State Budget Process and Procedure

Process

The State Budget Committee has begun hearing budget requests from state agencies for fiscal years 2014-2015.

The budget requests include detailed information about the services provided by state agencies and the costs of doing so. The State Budget Committee uses the budget requests to evaluate state agencies, hold government programs accountable and to guide future funding decisions.

See below to learn more about what a budget request typically includes and how the legislature uses the budget requests to guide the budget writing process. Subsequent blog posts will include each state agency’s official budget request, line item expense and revenue reports, and highlights from each agency’s presentation to the State Budget Committee.

DCS committee recommends hotline changes and more

A study committee was convened during the 2012 interim and charged with the task of reviewing operations of the state’s Dept. of Child Services. The committee heard extensive testimony from the agency and from the public. In addition to the official committee hearings, two public forums were hosted by members of the committee in South Bend and Evansville. Among the many complaints heard from the public, the statewide child abuse hotline, which moved all reporting from local offices to one Indianapolis-based call center, received extensive criticism.

Hotline changes: In response, the committee endorsed a recommendation to continue use of the statewide hotline for intake purposes only. The hotline would receive all calls for reporting child abuse or neglect, collect information from the caller, then send the call report to the local DCS office and let the local office make the decision on whether to investigate the report. In cases of professional reporters, such as medical personnel or school staff, all calls would be investigated. This change will be done administratively by the agency.

To facilitate the changes to the hotline and how reports are facilitated, DCS would be required to hire 50 new hotline intake specialists, 10 hotline supervisors, 80 local case managers and 16 supervisors. Legislatively, a proposal will be offered to give the agency emergency rule making powers to do so. The bill will also require that professional reporters’ calls automatically be assessed. Based on the legislative timetable and rule making requirements, the operational changes would likely take place in the fall of 2013 or by the end of the year and are expected to cost approximately $9 million. To put that cost in perspective, in just one year DCS returned over $103 million – or nearly 17% of the agency’s appropriation - back to the general fund to help build the state surplus.

The committee also endorsed the following legislative proposals to be considered by the legislature in 2013 (Download draft Committee Report>>):

DCS Oversight Committee (PD 3640): Creation of a committee to provide ongoing review of DCS operations and make recommendations for changes or improvements as needed.

Commission on Improving Status of Children (PD 3592): Creation of a new, broad-based state commission to study and evaluate state agency policy and practice as well as proposed legislation that affect the well-being and best interests of children in Indiana. The scope of the committee’s interests would be wide-reaching, including academic success, childhood poverty and hunger, child abuse and neglect, juvenile justice, and infant mortality rates. The commission would cooperate with other child related commissions, the judiciary, the executive branch, stakeholders and members of the community to develop long term plans that promote progress in areas of priority for the advancement of children.

Allowing prosecutors to file CHINS cases (PD 3325): Prosecutors would be able to request that a juvenile court authorize the filing of a petition alleging that a child is a  child in need of services. Currently, only an attorney representing DCS can make this request.

Court petitions to establish or modify custody (PD 3586): Would require that custody and guardianship orders include information if either the adult to whom custody is being ordered or the child has been the subject of a DCS investigation for child abuse. The original draft of this proposal was amended on Nov. 27 to apply when custody is established, not just modified.

The committee considered but did not endorse the following proposal. Committee members are expected to continue work on the topic, though, and offer a bill for the 2013 session.

Child fatality review teams (PD 3438): Would move the authority and administration of local child fatality review teams to the Indiana Dept. of Health and create a multidisciplinary statewide review committee. Currently, the DCS has established regions and local teams for each region. Under the proposal, all counties would be required to establish their own review team or to join with a regional team. The statewide review committee would review every child death that is sudden; unexpected; unexplained; resulted from abuse or neglect; or determine to be homicide, suicide or an accident.

