Agency to reduce number of senior-level posts

Dec. 2, 2008 -- The Hamilton County Department of Job and Family Services will eliminate two more senior-level positions on Dec. 31 when Assistant Director Ron Kirkendall and Executive Administrator Carol Watson leave the agency.

This move, along with the earlier elimination of the Children’s Services assistant director post, will reduce the organization to three senior-level positions, assistant directors Cynthia Smith and Jeff Startzman and CFO Vaughn Smith.

"Carol and Ron’s decisions presented the organization with an opportunity for cost savings and reduced administrative oversight, goals that were necessary in light of our budget situation," Agency Director Moira Weir said. "We will continue to evaluate all levels of the organization to ensure we are operating efficiently and on target to meet budget goals.

"As with all of the personnel moves we have made over the past month, we are losing valuable members of our organization. I sincerely appreciate Ron and Carol’s dedicated service and incredible contributions to this organization. They will be greatly missed."

As planned, Cynthia Smith will assume oversight of Family and Adult Assistance when Kirkendall leaves. Weir handle Children’s Services’ operations.

Ohio Budget Crisis: Impact on Hamilton County Job & Family Services 

Current Funding Crisis 

JFS funding primarily comes from the state and federal governments. The county only contributes about $1 million a year to JFS. The overwhelming amount of money in the $1.37 billion JFS budget is pass-through money that goes directly to consumers. The money for JFS administrative services is about $86.9 million a year.  

Ohio has forecast a budget shortfall of up to $1.9 billion in this year’s fiscal year budget (7/1/07 to 6/30/09). The shortfall has caused Gov. Strickland to announce two significant budget cuts. One was absorbed by the state, with ODJFS laying off 700 workers, about 20 percent of its workforce. The second impacted counties this fall. It resulted in a nearly 5 percent reduction in funding for Hamilton County JFS, amounting to about $2.6 million in funding. Another 10 to 11 percent cut is expected in the first quarter of the new calendar year.  

The budget forecast for the 2010-2011 biennium, beginning July 1, 2009, is projected to be 10 percent less than the final, depleted current budget. Hamilton County expects a $42 million dollar drop, from $115 million to $73 million, from 2007 to 2011 in money for administrative services.  

The state of Ohio will no longer cover counties that spend more than their annual allocations. Hamilton County has traditionally spent about $10 million more per year for beyond-mandated services to families and children and the state has covered the additional spending with reserves from other counties that do not spend all of their allocations. Hamilton County was told in 2008 it must stop spending that additional money.  

In 2008, welfare reform incentives are no longer available to counties. Hamilton County had totaled $45.6 million in incentives since 2001. 

Children’s Services levy funding will remain at 2001 levels through 2011. Meanwhile, the costs of providing services to children have climbed by at least 3 percent annually during that decade.  

JFS Response 

With a dramatically reduced budget this 2009-2011, JFS will find a way to live within its means and remain good stewards of taxpayer money. With money for administrative services cut 40 percent in five years, JFS, like any other Hamilton County household, must find ways to cut money.  

Money for federally-funded programs such as Food Stamps, Medicaid, Cash Assistance and other pass-through programs will not be impacted. The citizens of Hamilton County will still get the federally-funded assistance they need. 

The cuts will partially come from non-mandated services and by examining the level of mandated services provided. JFS cut more than $15 million from existing contracts and will look to make further cuts next year. 

The cuts will partially come from administrative overhead. A hiring freeze is in place for all non-critical positions. Overtime has been reduced by 50 percent and more flexible work schedules were introduced. Extended hours have been reduced. A Retirement Incentive Plan is being considered. 

Layoffs were necessary. JFS is already operating in the 2009 state fiscal year budget, which began in July of 2008. Even with all those changes, the dramatic drop in funding required quick action and 180 positions were eliminated in Nov.-Dec. 2008. 

Staff reductions are focused in support and administrative positions. To this date, few front-line positions have been eliminated. 

These decisions are tough on everyone. JFS never wanted to be in this position. But it must live within its means. Eliminations are not performance based or aimed at any particular employees. Unfortunately, a lot of hard-working and valuable employees have left us because of the state budget cuts.  

Creative solutions may not be possible. The money JFS receives from the federal and state governments is prescriptive and must be used for intended purposes. Across-the-board paycuts, shortened work weeks or furlough weeks would require state and federal approval and could not violate civil service law.