The 2014 Executive Budget Document
Governor McDonnell's Proposed Budget for the 2014-2016 Biennum
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Released on December 16, 2013 
 
Department of Social Services [765]
Secretarial Area: Health and Human Resources
Mission:
People helping people triumph over poverty, abuse and neglect to shape strong futures for themselves, their families, and communities.
Operating Budget Summary
This table shows the Governor's proposed budget for the next two years and the agency's official budget for the previous six years.
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Biennium Fiscal Year Source GF NGF Total
2008-2010 2009 Chapter 872, 2010 Acts of Assembly $380,279,227 $1,417,475,684 $1,797,754,911
2008-2010 2010 Chapter 872, 2010 Acts of Assembly $387,238,581 $1,449,900,233 $1,837,138,814
2010-2012 2011 Chapter 2, 2012 Acts of Assembly $379,562,717 $1,539,376,280 $1,918,938,997
2010-2012 2012 Chapter 2, 2012 Acts of Assembly $381,334,809 $1,521,079,922 $1,902,414,731
2012-2014 2013 Chapter 1, 2014 Acts of Assembly $377,008,290 $1,503,226,380 $1,880,234,670
2012-2014 2014 Chapter 1, 2014 Acts of Assembly $388,926,339 $1,465,172,076 $1,854,098,415
2014-2016 2015 Governor's Proposed Budget $390,886,693 $1,528,938,501 $1,919,825,194
    Base Budget $386,033,198 $1,477,870,237 $1,863,903,435
    Addenda (Changes to the Base) $4,853,495 $51,068,264 $55,921,759
2014-2016 2016 Governor's Proposed Budget $395,884,562 $1,527,048,166 $1,922,932,728
    Base Budget $386,033,198 $1,477,870,237 $1,863,903,435
    Addenda (Changes to the Base) $9,851,364 $49,177,929 $59,029,293
Positions Budget Summary
Biennium Fiscal Year Source GF NGF Total
2008-2010 2009 Chapter 872, 2010 Acts of Assembly 389.31 1,272.19 1,661.50
2008-2010 2010 Chapter 872, 2010 Acts of Assembly 376.21 1,260.29 1,636.50
2010-2012 2011 Chapter 2, 2012 Acts of Assembly 376.21 1,260.29 1,636.50
2010-2012 2012 Chapter 2, 2012 Acts of Assembly 398.21 1,282.29 1,680.50
2012-2014 2013 Chapter 1, 2014 Acts of Assembly 405.21 1,297.29 1,702.50
2012-2014 2014 Chapter 1, 2014 Acts of Assembly 400.21 1,305.29 1,705.50
2014-2016 2015 Proposed Positions 441.21 1,256.29 1,697.50
    Base Budget 400.21 1,305.29 1,705.50
    Addenda (Changes to the Base) 41.00 (49.00) (8.00)
2012-2014 2016 Proposed Positions 441.21 1,256.29 1,697.50
    Base Budget 400.21 1,305.29 1,705.50
    Addenda (Changes to the Base) 41.00 (49.00) (8.00)
Operating Budget Addenda (in order of greatest impact)
•
Adjust appropriation to reflect changes in eligibility operations Decision Package
  Adjusts appropriation to reflect changes in the department’s eligibility determination infrastructure associated with modernizing information systems and revising policies. The department has received federal approval to receive enhanced Medicaid participation in eligibility operations and expects to free approximately $8.2 million general fund each year. However, this amount is offset by unavoidable costs, estimated at $5.7 million in FY 2015 and $7.3 million in FY 2016, associated with local staffing, systems operations, and program enhancements.
 
  FY 2015 FY 2016
General Fund ($2,492,411) ($878,153)
Nongeneral Fund $31,623,186 $30,532,906
•
Adjust Temporary Assistance for Needy Families (TANF) budget for mandated spending Decision Package
  Updates appropriation to properly account for the anticipated cost of providing mandated TANF benefits. Benefits include cash assistance payments, employment services and child care. The amendment also budgets the anticipated cost of administering the program that will be borne by local departments of social services and provides for a three percent caseload reserve.
 
