Idaho’s Health and Welfare head says economy is creating record demand for public aid

Economy causes record demand for Idaho public aid

BOISE, Idaho — High unemployment caused by the recession has created unprecedented need statewide for food stamp aid and other public assistance programs, the chief of Idaho’s Department of Health and Welfare said Tuesday.

At the same time, Health and Welfare Director Richard Armstrong said the threat of another midyear budget cut may force the agency to lay off workers and shutter some of its offices across the state — as worker caseloads continue to swell.

The agency is processing more than 9,000 new food stamp applications each month, a record level and a 55 percent increase from 2007. More than 179,6000 people or families are enrolled in the program, up 106 percent from more than 87,000 in 2007. Demand for Medicaid programs is up 13 percent from three years ago and child support cases are up 9 percent, according to agency figures.

“Most of the people coming in today are people who have never applied for public assistance before,” Armstrong told the lawmakers on the Joint Finance Appropriations Committee Tuesday.

The agency has submitted a $2.1 billion budget request for fiscal year 2011, up slightly from the $2.05 billion for 2010. Of the 2011 request, more than 66 percent comes from federal matching dollars, grant programs and Medicaid. The 2011 budget asks for $7 million less in personnel costs and $18 million less for the agency’s operating budget compared to this year’s budget.

But having to do more with less — when the state unemployment rate is at 9.2 percent — and an increase in people looking for government assistance are taking a toll on employees and the agency’s ability to carry out its mission, Armstrong said. He testified that some of the agency’s more than 3,100 employees have been working extra hours, on weekends or giving up vacation time to help clients.

Cuts in agency funding have also magnified the loss of federal support. Every state dollar cut translates to a $3.75 loss in federal matching money, and budget cuts this fiscal year have left the agency unable to cash in on more than $68 million in federal funds, he said.

Like other state agencies, Health and Welfare has already responded to an overall $40 million midyear spending cut imposed by Gov. C.L. “Butch” Otter earlier this year. But Otter and lawmakers have warned that another round of holdbacks may be looming to help offset revenue declines.

In response, Armstrong announced last week that agency offices statewide would begin closing at noon every other Friday through June 11 to save an additional $1.6 million.

Armstrong told lawmakers on Tuesday his agency has already drained operating costs and imposed new policies and procedures to save money and be more efficient. And those efforts won praise from Sen. Dean Cameron, R-Rupert and chairman of the budget committee.

“Until recently, I have been proud to see the progress. But our productivity gains cannot keep pace with the rapid increase in the number of people eligible for services. Every month we set records.” Armstrong told the committee. “We can no longer guarantee changes will result in good public policy as we struggle with the enormity of the deficit.”

He warned the agency may begin looking at closing offices around the state or laying off workers, options that could further undermine its ability to serve Idaho’s needy.

The agency’s struggles frustrated committee Democrats.

“We need to ask ourselves seriously if families like mine that are doing OK shouldn’t help bear the burden,” said Sen. Nicole LeFavour, D-Boise. “When we say we don’t have any alternative but to cut we’re being disingenuous.”