New Supplemental Nutrition Assistance Program Positions Consistent with the revised request,

revenues and federal funds and assumes the positions will be filled for 85 percent of the fiscal year; the revised request assumes the positions would be filled in FY 2013, though the positions remained vacant as of December 7, 2012. The Governor recommended funding as requested. The Assembly did not include authorization or funding for these four new positions.

Supplemental Nutrition Assistance Program – All Other Staffing. The Department requested $11.3 million from all funds for all other salaries and benefits for supplemental nutrition assistance program administration. This is $0.4 million more than enacted and includes $5.5 million from general revenues and $5.6 million from federal funds. The request includes $0.8 million for overtime expenses, which is $0.1 million less than enacted and benefit rates consistent with FY 2014 planning values. The Department added and also eliminated a number of positions within the program, but the net result was an increase of 4.0 positions, discussed previously.

As part of its constrained budget request, the Department increased staffing expenses by $0.2 million from federal funds. The request assumes that by eliminating the general public assistance program, the general revenue funded positions will be transferred to partially or fully federally funded programs, including Medicaid administration, Rhode Island Works and supplemental nutrition assistance programs. This increase represents one quarter of the savings. It should be noted that general revenues would be needed for 50 percent of the funding for these positions and the request includes the general revenues for all of the positions in the Rhode Island Works program.

The Governor recommended $93,082 less than requested, including $46,541 less from general revenues to reflect statewide benefit savings. The Assembly concurred.

Supplemental Nutrition Assistance Program - Other Operations. The Department requested $7.0 million from all sources for operating expenditures related to the Supplemental Nutrition Assistance program, formerly called the food stamp program, excluding salaries and benefits. The request is $0.3 million more than enacted, including $4,769 more from general revenues, $32,087 more from federal funds and includes $256,626 from other funds, which are not included in the enacted budget. The request includes the enacted level of $100,000 for the outreach program through University of Rhode Island, $2.1 million for administrative grants to participating vendors, $1.4 million for the InRhodes eligibility system and $1.3 million for the electronic benefit cards. Other expenditures include $0.8 million for printing and postage expenses, $0.6 million for lease and security costs, $0.3 million from a new federal technology improvement grant to be used for document imaging and to help individuals who cannot access a field office, and $0.2 million for all other operating expenditures.

The request includes $256,626 from available bonus funding for half of the state’s penalty from the federal Food and Nutrition Services unit that oversees the program. Rhode Island had claims error rates above the national average benchmark for two federal fiscal years and was assessed a penalty of $519,038; the penalty must be paid from general revenues that are not matched by federal funds, but the state has available bonus funding from prior years which can be used in lieu of general revenues. Currently, the state is only being assessed half of the penalty, which it must spend towards improving

The Governor recommended $0.6 million more than requested, including $0.7 million more from federal funds, $0.1 million less from other funds and the enacted level of general revenues. The recommendation adds $0.5 million to restore indirect cost recovery expenditures and audit fees to the enacted level. The recommendation adds $150,636 from federal funds, which represents the remainder of the grant award from FY 2013 to continue an employment and training program where clients receive employment services from certain community agencies. The Department received the award after the request was submitted and the community agencies provide the required match.

The recommendation also includes $106,606 less towards the state’s penalty from the federal Food and Nutrition Services unit. The Governor included the $259,000 payment in the revised recommendation and the $150,000 he included for FY 2014 is the remaining balance in the bonus fund account. The Department needs the money in FY 2013 to begin improving the system to prevent future high error rates, to avoid future penalties. His recommendation also adds $46,541 to miscellaneous operating expenses made available from statewide benefit savings. His recommendation did not eliminate the funding for the outreach program, as proposed in the constrained request. The Assembly concurred. Low Income Home Energy Assistance Program. The Department requested $31.8 million from federal funds, including grant funds of $31.2 million, $0.1 million for operating expenses and $0.5 million for staffing expenses. This is $13.7 million more than enacted, which the Department indicated was an error in overstating the available grant funding. The request includes $31.2 million for benefit payments, though it intended to include $18.3 million for payments, and $0.5 million for salaries and benefits, which is $0.1 million less than enacted from shifting staffing expenses to the weatherization assistance program.

