DSL Memo Series
2002-17
ACTION MEMO
October 31, 2002
STATE OF WISCONSIN
Department of Health and Family Services
Division of Supportive Living
To:
Area Administrators/Assistant Area Administrators
Birth to 3 Program Coordinators and Administrative Contacts
Bureau Directors
County Departments of Community Programs Directors
County Departments of Developmental Disabilities
Services Directors
County Departments of Human Services Directors
County Departments of Social Services Directors
Licensing Chiefs/Section Chiefs
Tribal Chairpersons/Human Services Facilitators
From:
Sinikka McCabe, Administrator
Re: OPTIONS FOR REDUCTION OF MAINTENANCE OF EFFORT AND
VOLUNTARY CONTRACT CHANGES FOR 2002
A fiscal workgroup, comprised of county staff, parents
and advocates, was convened in early 2001 to discuss Birth to 3 Program
fiscal issues. The following policy concerning the Maintenance of Effort
(MOE) requirement came out of that workgroup.
Contract reductions and MOE
Some counties received substantial increases to their
State Birth to 3 Program allocation in 2002. At the same time, the MOE
requirement was changed to be equal to each county’s 1999 expenditure
level. Therefore, counties with an extraordinary effort in local funds in
1999, may not have a need in the current year for all of the State funds
in addition to their MOE. In order to maximize the use of these dollars
for children needing Birth to 3 Program services, the state is willing to
negotiate a temporary reduction and reallocation of Birth to 3 funds. This
arrangement would be in effect for one year. In other words, the county's
full allocation and MOE requirement will return to the 2002 contract level
next year unless the county again negotiates this reduction.
As an incentive to release unspent funds, the workgroup
recommended that DSL reduce the MOE dollar for dollar for state funds
voluntarily released by a county. For example, if a county requests to
have their contract reduced by $10,000, the state will reduce the MOE
requirement by $10,000 for the current year only. This option is
only available to those counties in full compliance with state and federal
program requirements and serving 2.5% of the population of children in
their county (with a margin of five children).
Counties interested in a contract reduction in CY 2002,
and consequent reduction of MOE, should send a letter specifying the
amount by Nov. 15, 2002 to Morgan Groves, BDDS Rm. 418, P.O. Box 7851, 1
W. Wilson St., Madison, WI 53707-7851. Likewise, counties anticipating a
substantial shortfall of funds should send a letter describing the
circumstances by Nov. 15, 2002, to the above address. The Department has
discretion over the contract changes and will review each request on a
case by case basis.
MOE Waivers
Waivers to MOE are governed by State Law 2001 Wisconsin
Act 16 which states:
Section 1982r 51.44 (3) (c) of the statutes is
created to read:
51.44 (3) (c) No county may contribute less funding
for early intervention services under this section than the county
contributed for early intervention services in 1999, except that, for
a county that demonstrated extraordinary effort in 1999, the
department may waive this requirement and establish with the county a
lesser required contribution.
The policy for granting waivers to the MOE requirement
was formulated with the assistance of the Fiscal workgroup. Waivers are
negotiated for one calendar year and need to be renegotiated each year.
The following criteria meet the definition of
"extraordinary effort in 1999":
- A county served more children in 1999 than the county
is currently serving.
- The county served children with exceptionally high
costs in 1999 that caused their total expenses to be significantly
above the norm. This is documented by a subsequent decrease in
expenditures when the children with high costs left the program.
- The county made the change to serving children in
natural environments in 1999, causing a temporary spike in
expenditures that year.
Waivers will not be granted under the following
conditions:
- The county is not fully serving children in natural
environments (defined as less than 90 percent of children are served
in natural environments).
- The county is serving less than the expected number
of children (defined as 2.5 percent of the
0-3 population in the county with a margin of five children).
- The county is not in compliance with state and
federal program requirements.
Waivers are not granted under these conditions as
counties will need to use the funds to make required program changes such
as serving children in natural environments, as required by Federal Law or
to increase outreach within the county.
REGIONAL OFFICE CONTACT:
Area Administrator
CENTRAL OFFICE CONTACT:
Morgan Groves
Fiscal Policy Analyst
DSL/BDDS
(608) 267-7844
grovemp@wisconsin.gov
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