  FY 2015 FY 2016
Nongeneral Fund ($13,757,466) ($13,757,466)
•
Appropriate nongeneral fund share of centrally budgeted costs Decision Package
  Provides appropriation to cover the nongeneral fund cost of increasing employee benefits. Agencies were provided the general fund share of centrally budgeted items, such as the recent salary increase, health insurance premiums, employee retirement. This technical adjustment ensures that sufficient nongeneral fund appropriation is available to fund that portion of these expenses.
 
  FY 2015 FY 2016
Nongeneral Fund $10,953,914 $10,953,914
•
Adjust appropriation to reflect final eligibility modernization contract payments Decision Package
  Adjusts appropriations to reflect the resources necessary to make the final payments on the base contract for the modernization of agency systems.
 
  FY 2015 FY 2016
General Fund ($3,400,000) ($5,600,000)
Nongeneral Fund $8,800,000 ($2,298,000)
•
Comply with federal child care regulations Decision Package
  Appropriates federal child care revenue necessary to cover costs associated with federal regulations regarding child care subsidies for low income children.
 
  FY 2015 FY 2016
Nongeneral Fund $8,000,000 $8,000,000
•
Provide foster care and adoption payments for young adults up to age 21 Decision Package
  Makes funding available to expand foster care and adoption subsidies to age 21 per federal Fostering Connections provision beginning in FY 2016. In addition, funding is provided in FY 2015 for the Department of Social Services to contract with private entity to develop a plan for implementing provisions of the federal legislation.
 
  FY 2015 FY 2016
General Fund $100,000 $4,838,071
Nongeneral Fund $0 $8,382,412
•
Fund anticipated cost of child welfare services Decision Package
  Adds funding for cover the cost of providing foster care and adoption subsidy payments. Based on recent expenditure trends and the impact of child welfare policy changes, this amendment adjusts appropriation to cover the necessary costs of providing payments to foster care and adoptive families. The addendum also moves funding between service areas to ensure that amount dedicated for adoption subsidies is reflected correctly.
 
  FY 2015 FY 2016
General Fund $3,224,435 $3,245,599
Nongeneral Fund $2,846,448 $2,867,612
•
Offset a decline in child support enforcement revenue Decision Package
  Provides general fund support to avoid significant reductions to child support collection efforts. As Virginia’s Temporary Assistance to Needy Families (TANF) caseload continues to decline, so too is the amount of child support collected by the Division of Child Support Enforcement (DCSE). This reduction in revenue has a direct impact on DCSE operations as a portion can be retained and used to draw federal matching dollars ($2 federal for every $1 state). Therefore, the anticipated $3.9 annual revenue shortfall translates into a $11.7 million operating deficit for DCSE. This addendum provides $2.9 million general fund to replace lost revenue and assumes that the remaining $1.0 million of the shortfall will be covered efficiencies implemented within the division. A companion amendment provides general fund support in FY 2014.
 
  FY 2015 FY 2016
General Fund $2,886,200 $2,886,200
Nongeneral Fund ($2,886,200) ($2,886,200)
•
Distribute Central Appropriation amounts to agency budgets Base Budget Adjustment
  Adjusts the agency budget to reflect amounts moved to or from Central Appropriations to cover the continued cost of public employee salary increases, increases in state employee health insurance premiums, changes in state employee retirement and other benefit contribution rates, and other centrally funded items being continued from the 2012-14 biennium into the 2014-16 biennium.
 
  FY 2015 FY 2016
General Fund $5,001,331 $5,001,331
•
Appropriate anticipated federal energy assistance revenue Decision Package
  Increases appropriation to account for the estimated federal revenue that will be received for the Low Income Home Energy Assistance Program (LIHEAP). LIHEAP is a subsidy program offered through local departments of social services to assist low-income households meet their energy needs. There is no impact on general fund expenditures as Virginia does not subsidize this federal program and no state match is required.
 