2013 Session Preview: Recommendations from interim committees

Dept. of Child Services reform

The Dept. of Child Services Interim Study Committee was convened during the 2012 interim and charged with reviewing the operations of the state’s Department of Child Services. The committee heard extensive testimony from the agency and from the public. In addition to the official committee hearings, two public forums were hosted by members of the committee in South Bend and Evansville. Among the many complaints heard from the public, the statewide child abuse hotline, which moved all reporting from local offices to one Indianapolis-based call center, received extensive criticism. Recommendations were made to change the hotline operations, establish a DCS committee for ongoing oversight, create a new Commission on Improving Status of Children, and increase action by child fatality review teams. Read an in-depth look at the DCS Study Committee’s recommendations>>

Children in need of services: 

Over the summer, the Commission on Mental Health and Addiction assessed services available to children with mental illness.  The Department of Child Services used to allow prosecuting attorneys to determine if a child is a threat to themselves or others due to mental illness and access Department services without a claim of abuse. These would be services provided to a family proactively seeking help for their at-risk child before a criminal situation develops. However, the Department no longer allows prosecuting attorneys this option.  The committee voted in favor of returning this ability to prosecuting attorneys for the next two years.  A bill reinstating this ability is expected in the 2013 legislative session.  

Child support

Certain inconsistencies in a new law (SEA 18-2012) that reduced the age of emancipation to 19 for child support purposes were brought to the attention of the Child Custody and Support Advisory Committee this year by Sen. Karen Tallian. The inconsistency is if a child is born out of wedlock, there is specific language permitting the child to petition for educational support until the child turns 21. If the child was born to a marriage, the language does not specifically say the child may petition for education support, though the law permits a court to order educational expenses for the child. By a vote of 8-0, the Committee recommended a bill to clarify the law by adding the same language in the dissolution statute that was added into the paternity statute and to make the change retroactive to July 1, 2012, the date that SEA 18-2012 became effective.

Child care

The Committee on Child Care completed a series of meetings evaluating how the state should regulate child care centers, including religiously affiliated centers that receive tax dollars.  Currently, because child care ministries are considered religious organizations, they are regulated to a lesser degree than other child care centers.  The committee recommended possible legislation for the 2013 legislative session that would require a child care provider to use a curriculum approved by the Division of Family Resources as a condition of eligibility for tax dollars, specify health and safety requirements for child care ministries, and require care givers at certain child care providers to undergo a national criminal history background check. (Download the Committee Report>>)

Tax credit for hiring veterans

The Commission on Military and Veterans Affairs made no official recommendations, but members of the commission are expected to pursue legislative proposals discussed during meetings held this year, including a tax credit incentive for businesses hiring veterans. In 2012 a measure was offered (SB 318-2012) that would provide a $1,000 state tax credit to an employer who hires a returning veteran. “Returning veteran” was defined as individual who was deployed on active duty service in a branch or reserve component of the United States military within two years of the hire date. This idea will likely resurface in 2013. Read more>>

Veterans’ issues in 2013

Each year, important issues are addressed by the General Assembly affecting Hoosier servicemen and women, the state’s veterans and their families. In recent years, legislators have made changes to state benefits for disabled veterans, made voting easier for service members on duty, and expanded a special fund to help military families during difficult periods.

This year, lawmakers are expected to continue discussing how to address the high unemployment rate for veterans, as well as the continuing challenges of homelessness and mental health for veterans.

In 2011, young male veterans (age 18-24) who served during Gulf War era II had an unemployment rate of 29.1%, higher than that of young male non-veterans (17.6%). Source: US Bureau of Labor Statistics, March 20, 2012

Post 9/11 veterans are facing particularly high unemployment numbers in Indiana.