This program provides funds to assist Rhode Island’s low income households to meet the increasing cost of home energy and reduce the severity of an energy related crisis. The program currently assists approximately 37,000 low income households and awards range from $300 to $450 depending on income level. The Governor recommended $9,250 more than requested for audit fees and shifted $3,668 in benefit savings from federal sources to miscellaneous operating expenses. The Assembly concurred.

Weatherization Assistance Program. The Department requested $8.4 million, including $1.1 million from federal funds and $7.3 million from restricted receipts for the weatherization assistance program. This is $1.0 million more than enacted, including $0.2 million from federal funds and $0.8 million from restricted receipts. The request includes $8.0 million for grants and services, including $7.0 million from demand side management funds, and $41,649 for operating expenses. It includes $0.4 million for salaries and benefits, which is $0.3 million more than enacted from adding 1.0 new position that is currently vacant but assumed filled in the request and the transfer of funding for 1.0 position from the low income home energy assistance program. Consistent with the revised request, the request inadvertently increases the staffing authorization by 0.2 positions, though it does not include funding for this.

The weatherization assistance program provides cost effective, energy efficient weatherization improvements. It also provides low-income individuals, particularly elderly, persons with disabilities, families with children, high residential energy users, and households with a high energy burden, with weatherization improvements to lower utility costs. The 2011 Assembly enacted legislation to transfer this program from the Office of Energy Resources within the Department of Administration to the

sources to miscellaneous operating expenses. He did not include the 0.2 position increase. The Assembly did not include authorization or funding for the new 1.0 position and reduced restricted receipt expenditures by $0.1 million.

Race to the Top. The Department requested $0.6 million from federal Race to the Top funds. This is $6.5 million less than enacted, primarily from grant expenditures of $6.7 million that were inadvertently omitted in the FY 2014 request. The request includes $0.3 million for salaries and benefits, which is $0.1 million more than enacted and includes an additional 0.5 position. It also includes $0.2 million for contracted work, which is $0.1 million more than enacted, and $0.1 million for operating expenses, consistent with the enacted level.

In December 2011, the state was awarded $50.0 million from federal Race to the Top funds to be used to improve education for pre-school students. This grant will involve multiple human service agencies and the Department of Elementary and Secondary Education with funding allocated over four years. The Governor recommended $9.2 million more than requested for grant expenditures, reflecting anticipated available funding in FY 2014 and shifted $2,824 in statewide benefit savings from federal sources to miscellaneous operating expenses. The Assembly did not include authorization or funding for the new 0.5 position and reduced federal fund expenditures by $0.1 million.

Paratransit Services for the Elderly. The Department requested $6.6 million from all sources for elderly transportation services, including $2.0 million from general revenues, $0.5 million from federal funds and $4.2 million from the Department’s one-cent share of the gas tax. This is $185,277 more than enacted from general revenues, consistent with the revised request. The state leverages Medicaid funds under the global waiver for certain transportation expenses that were previously state only and requests $29,003 more for these expenses. However, beginning in FY 2012, there has been an increase in the number of riders who are not Medicaid eligible and the request includes $156,274 more from general revenues for these riders. The Department spent $6.5 million in FY 2011, $6.7 million in FY 2012, and the FY 2013 revised and FY 2014 requests include $6.6 million, thus it appears that the requests will not be sufficient.

As part of its constrained request, the Department proposed to eliminate transportation services for Medicaid eligible seniors and non-Medicaid elderly and disabled persons to non-Medicaid covered sites for savings of $2.4 million, including $2.0 million from general revenues. Medicaid clients would still be eligible for transportation to Medicaid covered services by RIde van, taxi or through private, non-emergency transportation companies. This requires a change in the general laws and would negatively impact clients who rely on these transportation services, but also Rhode Island Public Transit Authority and RIde since many clients may switch to Americans with Disabilities Act complementary paratransit service through RIde, adding expenses to that agency’s budget.

