The availability of emergency assistance twice annually and the new medical component, as well as growth in interim assistance and the unemployable cases are expected to increase expenditures in FY 2003 and FY 2004.

• State and Local Hospitalization reimburses hospitals for in-patient and outpatient care for low-income County residents who are not eligible for Medicaid.  Funding for the program varies, generally averaging 75 percent state and 25 percent County, with only the local share showing in the County budget.  The state allocates the amount of funding annually with the local share changing based on availability of state funds.

• Auxiliary Grants provides payment for the custodial care of low income aged, disabled, or blind adults living in licensed adult care homes. Clients are County residents who reside in licensed residences throughout the state. Grants are paid monthly to cover the costs above the client's monthly income. Recipients also receive Medicaid. The funding ratio is 80 percent state and 20 percent County.

FEDERAL AND STATE FUNDED PROGRAMS:  The following programs are mandated and funded in their entirety by state and/or federal funds:

• The Refugee Assistance Program assists refugees with their expenses for eight months while they resettle in the United States and become self-sufficient. The program provides a basic grant for newly arrived refugees who do not qualify for assistance through Temporary Assistance for Needy Families.  Medicaid benefits are automatically provided to persons included in the grant.  This program is 100% federally funded.

• Temporary Assistance for Needy Families (TANF) provides financial support to families where children live in the home of a parent(s) or close relative who is unable to provide adequately for their needs. Assistance can be provided for children up to age 18 and to their parents in the home.  As part of the Virginia Initiative for Employment not Welfare (VIEW), able-bodied adult parents are required to actively participate in employment activities unless they meet strictly defined exemption criteria. Other families are encouraged to work with services that promote self-sufficiency.  TANF provides a monthly grant, with families generally eligible for Medicaid.   There is a two-year time limit to receive assistance for those not exempt from the work requirement, followed by a two year disqualification period.

Caseloads and applications are expected to remain the same.  Total state and federal expenditures are estimated at $1,200,000 and are paid directly by the state to the clients.  Funding is state and federal.

• The Food Stamp Program provides additional food purchasing power to low-income County residents.  Since March 2002 benefits are provided through the Electronic Benefit Transfer (EBT) statewide issuance method.  Each client receives a debit card which is credited monthly with their food stamp benefit.  The income levels and the deductions given are adjusted annually based on the Consumer Price Index.  In FY 2004, a total of $3,400,000 is expected to flow to County residents. Benefits are 100% federal.

• Medicaid provides medical insurance for low-income residents who are aged, blind, disabled, pregnant, and for children up to 19 years old enabling them to receive medical care.  The program covers prescription drugs, physician's visits, in-patient and outpatient hospital care, nursing home, and preventive care.  Medicaid also pays for part B Medicare premiums, co-payments and deductibles.  Medicaid income and resource guidelines, as well as services covered vary with the category of Medicaid received. Medicaid expenditures on behalf of County residents in FY 2002 were $45,469,726. Medicaid expenditures do not flow through the County.

• The Family Access to Medical Insurance Security Plan (FAMIS) was administered by the state for one year, from August 2001 to September 2002. In September, the responsibility for intake for the program returned to the local agency, although the continuing casework is handled by the state.  This program provides medical coverage for low-income children without health benefits. It is anticipated that 750 children whose income is too high for Medicaid will be served by the program in FY 2004.

• The Energy Assistance Program pays a portion of primary fuel costs for eligible households.  Payments are made directly to the vendor by the state and are based on family income and size.  The program paid $82,984 for Arlington County residents in FY 2002. This funding does not flow through the County budget.  Funding is 100% federal.

SIGNIFICANT BUDGET HIGHLIGHTS:

• Due to state budget cuts affecting Public Assistance programs, the General Relief program budget has been reduced by $20,394. Based on caseload projections, this reduction should not impact client services.

• Increase in personnel is due to normal step increases, reclassifications and hiring new staff at above entry level.

• Non-Personnel costs increase due to rent increase ($12,634) and telephone charges ($21,435).

• Public Assistance expenditures decrease due to reductions in Auxiliary Grants ($35,344), General Relief ($39,404, including the reduction noted above), offset by State/Local Hospital increases ($17,356).

• State Share revenue reimbursement from the Virginia Department of Social Services decreases, based on the Departmental allocation of FY 2003 allocated funds and pass through projections.

• Other Grants increases based on anticipated reimbursement for the Virginia Hospital Center – Arlington contract ($8,874).

• Public Assistance revenue decreases ($36,998) due to Auxiliary Grants and General Relief projected expenditure reductions.