	IN	US
Percentage of population comprised of veterans	10.5%	9.4%
All veterans unemployment rate	7.6%	8.3%
Post 9/11 unemployment rate	15.7%	12.1%

Source: US Congress, Joint Economic Committee, Oct. 2012

Possible 2013 Legislation

State contracts for veteran-owned businesses: At a meeting of the commission in September 2012, members of the Military and Veterans Affairs Commission discussed two options for providing a preference in state contracting for veteran-owned businesses. Thirteen states currently provide state contract preferences for veteran-owned businesses. One or both of these options may be brought up as a proposal in 2013.

Option #1 Price Preference: A price preference is a percentage by which offered contract prices are reduced for purposes of bid evaluation. Some states restrict based on further criteria, including small businesses only, disabled veterans (service connected) only, or the total revenue of the company determines the rate of the discount.

Option #2 Set Aside Program: Under this option, the state would establish a goal to set aside a certain percentage of procurement to be from veteran-owned businesses.

In a September 2012 meeting of the Military and Veterans Affairs Commission, the Dept. of Veteran Affairs recommended the price preference over the set aside option.  They testified that this option would affect decisions at the time of making the contract award, providing the most immediate effect.

Professional licensing: Representatives of the The American Legion testified before the Veterans and Military Affairs Commission in August 2012, suggesting that changes be made to the state’s licensing and credentialing rules to help ease the professional transition from military to civilian life. Under such changes, state licensing boards would accept military education, training and experience to fulfill professional licensure or certification requirements. By translating experience and credentials from the battlefield to civilian life (i.e., medic to EMT, specialized drivers licenses), veterans can re-enter civilian life and the workforce with fewer unnecessary hurdles. According to NCSL, Colorado, Kentucky, Utah, Virginia, and Washington already offer this to their veterans. This proposal will likely be discussed in 2013.

Tax credit incentive for businesses hiring and retaining veterans: In 2012 a measure was offered (SB 318-2012) that would provide a $1,000 state tax credit to an employer who hires a returning veteran. “Returning veteran” was defined as individual who was deployed on active duty service in a branch or reserve component of the United States military within two years of the hire date. This idea will likely resurface in 2013.

Combat to College Program: Proposed in 2012 (HB 1230-2012), this bill would establish a Combat to College Program at Indiana state colleges and universities to help recent veterans transition into a higher ed program.

In line with a national trend, the Combat to College Program would allow universities to grant college credit for military service and training. According to NCSL, at least four states —Alaska, Florida, Georgia and Hawaii—have introduced similar legislation this year.

Additionally, the program would provide veterans with a centralized location for admissions, registration, and financial administration services, as well as academic guidance specialized for their transition. Counseling services and other resources would be offered to veteran students who are disabled or suffering from Post Traumatic Stress Disorder. A specialized career services program would also assist veteran students in translating military experience and training for their post-graduation job search. Rep. Scott Pelath, author of the original proposal, is expected to offer similar legislation again in 2013.

Residency tuition rates for service members: Another pro-veteran bill offered but not heard in 2012 (HB 1025-2012) would have allowed Indiana veterans returning to an Indiana university within 12 months of separation eligible for in-state tuition. The original measure would have applied only to undergraduate courses for veterans who listed Indiana as the individual’s home of record at the time of enlistment.

Excise tax credit: Currently, disabled veterans are entitled to a property tax deduction on their home. For those disabled veterans who do not own property, legislators are considering allowing the tax benefit to alternatively be used against excise tax owed on the veteran’s vehicle license plates. If proposed, the 2013 measure may include eligibility for a surviving spouse as the property benefit does.

DCS forums to be hosted in South Bend and Evansville

Two regional forums on the Dept. of Child Services are scheduled in October. The events will be open to the public and aimed at gathering more suggestions that can be taken back to Indianapolis and considered by a legislative committee now reviewing DCS.

