1. DCFS FY2010 BUDGET OVERVIEW Challenges & Opportunities
ERWIN McEWEN
DIRECTOR, DCFS
MATTHEW A. GRADY III
DEPUTY DIRECTOR, BUDGET & FINANCE
March 18, 2009 1

2. STATEWIDE BUDGET DEFICIT
($ in billions)
FY09 Deficit- $4.3
FY10 Deficit- $7.3
Total Deficit- $11.6
Governor’s FY09-FY10 Plan:
Revenue Increases: $8.5
Spending Reductions: $2.8
Total Deficit Reduction: $11.3
Remaining Deficit: $0.3

3. DCFS BUDGET OVERVIEW ($ in thousands)

4. DCFS Opportunities Protect Core Services
Safety
Permanency
Well-Being
Maintain Benchmark Caseload Ratios for Frontline Staff
Fund & Support Key Programs:
Program Improvement Plan
Integrated Assessment
Trauma Informed Practice
Residential Performance Based Contracting
Family Advocacy Centers

5. DCFS Challenges Must Earn $26 m in New Revenue
FY10 Request Depends Upon Generating $26m
Medicaid Counseling Expansion - $17 m
Home of Relative Licensure - $9 m
Increase Operational Efficiency
Frontline Focus for New Hiring
(most non-direct vacancies to remain unfilled)
Procurement Savings
Facility Consolidations

6. Childrens Services Fund (CSF) FY09 Cash Position
FY09 CSF Shortfall approx. $80 m
Requested GRF Supplemental Appropriation: $42.7 m
Continued Borrowing from Future Revenue
No funds were available for sweeps in FY07

7. Childrens Services Fund (CSF) FY10 Cash Position
Zero Margin for Error
Projected Revenue: $406 m
Projected Spending: $406 m
Cash flow Challenges
Critical Payments Prioritized
Non-Critical Payment Delays Likely
Critical Payment Delays Possible if GRF Cash is Low
No funds were available for sweeps in FY07 7

8. Revenue Initiatives Efforts Needed to Maximize Base Federal Revenue
Document services with client detail (ID, etc.)
Respond accurately and timely to Random Moment Survey (RMS) Inquiries
Maintain case files with all proper documentation
Medicaid Counseling Expansion (by Line):
Foster Care: $12.9 m
Adoption: $ 2.2 m
Counseling: $ 1.9 m
Home of Relative Licensure
Must Achieve 80% Licensure by 6/30/10
Progress Must Start Immediately
Progress Must be Steady
No funds were available for sweeps in FY07 8

9. HMR Licensure Plan

10. Questions & Answers