By By JOHN EBY / Dowagiac Daily News
CASSOPOLIS - With one layoff already implemented and three other of 15 jobs on the line, Cass County Friend of the Court appealed to the Board of Commissioners to help it out of a $17,652 jam to save services to children.
Gov. Jennifer Granholm's implementation of Executive Order 7 of 2005 spells expenditure reductions of $295,055,700 in the general fund to balance the 2005 budget.
Human Services Department cuts totaled $33,276,200.
So swiftly did the budget ax swoop that it was not until April 6 did the state's March 28 notification arrive, Friend of the Court/Circuit Court Referee Donald P. Moroz told commissioners Thursday night.
As of April 1, Cass County's state supplement to the Cooperative Reimbursement Program, or CRP, has been slashed for the remainder of the fiscal year which expires Sept. 30.
Further, as of April 1, the medical grant, which is completely subsidized by federal and state dollars, would no longer be funded.
To keep the level of services despite this "retroactive reduction," the Friend of the Court office needs to make up the $17,652 in state subsidy.
Moroz, accompanied by Maximus consultant Jim Olsen, said they believe revenues were underestimated in federal incentive funds and also fees collected by the Friend of the Court.
Moroz told the board that for $8,682 it could reinstate the medical position and rehire the laid-off employee.
Moroz explained that the problem is exacerbated because half the year's funds have been spent and he's trying to squeeze the savings out of the six remaining months. He must pay two thirds of their wages "so I only save a third, plus benefits. Basically, I may be laying off a person to pay unemployment for the other two.
Moroz said his office handles some 4,000 cases with the divorce rate 50 percent and more children being born out of wedlock.
Commissioners said at the outset that they there to listen to the Friend of the Court presentation, but would defer any action two weeks until their next meeting at 4 p.m. Thursday, April 21.
Vice Chairman Ron Francis, R-Cassopolis, questioned whether in tough financial times, the Friend of the Court considered reducing workweek hours rather than chopping positions.
Olsen explained the complicated funding formulas. Friend of the Court earns a performance incentive from the federal government. Results in 2003 are paid in 2005, which totaled about $93,000. "We conservatively estimated we would receive $87,000. We think we're alright in our estimates. It may be even better than that. Our problem is we can't trust the state at this point because of rumors we've heard and actions that may take place between now and the end of the year. The 2004 incentive payment we would normally receive in February or March 2006. That's where we really have a gray area. The state is considering reducing that, but we don't know by how much, though we've conservatively said by 10 percent." Could it be eliminated entirely? a commissioner asked. "At this point anything's possible," Olsen responded. "If you had asked me in September 2004, 'After six months of the contract, would they cut it by 50 percent retroactive on medical that was 100-percent funding and cut $72,000 out of the state's share of the supplement for the CRP?' I would have said they would never do that. They've got a contract, but unfortunately there's a clause in the contract you signed that says if there are not funds available, they can terminate the contract or renegotiate the contract. That's really what Donn was faced with the day before Good Friday when they wrote a letter and said you have a choice: terminate your contract and lose everything or negotiate with us a state supplement to your county reduced by 50 percent. When we put this budget together in June 2004 for this year, '04-'05, they had not enacted the legislation that added two new judgment fees to the Friend of the Court for $40 and $80. That's about $5,000 in revenue we weren't able to forecast last June."
Moroz also noted his office had to work through the death of Kristin Schott. "That's hard to replace. My people are skilled computer whizzes. When I lay off people, I have to bump. I actually have three people training now in positions they were not actually trained to be" because of the union contract." The chain reaction from three more layoffs would increase that number to eight, he said. I went through that training. There are like 92 screens in the computer."