We know changes need to be made to keep Indiana’s children safe, and we need to focus on what solutions can be implemented to make the system respond more quickly and thoroughly to children in need of services. – Sen. John Broden

South Bend Forum
Ivy Tech Community College – South Bend Campus
220 Dean Johnson Road
Room 1121
Oct. 18, 5:30 pm
Hosted by State Senators John Broden and Carlin Yoder

Evansville Forum
University of Southern Indiana
Health Professions Center
Room HP 1027
Oct. 15, 6:30 pm
Hosted by State Representative Gail Reiken

 

Comments can also be submitted in writing via email or USPS mail before October 11 to:
Sen. John Broden
S10@iga.IN.gov
200 W. Washington St.
Indianapolis, IN 46204

Learn more.
Department of Child Services Interim Study Committee roster, agendas, and minutes of past meetings>>

Update: DCS review shifts to concerns over provider reimbursement rates, timeliness

On Monday, the Department of Child Services (DCS) Study Committee met to examine how the agency handles contracts with third-party providers. The committee heard testimony from DCS staff on how the agency processes contracts and how adjustments to that process have been made since property tax reforms upended the agency’s funding procedures.

Download DCS’s committee presentation on provider contracting (PDF)>>

The committee also took testimony from care providers with firsthand experience of the issues they have faced when contracting with the Department of Child Services. Providers noted difficulty with the Department’s frequently changing billing requirements and rigidity when handling billing requests. Concerns were also raised about the reduction in reimbursement rates paid to providers and the timeliness by which those payments were made. In May of 2012, DCS owed $8.5 million in payments more than 60 days outstanding to 49 different providers.

The committee also took public questions on the neglected child hotline, the topic of the committee’s previous meeting.

Read a summary of the committee’s previous hearing on the Department’s abuse hotline>>

**PUBLIC TESTIMONY ENCOURAGED**

Testimony can be provided in person at the meetings or in writing via email, USPS mail or by bringing your letter to an upcoming meeting.

The next two meetings of the committee will allow time for public testimony. Both meetings will be held at the Indiana Statehouse in the House chamber on the following dates:

• October 11 at 1pm
• October 25 at 1pm

Submit your comments in writing to:
Sen. John Broden
s10@iga.in.gov
200 W. Washington St.
Indianapolis, IN 46204

Public input sought by study committees

Legislative study committees meet during the summer and fall to allow for comprehensive review of topics that are likely to come before the General Assembly the following year. Public testimony is a key component of the review process. Please note two important upcoming opportunities for submitting your comments and suggestions:

Dept. of Child Services Interim Study Committee
Public comments sought on solutions that can be implemented to make the system respond more quickly and thoroughly to children in need of services, including the centralized state abuse and neglect hotline. Read more about this committee’s work>>

Next meetings: Sept. 24, Oct. 11 and Oct. 25 (meeting details and agendas)

Submit your comments in writing before Oct. 11. Please include your name and address.
Sen. John Broden
S10@iga.IN.gov
200 W. Washington St.
Indianapolis, IN 46204

Outdoor Stage Equipment Safety Committee
Public comments sought on the regulation of outdoor stages and stage equipment. Read more about this committee’s work>>

Next meeting: Sept. 27 (meeting details and agenda)

Submit your comments in writing before Sept. 27. Please include your name and address.
Sen. Tim Lanane
S25@iga.IN.gov
200 W. Washington St.
Indianapolis, IN 46204

Audit Watch: High risk for state mismanagement

The independent audit is expected to reveal a number of problems in the way the state handles money that lead up to the three recent cases of lost and discovered taxpayer dollars totaling $527M. The audit is being conducted by the private firm Deloitte & Touche LLP. The risk assessment is the first step in the process which is expected to wrap up with a final report by mid-December.

Deloitte presented their risk assessment to the State Budget Committee on Monday, Sept. 10, citing 17 of 18 business processes at Dept. of Revenue (DOR) as high or medium risk.

