

State Share

County Share

Allocation

$0

$50

$100

match and leverage it with state and federal funds by charging the related expenses to the CWS codes.

CWS Allocation Underspent

County expenditure (33,333)

County revenue: Federal @ 50% 16,667 State @ 35% 11,667 Grant 5,000 Total revenue 33,333

NCC - Net County Cost -

Supplantation!

Be careful to avoid supplanting county funds with grant dollars. You should be safe as long as …– A new or expanded service is provided,

and– County funding has not been reduced

from the prior year.

Avoid Supplantation

Prepare a budget adjustment

Appropriate expenditures for new activities

Show Federal, State, and Grant revenue with no County Cost

CWS Overmatched The grant replaces county share and

grant funds are leveraged with fed funds.

Federal Share

State Share

County Share

Allocation

$0

$50

$100State

Augmentation$110Co.

Overmatch$120

CWS Overmatch Example

County expenditure (10,000)

County revenue: Federal @ 50% 5,000 Grant 5,000 Total revenue 10,000

NCC - Net County Cost -

CWS Augmentation Underspent

This is tricky because additional services may be provided without a county share.

Federal Share

State Share

County Share

Allocation

$0

$50

$100State

Augmentation$110

CWS Augmentation Underspent

County expenditure (60,000)

County revenue: Fed augmentation @ 50% 25,000 State augmentation @ 50% 25,000 Federal @ 50% 5,000 Grant 5,000 Total revenue 60,000

NCC - Net County Cost -

Note: Assumes unspent augmentation of $50,000

Questions

About how to claim your Linkages Grant?