Governor Murkowski has now announced his final FY 04 budget plan,consistent with his stated intent to extend the life of ourConstitutional Budget Reserve by drawing down no more than $400 millionfrom our reserves this next fiscal year. In so doing, the Governor willexercise his power of the veto, reducing the budget passed by thelegislature by some $130 million in state funds.
Fortunately additional unanticipated federal funding included in therecently enacted federal tax relief bill will help maintain coreservices for Alaskans. The department will benefit from $12 million innew federal Medicaid funds that will replace a portion of our $21.2million in general fund reductions-excluding the reduction of $44.8million that reflects the phase-out of the Alaska Longevity
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Bonus program
Still, the budget poses a challenge for all of us. For a (thankfullysmall) number of our employees, it means the loss of a job. And tothose employees I pledge to you that the department will do everythingpossible to assist you to find another job within DHSS, another agencyof state government, or otherwise help you through this transition.
For program managers, the challenge is to continue to meet the needs ofour clients in the most financially responsible manner. To this end,the Governor's vetoes of funding for client services have been tailoredto complement and reinforce our department's reorganization plan. It ismy hope and expectation that the efficiencies and service improvementsthat will flow from our restructuring-both within the department and atthe community level-will in part offset the impact of reduced funding.
Looking at the budget as a whole, I am comfortable that a good balancehas been struck between internal/administrative reductions and vetoesthat impact client services. We cannot ask our clients to sacrificewithout tightening our own belt as a department.
Finally, I want to thank all the department staff in every division whospent countless hours and sleepless nights working on the budget. Iappreciate your commitment to the department and to the thousands ofAlaskans we all serve.
Some Highlights:
* Several Divisions (Behavioral Health, Public Assistance, andSenior and Disability Services) have reduced staff based on continuingexamination of new organization structure to reduce layers ofmanagement, eliminate duplication and provide for efficient managementof services. Goals of these changes are to minimize impact on field anddirect services.
* No divisions were spared from participating in vetoes, and theCommissioner's Office and Administrative Services have reductions aswell. In all 42 positions are reduced during this process.
* The Department saved almost $150,000 with a reduction of theWellness contract.
Wellness Program
Earlier this year we conducted an employee satisfaction survey on thedepartment's wellness program. About 28% of the department's employeesresponded to the questionnaire.
While there is significant support for the concept of a departmentwellness program there is also widespread dissatisfaction with thecurrent program. Although just over 50% of the respondents indicatedthey had participated in a wellness program activity, almost 70%indicated they had not changed personal health habits as a result oftheir participation.
The most frequent comment received was that the wellness contract shouldbe cancelled. One employee wrote, "I don't think the contract should becontinued since the budget is being cut and we have to cut services."
The contract will be cancelled for next year. I would welcomesuggestions on how we might implement a "no-cost" employee wellnessprogram in the future.
Reorganization Update
With July 1 only a couple of weeks away, the department's reorganizationefforts are in high gear. Dr. Moline is meeting with divisionadministrative managers and working closely with our procurement officeto make certain that the movement of staff between programs andlocations is accomplished as smoothly as possible and all aspects ofcost and movement are documented and evaluated.
One strategy we are exploring to minimize the physical movement ofoffices and staff is to make greater use of technology that will allowemployees to electronically communicate more information both withintheir division as well as across divisional lines.
In other news, the Information Technology group, including the WebMaster Team, have been meeting regularly, and effective July 1, 2003,all restructured Divisions will have their web sites updated and online.
As always, we welcome your questions as the reorganization continues.You may submit questions directly to Dr. Moline on the department'sintranet at:http://www.partners.hss.state.ak.us/reorganization/faq.cfm
Sincerely,
Joel Gilbertson, Commissioner