Committee Meeting Memos

Prepared by the North Dakota Legislative Council staff for the Budget Committee on Human Services
June 1997

STUDY OF THE RESPONSIBILITY OF SOCIAL SERVICE AGENCIES PROVIDING SERVICES TO CHILDREN, FAMILIES, THE DISABLED, AND THE ELDERLY - BACKGROUND MEMORANDUM

STUDY DIRECTIVE

House Concurrent Resolution No. 3032 directs the study of the responsibilities of county social service agencies as they are distinguished from the responsibilities of regional human service centers and the Department of Human Services when providing services to children and their families and persons with disabilities, including the elderly. Reasons cited in the resolution for the study include:

The study represents a continuation of the Budget Committee on Human Services study during the 1995-96 interim which conducted a similar study that focused on economic assistance programs and the state and county financing and administrative responsibilities;
North Dakota Century Code (NDCC) Chapter 50-06 establishes the Department of Human Services and its components as the agency responsible for administering programs for children and their families, persons with developmental disabilities, crippled children, aging services, mental health services, and alcohol and drug services;
North Dakota Century Code Section 50-06-05.1 directs the department to direct and supervise county social service board activities that are financed with funds distributed by the department;
Section 50-06-05.1 directs the department to carry out various human service programs and regulatory functions which the department has delegated to county social service agencies; and
Each program or function delegated to county agencies may have a unique method of assurance compliance, and the role of county government in the delivery system may vary from county to county.

Attached as Appendix "A" is a copy of House Concurrent Resolution No. 3032 .

OTHER RELATED 1997-98 INTERIM STUDIES

The Legislative Council's Child Support Committee is studying the provision of child support services and child care licensing as required by Section 14 of House Bill No. 1041. In addition, the Budget Committee on Long-Term Care is studying areas related to the provision of services for the elderly, including basic care rate equalization, the monitoring of Alzheimer's and case management pilot projects, the expansion of home and community-based service availability, the combination of service reimbursement payment sources for the elderly and disabled, American Indian long-term care needs, and long-term care financing issues.

1995-96 Budget Committee on Human Services Study

During the 1995-96 interim, the Budget Committee on Human Services, as mentioned previously, studied the responsibilities of county social service agencies, regional human service centers, and the Department of Human Services, with an emphasis on economic assistance programs. The committee held meetings at various locations around the state and received testimony from county officials and other interested persons regarding human services priorities and suggested changes to the human services delivery system.

The Department of Human Services, the North Dakota Association of Counties, and the North Dakota Association of Social Service Board Directors met and discussed alternative methods of delivery and funding of the administration of economic assistance programs. As a result of this task force's recommendations to the committee, 1997 House Bill No. 1041 was introduced and was passed by the 1997 Legislative Assembly which requires counties, effective January 1, 1998, to assume the financial responsibility for the cost of administering economic assistance programs in return for the state assuming complete financial responsibility for the grant costs of medical assistance and basic care. Attached as Appendix "B" is a copy of 1997 House Bill No. 1041.

The Department of Human Services/County Task Force also included work groups in the areas of children and family services. The work groups were unable to complete their work, resulting in the study resolution before the committee. Attached as Appendix "C" is a copy of a mission statement and overview of a vision for future services to be provided by county social services. This document was presented to the 1995-96 interim Budget Committee on Human Services by representatives of the Finance Committee of the North Dakota Association of Social Service Board Directors.

1997 House Bill No. 1041

House Bill No. 1041 discussed briefly earlier and attached as Appendix "B" requires counties, effective January 1, 1998, to assume the financial responsibility for the cost of administering locally administered economic assistance programs that include:

Temporary assistance for needy families.
Child support enforcement programs.
Programs established under NDCC Section 50-06-01.8.
Employment and training programs.
Child care assistance programs.
Medical assistance, including early periodic screening, diagnosis, and treatment.
Food stamp programs, including employment and training programs.
Refugee assistance programs.
Basic care services.
Energy assistance programs.
Information and referral.

In exchange, the state bears the cost, in excess of the amount provided by the federal government, of the following programs:

Medical assistance (counties are responsible for 15 percent of the amount expended in North Dakota in excess of that provided by the federal government for medical assistance in the form of payments for care furnished to recipients of therapeutic foster care services);
Housing assistance payments (NDCC Section 50-06-05.1(9));
Supplements provided under NDCC Chapter 50-24.5 as basic care services;
Services provided under NDCC Section 50-06-06.8 and NDCC Chapter 50-09 as child care assistance;
Services provided under Chapter 50-09 as employment and training;
Welfare fraud detection programs;
Temporary assistance for needy families; and
Special projects approved by the department and agreed to by any effective county social services board.

Section 8 of House Bill No. 1041 provides that before August 1 of each year the boards of county commissioners shall make a collective recommendation to the department regarding the distribution among counties of the social service block grant funds and child support incentive funds available to the department for distribution to county social service boards. The department shall consider the recommendation in determining the distribution to the county social service boards in the following calendar year.

Attached as Appendix "D" is information prepared by the Department of Human Services after the 1997 Legislative Assembly regarding the impact of House Bill No. 1041 on counties individually and collectively for the period January 1, 1998, through June 30, 1999. The schedule shows that in total all counties received savings of $3,706,409 for the 18-month period. The North Dakota Association of Counties, in testimony provided during the 1997 Legislative Assembly on House Bill No. 1041, expressed concerns that the "savings" are based on estimates and in part reflect the avoidance by counties of increased costs that may have become a county responsibility without the "swap."

1997 HOUSE BILL NO. 1226

The 1997 Legislative Assembly passed House Bill No. 1226 which provided for welfare reform. Section 67 of the bill, effective January 1, 1998, requires counties to be responsible for the costs of administration of the temporary assistance for needy families (TANF) program, with local expenses of administration, including the cost for personnel, space, equipment, computer software, materials, travel, utilities, and related costs and not including the initial acquisition of computers and related hardware approved by the department for the training, education, employment, and management program, custom computer programs, and other computer development undertaken at the direction of the department to the extent those costs exceed the county's cost of operation of the technical eligibility computer systems in calendar year 1995, adjusted by the increase in the consumer price index for all urban consumers.

Section 69, effective July 1, 1997, amends NDCC Section 50-09-21 to provide that counties are responsible for their respective share of the program costs of the TANF program with all counties' share of program costs equal to 5.2 percent of statewide program costs. This is in effect until January 1, 1998, when the section is repealed and the state assumes the full nonfederal cost of the TANF grant program (Section 70). Attached as Appendix "E" is a copy of Sections 67 and 69 of House Bill No. 1226.

STUDY PLAN

The following is a study plan for the committee's consideration regarding the committee's study of the responsibilities of county social service agencies, regional human service centers, and the Department of Human Services regarding providing services to children and their families, persons with disabilities, and the elderly:

Receive testimony from representatives of the Department of Human Services, the North Dakota Association of Counties, the North Dakota Association of County Social Service Board Directors, regional human service center directors, and the North Dakota County Social Service Boards Association concerning:

Suggested issues to be considered by the committee;
Suggested changes to better define the respective responsibilities of counties, regional centers, and the central office of the Department of Human Services for these services; and
Information on service costs, funding, and related caseloads and performance standards.

Receive information from the Department of Human Services regarding the implementation of House Bill No. 1041 regarding the "swap" of state and county responsibilities for economic assistance programs.
Receive testimony from other interested persons regarding the committee's study, including service providers and representatives of organizations representing clients and providers.
Develop recommendations and any necessary legislation to implement the recommendations.
Prepare a final report for submission to the Legislative Council.

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