  FY 2015 FY 2016
Nongeneral Fund $3,985,450 $3,985,450
•
Increase foster care and adoptive payment rates Decision Package
  Raises maximum maintenance payments made to foster family homes on behalf of foster children by three percent. Appropriation Act language requires an automatic adjustment for inflation be applied to the maximum room and board rates paid to foster parents in the fiscal year following a state employee pay raise. As state employees and state supported local employees received, on average, the equivalent of a three percent raise starting July 25, 2013; this addendum provides a similar percent increase to foster care rates beginning in FY 2015. This increase is also assumed for adoption subsidy funding to ensure that adoption subsidies keep pace with foster family rates and to avoid any disincentives to adoption.
 
  FY 2015 FY 2016
General Fund $1,196,771 $1,196,771
Nongeneral Fund $829,176 $829,176
•
Capture anticipated surplus in the auxiliary grant program Decision Package
  Removes $2.0 million of general fund savings in the auxiliary grant (AG) program based on the latest spending projections. The auxiliary grant program is appropriated $24.9 million general fund. Due to fewer individuals participating in the auxiliary grant program, it is estimated that the program will only spend $22.9 million in FY 2014 and that amount would be constant in each year of the 2014-2016 biennium. This strategy will have no impact on clients or services.
 
  FY 2015 FY 2016
General Fund ($2,000,000) ($2,000,000)
•
Adjust funding to agencies for information technology and telecommunication charges Decision Package
  Adjusts the agency budget for information technology and telecommunication charges based on the required cost of living adjustments contained in the Northrop Grumman contract and the elimination of the debt recovery surcharge originally approved by the Joint Legislative Audit and Review Commission on July 12, 2010.
 
  FY 2015 FY 2016
General Fund $179,971 $1,232,160
Nongeneral Fund $301,044 $2,061,085
•
Move Comprehensive Services Act administrative funding Decision Package
  Transfers all appropriation and positions associated with Comprehensive Services Act (CSA) administration into the agency (200) where program funding is appropriated. This technical amendment will increase the budget's transparency by clearly connecting the administrative and programmatic budgets of CSA.
 
  FY 2015 FY 2016
General Fund ($1,334,611) ($1,334,611)
Positions (13.00) (13.00)
•
Provide funding to Early Childhood Foundation for kindergarten readiness program Decision Package
  Provides general fund support for the Early Childhood Foundation to implement kindergarten readiness assessment programs based on the findings included in Elevate Early Education’s January 1, 2015 report.
 
  FY 2015 FY 2016
General Fund $1,000,000 $1,000,000
•
Negotiate adoption subsidies for local departments of social services Decision Package
  Requires the state Department of Social Services to negotiate all adoption assistance agreements with both existing and prospective adoptive parents on behalf of local departments of social services. This provision will not change legal responsibilities of the local departments of social services or alter the rights of the adoptive parents.
 
  FY 2015 FY 2016
General Fund $358,246 $342,414
Nongeneral Fund $225,883 $215,900
Positions 5.00 5.00
•
Adjust agency appropriation for the cost of Performance Budgeting system charges Decision Package
  Provides appropriation to pay for the agency's share of ongoing Performance Budgeting system operating and maintenance costs. The general fund share of this cost was previously budgeted in Central Appropriations.
 
  FY 2015 FY 2016
General Fund $38,191 $38,191
Nongeneral Fund $146,207 $146,207
•
Continue funding for Elevate Early Education pilot through FY 2015 Decision Package
  Extends funding for Elevate Early Education to conduct a pilot through FY 2015, while removing the support from FY 2016. Elevate Early Education was provided funds for a pilot kindergarten readiness assessment program in FY 2014. This adjustment also extends the date for the required pilot report to January 1, 2015.
 
  FY 2015 FY 2016
General Fund $0 ($250,000)
•
Increase funding for Youth for Tomorrow Decision Package
  Increases the general fund support for Youth for Tomorrow. Youth for Tomorrow was provided funds for comprehensive residential, education and counseling services to at-risk adolescents and youth in the 2012-2014 biennial budget.
 
