1. MICHIGAN DEPARTMENT OF HUMAN SERVICES Budget Presentation FISCAL YEAR 2014

2. Building on Our Success 2

3. Sources of Funding for DHS 3

4. 2013Appropriations 4

5. 2014 Recommendation 5

6. Income Assistance & Emergency Relief$3,465,202,60057.32% Child Support Enforcement$222,334,7003.68% Juvenile Justice Service s $34,378,7000.57% Disability Determination Services$91,715,6001.52% Michigan Rehabilitative Services$142,764,5002.36% Child Welfare Services$701,371,00011.60% Local Office Service Delivery$993,556,51416.43% Other Services$166,924,7002.76% Central Administraton$104,061,2861.72% Information Technology$117,466,5001.94% One Time Funding$6,000,0000.10% Total Gross Recommendation $6,045,776,100100.00% The Governor’s Recommendation 6

7. Build on the success of Pathways to Potential. Continue to provide a consistent, measureable and comprehensive work participation program for families receiving cash assistance. Not only meet the rigorous requirements of the Modified Settlement Agreement, but implement Michigan’s vision for child welfare in our state. Intensify anti-fraud efforts to ensure that welfare benefits are preserved for the truly needy. Key Department Priorities for Fiscal Year 2014 7

8. DHS case workers will be in 135 elementary schools in Detroit, Flint, Saginaw and Pontiac by March 1. Our caseworkers will also be in place in the following high schools: Detroit’s Denby, Cody and Osborn High Schools as well as Pontiac High School. The reports from the pilot of 21 schools has been extremely encouraging. These schools will evolve to become community hubs. Pathways to Potential 8

9. Partnership. Accountability. Training. Hope. The program, with a 21-day orientation period designed to identify barriers and work with clients to address those challenges, has been in place since Jan. 1. Unlike JET, this program will be monitored and measured in key areas including how many clients secure employment, how long they are able to maintain that position and the rate of pay. PATH 9

10. Work Participation Rates *Not under penalty status due to caseload reduction credit. Data reported as of Jan. 30, 2013 The Federal Work Participation Rate Goal is 50% 20082009*20112010 2012* 2007 10

11. The first report by the federal monitors on the Modified Settlement Agreement was overwhelmingly positive. The Central Intake Center has greatly improved the consistency of response to CPS complaints statewide. To-date, 412 youth have participated in the voluntary extension of foster care. DHS has provided funding to seven universities statewide to embed a DHS campus coach to help our foster youth succeed in higher education. Child Welfare 11

12. Children In Foster Care As Of September 30 of Each Fiscal Year 2008200920112010201220072006 12

13. In 2012, DHS completed an unprecedented percentage of adoptions from foster care. 2008200920112010201220072006 13

14. In calendar year 2012, the Office of Inspector General provided taxpayers with $112.4 million in cost avoidance. For every dollar spent on front end eligibility efforts alone by OIG, taxpayers avoided costs of $26. The 2014 budgetary request to enhance these efforts will provide a tool that can not only be used by DHS, but by State Police, Community Health, the Attorney General and others. Anti-Fraud Efforts 14