The Governor’s recommendation is $159,014 less than requested, including $49,706 less from general revenues. This includes $58,820 less from gas tax revenues. It also includes $0.1 million less from assuming that half of the individuals receiving Medicaid services will be eligible for 100 percent

spent level by funding a position that was filled in FY 2012, but had been assumed vacant in FY 2013. The request includes the enacted level of $4.3 million for direct grants awarded to the state’s nine community action agencies and $9,738 for all other operating expenditures, consistent with the enacted budget. The Governor recommended funding as requested and shifted $620 in statewide benefit savings from federal sources to miscellaneous operating expenses. The Assembly concurred.

Head Start. The Department requested the enacted level of $0.8 million from general revenues to support the local Head Start agencies. Head Start is a federally funded program that provides services to 2,432 children, ages three to five years old, at eight locations throughout the state. The federal funds are appropriated directly to the agencies and the state provides additional funding.

As part of its constrained request, the Department requested a 20 percent reduction to the payment the state makes to Head Start, for general revenue savings of $160,000. General revenue funding provided to Head Start counts towards the Department’s maintenance of effort requirement for the temporary assistance to needy families block grant. The Governor recommended funding at the enacted level. The Assembly concurred.

Community Service Grants. The Department requested the enacted level of $2.6 million from general revenues to support over 100 social service agencies and community organizations throughout the state. This includes the community service grants related to the Division of Elderly Affairs. After the budget was enacted, three grantees closed, thus these agencies will not receive the requested FY 2014 awards of $27,847, when combined. The request does not reflect this closure. The Governor recommended funding as requested. Consistent with the revised budget, the Assembly eliminated authorization and funding for the closed agencies and added $120,000 for the grant to the community action agencies, restoring funding to the FY 2012 level. In addition, the Assembly added $450,000 for two new grants, including $300,000 for the John Hope Settlement House and $150,000 for the Institute for Non-Violence, and increased an existing grant by $13,709.

Community Health Centers. The Department requested $1.3 million, including $0.7 million from both general revenues and federal funds to support uncompensated health care expenses at the state’s 12 community health centers. The request is $97,663 more than enacted from all sources, including $61,990 more from general revenues and $35,673 more from federal funds. This represents a 7.2 percent increase for expenses, and adjusts for the reduced Medicaid match rate in FY 2014. The state is able to leverage Medicaid for this activity through the global waiver and the funding is distributed among the health centers that provide medical services at 24 clinics throughout Rhode Island.

As part of its constrained request, the Department included eliminating this program and the corresponding payments, for savings of $1.3 million, including $0.7 million from general revenues. The Governor’s recommendation is $337,279 less than requested, including $167,324 less from general revenues by assuming that half of the individuals receiving services will be eligible for 100 percent federally funded Medicaid, beginning January 1, 2014. The recommendation is 25 percent lower than the request since it assumes half of the people for half of the year. The Assembly concurred.

Crossroads Rhode Island. The Department requested $360,000 from general revenues to support activities provided by Crossroads Rhode Island that address homelessness and other related issues. The request is consistent with the enacted budget and the FY 2013 revised request. Crossroads Rhode

Work Support Strategies Grant. The request includes $420,509 for a second Work Support Strategies grant from the Urban Institute. The first grant, for FY 2012, was for $250,000 and the second grant is a three-year grant for $1.3 million, beginning March 2012. The Department requested $420,000 to be spent in FY 2013 in the revised request and $420,509 to be spent in FY 2014. The request includes $75,000 for information technology and computer expenses, and $0.1 million for miscellaneous costs. It includes $0.2 million for 2.0 new positions while the grant is available and assumes these positions will be filled for the entire year. However, the request appears to include approximately $20,000 more than would be needed for the 2.0 positions the Department identified, including the costs of benefits. The Governor recommended $2,883 less than requested, including $2,374 to reflect statewide benefit savings and $509 for miscellaneous operating expenses. The Assembly concurred.