  FY 2015 FY 2016
General Fund $100,000 $100,000
•
Fund agency costs for the new Cardinal accounting system Decision Package
  Provides appropriation to the agency’s budget to pay for the agency’s share of the costs for the new Cardinal accounting system. The Department of Accounts allocates the yearly cost of the system to agencies based upon the number of transactions the agency completed in the previous fiscal year.
 
  FY 2015 FY 2016
General Fund $0 $37,695
Nongeneral Fund $0 $144,311
•
Fund changes in state employee workers' compensation premiums Decision Package
  Adjusts the agency's budget for workers' compensation premiums based on the allocation of 2015 and 2016 program costs provided by the Department of Human Resource Management. The allocation is based on the historical experience of the agency and reflects the current policy of providing agencies with 50 percent of any increased costs and allowing agencies to retain 50 percent of any reduced costs.
 
  FY 2015 FY 2016
General Fund ($4,785) ($4,461)
•
Adjust funding for premium changes in the automobile insurance liability program Decision Package
  Adjusts agency funding for the approved premium changes in the state’s automobile insurance liability program.
 
  FY 2015 FY 2016
General Fund $157 $157
Nongeneral Fund $622 $622
•
Maintain support for domestic violence shelters and prevention services Decision Package
  Replaces $1.3 million of lost nongeneral fund revenue currently supporting domestic violence services with Temporary Assistance for Needy Families (TANF) funds. This addendum ensures that level of support for local domestic violence programs that provide for the safety of battered adults and their children is maintained. No budget adjustments is shown as the agency already has sufficient nongeneral fund appropriation for the available revenue.
•
Utilize nongeneral fund balances to mitigate federal reductions Decision Package
  Allows the department to use an anticipated Temporary Assistance for Needy Families (TANF) balance to minimize the impact of federal sequestration reductions on localities in FY 2014 and each year of the 2014-2016 biennium. A limited amount of this TANF (approximately $2.0 million) has been reserved to offset the impact of current and future federal reductions on to any eligible services.
•
Account for the removal of family engagement funding Decision Package
  Adjusts appropriations to align funds in the appropriate service areas relative to the organizational structure of the agency. This action will ensure the proper accounting of current services and improve budget transparency. This action nets to zero.
•
Study impact of shifting to state administered adoption program Decision Package
  Requires the Department of Social Services, in cooperation with local departments of social services, to prepare a report that examines the financial, programmatic and policy implications of the state assuming full responsibility for all aspects of the adoption program. This study will provide data necessary to determine the advantages and disadvantages of moving from a locally administered to a state run adoption program. This action is contained in budget bill language.
•
Account for the purchase of capital assets Decision Package
  Moves nongeneral fund appropriation between fund details to account for the purchase of capital assets. Federal regulations require that the purchase of any single item in excess of $25,000 that needs to be depreciated be accounted for separately. This technical adjustment allows all capital assets purchases to be recorded in the proper fund, Capital Asset Procurement Fund. This action nets to zero.
•
Outline support for the Family and Children's Trust Fund (FACT) Board Decision Package
  Adds language to acknowledge the department’s current role in providing administrative support for the Family and Children's Trust Fund (FACT) Board. FACT was created by the General Assembly in 1986 as a public-private partnership to raise funds for the prevention and treatment of family violence. This is a technical amendment that will not have any impact on services or require any additional resources. This action is contained in budget bill language.
•
Consolidate local staff and operations budget lines Decision Package
  Adjusts budget to reflect the single pool for local expenditures recently implemented by the department. Local spending was split between two service areas (46003 and 46006) in the Appropriation Act. With the department's transition to the single pool, all expenditures for local staff and operations are now being charged to a single service area (46010). This technical adjustment consolidates the appropriations for local staff and operations with no impact on services. This action nets to zero.
•
Adjust appropriation to reflect program management operations Decision Package
  Moves appropriation between service areas to align the program budget with anticipated expenditures. The department recently reorganized its program support division to facilitate changes in business operations related to the implementation of the eligibility systems modernization project. This has resulted in the need to adjust agency appropriations between service areas in the budget. This action nets to zero.


pdocagy2014 - Executive Budget Document Agency Details - 06-03-2025 20:58:27