Read the risk assessment report>>

Deloitte also pointed to an “organizational structure” that may not be designed to properly support DOR strategies and goals, more specifically noting inadequately-defined responsibilities, key positions within the structure left vacant or sporadically filled and employees lacking the proper training or access to training plans to acquire needed skills. What’s more, “inflexible and antiquated” tax-processing applications contributed to the DOR’s inability to meet its obligations or pivot and adapt to “the changing environment in which the organization operates.”

These  report indicating potential insufficient levels of staffing and outdated applications comes on the heels of two consecutive departmental reversions totaling more than $8 million. In FY10-11, the DOR reverted more than $6.9 million or 12.9 percent of the agency budget and nearly $1.5 million in FY11-12.

Committee targets outdoor stage safety improvements

On Wednesday, the Outdoor Stage Equipment Safety Committee met to discuss findings from investigative reports conducted following the 2011 State Fair stage collapse. The committee heard testimony from two independent consulting firms hired to provide analysis of the collapse and the procedures in place to ensure public safety. Information from the reports and testimony during the proceedings will be used to make recommendations for permanent outdoor stage equipment inspection and safety regulations during the 2013 General Assembly.

Download the State Fair stage collapse investigative reports (PDF)>>

Both firms pointed to lapses in the design, inspection and construction of the stage equipment involved in the tragedy. A failure in the ballast system designed to hold the stage upright following a 31mph gust of wind triggered the collapse.

Presenters also noted the lack of coordination between the companies designing the structure and actually installing the stage and the ambiguity over who was ultimately responsible for inspection.

View the presentation given during the Outdoor Stage Equipment Safety Committee hearing (PDF)>>

Recommendations included adopting internationally-recognized building standards for temporary structures, encouraging the thorough, and if necessary, third party inspection of as-loaded structures and the requiring of anchored ballast systems.

The committee will meet again on September 27 to discuss the implications outdoor stage equipment standards will have on small communities’ festivals and other events. Lawmakers will look to balance the need to for adequate safety measures and keeping the encumbrance  of additional standards to a minimum.

Update: DCS review focuses on abuse hotline

DCS review hearing Sept. 5, 2012, in the Indiana House chambers

The legislative review of the Department of Child Services continued at the Statehouse today as the committee heard testimony from the DCS Ombudsman, Susan Hoppe.

Download the DCS Ombudsman’s committee presentation (PDF)>>

The committee also heard public testimony on the performance of the centralized abuse hotline.

Committee members’ questions focused largely on the hotline “screen out” process, the decision making point by the DCS central office on whether to send a call to a local DCS office for further investigation.

There is a review process in place whereby calls screened out by the hotline are later sent to a local review team for consideration. In some cases, the hotline decision not to pursue the call is overturned by the local team and a DCS worker is sent to investigate the report. According to today’s testimony, once a call is screened out, a week can pass before a local review team receives notification that the call was not considered worthy of investigation.

Compelling testimony by members of the public, including a family member of a child who died due to drug-related neglect after she had complained to DCS officials for two years and was never told of the ombudsman, was heard when the meeting was opened to public testimony.

Following the committee’s previous meeting, Democrat members sent a series of questions to DCS requesting specific information regarding the hotline and other child protective services. The letter aimed to engage DCS staff and work jointly towards developing solutions that create an effective child welfare system.

Download Democrat members’ letter to DCS requesting hotline and child protective service information (PDF)>>

The Dept. of Child Services provided responses to the Democrat members’ questions as well as noted if the issues would be addressed in future committee meetings.

Download DCS’s response letter (PDF)>>

**PUBLIC TESTIMONY ENCOURAGED**

Testimony can be provided in person at the meetings or in writing via email, USPS mail or by bringing your letter to an upcoming meeting.

The next two meetings of the committee will allow time for public testimony. Both meetings will be held at the Indiana Statehouse in the House chamber on the following dates:

• September 24 at 1pm
• October 11 at 1pm

Submit your comments in writing to:
Sen. John Broden
s10@iga.in.gov
200 W. Washington St.
Indianapolis, IN 46204