1. Online Webinar – November 19, 2009 at 10:00 am Presented by the John Burton Foundation Call-in phone number for live audio: 916-233-3087 Access code: 412-707-592 Managing the Cut to THP-Plus: Getting the Most Out of Your Allocation

2. Webinar Technical Details Call-in phone number for live audio: 916-233- 3087; Access code: 412-707-592 To submit live questions, click on the “Question and Answer” arrow on your screen, type your question, and click “Send.”

3. Outline of Presentation Summary of Recent Cuts to THP-Plus Budget How THP-Plus Allocations are Determined THP-Plus Allocations and Spending by County Responsibly Managing the Cuts to THP-Plus County and Provider Case Studies Preventing Further Cuts to THP-Plus Q and A

4. Today’s Presenters Amy Lemley, John Burton Foundation Michele Byrnes, John Burton Foundation John Murray, San Francisco County Sam Cobbs, First Place for Youth

5. Summary of Recent Cuts to THP-Plus Budget $5 million cut included in legislature’s June budget Additional $169,000 cut included in the $80 million Child Welfare Services reduction THP-Plus budget for FY 2009-10 stands at $35.7 million, with a risk of being cut further in the January 2010 Governor’s budget

6. Why will there be more cuts to THP-Plus?? Numerous cuts have been enjoined: –10% rate cut to group homes –In Home Supportive Services Additional cuts will need to be made; under- spent programs most vulnerable

7. How Are Allocations Determined? California Department of Social Services (CDSS) develops the THP-Plus allocation based on the final budget THP-Plus budget is likely to be reduced if the allocation the year prior went under-spent

8. THP-Plus Draft Allocation vs. Spending for FY 09-10 Amount under spent in red

9. THP-Plus Draft Allocation vs. Spending for FY 09-10 Amount under spent in red, amount over spent in green

10. Responsibly Managing the Budget Cuts 1.Find out how much your county has claimed to date Does it accurately reflect claims submitted? 2.Recalculate the program’s monthly census target based on the remaining allocation Requires extensive communication between county and providers

11. Responsibly Managing the Budget Cuts (con’t) The best way to manage the budget cut is closely monitoring the program’s monthly census If program is under-spent, increase monthly census If program is over-spent, gradually decrease monthly census by not filling all vacant slots Freezing all intakes is not necessary, and will lead to under-spending, under-claiming, and likely budget cuts

12. Example #1: Under-Spending County County X has an allocation of $480,000, a target monthly census of 20, and a rate of $2,000 monthly. As of 8/31/09, $50,000 has been claimed, or 63% of prorated allocation $430,000 remains for the final 10 months $430,000 / $2,000 rate / 10 months = 21 or 22 participants on average To spend full allocation, County X should be serving one or two more participants monthly than their “approved bed” count

13. Example #2: Over-Spending County County Y has an allocation of $1,000,000, a target monthly census of 33, and a rate of $2,500 monthly. As of 8/31/09, $215,000 has been claimed, or 129% of prorated allocation $785,000 remains for the final 10 months $785,000 / $2,500 rate / 10 months = 31 participants on average County Y should gradually reduce intakes until monthly census reaches an average of 31 Allocation and census should be monitored and adjusted regularly

14. County Case Study: San Francisco County Examine monthly census reports from providers Encourage providers to invoice on a regular basis Project THP-Plus spending based on current and previous claims Compare claims to maximum allocation Identify necessary cuts –Cuts will be made through attrition –Based on provider performance

15. Provider Case Study: First Place for Youth At 100% capacity in all counties with THP-Plus contract, so need to reduce total capacity In one county, contract modified to reflect reduction Not freezing intakes –Doesn’t reduce fixed costs (staff, rented unit) without additional cuts –Difficult to get back up to capacity when budget improves Gradually reducing monthly census as necessary by closely monitoring budget

16. Preventing Future Cuts to THP-Plus All providers should submit invoices for services on a monthly basis to their counties All counties should file claims on a monthly basis with CDSS All claims must be submitted within the current fiscal year to be claimed against the current FY allocation

17. Project Updates Questions you can answer about your program: What is the average wage gain? New Report, “Too Big to Ignore: Youth Homelessness in California” released 11/10 Homeless Youth Capacity Building Project web seminar 12/9/09 at 10:00 a.m. Policy briefing podcasts available at www.johnburtonfoundation.org/media.htm www.johnburtonfoundation.org/media.htm

18. Questions or comments? Enter questions on your screen now by clicking the “Question and Answer” arrow, typing your question, and clicking “Send.” Or direct later questions or comments to: Amy Lemley John Burton Foundation (415) 693-1322 amy@johnburtonfoundation.org Michele Byrnes John Burton Foundation (415) 693-1323 michele@johnburtonfoundation.org