Topeka—Kansas Department of Social and Rehabilitation Services (SRS) Secretary Janet Schalansky announced today a list of cuts the agency will make to cope with the state budget crisis. Last week, Governor Graves announced that he was imposing an allotment on state agencies to significantly curb current year state spending as state revenues continue to fall short of expectations. This is the second time this fiscal year that Governor Graves has been forced to impose an allotment on state agencies. In August, the Governor asked state agencies to trim $41 million from current year spending. The SRS portion of the August allotment was $6 million (state general funds). Last week, state agencies were asked to further reduce current year spending by $78 million.

The SRS portion of the November allotment is $26.6 million (state general funds). For every dollar the state invests in social services, SRS receives additional dollars for funding social services from the federal government. By reducing SRS' state general funding by $26.6 million, SRS is actually losing a total of $49.0 million in all funds.

"These cuts are extremely difficult and painful to make. Kansans who rely on SRS for social services will notice immediate cuts in services," said Secretary Janet Schalansky. "I wish there were other options available to us to save money. We ran out of easy solutions to the state's budget woes long ago."

SRS is making 91 specific reductions in five categories totaling $26.6 million. Categories and some major cuts within each category include:

• Reduce Administration—Hold one out of eight staff positions vacant; cut back administrative and information technology costs; reduce travel and cut back on supplies. Total administrative reduction: $8.4 million state general funds; $15.6 million all funds.
  
  
• Reduce Community-Based Grants and Contracts—reduce child care grants for quality initiatives and Early Head Start; reduce grant funding to community mental health centers and community developmental disability organizations. Total grant and contract reduction: $6.5 million state general funds; $8.9 million all funds.
  
  
• Reduce Eligibility for Services—tighten eligibility to receive child care services and waiver services (physical disability, developmental disability, and head injury). Total eligibility reduction: $1.4 million state general funds; $3.5 million all funds.
  
  
• Reduce Rates Paid to Providers— reduce reimbursement rates paid to providers of child welfare services, waiver services (physical disability, developmental disability, and head injury), hospitals, pharmacies, and medical transportation providers. Total rate reduction: $4.5 million state general funds; $9.1 million all funds.
  
  
• Reduce Services— limit number of brand-named prescription drugs covered by Medicaid; limit prescription drugs to 31 day supply; triple HealthWave health insurance premiums; reduce physical and developmental disabilities waiver funding; reduce family preservation services; eliminate case management services for at-risk children not yet in SRS custody; eliminate other non-mandated medical services for adults such as vision/audiology coverage and incontinence supplies. Total service reduction: $5.8 million state general funds; $12.0 million all funds.

"These are extremely distasteful budget cuts to make—the hardest cuts SRS has ever had to make. SRS partners, stakeholders, consumers, staff need to work together to get through this difficult time," said Schalansky.

Schalansky said that her team tried to remain true to the mission of the agency—to protect children and promote adult self-sufficiency— when making these budget cuts. She feels the agency can still accomplish its core mission, however, these budget cuts shrink the safety net that the state provides to vulnerable and needy Kansans. Most budget cuts will take effect in January 2003.

More detail on SRS budget reductions is available on the SRS website at www.srskansas.org.

Summary of Allotment Reductions