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Lobbyist Report for Week of February 20, 2015
HHS Budget and Policy Implementation Status Report
Introduction
The North Carolina General Assembly in recent years has grappled with health care cost overruns and
operational inefficiencies in the State Department of Health and Human Services (DHHS).
State lawmakers passed substantial legislation during the 2013-2014 biennium to achieve the dual goals
of saving money while improving the delivery of social services.
Of primary concern was the handling of child welfare cases after a boy was found handcuffed to the
porch of a former Union County Social Services worker with a dead chicken around his neck.
The following report highlights some of the legislative actions related to social services taken in the past
two years and the status of those actions as of February 2015.
Members of the Joint Appropriations Committee on Health and Human Services are expected to review
this information during its next meeting scheduled for Tuesday, February 24, 2015.
CHILD PROTECTIVE SERVICES IMPROVEMENT INITIATIVE
Budget & Policy
The General Assembly passed legislation in 2014 with the intent to support initiatives and the allocation
for child welfare services. This included providing:
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$7.4 million in funding for county departments of social services. Of these funds, $4.5 million
was earmarked to replace lost federal funding that was used to pay for child protective services
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workers. Beginning October 1, 2014, $2.9 million was provided for new child protective services
workers to reduce the average caseloads to 10 families per worker.

$4.5 million for child welfare in-home services.
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$750,000 for 9 positions in the Division of Social Services. These positions would monitor, train,
and provide technical assistance to county departments of social services.

$300,000 for a pilot program to enhance coordination of services and information among
county departments of social services and other agencies. The Division was required to begin
the pilot by December 1, 2014 and provide a progress report by March 2, 2015 and a final report
by March 1, 2015 to the Joint Legislative Oversight Committee on Health and Human Services.

$700,000 for a statewide evaluation of the State’s child protective services system.
In addition, the Division of Social services was required to submit a report to the Senate Appropriations
Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee
on Health and Human Services and the Fiscal Research Division no later than February 1, 2015 on the
issue of conflicts of interest in child welfare cases as related to public guardianship.
Action Taken
The funds for in-home services was allocated to counties on September 26, 2014. The $4.5 million was
allocated using the existing formula as used to allocate the lost federal dollars. The $2.8 million was
allocated to 30 counties to fund 73 positions at an annualized salary of $52,419. Many counties planned
to add additional staff to those funded with this allocation.
The Division of Social Services (DSS) conducted an extensive recruitment and selection process to fill 9
positions. An estimated 500 applications were received, of which 180 were qualified and 45 were highly
qualified. Thirty-four applicants were interviewed. DSS is currently in the process of bringing staff on
board.
DSS has also developed a process for conducting county reviews. DSS has identified counties in which to
begin reviews following a training period, after which these workers will be deployed. DHHS will
reallocate a position to provide supervision.
The General Assembly provided funding for an independent, statewide evaluation of Child Protective
Services at local departments of social services and the Department of Health and Human Services.
The evaluation will assess performance, caseload sizes, administrative structure, and funding and
worker turnover. It included recommendations on improving Child Protective Services.
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Funding was provided to develop and implement a pilot program designed to enhance coordination of
services and information among agencies to improve the protection and outcomes for vulnerable
children served through Child Welfare Services. The Division was required to coordinate with the
Government Data Analytics Center (GDAC) in developing the pilot program. The agencies in the pilot
include local county departments of social services, local law enforcement, the court system, Guardian
Ad Litem programs and other agencies as determined appropriate by the Department of Health and
Human Services.
DHHS/Division of Social Services Response
The county review process will be enhanced through our conducting Child and Family Services Reviews
(CFSR) with 10 counties.
Emphasis will be placed on ensuring children and families are provided services that address safety,
permanency, and well-being of children served by child welfare services.
The department is partnering with Government Data Analytics Center (GDAC) to leverage state
demographic data to build an integrated view of a child and associated adults to link, where possible,
services to child and family. A progress report is due March 1, 2015.
A work group met several times over four months to develop a comprehensive RFP for the statewide
evaluation of the child protective services system. Input was received from North Carolina Association
of County Directors of Social Services (NCACDSS). The RFP is in the department’s approval process and
will be issued upon approval.
The report on conflicts of interest for county agencies when a child protective services matter on a child
while acting as the guardian of the parent/caretaker has been submitted.
WORK FIRST DRUG TESTING
Budget & Policy
The North Carolina General Assembly provided funds for the implementation of Part II, Drug Screening
and Testing for Work First Program Assistance.
Actions Taken
Quarterly reports have been provided. In the period between June and October 31, 2014 temporary
rules were adopted. Permanent rules were approved by the Social Services Commission on January 15,
2015. The public comment period is to be scheduled and a public hearing will be held on April 15, 2015
by the Social Services Commission with a scheduled meeting for adopting of the rules on April 20, 2015.
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The Request for Purchase (RFP) to secure a vendor to perform the drug testing is aggressively moving
forward. DSS staff is finalizing division policy and, along with county partners, is writing technical
requirements for NC FAST for a June 1, 2015 implementation date.
USE OF FOSTER CARE BUDGET FOR GUARDIANSHIP ASSISTANCE PROGRAM
Policy – Authorized the Division of Social Services (DSS) to use existing funds available for foster care
services to support a Guardianship Assistance Program that will allow existing foster parents to serve as
legal guardians of children in foster care.
Action Taken - The Division of Social Services is working on preparation and submission of rules to
implement this provision. The target date is 2016.