Online Webinar – November 19, 2009 at 10:00 amPresented 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

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.”

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

Today’s Presenters

• Amy Lemley, John Burton Foundation

• Michele Byrnes, John Burton Foundation

• John Murray, San Francisco County

• Sam Cobbs, First Place for Youth

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

Why will there be more cutsto 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

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

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

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

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

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

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

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

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

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

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

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

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 LemleyJohn Burton Foundation

(415) 693-1322amy@johnburtonfoundation.org

Michele ByrnesJohn Burton Foundation

(415) 693-1323michele@johnburtonfoundation.org