Workforce Innovation Fund. The Department requested $101,265 from federal funds for 1.0 new Program Services Officer to work with the Department of Labor and Training on a new program called On-Ramps to Career Pathways, which will undertake systems reform in two main areas. The first, building on existing work done by the Governor's Workforce Board, will establish three to four career pathways and align and integrate a range of public funding streams and programs along those pathways; and the second will create an On-Ramps system to those pathways to enable low-skilled, low-literacy, and long-term unemployed workers to successfully access those pathways and in turn, access the private-sector training and experience needed to gain greater economic stability.

The only funding included for the Department of Human Services is for the 1.0 staff person and the request assumes turnover for about one month, consistent with the revised request; however, as of December 7, 2012, the position had not been filled. The Governor recommended funding as requested and shifted $816 in statewide benefit savings from federal sources to miscellaneous operating expenses. The Assembly did not include the authorization or funding for the new position.

New Central Management Positions. Consistent with the revised request, the Department requested $0.1 million from all sources for a total 2.0 new positions in the Central Management program. This includes $0.1 million from both general revenues and restricted receipts for a quality control review supervisor and a social case worker for the quality and fraud units. The request includes funding for the supervisor for 90 percent of the fiscal year and the case worker for 85 percent of the year; however, the revised request assumes these positions will be filled in FY 2013, but as of December 7, 2012, the positions were not yet filled. The request also includes 1.0 additional social case worker but does not include any funding and transfers $0.2 million and authorization for the chief financial officer to the Office of Health and Human Services. The request shifts $61,251 from restricted receipt funding for operations to cover some of the staffing costs and uses turnover savings from other positions in the program for the remainder of the expenses for these positions. The Governor recommended funding and authorization as requested. The Assembly did not include authorization or funding for these new positions and reduced expenditures by $0.1 million.

$33,477 less than enacted. It included $207,124 from federal funds for the emergency food assistance program, $19,259 for communications expenses, $6,262 for travel expenses, and $19,531 for all other expenses. The Governor recommended $8,528 less from general revenues than requested to reflect statewide benefit savings, shifted $4,347 in benefit savings from non-general revenue sources to miscellaneous operating expenses and reduced restricted receipt salary and benefit expenses by an additional $2,599. The Assembly concurred.

Disabilities Determination Unit Positions. The Department’s request includes $4.4 million from federal funds for disability determination unit positions. This is $0.6 million less than enacted and includes $0.3 million less for overtime and $0.5 million in additional turnover for approximately five positions and benefit rates consistent with FY 2014 planning values. The federal Social Security Administration put a freeze on hiring during FY 2013, limiting overtime and not allowing the states to fill vacant positions; the request assumes the freeze will continue into FY 2014. The Governor’s recommendation is $32,190 less than requested to reflect statewide benefit savings. The Assembly concurred.

Office of Rehabilitation Services – Other Staffing and Operations. The Department requested $25.0 million from all sources for all other staffing and operations for the Office of Rehabilitation Services, including $4.4 million from general revenues, $20.4 million from federal funds and $0.2 million from restricted receipts. This is $0.4 million less than enacted, primarily from federal funds, and includes $22,781 more from general revenues and the enacted level of restricted receipts. The request includes $7.8 million for staffing costs, which is $0.3 million less than enacted from assuming turnover savings from maintaining approximately four additional vacancies, even though positions are typically at least 78 percent federally funded. The Office also did not fill a senior caseworker supervisor position that was recently vacated from a retirement, instead utilizing existing staff using the three-day rule.

The Department requested $17.2 million to support operations, which is $0.1 million less than enacted. The request includes $5.3 million for rehabilitation services, $2.4 million for medical services and supplies for individuals applying for disability, $1.1 million for education and training programs, and $0.7 million for grant awards within the vocational rehabilitation program. The request also includes $2.5 million for contracted temporary clerical services to assist with processing applications because of staffing reductions, $1.3 million for leasing the offices at 40 Fountain Street in Providence, $0.9 million for home modification, personal care services and social services for the blind, and $2.9 million for all other operating expenditures, such as utilities, postage, printing and audit fees.

As part of its constrained request, the Department proposed eliminating three programs for savings of $0.9 million, including $0.4 million from general revenues and $0.5 million from federal funds. This includes the home modification, personal care attendant and social services for the blind programs for